Explain the decision-making process with an example.

1. 1 · Define. A decision is a choice among two or more alternatives; decision making runs through all four management functions.
2. 2 · Draw the process. [Flow: problem → criteria → weights → alternatives → analyse → select → implement → evaluate]
3. 3 · Explain the eight steps.
   • Identify the problem
   • Identify decision criteria
   • Allocate weights to the criteria
   • Develop alternatives
   • Analyse alternatives
   • Select an alternative
   • Implement it
   • Evaluate decision effectiveness
4. 4 · Work a short example. Weighted scores for two delivery vans: 68 against 73, so choose the higher.
5. 5 · Types and conditions. Programmed vs non-programmed decisions; certainty, risk and uncertainty.
6. 6 · Limits of the model. Bounded rationality (Simon), satisficing, escalation of commitment and intuition.
7. 7 · In Sri Lankan business. A supermarket's routine reordering vs a top-level decision to build a warehouse during a currency crisis.
8. 8 · Close. A clear process improves decisions, but managers must know its limits.

Scoring tip: A small worked weighting table shows you understand steps 2 to 6. Keep the numbers simple and check the sums.