Institute of

Management
Trimester III (2015-17)
MBA 347 Decision
Making

Prof. Vedha Balaji

1

Prof. Ram Mohan

Prof. Rupesh Kumar Jain

Content

Syllabus
Course Plan
Rubrics for Case Presentation
Rubrics for Article Review
Case Studies
Case-Coolidge Inc A
Case-Airbus vs. Boeing (E): 2001
HBR Article-Hidden Traps in Decision Making

Page 3
Page 5
Page 9
Page 10
Page 11

MBA 347 Decision Making

2 Credits

Course Description
This is a choice based core course for two credits during third trimester. All managers are
decision managers, intentionally or not, they take actions that affect how and how well the
people in their companies make decisions. Decision making has evolved in recent years to be
increasingly synthetic and this course will bring together the diverse ingredients of personal and
professional decision making styles. This course provides concepts and tools of decision making
for people who seek to make a significant difference in their organisations. The course has a
strong emphasis on the decision process while providing practical, focused and innovative
solutions to the pressing problems of todays business. The discussion of the social aspects and
methods of participation in decision support system contributes to the understanding of the big
picture of this field. From this perspective, decision management is a core managerial
responsibility, but one too few managers recognize as such.
Learning Outcomes
To make students understand the importance of decision making and its impact on business.
To equip students with knowledge of decision making tools and their applications.
Level of Knowledge
Students must have a conceptual knowledge of decision making and its importance in
contemporary business scenarios.
Unit I Introduction to Decision Making
(6 Hrs)
Basic concepts of decision making, the art of decision management, fundamentals of DM, the
strategy pyramid, The DM portfolio, drivers of poor decision management, the 10 cardinal
decision issues and reviews, rationalistic versus evolutionary strategic decision making, players
in a decision, representation of decision problems. Background reading*, exercises and questions
for discussion.
Unit IIStrategic Decision Analysis
(6 Hrs)
Introduction to strategic decision analysis, The decision analysis cycle, Sensitivity analysis,
expert and stakeholder opinions, risk analysis, cost benefit analysis*, public perception and risk
communication, deliberative democracy and public participation, good heuristics for decision
analysis,Arrows impossibility theorem, game theory, negotiation and bargaining.
Unit III Rational Decision Making
(4 Hrs)
The Importance and Limitations of Rational Decision Making: Limited or bounded rationality.
The Decision Process: Five key steps
3

Step 1: Establish a context for Success

Step 2: Frame the issue properly
Step 3: Generate Alternatives
Step 4: Evaluate the Alternatives
Step 5: Choose the Best Alternative:
The 3 Approaches - Experience, Experimentation, Research and Analysis
Quantitative and qualitative factors, marginal analysis, cost effective analysis.
Unit IV Decision Analysis & Uncertainity
(6 Hrs)
Modelling Uncertainity, utility model, risk attitude, Subjective Expected Utility (SEU)
modelling, decision tress and influence diagrams. Programmed and Non-Programmed decisions,
the Uncertainty Problem: How to deal with unknowns, Human Foibles**: How to counter
tendencies that can ambush your decision, Organizational Traps**: The Madness and wisdom of
crowds
UNIT V Decision Support Systems
(8 Hrs)
Artificial Intelligence (AI) technologies and expert systems, knowledge management, statistics
and decision support. Group DSS, Intelligent DSS, Design of DSS*, evaluation of DSS,
Operation research based DSS, Decision support software and systems, value focused thinking
and systems,
[Total 30 Hours]
Essential Reading
French, Simon. Maule, John. &Papamichail, Nadia. (2010). Decision Behaviour, Analysis and
SupportNew Delhi: Cambridge University Press.
Recommended Reading
1. Hammond, J.S., Keeney, R.L. &Raiffa, H.(January, 2006). The Hidden Traps in Decision
Making. Harvard Business Review.
2. Yates, Frank J. (2008). Decision Management New Delhi: Wiley Publications.
3. Gopalakrishna, R.S. (2009). The case of the bonsai manager. Penguin Books India.
4. Decision Making 5 Steps to Better Results. Harvard Business Series.
Evaluation Pattern
CIA I
Quiz/Q&A
Case Study

