Decision Making Process and Models: Steps for Effective Decision Making

This presentation covers the decision making process and models, including rational, bounded rational, and garbage can models. It also outlines six steps for effective decision making, including analyzing the situation, setting objectives, searching for alternatives, evaluating alternatives, making the decision, and evaluating the decision. Additionally, it explores group decision-making and the Delphi technique. References are provided for further reading.

DECISION
THINKING

Decision Making Process
 Recognize the problem and the need for a decision
 Identify the objective of the decision
 Gather and evaluate data and diagnose the situation
 List and evaluate alternatives
 Select the best course of action
 Implement the decision
 Gather
 Feedback
 Follow up

Models of Decision-Making
a timely decision that meets a
desired objective and is
acceptable to those individuals
affected by it (Shepherd,
Williams & Patzel, 2015).
Rational
modelBounded
Rational model
Garbage Can
model

Six Steps in Making an Effective
Decision
ANALYZE THE SITUATION
• What are the key elements in the
situation?
• What constraints affect the
decision?
• What resources are available?
SET OBJECTIVES
• Is the problem stated clearly?
• Do people understand what they
will work on?
• By what criteria will decision
making be judged?

Six Steps in Making an Effective
Decision
SEARCH FOR ALTERNATIVES
• Do people involved in the problem
make the decision?
• Have they sought complete
information?
• Do those with information make
the decision?
• Do they use diversity to generate
ideas?
• Are all ideas encouraged?
EVALUATE THE ALTERNATIVES
• Do participants know that they
are evaluating?
• Are criteria for assessment clear
and understood?
• Are differences of opinion
included in evaluation?
• Are some alternatives pilot
tested?

Six Steps in Making an Effective
Decision
MAKE THE DECISION
• Do employees know that they are
making the decision?
• Are they aware if they are
satisficing or optimizing?
• Do action plans fit with the
decision?
• Are they committed to the
decision?
EVALUATE THE DECISION
• Are responsibilities for data
collection, analysis, and reporting
clear?
• Is there a comprehensive
evaluation plan?
• Is there an evaluation schedule?

Maintenance Successful
Process

Delphi Technique
• Problem stated
• Questionnaires
• Anonymous & Independent
• Compile results
• Distribute copies of results
• New round begins
• Does not require physical presence
• Time consuming

Four Stages of Creative Process
Preparation Preparation
• reflective, often unconscious
thought
• experience/ opportunity to
build knowledge base

Four Stages of Creative Process
Illumination Verification
• - thinking, sharing, testing
the decision
• insight into problem

Group Decision-Making
 more knowledge through pooling of group resources
 Increased acceptance & commitment due to voice in decisions
 greater under- standing due to involvement in decision stages

Group Decision-Making
 Amount of time required,
because group is slower than
individual to make a decision
 Domination by one forceful
member or dominant clique
 Pressure in groups to conform
Grou
p A
GATHER
INFORMATIO
N
IDENTIFY
ALTERNATIVE
S
Evalute
Alternatives
Chose ONE

References:
Conway, P., & Gawronski, B. (2013). Deontological and utilitarian inclinations in moral decision making: a process dissociation approach. Journal of personality and social
psychology, 104(2), 216.
Erzurumlu, S. S., & Erzurumlu, Y. O. (2015). Sustainable mining development with community using design thinking and multi-criteria decision analysis. Resources
Policy, 46, 6-14.
Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence. Upper Saddle River, NJ: pearson.
Johnson, F. A., Williams, B. K., & Nichols, J. D. (2013). Resilience thinking and a decision-analytic approach to conservation: strange bedfellows or essential
partners?. Ecology and Society, 18(2).
Potter, W. J. (2013). An analysis of thinking and research about qualitative methods. Routledge.
Romiszowski, A. J. (2016). Designing instructional systems: Decision making in course planning and curriculum design. Routledge.
Schmoldt, D., Kangas, J., Mendoza, G. A., & Pesonen, M. (Eds.). (2013). The analytic hierarchy process in natural resource and environmental decision making (Vol. 3).
Springer Science & Business Media.
Shepherd, D. A., Williams, T. A., & Patzelt, H. (2015). Thinking about entrepreneurial decision making: Review and research agenda. Journal of management, 41(1), 11-46.

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