No sensible decision can be made any longer without taking into account not only the world as it is,

but the world as it will be. . . -Isaac Asimov

What is Decision Making?

Decision making produces a final choice . It begins when we need to do something but we do not know what to do. Shopping, deciding what to eat, What to wear, when to sleep, etc..

Decision-making Process
1. Identifying a problem 2. Gathering information 3. Developing alternatives 4. Weigh alternatives 5. Selecting an alternative 6. Implementing the alternative 7. Monitor the progress 8. Review the results

Problem Definition
Problem is a difference between an existing position and a desired position. Example: The manager has resigned, and we need another manager Here the phrase manager has resigned reflects the problem while need another manager represents a desired state .

Gathering information
Who is affected by the problem, or its solution. Begin with yourself. Look at the facts not just feeling. Facts & data. Doing research by asking experienced person and looking at proven data. Observed events, past or present, either personally observed or reported

Developing Alternatives
Think about the possible alternatives (or choices) that would resolve the problem.

In our case, the alternatives would be a list of candidates or job applicants.

Look at your problems in different ways; find a new viewpoint that you haven't thought of before. Brainstorming, or taking note of alternatives no matter how silly.

Weigh Alternatives
evaluate the advantages and disadvantages of each alternative. Think through each solution and consider how, when, and where you could accomplish each. Consider both immediate and longterm results.

Selecting an alternative
Involves choosing the best alternative, based on the one that has the most advantages and least disadvantages

Implementing the Alternative

Putting the decision into action

Monitor the progress to determine whether the decision was appropriate. To see if you are meeting the desired state or goals. Hows it working out thus far.

Evaluation
Look at the of the consequences. Did you achieve what you wanted.

In case of any undesired results, each step of the process is carefully reviewed to see where they went wrong

State a problem and make a decision using the decision making process. Ensure to follow each step and describe how?

6 C's of Decision Making

1. Construct.

2. Compile.
3. Collect. 4. Compare. 5. Consider. 6. Commit.

Construct a clear picture of precisely what must be decided. Compile a list of requirements that must be met. Collect information on alternatives that meet the requirements. Compare alternatives that meet the requirements. Consider the what might go wrong factor with each alternative. Commit to a decision and follow through with it.

The Decision making model

Classify and define problem or opportunity

Set objectives and criteria

Generate creative and innovative alternative

Analyze alternatives and select the most feasible

Plan and implement the decision

Control the decision

1. Define and diagnose the problem 7. Follow up and control

2. Set goals

6. Implement the solution selected 5. Choose among alternative solutions

External and internal Environ. forces 4. Compare and evaluate solution

3. Search for alternative solutions

Decision-Making Steps
When in an organization and faced with a difficult decision, there are several steps one can take to ensure the best possible solutions will be decided. These steps are put into seven effective ways to go about this decision making process . The first step - Outline your goal and outcome. This will enable decision makers to see exactly what they are trying to accomplish and keep them on a specific path. The second step - Gather data. This will help decision makers have actual evidence to help them come up with a solution. The third step - Brainstorm to develop alternatives. Coming up with more than one solution enables you to see which one can actually work.

The fourth step - List pros and cons of each alternative. With the list of pros and cons, you can eliminate the solutions that have more cons than pros, making your decision easier. The fifth step - Make the decision. Once you analyze each solution, you should pick the one that has many pros (or the pros that are most significant), and is a solution that everyone can agree with.
The sixth step - Immediately take action. Once the decision is picked, you should implement it right away.

The seventh step - Learn from, and reflect on the decision making. This step allows you to see what you did right and wrong when coming up, and putting the decision to use.

Pareto analysis
This is the idea that 80% of tasks can be completed in 20% of the disposable time. The remaining 20% of tasks will take up 80% of the time. This principle is used to sort tasks into two parts. The 80-20-rule can also be applied to increase productivity: it is assumed that 80% of the productivity can be achieved by doing 20% of the tasks. Similarly, 80% of results can be attributed to 20% of activity. If productivity is the aim of time management, then these tasks should be prioritized higher.