10 marks
10 marks

Mid-Trimester Exam

50 marks

CIA II
CIA III
Article Review
Group Presentation
Attendance

10 marks
10 marks
10 marks
4

End Term Exam

100 marks

* Self-Learning Module
**Ethical Issues

MBA 2014-2016
2 Credits
Trimester III MBA 347 Decision Making
Course Plan
Faculty: Prof. Vedha Balaji
1. Course Overview
This course provides concepts and tools of decision making for people who seek to make a
significant difference in their organisations. The course has a strong emphasis on the decision
process while providing practical, focused and innovative solutions to the pressing problems of
todays business. The discussion of the social aspects and methods of participation in decision
support system contributes to the understanding of the big picture of this field.
2. Course Learning Outcomes

To make students understand the importance of decision making and its impact on business.
To equip students with knowledge of decision making tools and their applications.

3. Prescribed Text
French, Simon. Maule, John. &Papamichail, Nadia. (2010). Decision Behaviour, Analysis and
SupportNew Delhi: Cambridge University Press.
4. Reference Books
5. Hammond, J.S., Keeney, R.L. &Raiffa, H.(January, 2006). The Hidden Traps in Decision
Making. Harvard Business Review.
6. Yates, Frank J. (2008). Decision Management New Delhi: Wiley Publications.
7. Gopalakrishna, R.S. (2009). The case of the bonsai manager. Penguin Books India.
Decision Making 5 Steps to Better Results. Harvard Business Series.
5. Session Content and Schedule
Syllabus Unit

Topic Breakup

Hours

Assignments
/Activities

Reading References
from prescribed text

Unit I
Introduction to

Basic concepts of decision

making, the art of decision

1.5

Lecture

Chapter 1
5

Decision
Making (6 Hrs)

management;
Fundamentals of DM, the 1.5
strategy pyramid, The DM
portfolio, drivers of poor
decision management

Lecture/Discuss
ion

Chapter 1

The 10 cardinal decision

issues and reviews,
rationalistic versus
evolutionary strategic
decision making,

1.5

Lecture/Discuss
ion

Chapter 1

players in a decision,
representation of decision
problems.

1 .5

Lecture/Discuss
ion

Chapter 1

Unit
II Introduction to strategic 1 .5
Strategic
decision
analysis,
The
Decision
decision analysis cycle,
Analysis(6 Hrs)
Sensitivity analysis, expert
1.5
and stakeholder opinions,
risk analysis, cost benefit
analysis*

Lecture/Discuss
ion

Chapter 10

*Self-learning

Chapter 10

Unit
III
Rational
Decision
Making(4 Hrs)

public perception and risk

communication, deliberative
democracy and public
participation,

1.5

Lecture/Discuss
ion

Chapter 13;

good heuristics for decision

analysis, Arrows
impossibility theorem, game
theory, negotiation and
bargaining.

1.5

Lecture/Discuss
ion; Case
reading

Chapters 3 & 11; Airbus

vs. Boeing (E): 2001

The
Importance
and 1
Limitations
of
Rational
Decision Making: Limited or
bounded rationality.

Lecture/Discuss
ion

Decision Making 5
Steps to Better Results.
Harvard Business Series.

The Decision Process: Five 3

key steps
Step 1: Establish a
context for Success

Lecture/Discuss
ion

Decision Making 5
Steps to Better Results.
Harvard Business Series.

Step 2: Frame the

issue properly
Step 3: Generate
Alternatives
Step 4: Evaluate the
Alternatives
Step 5: Choose the
Best Alternative:
The 3 Approaches Experience,
Experimentation, Research
and Analysis
Unit IV
Decision
Analysis
&Uncertainity
(6 Hrs)

Modelling Uncertainity,
utility model, risk attitude,
Subjective Expected Utility
(SEU) modelling

1.5

Lecture/Discuss
ion

Chapter 8

decision tress and influence

diagrams

1.5

Case reading

Chapter 8; Case-Coolidge
Inc A

Programmed and NonProgrammed decisions, the

Uncertainty Problem: How
to deal with unknowns,
Human Foibles

1.5

Lecture/Discuss
ion

Decision Making 5
Steps to Better Results.
Harvard Business Series.

