This is the class blog for Busn170 taught at FCC 2008. All students are required to make at least one meanningful post or comment per week.

Wednesday, November 12, 2008

Decision Making

1. Decision making is the study of identifying and choosing alternatives based on the values and preferences of the decision maker. Making a decision implies that there are alternative choices to be considered, and in such a case we want not only to identify as many of these alternatives as possible but to choose the one that

 1- Has the highest probability of success or effectiveness

2- And best fits with our goals, desires, lifestyle, values, and so on.

Thus, every decision involves a certain amount of risk.

Decision Making Procedure

1-      Identify the decision with the goal it should achieve.

2-      Get the facts.

3-      Develop alternatives

4-      Rate each alternatives

5-      Rate the risk of each alternative

6-      Make the decision

2 comments:

M. Umer Toor said...
This comment has been removed by the author.
M. Umer Toor said...

Quite:
"Making a decision implies that there are alternative choices to be considered...."

Because of hasty temper, I thought as if you were suggesting that our goals should be flexible. Even though I didn't mean it (as one reads the full sentence), I wish to add here that goals should never be flexible. Budgets, resources and choices should not determine goals, as there is plenty of evidence from human experience that values must come first, otherwise man will live no more as man. And, this is exactly why only humans can read and learn to do smart management. With 'smart management' we can dominate resources, no matter how scarce they may seem. And, if we are not careful and smart in dealing with, its not necessary that only bankrupcy would be our fate. But in case were its important to spend, values can also be damaged.

Quote Again:
"...(The choice which) Has the highest probability of success or effectiveness

Thus, every decision involves a certain amount of risk."

I prefer word probability or imperfection over risk. Risk implies bad result, while an imperfect or probable decision may not give us ideal result, it is not worst enough to be called as bad. But, in general, I agree that decisions are not risk-free.

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