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R.

RAVINDRAN
ravi@straits.my
“No looking back
system”
Strategic
Tactical
Operation
Owners make the Strategic decisions
Managers make tactical decisions
Supervisors make the day-to-day operational
decisions
Voting ~ Objectivity
Multi-voting
Matrix tabulation
Decision tree

Complex Linear
modelling
WHAT IS A BUSINESS?
Providing a product or service and charging a fee
for the same … and making profit in the process

WHAT IS A DECISION?
A step required to move forward … to cross and
problem or to pass a milestone
 T1: Elements of Decision
Problems
 T2: Structuring Decisions
 T3: Decision Making in Practice
 T4: Approaches to Decision
Making
 T5: Common Decision Models &
Sensitivity analysis
 T6: Making a Choice
 T7: Factors influencing
organisational decision
 T1: Elements of Decision Problems

Define problem

Identify decision problem

Differentiate elements of
a decision problem
 T2: Structuring Decisions

Identify objectives

Apply influence diagram &


decision tree
Measurement of fundamental
objectives
 T3: Decision Making in Practise
Ways to get
“clear objective”

Understand the Ways to make


problem better decisions

Generate
Evaluate options
options
 T4: Approaches to Decision Making

Conditions of
Different types of
decision
decisions environment

Steps in decision Decision making


process models
 T5: Common Decision Models

Econometric models

Programming models

Sensitivity analysis

Simulation models
 T6: Making a Choice

Decision theory approach

Decision making under risk &


uncertainty

Decision tree
 T7: Factors influencing decision

Influencing factors

Individual vs group decision


making
Technology and decision
making

Ethics in decision making


Singly autocratic • My way or the highway

Consultative • Request information & inputs individually


autocracy without explaining reason > make decision alone

• Explain reason > request information > you


Split Consultative make decision.

• Group discussion > group brainstorms > you


Group Consultative listen > you make decision

• You facilitate group brainstorming > group


Team elaborate and arrive at a mutually agreeable
decision.