Decision Making Short

Trainer and Talent Management Coach
Dr. Tanvir Mohammad Hayder Arif

PhD (Entrepreneurial Finance, CU),
MSc. International Business Management ( TVU/UWL, UK)
MBA & BBA (Finance, CU)
Professor of International Business Management and Finance, University of Chittagong
Ex-Assistant Professor, USTC; Ex-Lecturer AUB
Ex-Regional Head, NITOL-TATA Group
Trainer & Talent Management Coach (Since 2000) of More Than 10,000 Executives and
Professionals in the field of Talent Management, Leadership, Intensive Interaction &
Communication, Management & Administration, Etiquette & Manner, National Integrity
Strategy, Professional Ethics, Project Management, Workplace Motivation and More…
Trainer: KPA, BPDB, WDB, BIM, BIAM, IBTRA, CIMC, CIDC ++……..
President & Talent Management Coach: Green Society Bangladesh & Uddokta Forum Bangladesh
Web: www.greensociety-tanvir.org
Fb_Page: https://www.facebook.com/DrTanvirMHArif
Fb_Group: Green Society Bangladesh
YouTube: Dr. Tanvir & Green Society And Dr. Tanvir & Students
Email: tanvir.arif@cu.ac.bd
Mob. +8801715-174403
1
Learning Outcomes
Follow this Learning Outline as you read and study this chapter.
6.1 The Decision-Making Process

• Define decision.
• Describe the eight steps in the decision-making
process.
6.2 Managers Making Decisions

• Discuss the assumptions of rational decision making.
• Describe the concepts of bounded rationality,
satisficing, and escalation of commitment.
• Explain intuitive decision making.
Learning Outcomes
6.3 Types Of Decisions and Decision-Making Conditions
• Explain the two types of problems and decisions.
• Contrast the three decision-making conditions.

• Explain maximax, maximin, and minimax decision
choice approaches.
6.4 Decision-Making Styles

• Describe two decision-making styles.
• Discuss the twelve decision-making biases.

• Explain the managerial decision-making model.
• Describe decision-making practices in the Arab
context.
Learning Outcomes
6.5 Effective Decision Making In Today’s World
• Explain how managers can make effective decisions in
today’s world.
• List the six characteristics of an effective decision-
making process.
• List the five habits of highly reliable organizations.
The Decision-Making
Process
1. Define decision.
2. Describe the eight steps in the decision-making

process.
Decision Making
Decision
Making a choice from two or more alternatives.
• It is a process, not just a simple act of choosing among alternatives
The Decision-Making Process

Identifying a problem and decision criteria and allocating
weights to the criteria.
Developing, analyzing, and selecting an alternative that can
resolve the problem.
Implementing the selected alternative.
Evaluating the decision’s effectiveness.
The Situation
• Sarah is a sales manager whose

reps need new laptops because
their old ones are outdated and
inadequate for doing their job. To
make it simple, assume that it is
not economical to add memory to
the old computers and it is the
company’s policy to purchase,
not lease.
Exhibit 6–1
The Decision-
Making Process
Step 1: Identifying the
Problem
Problem
A discrepancy between an existing and desired state of affairs.
Characteristics of Problems
A problem becomes a problem when a manager becomes aware of it.
There is pressure to solve the problem.
– problem identification is subjective: what one manager

considers a problem might not be considered a problem by
another manager.
The manager must have the authority, information, or resources needed to solve
the problem.
Step 2: Identifying Decision
Criteria
Decision criteria are factors that are
important (relevant) to resolving the
problem such as:
Costs that will be incurred (investments required)
Risks likely to be encountered (chance of failure)
Outcomes that are desired (growth of the firm)
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.
Every decision maker has criteria that guide his or her decisions, even if they are not
explicidy stated.
Exhibit 6–2 Criteria and Weights for Computer
Replacement Decision
Criterion Weight
Memory and Storage 10
Battery life 8
Carrying Weight 6
Warranty 4
Display Quality 3
Step 4: Developing
Alternatives
Identifying viable alternatives
Alternatives are listed (without evaluation) that can resolve the problem.
This is the step where a decision maker needs to be creative.

Step 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.
○ There are times when a decision maker might not have to

do this step. If one alternative scored highest on every
criterion, you would not need to consider the weights
because that alternative would already be the top choice.
Or, if the weights were all equal, you could evaluate an
alternative merely by summing up the assessed values
for them all.
Exhibit 6–3 Assessed Values of Laptop
Computers Using Decision Criteria
Step 6: Selecting an
Alternative
Choosing the best alternative
The alternative with the highest total weight is chosen.
Step 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.
– you put the decision into action by communicating it to those

affected and getting their commitment to it. We know that if the
people who must implement a decision participate in the process,
they are more likely to support it than if you just tell them what to
do.
– managers may need to do during implementation is reassess the
environment for any changes, especially with a long-term decision.
Step 8: Evaluating the
Decision’s Effectiveness
The soundness of the decision is judged by
its outcomes
How effectively was the problem resolved by outcomes resulting from the chosen
alternatives?
If the problem was not resolved, what went wrong?

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Trainer and Talent Management Coach

Dr. Tanvir Mohammad Hayder Arif

6.1 The Decision-Making Process

6.2 Managers Making Decisions

• Contrast the three decision-making conditions.

6.4 Decision-Making Styles

• Discuss the twelve decision-making biases.

2. Describe the eight steps in the decision-making

The Decision-Making Process

• Sarah is a sales manager whose

– problem identification is subjective: what one manager

This is the step where a decision maker needs to be creative.

○ There are times when a decision maker might not have to

– you put the decision into action by communicating it to those

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