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8/6/2019 Decsion Making Draft
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Submitted by:Ankita Suri (IT & Telecommunication
Mgmt.)
DECISION
MAKING
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Decision making refers tomaking choices among
alternative courses of
actionwhich may also
include inaction.
A process of identifying
problems and opportunities
and resolving them
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CLASSIFICATION OF DECISIONS
Decisions
Natu
re
Structured
Semi -
Structured
Unstructured
Scope
Strategic
Tactical
Operatopnal
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STRUCTURED DECISIONS
made under the established situations
programmable decisions and they are
preplanned situations which are fully understood
generally made forroutine tasks,specified
processes like specialized manufacturingprocesses
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SEMI-STRUCTURED DECISIONS
A system of Structured and Unstructured sub-processes
SUBWAY chain adapts its menu to allow for religious and
cultural needs in international markets
For instance, in India, where the population is either Hindu and
does not eat beef or Muslim and does not eat pork, these
ingredients are appropriately substituted with chicken, lamb or
turkey.
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UNSTRUCTURED DECISIONS
made under the emergent situation
creative and they are not preplanned
situations are uncertain and unclear Made for a sudden one-shot kind of
situations, general processes
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For example, in 2005 McDonalds Corporation became
aware of the need to respond to growing customerconcerns regarding the unhealthy aspects (high in fatand calories) of the food they sell. This is anunstructured decision, because for several decades,customers of fast-food restaurants were more
concerned with the taste and price of the food, ratherthan its healthiness. In response to this problem,McDonalds decided to offer healthier alternativessuch as the choice to substitute French fries in HappyMeals with apple slices and in 2007 they banned the
use oftrans fat at their restaurants.
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STRATEGIC DECISIONS
Are usually infrequent e.g. annually but can have a
huge impact on the organisation.
For example
Select a Market Acquire a Company
Recruit additional staff
The data used to drive these types of decision is
usually found external to the organisation.
e.g. market research reports, pressreleases
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TACTICAL DECISIONS
Are more frequent e.g. weekly, monthly.Examples would be:
Change product pricing
Reschedule work
Re-organise a department
The impact of these types of decision is of a medium nature in
terms ofrisk to the organisation and impact on profitability.
The data used to drive this type of decision is usually found in
summaries ofroutine transactions e.g. sales orders from the
next level or classification.
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OPERATIONAL
OR ROUTINE DECISIONS
Are usually very frequent e.g. hourly, daily but can
have a lesser impact on the organisation.
For example
How to answer a sales enquiry Approve a quotation
Approve an Invoice
The data used to drive this decision type is usuallyprescribed or defined in the procedures and rules of
the organisation.
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Strategic
Tactical
Operational
Structured Semi-Structured Unstructured
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Certainty all the information the decision maker needs is fully available
Risk decision has clear-cut goals good information is available
future outcomes associated with each alternative are subject to chance Uncertainty
managers know which goals they wish to achieve information about alternatives and future events is incomplete managers may have to come up with creative approaches to alternatives
Ambiguity by far the most difficult decision situation goals to be achieved or the problem to be solved is unclear alternatives are difficult to define information about outcomes is unavailable
CERTAINTY, RISK, UNCERTAINTY, AMBIGUITY
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POSSIBILITY OF DECISION FAILURE
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Rational Decision-Making Model
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A Premier telecommunication
consultancy and engineeringcompany
The decision making process
in the company involves thefollowing channel:
TELECOMMUNICATIONS CONSULTANTS
INDIA LTD (TCIL)