Outline of the presentation

Introduction

I / The types of decision

II / Decision-Making Models

III / the decision-making process

IV / Decision Support Tools

Conclusion

Introduction
The decision can be defined as a process leading to a choice among several.
choice can be good or bad, it results that the decision is too. Furthermore,
the importance of decision-making for a company is clearly noticeable as much
more than if it is poorly conducted, its consequences will be negative.
Thus, in the continuation of our presentation that addresses decision-making, we will strive to
highlight what decision-making is and what it involves.
Our approach will initially consist of listing the types of decisions, then the
decision models, then to determine the process that is generally affiliated with decision making
of decision as well as the tools associated with it.

I/ THE TYPES OF DECISIONS

Three criteria are used to classify decisions: the deadline, the purpose, and the structure of
decision.
1/Ranking according to the deadline or time horizon
This ranking allows for distinguishing decisions based on their scope over time. We
distinguishes as follows:

a) Short-term decisions
These are common decisions whose effect is short-term. These are the decisions
easily reversible in case of error.

b) Medium-term decisions
They engage the company for a period ranging from 1 to 5 years. They are also
reversible but at a higher cost for the company than in the context of a decision
short term.

c) Long-term decisions
They provide guidelines on the company's long-term activities. They are
difficult to reverse.

2/ Ranking according to purpose

This typology allows for the distinction between operational, tactical, and
strategic.

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 a) Operational decisions
These are everyday decisions. They can be made at all levels of.
responsibility. It is often about repetitive decisions with immediate effect and whose
the result is known in advance.

b) Tactical decisions
They are also called administrative. They concern the management of resources.
the company that is to say the resolution of problems, the coherent and optimal distribution of
factors of production. They can be decentralized. They are at the crossroads of
operational decisions and strategic decisions.

c) Strategic decisions
They determine the general direction of the company. They are mainly made based on
information comes from the company's environment. They are taken at the level of the
general management and are not decentralized. They have a non-repetitive nature and are
often irreversible.

3/ Ranking by structure

Decisions can be classified according to the method used by the decision-maker to make their choice.
The decision may be the result of a predetermined procedure. In this case, we are talking about
programmable decision. It can also result from an exceptional event: we speak of
non-programmable decision. In non-programmable decisions, we distinguish between
structured decisions, that is to say those whose parameters are roughly identified and the
weakly structured decisions in which the parameters are numerous and complex.
When decisions are weakly structured, with a resolution process
uncontrolled predetermined, the manager must rely on his judgment ability, to his
intuition and its experience. We speak of heuristic approach.

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 II / Decision-Making Models

This section aims to present the different decision-making models as well as their scope
and limits. By models we do not want to hear 'objects of imitation' but rather
simplified representation. These different models are: the single-rational model, the model
organizational, the political model and the so-called 'garbage can' anarchic model.

The monotonic model

a) Presentation
The organization is identified with a single, homogeneous, rational actor, self-aware.
and its environment, endowed with stable objectives and/or preferences.
The decision is likened to the reasoning of a single actor (individual or collective) whose
conduct is said to be rational as it seeks to maximize the achievement of its ends, by
using the means at his disposal. The degree of purity or sophistication of this
rationality can be very variable depending on the actors and the situations, but it is a
monorationality that excludes any conflict over objectives and how to decide.
the decision-making process summarizes to a series of logically linked steps:
 Problem formulation;
 Identification and explanation of all possible actions;
 Evaluation of each action by criteria derived from the objectives or the
preferences ;
 Choice of the optimal solution.

b) Scope and limits

The monorational model based on the idea of economic calculation rationality has allowed for
elaborate formalizations, using mathematical tools and quantitative techniques,
which prove powerful in the case of well-structured and repetitive problems.
However, it should be noted that theories of the single actor are most often of the type
normative and not explanatory. They answer the questions how to do it? Rather than to
Questions about how this choice was made? Or why did it happen this way.

