Decision Making 4860
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Transcript of Decision Making 4860
Should You Ask?Should You Ask?
Sir, why is my coursework marks so low? I deserve higher
marks. Hehehe!
Which Mobile Phone should I buy? Which Mobile Phone should I buy?
What are the things you consider before
making a decision?
What should I wear for class (or work) today?What should I wear for class (or work) today?
What are the things you consider before
making a decision?
Module 6: Decision MakingModule 6: Decision Making
3. Decision Making Process
4. Decision MakingTools
1. What is Decision Making? 2. Barriers to Good
Decision Making
"No sensible decision can be made any longer without taking into account not
only the world as it is, but the world as it will be. . ."
- Isaac Asimov
6.1 What is Decision Making?6.1 What is Decision Making?
Decision makingDecision making is the cognitive process leading to the selection of a course of action among alternatives.
Every decision making process produces a final choicefinal choice. It can be an actionaction or an opinionopinion.
It begins when we need to do something but we do not know what. Therefore, decision making is a reasoning processreasoning process which can be rational or irrational, and can be based on explicit assumptions or tacit assumptions.
Examples: Shopping, deciding what to eat, What to wear, when to sleep, etc..
Source: http://en.wikipedia.org/wiki/Decision_making
“Successful leaders have the courage to take action while others hesitate.”
- John C. Maxwell
6.2 Barriers to Good Decision Making6.2 Barriers to Good Decision Making
Hasty Hasty - Making quick decisions without having much thought.
Narrow Narrow - Decision making is based on very limited
information.
Scattered Scattered - Our thoughts in making decisions are
disconnected or disorganized.
Fuzzy Fuzzy - Sometimes, the lack of clarity on important aspects of
a decision causes us to overlook certain important
considerations.
For an explanation of the logical processes behind some of these barriers refer to Module 4 (FallaciesFallacies) and Module 1 (Section - Barriers to Critical ThinkingBarriers to Critical Thinking).For an explanation of the logical processes behind some of these barriers refer to Module 4 (FallaciesFallacies) and Module 1 (Section - Barriers to Critical ThinkingBarriers to Critical Thinking).
“ Making good decisions is a crucial skill at every level. ”
- Peter Drucker
6.3 Decision Making Process6.3 Decision Making ProcessStepsSteps TipsTips
1.1. Define the decision clearly.Define the decision clearly. A lot of decision making goes wrong at the starting point. the more specific your definition of the decision is to made, the clearer will be your analysis and the likelihood of success.
2.2. Consider all the possible Consider all the possible choices.choices.
Successful decision makers explore all of the possible choices of the situation. In fact many of the less obvious choices turn out to be the most effective ones.
3.3. Gather all relevant information Gather all relevant information and evaluate all the pros and and evaluate all the pros and cons of each possible choice.cons of each possible choice.
In many cases, we may lack sufficient information to make an informed decision. Analyze the advantages and disadvantages of each choice
4.4. Select the choice that seems to Select the choice that seems to best meet the needs of the best meet the needs of the situation.situation.
Synthesize all what you learned in previous steps and make a conclusion that you believe to be your “best” choice.
5.5. Implement a plan of action and Implement a plan of action and then monitor the results, making then monitor the results, making necessary adjustments.necessary adjustments.
Once you have selected your best choice, you need to develop and implement a specific and concrete plan of action. As you begin taking the steps in your plan, you will discover that adjustments need to be made.
“Because I'm thinking in a broader way, I feel like I am able to make better
decisions.”- Takafumi Horie
6.4 Decision Making Tools6.4 Decision Making Tools
Tools to facilitate better decisions:Tools to facilitate better decisions:
CoRT (Module 2)CoRT (Module 2)
SWOT ANALYSIS (Next)SWOT ANALYSIS (Next)
SIX THINKING HATS (Module 7) SIX THINKING HATS (Module 7)
DECISION MATRIX
FORCE FIELD ANALYSIS
ISHIKAWA DIAGRAM
MIND MAPPING
SOCRATIC QUESTIONING
More More MyCoted + + Mind Tools + + Creativity Web
I can study I can study these tools these tools on my own. on my own.
Click!Click!
SStrengthstrengths WWeaknesseseaknesses
OOpportunitiespportunities TThreatshreats
6.4.1 SWOT Analysis6.4.1 SWOT Analysis
SWOTSWOT analysis is a great technique for identifying your SStrengths and WWeaknesses and study any OOpportunities and TThreats you face.
It is also a powerful strategic planning toolstrategic planning tool used to evaluate a project or in a business venture or in any other situation of an organization or individual requiring a decision in pursuit of an objective.
It involves monitoring the marketing environment internal internal and externalexternal to the organization or individual.
Source: http://en.wikipedia.org/wiki/SWOT_Analysis
6.4.1 SWOT Analysis – Strategic Use6.4.1 SWOT Analysis – Strategic Use
Orienting SWOTs to An ObjectiveOrienting SWOTs to An Objective - If SWOT analysis does not start with defining a desired end state or objective, it runs the risk of being useless.
