Foundations and Technologies for Decision Making

Foundations and
Technologies for
Decision making
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What is decision making?
 Decision refers to the choice made from two or more
alternatives
 Decision making is the process by means of which the
managers can address the threats and opportunities by
means of analysing the options and making the decisions
regarding the objectives and courses of action (Smith and
Winterhalder 2017).
 It is a set of 8 steps that comprise of the process of
identification of a problem, choosing an alternative and
making evaluation of the effectiveness of the decisions.

Foundation- The 8-step of
decision making process
Identification
of the
problem
Identification
of the
decision
making
criteria
Allocating
the weights
to the
criteria
Developing
alternatives
Analysing
the
alternatives
Choosing an
alternative
Implementat
ion of the
alternative
Evaluation of
decision
effectivenes
s

Types of Decision making
 Programmed decisions
 It is an automatic process
 The managers need to make decisions many times before the final
outcome.
 There are several rules and guidelines to be followed (Albadan et al.,
2018)
 Non-programmed decisions
 There are no rules as the decision is new
 These decisions are taken in unusual situations that are not addressed.
 Decisions are based upon information and the intuition of the managers
and their judgement.