Effective and successful decisions can protect an organization and unsuccessful ones can damage them. Therefore, the management decision making process is the most critical process in any organizations response.
The following are some important steps in the decision making process. Each step may be supported by different tools and techniques;
STEP 1: Identification of the purpose of the decision
In this step, the problem is thoroughly analysed.
STEP 2: Information gathering
In the process of solving the problem, you will have to gather as much information related to the factors and stakeholders involved in the problem.
STEP 3: Principles for judging the alternatives
In this step, the baseline criteria for judging the alternatives should be set up.
STEP 4: Brainstorm and analyse the different choices
For this step, brainstorming to list down all the ideas is the best option. Before the idea generation step, it is vital to understand the causes of the problem and prioritization of causes.
STEP 5: Evaluation of alternatives
Use your judgement principles and decision-making criteria to evaluate each alternative.
STEP 6: Select the best alternative
Once you go through from Step 1 to Step 5, this step is easy. In addition, the selection of the best alternative is an informed decision since you have already followed a methodology to derive and select the best alternative.
STEP 7: Execute the decision
Convert your decision into a plan or a sequence of activities. Execute your plan by yourself or with the help of subordinates.
STEP 8: Evaluate the results
Evaluate the outcome of your decision. See whether there is anything you should learn and then correct in future decision making.
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