2. Decision Making
Outlines:
Definitions : Problem-solving, decision making.
Types of decisions.
Decision making conditions.
Steps in the Rational Decision-Making Process.
Advantages and Disadvantages of Group and
Team Decision Making.
3. Decision Making
"The act of choosing one alternative from
among a set of alternatives “(Griffin,2003).
OR
"The process of selecting one course of
action from alternatives". (Tomey,2000)
4. DECISION MAKING
"The act of choosing one alternative from
among a set of alternatives “(Griffin,2003).
OR
"The process of selecting one course of
action from alternatives". (Tomey,2000)
5. Types of Decisions
• Programmed Decisions
– A decision that is a fairly structured decision
or recurs with some frequency or both.
• Example: Starting your car in the morning.
• Nonprogrammed decisions
– A decision that is relatively unstructured
and occurs much less often than a
programmed decision.
• Example: Choosing a vacation destination.
6. Decision-Making Conditions
Level of ambiguity and chances of making a bad decision
Lower HigherModerate
Certainty UncertaintyRisk
The decision
maker faces
conditions of...
7. Decision-Making Conditions
• Decision Making Under Certainty
– A condition in which the decision maker
knows with reasonable certainty what the
alternatives are and what conditions are
associated with each alternative.
• Decision Making Under Risk
– A condition in which the availability of each
alternative and its potential payoffs and costs
are all associated with risks.
8. Decision-Making Conditions
Cont..
• Decision Making Under Uncertainty
– A condition in which the decision maker
does not know all the alternatives, the risks
associated with each, or the consequences
of each alternative.
9. Steps in the Rational
Decision-Making Process
Step Detail Example
1. Recognizing and
defining the decision
situation
Some stimulus indicates
that a decision must be
made. The stimulus may be
positive or negative.
A plant manager sees that
employee turnover has
increased by 5 percent.
2. Identifying alterna-
tives
Both obvious and creative
alternatives are desired. In
general, the more important
the decision, the more
alternatives should be
considered.
The plant manager can
increase wages, increase
benefits, or change hiring
standards.
3. Evaluating alterna-
tives
Each alternative is evalu-
ated to determine its
feasibility, its
satisfactoriness, and its
consequences.
Increasing benefits may not
be feasible. Increasing
wages and changing hiring
standards may satisfy all
conditions.
10. Steps in the Rational
Decision-Making Process (cont’d)
Step Detail Example
4. Selecting the best
alternative
Consider all situational
factors, and choose the
alternative that best fits the
manager’s situation.
Changing hiring standards will
take an extended period of time
to cut turnover, so increase
wages.
5. Implementing the
chosen
alternative
The chosen alternative is
implemented into the
organizational system.
The plant manager may need
permission from corporate
headquarters. The human
resource department establishes
a new wage structure.
6. Following up and
evaluating the
results
At some time in the future,
the manager should ascertain
the extent to which the
alternative chosen in step 4
and implemented in step 5
has worked.
The plant manager notes that, six
months later, turnover has
dropped to its previous level.
11. Problem identication &Situation
Analysis
Define the problem ( What is wrong?)
Define the factors that are causing the
problem.
Concentrate on the problem rather than the
symptom.
Use a questioning attitude in order to be able
analyze the situation, and to develop
tentative
hypothesis and test them. What? Who?
When? Where? How?
12. Remember
When you believe that you have identified the
cause or causes of the problem by analyzing
available information; you should begin
exploring alternatives
13. Exploring the alternatives
Decide whether the situation is covered by a
policy,If not, you must draw on your education
and experience for facts and concepts that will
help you to explore alternatives.
Examine how others managed to solve similar
problems ( continuing education, professional
meetings, review of literature,
correspondence,brainstorming with staff).
group participation in decision making
increases the number of alternatives and the
quality of decision making
14. Evaluating Alternatives in the
Decision-Making Process
Is the alternative
feasible?
Eliminate from
consideration
Is the alternative
satisfactory?
Are the alternative’s
consequences
affordable?
Retain for further
consideration
Yes Yes Yes
Eliminate from
consideration
Eliminate from
consideration
No No No
15. Choosing the Most Desirable
Alternative
Factors that interfere with reaching
effective decisions:
Eagerness to reach a decision.
Avoidance of the real problem.
Lack of clear problem definition.
Inadequate data.
Mixing of idea generation and idea
evaluation.
Lack of staff commitment.
Decisions made by large groups.
16. How to choose the most desirable
alternative?
Will this decision accomplish the
stated objectives?
Does it maximize effectiveness and
efficiency?
Can the decision be implemented ?
18. Implement the Decision
The decision that is not put into action is
useless.
Communicate the decision to appropriate
staff in a manner that does not arouse
antagonism.
Explain the decision and procedures so
that you can gain cooperation of those
responsible for it’s implementation.
Facilitate decision implementation.
19. Evaluate the results
Evaluate the results based on a
predetermined criteria.
Evaluation tools should be used to
review and analyze the results( Audits,
checklists, ratings,and rankings).
20. What to do ? (Action)
Steps Review, with suitable
modifications.
21. Advantages and Disadvantages of
Group and Team Decision Making
Advantages Disadvantages
1. More information and knowl-
edge is available.
2. More alternatives are likely to
be generated.
3. More acceptance of the final
decision is likely.
4. Enhanced communication of
the decision may result.
5. Better decisions generally
emerge.
1. The process takes longer than
individual decision making, so it is
costlier.
2. Compromised decisions resulting
from indecisiveness may emerge.
3. One person may dominate the
group.
4. Groupthink may occur.
22. PROBLEM SOVLING
Is part of decision making.
A systematic process that focuses on
analyzing a difficult situation,
problem solving always includes a decision
making steps”
23. What is a Problem?
• A problem is an opportunity for
improvement.
• A problem is the difference between your
current state and your goal state.
• A problem results from the recognition of
a present imperfect and the belief in the
possibility of a better future.
26. REFERENCES
• Bandma N.E& Bandman B, (1995), Critical Thinking in
Nursing,Second edition,A Simon &Schuster.
• Griffin, 2003,Fundamentals of management Core Concepts &
Applications,third edition, Houghton Mifflin Company.
• Harrison .F,(2003),The Managerial Decision-Making Process,
Fifth Edition, San Francisco State University
• Tomey, A. (2000) Guide to Nursing Management and
Leadership, 6th edition, Mosby.