MANAGING

DECISION MAKING &

PROBLEM SOLVING
GROUP 5
Presented by: Bulawin, Christle Faith
Genilla, Jissa Mae
Pitogo,Jilbert
See, Shann Kevin
 SUBTOPICS
NATURE OF BEHAVIORAL
DECISION MAKING ELEMENTS IN
DECISION MAKING

RATIONAL GROUP AND TEAM

PERSPECTIVE ON DECISION MAKING IN
DECISION MAKING ORGANIZATION
"All we can really control is
the process and the
decision making that comes
from that."

-Sig Mejdal
 NATURE OF
DECISION
MAKING
the act of choosing one alternative
from among a set of alternatives.
can refer to either a specific act or a
general process.
DECISION MAKING PROCESS
includes recognizing and defining the nature of a
decision situation, identifying alternatives, choosing the
"best" alternative, and putting it into practice.

Effective Decision Making

requires the decision maker understand the
situation driving the decision.
optimize set of factors
minimize loss
 TYPES OF DECISIONS
1. PROGRAMMED DECISION
one that is relatively structured or recurs
with some frequency.
Examples:
Starbucks uses programmed decisions to
purchase new supplies of coffee beans,
cups, and napkins

Jollibee crews are trained in exact

procedures for preparing meals.
TYPES OF DECISIONS
2. NONPROGRAMMED DECISION
are relatively unstructured and occur
much less often.
intuition and experience are major factors.

Examples:
Decisions made by top managers involving
strategy or organization designs

Decisions about new facilities, new products or

labor contracts.
 DECISION MAKING
CONDITIONS
The decision maker faces
conditions of:

Certainty Risk Uncertainty

Chances of making bad decisions

Lower Moderate Higher
Decision Making under Certainty
When decision maker knows with reasonable certainty what
the alternatives are and what conditions are associated with
each alternative, a state of certainty exists.

Decision Making under Risk

the availability of each alternative and its potential payoffs
and costs are all associated with probability estimates.

Decision Making under Uncertainty

The decision maker does not know all the alternatives, the
risk associated with each, or the consequences of each
alternative.
 RATIONAL
PERSPECTIVES
ON
DECISION MAKING
 "Nothing is more difficult,
and therefore more
precious, than to be able to
decide."
-Napoleon Bonaparte
 THE CLASSICAL
MODEL OF DECISION
MAKING
is a prescriptive approach that tells
managers how they should make
decisions. It rests on the assumptions
that managers are logical and rational
and that they make decisions that are
in the best interests of the
organization.
 THE CLASSICAL MODEL OF
DECISION MAKING
Obtain complete and .... and end up
When faced with a
perfect information with a decision
decision
eliminate uncertainty that best serves
situation,managers
evaluate everything the interests of the
should..... rationally and logically organization.
 STEPS IN RATIONAL
DECISION MAKING
1. RECOGNIZING AND DEFINING THE
DECISION SITUATION
Some stimulus indicates that a decision must be made. The
stimulus may be positive or negative.

2. IDENTIFYING ALTERNATIVES
Both obvious and creative alternatives are desired. In general, the more
important the decision, the more alternatives should be generated.
 STEPS IN RATIONAL
DECISION MAKING
3. EVALUATING ALTERNATIVES
Each alternative is evaluated to determine its feasibility,
its satisfactoriness, and its consequences.

Is the alternative Is the alternative Are the alternative's Retain for further
consequence
feasible? satisfactory? consideration.
affordable?

Eliminate from Eliminate from Eliminate from

consideration. consideration. consideration.
 STEPS IN RATIONAL
DECISION MAKING
4. SELECTING AN ALTERNATIVE
Consider all situational factors and choose the alternative
that best fits the manager’s situation

5. IMPLEMENTING THE CHOSEN ALTERNATIVE

The chosen alternative is implemented into the
organizational system
 STEPS IN RATIONAL
DECISION MAKING

6. FOLLOWING UP AND EVALUATING THE

RESULTS
At some time in the future, the manager should ascertain
the extent to which the alternative chosen in step 4 and
implemented in step 5 has worked.
GROUP DECISION MAKING

created by salford.co
 WHAT IS GROUP DECISION MAKING?
Group decision making is a situation faced when
individuals collectively make a choice from the
alternatives before them.

This decision is no longer attributable to any

single individual who is a member of the group.
TYPES OF GROUP DECISION
MAKING
Consensus Majority

where all members When the

of the group agree
on a decision majority of the
group agrees
on a decision
 1. Compared to an
individual, the groups
2. Larger number
generally have a of members
greater knowledge, provide more
expertise, & skill base perspectives of
to documents, and
make better
the problem.
decisions.

3. With larger 4. Following increased

number of group participation,
members, the comprehension of final
participation decision arrived at is
THE ADVANTAGES also increases
that helps reach
usually high.
quality decision.
 DISADVANTAGES

Influencing Sometimes decisions

It is a time members usually made by the group

manipulate the members are simply
consuming group decision in a
a compromise
between the various
process direction of their views & options
interest & liking. offered by the group
members.
 NOT M !
ES F O R TE A

Different Processes of Group Making Decisions

 MAKING P
N

DECISIO

ROC
ESS
Diagnose the Problem Developing Alternatives

Implement and monitor

Evaluate the Alternatives
the decision.
 Brainstorming

Generate as much Build Upon Earlier Withhold

Be Creative
Ideas As Possible Ideas Criticism
 Nominal Technique

Each member
Discuss Opinions Members vote on
writes down the Members Present
on Ideas the their favorite
Ideas on the their ideas
simultaneously Idea
decision/problem
 Delphi Technique

Responses of all Generate new

members offer
group members solution based on
solution using a
Identify Problem are compiled and responses. Repeat
specially designed
sent out to all 3 and 4 until
questionnare
group members. consensus is
reached.