INTRODUCTION
Presented by: Abhishek S
Roll No. : 24/51135
B.Com(Hons.)
Shivaji College, University of Delhi
Concepts of Decision Making
Rationality Bounded Rationality
Rationality It’s the idea of making Bounded rationality means we have
decisions logically by weighing all limits. We may not have all the
information and choosing the option that information or enough time. So, we do
offers the most benefit. This approach is our best with what we have.
methodical and focused on maximizing
outcomes
Heuristics Intuition
Heuristics are shortcuts in our minds. Intuition is a gut feeling. It can help when
They help us make quick choices, but we don’t have enough information, but
sometimes they lead to mistakes it’s good to think carefully too
Importance of Decision Making
1 Problem Solving 2 Strategic Planning
Decision making is crucial Effective decision making
for identifying problems, is essential for developing
analyzing their root and implementing
causes, and selecting the strategies to achieve
most appropriate solutions. organizational goals and
objectives.
3 Resource Allocation 4 Innovation and Growth
Decision making guides Decision making drives
the allocation of resources, innovation by encouraging
such as time, money, and exploration of new ideas,
personnel, to maximize technologies, and market
productivity and efficiency. opportunities.
Types of Decision Making
1 Programmed Decisions
Programmed decisions are routine, based on established rules.
2 Non-Programmed Decisions
Non-programmed decisions are unique and need careful thought.
3 Strategic Decisions
Strategic decisions affect the long-term direction of an organization.
4 Operational Decisions
Operational decisions focus on day-to-day efficiency.
Steps in the Decision Making Process
Problem Identification 1
Clearly defining the problem or opportunity that
requires a decision.
2 Information Gathering
Collecting relevant data and information to
understand the problem and potential solutions.
Option Generation 3
Developing a range of alternative solutions to
address the identified problem.
4 Evaluation and Selection
Evaluating the feasibility, risks, and potential
benefits of each option and choosing the most
Implementation and Monitoring 5 suitable one.
Putting the chosen solution into action and
tracking its progress and effectiveness.
Factors Influencing
Decision Making
Personal Factors Cognitive biases, values,
beliefs, experience, and
emotional state.
Organizational Factors Culture, policies,
procedures, resources, and
leadership style.
External Factors Economic conditions,
competition, technological
advancements, and
regulatory environment.
Individual Decisions
and Group Decisions
Individual Decisions
These decisions are made by a single individual,
often based on their own knowledge, experience,
and values.
Group Decisions
These decisions involve multiple individuals
working together to gather information, analyze
options, and reach a consensus.
Group Decision-Making
Methods
Brainstorming
This technique encourages free-flowing ideas and solutions
from group members without immediate judgment.
Delphi Technique
This method involves a structured process of anonymous
feedback and expert opinions to reach consensus.
Consensus
This approach aims to achieve a decision that is acceptable
to all members of the group, fostering collaboration and
buy-in.
Individual vs Group
Decisions
Considering perspectives and collaborative approaches.
Individual Decisions Group Decisions
Faster decision-making Diverse perspectives and
insights.
Clear accountability Increased buy-in and support.
Potentially biased Potential for groupthink and
conflicts.
Techniques for Effective
Decision Making
Brainstorming Decision Trees
A technique for generating creative A visual tool for mapping out
ideas by encouraging free-flowing possible outcomes and
thoughts and ideas from a group. consequences of different
decisions, helping to analyze
potential risks and rewards.
Data Analysis Collaboration
Using data and analytics to support Involving multiple stakeholders in
decision making by providing the decision making process to
insights, identifying patterns, and gather diverse perspectives,
predicting future outcomes. insights, and expertise.
Conclusion: The Future of Decision Ma
Technology will continue to play an increasingly significant role in decision-making, providing powerful
tools for data analysis, AI, and automation. However, it's crucial to embrace a balanced approach that
combines the strengths of technology with human judgment, ethics, and intuition.
Data-Driven Human Intuition Ethical Collaboration
Insights Considerations
Value human judgment, Promote collaboration
Leverage data analytics experience, and Ensure technological between human
and AI to gain insights, intuition, especially in applications are aligned decision-makers and
identify patterns, and complex situations. with moral principles technological tools for a
make informed and societal values. more balanced and
decisions. effective decision-
making process.
Bibliography
1.Robbins, S.P., & Coulter, M. (2021).
Management (14th ed.). Pearson.
2. Simon, H.A. (1997).
Administrative Behaviour. Free Press.
3. Kahneman, D. (2011).
Thinking, Fast and Slow. Farrar, Straus and Giroux.
4. https://www.wikipedia.org
5. https://www.shivajicollege.ac.in/sPanel/uploads/econtent
6. https://assignmentpoint.com