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On the other hand, the monorational system assumes that the observed changes are the
results of the voluntary and free choices of this individual or collective decision-maker. As a result, he denies

the existence of conflicts and the strategies of individuals and groups. Finally, this model assumes
that there is a direct relationship between the importance given to a decision when it is made and
the importance of these results. This principle, according to which great effects are produced by
great causes, is unfortunately often contradicted by the mono-rational model
the experience.

2) The organizational model

a) Presentation
The organization is made up of sub-units; each sub-unit has its own rules and
procedures that are specific to it, which condition its perception and guide its behavior.
The entire set of these sub-units is overseen by a management that assigns them objectives.
sub-units treat these objectives as constraints, and therefore try to formulate them
as according to the known schemes on which they can apply rules and procedures
standard. As a result, the sub-units tend to simplify complex situations and
original to simple situations, easily interpretable and close to situations already
encountered. The procedures involve conducting research until the first
satisfactory solution that is to say one whose level of performance is considered acceptable by
the management. This solution is adopted, and the search for other solutions is then halted.
Thus, most of the solutions found have already been used previously to solve
other problems and new solutions are sought only when the solutions
old ones are not likely to solve the problem.

b) Scope and limits

The fundamental contribution of the organizational model of decision-making is to have established
highlights the importance of the process itself in determining choices: the substance
choices is affected by the way they are made. This model highlights
the importance of organization and procedures in decision-making.
However, this model has certain shortcomings that need to be addressed. They are:

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  It poorly explains the phenomena of innovation and sudden change as it is based on
on the hypothesis that choices are conditioned by structures and the
existing procedures;
 It is vague on how the subunits interact, on their integration and
the role of management, on how structures and procedures are defined;
in other words, the model remains modest on the question of power;
 He too easily admits that the rules are followed to the letter and does not take
sufficiently taking into account the stakes and strategies of the organization's members by
concerning management procedures and tools.

3) The political model

a) Presentation
In the political model, the organization is seen as a set of players - individuals or
groups placed in particular situations within a more or less defined structure
(hierarchical line, budgeting process, division of labor). The players are equipped
of interests of their own objectives, and control various resources (authority, status, money,
time, men, ideas, information). The organization does not have clear objectives a priori. Its
objectives are discussed and redefined based on the interpretation made by the stakeholders
you of their power situation. Individuals lead particular strategies based on
their own situation. The confrontation of specific strategies is partly regulated by the
structure of the organization and is expressed through power games. The main games
policies are:
 The empire-building game: which involves establishing and expanding its base of
power through the increase in the size of the service one manages;
 The games of defiance: aimed at generally powerless individuals to
challenge a decision or the authority established
 The games of change at the top: which consist of trying to alter the balance
of power within the company.

b) Scope and limits

Developed from the observation of organizations or public institutions, the model
politics is primarily inherited from political science. Its essential contribution is to attract
the focus on the interactions of specific strategies within organizations and,
finally, on the power games hidden behind rational speeches and organizational charts

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well designed. However, its use is complex, as it requires a lot
information.
Its limits are of two kinds:
 By emphasizing particular strategies, this model tends to obscure the fact that the
rules and structures, within which these strategies are exercised, are also
power instruments. Thus a large part of the resources available to
actors to influence decisions (authority, budget, study staff) depends on
organizational decisions that are not addressed in basic models.
 He also neglects the existence of elements that transcend strategies.
particular: common values, projects, identity. All these elements can guide
the action more surely than any negotiation process, as they can exist in
out of any discussion.

4) The Garbage Can Model

a) Presentation
The garbage can model formulated by J. March, M. Cohen, and J. Olsen considers a decision
like the product of a chance encounter, during a particular circumstance (opportunity of
choice), of problems (pending), of solutions (ready-made) and decision-makers more or less
concerned (participants).
Opportunities for choice are the occasions through which an organization is supposed to
to make one or more decisions (contract signing, hiring or firing, meetings)
budgets, planning committees, etc.).
The problems are everything that involves the members of the organization in and out.
the organization at a given moment; this goes far beyond management issues, for
include family or ecological concerns.
Solutions are the answers in search of problems: they seek one or more questions.
to be able to be implemented.
The participants are the actors present during an opportunity for choice. As they have no
general more opportunities for participation than they have time available, their presence,
facing an opportunity is not guaranteed, nor is their involvement.

