Presentation II

1. Principle of management
Decision Making

3. • IDENTIFYING THE PROBLEMIDENTIFYING THE PROBLEM
• IDENTIFYING THE DECISION CRITERIAIDENTIFYING THE DECISION CRITERIA
• ALLOCATING THE WEIGHT TO CRITERIAALLOCATING THE WEIGHT TO CRITERIA
• DEVELOPING ALTERNATIVESDEVELOPING ALTERNATIVES
• ANALYZING ALTERNATIVEANALYZING ALTERNATIVE
• SELECTING AN ALTERNATIVESELECTING AN ALTERNATIVE
• IMPLEMENTING THE ALTERNATIVEIMPLEMENTING THE ALTERNATIVE
• EVALUATING THE DECISIONS EFFECTIVENESSEVALUATING THE DECISIONS EFFECTIVENESS
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice HallCopyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

5. Step 3: Allocating Weights to the Criteria
• Decision criteria are not of equal importance:
 Assigning a weight to each item places the items in the correct
priority order of their importance in the decision-making process.

6. Step 5: Analyzing AlternativesStep 5: Analyzing Alternatives
• Appraising each alternative’s strengths and weaknesses
 An alternative’s appraisal is based on its ability to resolve the
issues identified in steps 2 and 3.

7. Step 7: Implementing the AlternativeStep 7: Implementing the Alternative
• Putting the chosen alternative into action.
 Conveying the decision to and gaining commitment from those
who will carry out the decision.

9. DECISIONS IN THE MANAGEMENTDECISIONS IN THE MANAGEMENT
FUNCTIONSFUNCTIONS

17. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice HallCopyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
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