THE DECISIONAL

PROCESS
 The Components of the Decisional
Process
1. The decident (s)
2. The decisional alternatives
3. The decisional criterias
4. The evaluation criterias
5. Business Environment
6. The consequences
7. The objectives
The steps of the decisional process
 Recognizing and defining the situation
 Identifying alternatives

 Evaluating alternatives

 Selecting the best alternative (THE DECISION)

 Implementing the chosen alternative

 Follow-up and evaluation

 Decisional Models
 The Classical Model
 managers should have complete and perfect information
 managers should eliminate uncertainty
 managers should evaluate everything logically and rationally

 The Administrative Model

 managers have incomplete and imperfect information
 managers are constrained by bounded rationality
 managers tend to satisfice
 Types of decision (1)
Decision-Making Frecquency :
 Programmed Decisions
 Nonprogrammed Decisions

Decision-Making Conditions:
 Decision Making Under Certainty
 Decision Making Under Risk
 Decision Making Under Uncertainty

Decision-Making Time Horizons :

 Strategic Decision
 Tactical Decision
 Operational Decision
 Types of decision (2)
Decision-Maker Number:
 Individual Decisions
 Group Decisions
- Interacting Groups (brainstorming)
- Delphi Groups
- Nominal Groups

Decision-Making Level:
 Centralised Decisions
 Decentralised Decisions