Pareto's Principle, the 80/20 Rule, should serve as a daily reminder to focus 80 percent of your time and energy on the 20 percent of you work that is really important. Don't just "work smart", work smart on the right things

SWOT analysis (alternately SLOT analysis) is a strategic planning method used to evaluate the Strengths, Weaknesses/Limitations, Opportunities, and Threats involved in a project or in a business venture.

It is also a powerful strategic planning tool used to evaluate a project or in a business venture or in any other situation of an organization or individual requiring a decision in pursuit of an objective. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. 1. Internal factors The strengths and weaknesses internal to the organization.
2. External factors The opportunities and threats presented by the external environment to the organization.

SWOT Analysis Strategic Use Orienting SWOTs to An Objective - If SWOT analysis does not start with defining a desired end state or objective, it runs the risk of being useless. If a clear objective has been identified, SWOT analysis can be used to help in the pursuit of that objective. In this case, SWOTs are:

Strengths
Attributes of the organization that are helpful to achieving the objective.

Weaknesses
Attributes of the organization that are harmful to achieving the objective.

Opportunities
External conditions that are helpful to achieving the objective.

Threats
External conditions that are harmful to achieving the objective.

SWOT Analysis Creative Use

Creative Use of SWOTs If the objective seems attainable, the SWOTs are used as inputs to the creative generation of possible strategies, by asking (usually in groups) and answering each of the following four questions, many times: Strengths How can we use each Strength? Opportunities How can we Exploit each Opportunity? Weaknesses How can we Stop each Weakness? Threats How can we Defend against each Threat?

SWOT Analysis Errors to Be Avoided

Conducting a SWOT analysis before defining and agreeing upon an objective (a desired end state). SWOTs should not exist in the abstract. They can exist only with reference to an objective. Opportunities external to the company are often confused with strengths internal to the company. They should be kept separate. SWOTs are sometimes confused with possible strategies. SWOTs are descriptions of conditions, while possible strategies define actions.

Plan, Implement the Decision, and Control

Plan Develop a plan of action and a schedule of implementation. Implement the Plan Communicate and delegate for direct action.

Control Use checkpoints to determine whether the alternative is solving the problem. Avoid escalation of commitment to a bad alternative.

Implement and Monitor Your Solution or Course of Action

Sometimes corrections need to be made A choice doesnt mean that it is the only way to go Remember, you need to monitor and evaluate your solution throughout its progress to see how its working out Circumstances change, and a good decision today may not be the best for the future

Sometimes a self-destruct deadline may be a good option It can help you to monitor what youre doing and you can make a better decision once you begin nearing your deadline

Group Decision-making
The factors requiring group decisions include: 1. Involving sensitive issues 2. High cost alternatives 3. Involving very high risk factor 4. Strategic impact

Group Decisions: Advantages

1. Acceptance of group members

2. Coordination is easier
3. Communication is easier 4. Existence of large alternatives 5. More information can be processed 6. Diversity of experience and perspectives

Group Decisions: Disadvantages

1. Take longer time

2. Group can be indecisive

3. Groups can compromise 4. Groups can be dominated 5. Groups can play games 6. Victim to Groupthink

Situational Factors for Group Decision

Data collection Importance of acceptance Importance of solution Complex problem Democratic process Making Risk taking solution needed Better understanding Whole responsibility Feedback required Making Need for innovation and creativity

Improving Group DecisionMaking Brainstorming Nominal group techniques Electronic meeting

 Successful leaders have the courage to take action while others hesitate. - John C. Maxwell

Barriers to Good Decision Making

1. Hasty - Making quick decisions without having much thought. 2. Narrow - Decision making is based on very limited information. 3. Scattered - Our thoughts in making decisions are disconnected or disorganized. 4. Fuzzy - Sometimes, the lack of clarity on important aspects of a decision causes us to overlook certain important considerations.