If a clear objective has been identified, SWOT analysis can be used to help in the pursuit of that objective. In this case, SWOTs are:
Source: http://en.wikipedia.org/wiki/SWOT_Analysis
SStrengthstrengthsAttributes of the organization that are helpful to achieving the objective.
WWeaknesseseaknessesAttributes of the organization that are harmful to achieving the objective.
OOpportunitiespportunitiesExternal conditions that are helpful to achieving the objective.
TThreatshreatsExternal conditions that are harmful to achieving the objective.
6.4.1 SWOT Analysis – Creative Use6.4.1 SWOT Analysis – Creative Use
Creative Use of SWOTsCreative Use of SWOTs – If the objective seems attainable, the SWOTs are used as inputs to the creative generation of possible strategies, by asking (usually in groups) and answering each of the following four questions, many times:
Source: http://en.wikipedia.org/wiki/SWOT_Analysis
SStrengthstrengthsHow can we Use each Strength?
WWeaknesseseaknessesHow can we Stop each Weakness?
OOpportunitiespportunitiesHow can we Exploit each Opportunity?
TThreatshreatsHow can we Defend against each Threat?
6.4.1 SWOT Analysis – Internal and External 6.4.1 SWOT Analysis – Internal and External FactorsFactors
The aim of any SWOT analysis is to identify the key internal and external factors that are important to achieving the objective. SWOT analysis groups key pieces of information into two main categories:
Source: http://en.wikipedia.org/wiki/SWOT_Analysis
Internal FactorsInternal Factors OrganizationOrganization
Internal FactorsInternal Factors OrganizationOrganization
External FactorsExternal Factors External EnvironmentExternal Environment
External FactorsExternal Factors External EnvironmentExternal Environment
SStrengthstrengths
WWeaknesseseaknesses
OOpportunitiespportunities
TThreatshreats
6.4.1 SWOT Analysis – Errors to Be Avoided6.4.1 SWOT Analysis – Errors to Be Avoided
Conducting a SWOT analysis before defining and agreeing upon an objective (a desired end state). SWOTs should not exist in the abstract. They can exist only with reference to an objective.
Opportunities external to the company are often confused with strengths internal to the company. They should be kept separate.
SWOTs are sometimes confused with possible strategies. SWOTs are descriptions of conditions, while possible strategies define actions.
Source: http://en.wikipedia.org/wiki/SWOT_Analysis
Group ActivityGroup Activity
Break into groups of 4 – 6.
Identify a potential product/service to invest in (e.g. buying a car), or business project/venture to pursue.
Do a SWOT analysis to identify the key internal and external factors that are important to consider (refer to the template).
Assess the findings, and make a decision.
Example: Imagine you want to assess whether to study at UNITAR or not. Do a SWOT
analysis, assess and then make a decision.
5 min5 min Identify a potential product/service/project/venture to invest or pursue.
15 min15 min Do a SWOT analysis, assess, and then make a decision.
5 min5 min Document your SWOT analysis findings in the template provided.
15 min15 min Group presentation & discussion.
The Group leader must submit their findings in hard-copy or soft-copy format to the lecturer before or during the next class.
SummarySummary
6.1 What is Decision Making?
Decision making is the cognitive process leading to the selection of a course of action among alternatives.
6.2 Barriers to Good Decision Making
Hasty, Narrow, Scattered and Fuzzy decision making.
6.3 Decision Making Process
1. Define the decision clearly.
2. Consider all the possible choices.
3. Gather all relevant information and evaluate all the pros and cons of each possible choice.
4. Select the choice that seems to best meet the needs of the situation.
5. Implement a plan of action and then monitor the results, making necessary adjustments.
6.4 Decision Making Tools
CoRT SWOT Analysis Six Thinking Hats Decision Matrix Etc.
Any Questions? Any Questions?
The EndThe End
ReferencesReferences
Online ResourcesOnline Resources
Courseware - Module 4: Decision Making http://cw.unitar.edu.my/ugb2013/c4/index.htm Decision Making: http://en.wikipedia.org/wiki/Decision_making SWOT Analysis: http://en.wikipedia.org/wiki/SWOT_Analysis SWOT Tutorial: http://www.nelh.nhs.uk/folio/mchip/swot.pps SWOT Templates: http://www.businessballs.com/swotanalysisfreetemplate.htm Teacher in Bad Mood: http://www.sbac.edu/~tpl/clipart/Signs%20and%20Symbols/danger%2002.jpg Punk: http://www.rarepunk.com/images/punkrocker2.jpg Siti Nurhaliza: http://i31.photobucket.com/albums/c369/bukaninsanbiasa/ctmelayumerah.jpg Angry Teacher: http://www.webweaver.nu/clipart/img/education/angry-teacher.gif
Contact DetailsContact Details
Zaid Ali AlsagoffZaid Ali Alsagoff
UNIVERSITI TUN ABDUL RAZAK 16-5, Jalan SS 6/1247301 Kelana Jaya
Selangor Darul EhsanMalaysia
E-mail: [email protected]
Tel: 603-7627 7238 Fax: 603-7627 7246
