6.4
The decision making process
The decision making process describes a set of steps that decision makers should follow in order to
increase the probability that their decision will be optimal.
STEP 1: Recognize, classify and define the problem
¾ Recognize that there is a problem
¾ Classify the problem in terms of the type of decision (programmed or nonprogrammed), and
the decision making condition (certainty, risk, or uncertainty).
¾ Accurately define the problem
¾ Example, if a sport club needs a new pavilion for the spectators, the club must be in a
position to explain the problem, e.g. the current pavilion is poorly designed and does not
meet the needs of the club and spectators.
STEP 2: Set goals and criteria
¾ Generally in programmed decisions the criteria can be found in policies
¾ In the case of nonprogrammed decisions, no goals or criteria have been set
¾ The manager will be responsible for this task and he / she can make an individual decision
or involve a group in decision making
¾ Example: is time of the essence in making the decision about the need for a new pavilion? Is
there a cost issue to consider? What is the budget for this facility?