Presentation on decision making
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The document discusses decision making and tools that can be used to make effective decisions. It defines decision making as the process of selecting a course of action by weighing positives and negatives. Effective decision making leads to better resource use, business growth, innovation and efficiency. The main steps are: establishing the decision, gathering details, considering alternatives, weighing factors, selecting the best option, implementing it, and evaluating. Tools discussed include market research, decision matrices, cost-benefit analysis, T-charts, SWOT analysis, Pareto analysis, and feasibility studies.
Presentation on decision making
- 1. PRESENTATION ONPRESENTATION ON DECISION MAKINGDECISION MAKING
- 2. DECISION MAKINGDECISION MAKING What is Decision Making? Decision making can be regarded as the Judgmental process resulting in the selection of a course of action. When trying to make a good decision, a person must weight the positives and negatives of each option, and consider all the alternatives.
- 3. Importance of making effectiveImportance of making effective Decision MakingDecision Making • Better utilization of resources • Business growth. • Facing problems and challenges. • Achieving objectives. • Facilitates innovation. • Increases efficiency. • Motivates Employees.
- 4. Main Steps of EffectiveMain Steps of Effective Decision-makingDecision-making • Better utilization of resources • Business growth. • Facing problems and challenges. • Achieving objectives. • Facilitates innovation. • Increases efficiency. • Motivates Employees.
- 5. Main Steps of EffectiveMain Steps of Effective Decision-makingDecision-making Main Steps of Effective Decision-making: Establish the specific decision: You cannot afford to generalize the process of decision making. In order to find the right tool that will help you make the right decision, you need clear on the decision that must be taken. Gather the details: One of the most critical stages in making decisions is gathering the relevant information. This can be through questionnaires, self-assessments and external sources and so on. Consider Alternatives: While looking at the various tools to help you take a decision, you should have a provision for the alternatives that would help the company achieve the same objective. Weigh all factors: Take time to weigh all the critical factors, especially the information that you have gathered. This will help you determine if you are taking the right direction. Ultimately, the decision that you will take should be in line with the objectives of the company and help solve some of the challenges that the company is facing. Pick the best option: Once you have all factors in place and the various alternatives, you should pick the best option. This is what makes entrepreneurs stand out, due to their ability to make critical decisions. Implement it: Do not stop at the point where the decision is made; take action to implement it and watch out for the changes. Evaluation: Most of the successful entrepreneurs will rescind any decision that is not effective. You should review all the decisions after a while so as to check if the desired results are being achieved. It would be illogical to uphold a decision that is not bringing the desired gains to your organization.
- 6. Tools for Decision MakingTools for Decision Making 1) Market Research Marketing Research is an essential tool, especially when you are gathering the information before taking a decision. This will include analysis of the potential customers, state of the market and the competition in the market among others. This is a strategic tool, which most entrepreneurs rely on to make the right decision. 2) Decision Matrix With this tool, you will critically analyze all the available options or alternatives of a particular decision. This allows you to look at all the options and the factors that affect each. You can use comparative analysis so that you can find the best option to help you in decision making. This is one of the most critical tools for most organizations as it will help reveal the best strategy and decision to take. Here is below an example of a decision matrix:
- 7. Tools for Decision MakingTools for Decision Making 3) Cost-Benefit Analysis With a cost-benefit analysis, you will take the time to assess all the costs that will be involved in the decision taken and the benefits that the organization will gain from this. As a result, entrepreneurs will go for the decisions that will have a greater benefit, in terms of the overall net profits in the organization. The sole objective of any company is to make profits, and as such, every decision taken should be towards that direction. 4) T-Chart This is also among the best tools that can be used for comparative analysis. The T-Chart is used to weigh the pros and cons of any option that the organization may be considering. At the end of it all, it helps entrepreneurs to make the right decision, having weighted in all the advantages and disadvantages of all the available options.
- 8. Tools for Decision MakingTools for Decision Making 5) SWOT Analysis The SWOT analysis is commonly used for strategic planning and eventual decision making. Using SWOT analysis, entrepreneurs are able to maximize on the strengths of the organization. The weaknesses are also considered in view of the available opportunities. The organization will also consider the possible threats before taking any course of action. This is an effective tool as it allows entrepreneurs to analyze the company from all possible angles before taking a decision.
- 9. Tools for Decision MakingTools for Decision Making 6) Pareto Analysis This is commonly referred to as the Pareto principle, and it is common when organizations have to make huge decisions. This is inclined towards the prioritization in that 20% of the factors that contribute to 80% of the organization’s growth will be given top priority. This will give the decisions that have the highest level of impact top priority. Here is an example of a Pareto analysis diagram:
- 10. Tools for Decision MakingTools for Decision Making
- 11. Tools for Decision MakingTools for Decision Making 7) Feasibility Study Feasibility studies are also used in the strategic planning of the business. In this case, entrepreneurs will assess the possibility of creating a specific project and if it can make profits. This is among the tools that should be used at the very beginning of launching a new product or service. This will help the company decide if a particular strategy is ideal or feasible for the company or not.