Decision making involves identifying a decision that needs to be made, gathering relevant information, and assessing alternatives. There are several types of decisions including programmed vs non-programmed, routine vs strategic, and individual vs group. The 7 steps of effective decision making are: 1) identify the decision, 2) gather information, 3) identify alternatives, 4) weigh the evidence, 5) choose an alternative, 6) take action, and 7) review the decision and consequences. Factors that can prevent effective decision making include having insufficient or too much conflicting information, decision by committee, vested interests of stakeholders, attachment to the status quo, and lack of caring about the outcome.

1. Mehrasa Nikandish
Subject: Healthcare
management
University of Georgia 2020-
2021

2. Introduction
Types of decision making
7 steps of decision making
What Can Prevent Effective Decision-Making?
Summary

3. Decision making is the process of making choices by
identifying a decision, gathering information, and
assessing alternative resolutions.
Decision making and problem solving are
ongoing processes of evaluating situations or
problems, considering alternatives, making choices,
and following them up with the necessary actions.

4. Types of
decision
making
Programmed
and non-
programmed
decisions
Tactical
(Policy) and
operational
decisions
Routine and
strategic
decisions
Organizational
and personal
decisions
Major and
minor
decisions
Individual and
group
decisions

5. 1. Programmed and non-
programmed decisions:
 Programmed decisions are
concerned with the problems of
repetitive nature or routine type
matters.
 Decisions of this type may pertain
to e.g. purchase of raw material,
granting leave to an employee and
supply of goods and implements to
the employees, etc.
 Non-programmed decisions relate
to difficult situations for which
there is no easy solution.
2. Routine and strategic
decisions:
 Routine decisions are related to
the general functioning of the
organisation. They do not require
much evaluation and analysis and
can be taken quickly.
 Strategic decisions are important
which affect objectives,
organisational goals and other
important policy matters.
 These decisions usually involve
huge investments or funds.

6. 3. Tactical (Policy) and
operational decisions:
 Decisions pertaining to various
policy matters of the organization
are policy decisions. These are
taken by the top management and
have long term impact on the
functioning of the concern.
 For example, decisions regarding
location of plant, volume of
production and channels of
distribution (Tactical) policies, etc.
are policy decisions.
4. Organizational and
personal decisions:
 When an individual takes decision
as an executive in the official
capacity, it is known as
organisational decision. If decision
is taken by the executive in the
personal capacity (thereby
affecting his personal life), it is
known as personal decision.

7. 5. Major and minor
decisions:
 Another classification of decisions
is major and minor. Decision
pertaining to purchase of new
factory premises is a major
decision. Major decisions are taken
by top management. Purchase of
office stationery is a minor
decision which can be taken by
office superintendent.
6. Individual and group
decisions:
 When the decision is taken by a
single individual, it is known as
individual decision. Usually routine
type decisions are taken by
individuals within the broad policy
framework of the organisation.
 Group decisions are taken by group
of individuals constituted in the
form of a standing committee.

8. Step 1 : Identify the decision
Step 2 : Gather relevant information
Step 3 : Identify the alternatives
Step 4 : Weigh the evidence
Step 5 : Choose among alternatives

9. Step 6 : Take action
Step 7 : Review your decision
and its consequences

10. What Can Prevent Effective Decision-Making?
If you do not have enough information,
it can feel like you are making a
decision without any basis.
Take some time to gather the
necessary data to inform your
decision, even if the timescale is very
tight. If necessary, prioritise your
information-gathering by identifying
which information will be most
important to you.
The opposite problem, but one that is
seen surprisingly often: having so
much conflicting information that it is
impossible to see ‘the wood for the
trees’.
This is sometimes called analysis
paralysis, and is also used as a tactic
to delay organisational decision-
making, with those involved
demanding ever more information
before they can decide.
Making decisions by committee is
difficult. Everyone has their own
views, and their own values. And while
it’s important to know what these
views are, and why and how they are
important, it may be essential for one
person to take responsibility for
making a decision. Sometimes, any
decision is better than none.

11. What Can Prevent Effective Decision-Making?
Decision-making processes often
founder under the weight of vested
interests. These vested interests are
often not overtly expressed, but may
be a crucial blockage. Because they
are not overtly expressed, it is hard to
identify them clearly, and therefore
address them, but it can sometimes be
possible to do so by exploring them
with someone outside the process, but
in a similar position.
People are often very attached to the
status quo. Decisions tend to involve
the prospect of change, which many
people find difficult.
Sometimes it’s difficult to make a
decision because you just don’t care
one way or the other. In this case, a
structured decision-making process
can often help by identifying some
very real pros and cons of particular
actions, that perhaps you hadn’t
thought about before.

12. Summary

13. Thanks for your
attention