Decsion Making Draft

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)

Decsion Making Draft

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