Decision Making Process
Decision making is a management process and it is to be taken care that the decision so taken should be error free and that it has been taken after analyzing all the possible alternatives. Also apart from the different alternatives, all the available resources should be reviewed properly before coming to any decision.
Though the Decision Making is not a tough job but it should be done in a process in order to avoid future amendment and save time and so there are a few steps in decision making process. Lets have them below.
5 Steps of Decision Making Process
1) Identify the problem: The purpose of decision making should be identified as it is the logical reason to gather around to plan or decide. The problem the the organisation or a department is facing should be clearly presented along with the possible reasons for it. The reasons for any problem can be either any past failures or due to loopholes in present actions. Only after studying these problems and their possible reasons managers can move ahead with the decision making. Some important factors of the problem should be studied and identified:
a) Duration of the problem,
b) Areas affected by the problem,
c) Possible reasons of the problem,
d) Time available to solve the problem.
2) Standards: Standards in decision making includes organisational values, goals and the resources engaged in it. Every decision that is taken revolves around these three standards. If these factors are taken into consideration then the chances for future amendments will be lesser.
3) Analyse the alternatives: Once the problem is identified and understood, the possible alternatives or solution(s) should be identified. 'What can be done:' is this step. Though not necessary the possible solutions will be error free, changes need to be made in future, and so they should be shortlisted on the basis of various things like cost involved, if any, time required to implement that solution, future effects on the organisation/department, duration till it can be implemented.
4) Select the best solution: Once all the available solutions are reviewed, managers can select one of them that suits them well and have lesser risk involved. There can be levels in judging that particular solution and once everything done well, select that option.
5) Implement the decision:Now its the final step in Decision Making when the solution is derived and implemented. Once done, it should be reviewed regularly so that if there is any loop hole remaining then it should be examined in advance.
When in the mid of decision making one should take into consideration both the positive and negative impacts of the solution on the organisation's activities. This reduces future risks and helps organisation running smoothly. However not matter how much efficient any decision is it will be changed in the near future as neither the conditions are always the same nor the actions.
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Though the Decision Making is not a tough job but it should be done in a process in order to avoid future amendment and save time and so there are a few steps in decision making process. Lets have them below.
5 Steps of Decision Making Process
1) Identify the problem: The purpose of decision making should be identified as it is the logical reason to gather around to plan or decide. The problem the the organisation or a department is facing should be clearly presented along with the possible reasons for it. The reasons for any problem can be either any past failures or due to loopholes in present actions. Only after studying these problems and their possible reasons managers can move ahead with the decision making. Some important factors of the problem should be studied and identified:
a) Duration of the problem,
b) Areas affected by the problem,
c) Possible reasons of the problem,
d) Time available to solve the problem.
2) Standards: Standards in decision making includes organisational values, goals and the resources engaged in it. Every decision that is taken revolves around these three standards. If these factors are taken into consideration then the chances for future amendments will be lesser.
3) Analyse the alternatives: Once the problem is identified and understood, the possible alternatives or solution(s) should be identified. 'What can be done:' is this step. Though not necessary the possible solutions will be error free, changes need to be made in future, and so they should be shortlisted on the basis of various things like cost involved, if any, time required to implement that solution, future effects on the organisation/department, duration till it can be implemented.
4) Select the best solution: Once all the available solutions are reviewed, managers can select one of them that suits them well and have lesser risk involved. There can be levels in judging that particular solution and once everything done well, select that option.
5) Implement the decision:Now its the final step in Decision Making when the solution is derived and implemented. Once done, it should be reviewed regularly so that if there is any loop hole remaining then it should be examined in advance.
When in the mid of decision making one should take into consideration both the positive and negative impacts of the solution on the organisation's activities. This reduces future risks and helps organisation running smoothly. However not matter how much efficient any decision is it will be changed in the near future as neither the conditions are always the same nor the actions.
Download Pdf here