How to counter tendencies 1.5

that can ambush your
decision,
Organizational
Traps**: The Madness and
wisdom of crowds.

Lecture/Discuss
ion

Decision Making 5
Steps to Better Results.
Harvard Business Series.

1.5

Lecture/Discuss
ion

Chapter 5

1.5

Lecture/Discuss
ion

Chapter 4

*Self-learning

Chapter 14

Lecture/Discuss

Chapter 6

UNIT V
Artificial Intelligence (AI)
Decision
technologies and expert
Support
systems,
Systems (8 Hrs)
knowledge management,
statistics and decision
support.
Group DSS, Intelligent DSS,
Design of DSS*, evaluation
of DSS,
Operation

research

based 1

DSS,

ion

Decision support software

and systems,

1.5

Lecture/Discuss
ion

Chapter 3

value focused thinking and

systems

1.5

Lecture/Discuss
ion

Chapter 5

6. CIA I
January 31, 2016
Quiz/Q&A
Case Study

10 marks
10 marks

Unit I: Introduction to Decision Making

Case will be given in class

7. CIA II
Mid-trimester Examination: February 13-17, 2015
Syllabus: Unit 1, 2 and 3
8. CIA III
Article Review
Group Presentation

10 marks HBR Article-Hidden Traps in Decision Making

10 marks Topics will be given in class

End-term Examination: March 22-31, 2016

Syllabus: Units 1 to 5
Evaluation Pattern
Refer to rubrics in the course pack for CIA I and III components
Mid-term Question Paper Format : Marks 50 Time : 2 hours
Section A -4 out of 6 questions (4 x 10= 40 marks)
Section B - Case study compulsory question 10 marks (1x10= 10 marks)
End-term Question Paper Format: Marks 100 Time: 3 hours
Section A - 5 out of 7 questions (5 x 7=35 marks)
Section B 3 out of 5 questions (3x15=45 marks)
Section C Case study compulsory question (1x20=20 Marks)
Questions from self-learning content and modules would be included in the above mentioned
pattern

Rubric for Case Study Grading for Classroom Discussion and Presentation
Item
1. Evidence of preparation (organized presentation,
presentation/discussion flows well, no awkward pauses or confusion
from the group, evidence you did your homework)
2. Content (group presented accurate & relevant information,
appeared knowledgeable about the case studies assigned and the topic
discussed, offered strategies for dealing with the problems identified
in the case studies)
3. Analysis (group organizes information logically and deduces
meaningful insights using theoretical concepts)
4. Delivery (clear and logical organization, effective introduction
and conclusion, creativity, transition between speakers, oral
communication skillseye contact)
5. Discussion (group initiates and maintains class discussion
concerning assigned case studies, use of visual aides, good use of
time, involves classmates)

Score
2 3 4

2 3

2 3

2 3

2 3

Total Score: ________ (sum of Items 1-5)

Rubric for Article Review Grading

Score
Articles

SUMMARY
Theme

4
Information is
gathered from
multiple,
research-based
sources.

3
Information is
gathered from
multiple
sources.

2
Information is
gathered from
a limited
number of
sources.

1
Information is gathered
from a single source.

Well organized,
demonstrates
logical
sequencing and
structure.

Weakly
organized
with no
logical
sequencing or
structure.
There is some
indication of
conclusions
from the
evidence
offered.
Research
question(s)
were not
formed but
could be
formed
through the
literature
review.

No organization,
sequencing, or structure.

Information is
cited, but has
errors.

Information is not cited

or is cited incorrectly.

Background/Foundation

Detailed
conclusions are
reached from the
evidence
offered.

Well
organized, but
demonstrates
illogical
sequencing or
structure.
Conclusions
are reached
from the
evidence
offered.

Research Question

Research
question(s) are
formed through
the literature
review and
clearly stated.

Research
question(s)
are formed
through the
literature
review.

Reference Sheet

Information is
cited properly
and in APA
format.

Information is
cited properly.

No conclusions are made

from the evidence
offered.

Research question(s)
were not formed and are
not apparent from the
literature review.

Total Score: ________ (sum of Items 1-5)

10

11