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 b) Scope and limits

The garbage can model has several remarkable features:

 It diverges from the paradigm of decision-making as the resolution of a problem through choice.
of an adequate solution.
 He suggests explanations for phenomena that are quite common such as
decisions that do not resolve the targeted problems, which reappear later or
elsewhere, the adoption of solutions when the situation was not problematic,
persistence of unresolved issues or the inability to assign a decision.
 It calls into question the intuitive idea that a decision is a phenomenon
important, independent or circumscribed.
On the other hand, the garbage can model leads to the disappearance of the very idea of decision.
This anarchic vision of organizations has fostered approaches that place more emphasis on
the action that on the decision.

It should be noted from these different models that their implementation in practice is very complex.
and as we have pointed out, taken individually they have limitations. Thus, for a
greater efficiency and for practical needs it will often prove more suitable
to associate them in order to make better decisions.

III / THE DECISION-MAKING PROCESS

The decision-making process encompasses all the phases that must lead to the making of
decision and its control. The SIMON process distinguishes 4 phases that must be
add the control phase.

1/ The intelligence phase

It is the phase of perception, of understanding. The decision-maker becomes aware of a situation.
inside the company that requires decision-making. This, through the
information system must gather the information that allows understanding the
problem.

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 2/ The modeling or design phase
The problem being posed, we seek to design and formulate all possible avenues.
offers to its resolution. It is said that alternatives for solutions are being surveyed.

3/ The selection phase

This is the selection phase of a solution based on the objectives we have set.
function of the available selection criteria and past experiences.

4/ The decision phase

We mobilize physical and financial resources for the implementation of the alternative.
withholding.

5/ The control phase

It is used to perform post-checks. We compare the results obtained with those
anticipated. If significant discrepancies arise, we take measures (different decision)
correctives.

IV/DECISION SUPPORT TOOLS

These are the tools or instruments that the manager uses in the context of decision making.
programmable. Their choice depends on the problem at hand, the parameters that it
define and the eventualities associated with the decision that must be made. They can be classified into
4 categories according to the increasing level of uncertainty. The 4 situations are: situation in the future
certain, uncertain future situation, uncertain future situation and conflicting situation.

1/ Decision in a certain future

The decision-maker knows precisely the future events or the economic events.
futures. He can foresee the consequences of his choice. But these are very rare cases.
company. These are most often short-term operational decisions. The tools
generally used are:

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 Linear programming
The stock management model in a certain future
The discounting technique to assess the profitability of an investment
Value analysis for the design of new products

2/ Decisions in uncertain future

The decision-maker has an understanding of various eventualities related to their decision. This

This knowledge allows him to assign them probabilities of occurrence.

Two situations can be distinguished:
If the events are exclusive, the decision-maker can use the expected value.
of the different events to make his decision.
If on the contrary the events are related and the conditions for their realization
escape the company, the manager uses the decision tree.

Decision in uncertain future

The decision-maker has less information than in the case of the random situation. He cannot
so do not assign probabilities of occurrence to the different events.
The decisions to be made in such a case depend on the characteristics of the manager:
If he is cautious or pessimistic or risk-averse, he uses the method of resolutions.
Maximin
If he is ambitious or optimistic or a risk-taker, he uses the maximax.

4/ Decision in future conflict

In certain situations, market transparency and free competition are not
guarantees. In such cases, economic agents adopt strategic behaviors and
The method that allows for decision-making is game theory.
Economic agents or companies are called players and the decisions made by the
players are called strategies.
In a conflictual market, strategies are never set in stone. They evolve according to
choices made by the opponent. Strategies may involve prices which are
barriers to entry in a business sector.

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 CONCLUSION

Here we are at the end of our work, during which we have presented in turn the
types of decisions, decision models, the process most related to decision making and
decision support tools.
We can conclude that decision-making is a complex process that integrates a
high number of variables which is not always entirely logical. Furthermore, it
it would be wrong to think that one model or another alone represents it best. But
The combination of these different models provides the closest appearance to reality.

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