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Introduction To Decision Making

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8 views

Introduction To Decision Making

Uploaded by

babychan0007
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Introduction to Decision-

Making
Explore the complex process of decision-making and its critical role in
personal and professional success.
Expertly crafted by Manisha Gupta,khushi Nagar,Dimple Pal,Divyanshu and
Neeraj working together to deliver excellence
Decision Support
Systems
A Decision Support System (DSS) is a computer-based
information system that helps decision-makers in organizations
analyze data and information, evaluate alternatives, and make
informed decisions. It combines data, analytical models, and user-
friendly interfaces to support complex decision-making processes.
Key Components of a DSS
Database Model Base User Interface

A database that stores relevant A collection of analytical and A user-friendly interface that
data and information needed for decision models (e.g., allows decision-makers to
decision-making. optimization, simulation) that interact with the system and
can be applied to the data. access the information and
models.
Benefits of DSS in MIS

1 Improved Decision-Making 2 Increased Efficiency


DSS provide decision-makers with timely, DSS automate routine tasks and streamline
accurate, and relevant information to make more decision-making processes, leading to faster and
informed decisions. more efficient decision-making.

3 Better Risk Management 4 Competitive Advantage


DSS help organizations identify, analyze, and DSS enable organizations to gain a competitive
mitigate risks associated with complex decisions. edge by making more informed and strategic
decisions.
Examples of DSS Applications

Sales Forecasting Supply Chain Medical Diagnosis Financial Planning


DSS can analyze
Optimization DSS in healthcare can DSS can help financial
historical sales data, DSS can help assist physicians in analysts and managers
market trends, and other organizations optimize making accurate make informed decisions
factors to generate their supply chain diagnoses and treatment about investments,
accurate sales forecasts. operations, including recommendations. portfolio management,
inventory management and risk assessment.
and logistics.
Types of Decision-Making Processes
Rational Decision-Making Intuitive Decision-Making
Systematic, analytical approach to identify Relies on gut feelings, instincts, and past
the best option. experiences.

Collaborative Decision-Making Analytical Hierarchy Process


Involves input from multiple stakeholders to Structuring complex decisions based on
reach consensus. criteria and priorities.
Factors Influencing Decision-Making

Cognitive Biases Emotions Information Organizational


Overload Culture
Unconscious mental Strong feelings can
shortcuts that can significantly impact Too much data can The values and norms
lead to poor choices. our decision-making paralyze our ability to of a company shape
process. make decisions how decisions are
effectively. made.
Herbert Simon's Decision-Making Theory

Simon's theory proposes that decision-makers


satisfice rather than maximize. They seek a
satisfactory solution, not the optimal one.

Decision-making process involves three key


phases: intelligence, design, and choice.

Bounded rationality concept - people have


limited information and cognitive abilities.
Stages of Simon's Decision-Making Model

Intelligence
1 Identifying the problem and gathering relevant information

Design
2
Generating and evaluating potential solutions

Choice
3
Selecting the best alternative from the options

Herbert Simon's model of decision-making outlines three key stages: intelligence, design, and choice. The
process begins with identifying the problem and gathering necessary information, then generating and
evaluating potential solutions, and finally selecting the best alternative to implement.
Bounded Rationality and Satisficing

1 Bounded Rationality 2 Satisficing


Humans have limited cognitive abilities to Seeking a "good enough" solution instead
process all options. of optimal.
Intuitive vs. Analytical Decision-Making
Intuitive Decision-Making Analytical Decision-Making

Quick, instinctive, based on experience Deliberate, step-by-step, data-driven

Relies on gut feelings and patterns Examines all options and consequences

Often unconscious and automatic Conscious and requires more time


Biases and Heuristics in Decision-Making

Cognitive Biases Heuristics Framing Effects


Mental shortcuts that lead to Simple rules of thumb that Decisions influenced by how
systematic errors in judgement help make decisions quickly information is presented
Improving Decision-Making Skills
Gather Diverse Perspectives Practice Mindfulness
Seek input from people with different Cultivate present-moment awareness to
backgrounds and experiences. avoid knee-jerk reactions.

Learn from Mistakes Develop Analytical Skills


Reflect on past decisions to identify areas for Use structured frameworks to evaluate
improvement. options objectively.
Conclusion and Key
Takeaways
Throughout this presentation, we have explored various aspects of decision-
making. We have learned about different types of decision-making processes,
the factors that influence decision-making, and Herbert Simon's decision-
making theory.

In conclusion, it is crucial to understand that decision-making is a complex


process that requires careful consideration of various factors. By applying the
principles and concepts we have discussed, individuals can enhance their
decision-making abilities and make more informed and effective choices.

Thank you for joining us in this exploration of decision-making. We hope you


have gained valuable insights and tools to enhance your decision-making
capabilities.

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