Explanation of decision making process. A look at how the steps go. It will be helpful to managers and students of management classes.

2. Factors of Decisions
 We all make decisions. They maybe
based on:
• Gut feeling
• Habit
• No other paths left
• Available information

3. Imagine making all decisions
based on each factor…
Lets focus on gut feeling
How would the results turn out if
all decisions are based on that?

4. Not so good right? Despite this, we are sometimes
forced to rely on it.
But more importantly, we cannot exactly avoid
any of those factors.
This is true for managers also. But they have to be
professional in how they take decisions to make
sure they are not hurting the organization. That is
where available information becomes the most
crucial factor.

5. Decisions
 Some people make better decisions than others
based on the right kind of information they have
about their surroundings.
 Given that some decisions are more vital to get
correct than all others, it’s crucial for managers to
know on what they are basing their choices and
why.
Source: An International Journal

6. Managers and Decisions
Decision making is the most important task that managers
perform in in an organization, distinguishing them from all
other professionals.
Their decisions are powerful enough to create as high as
hundreds of other decisions of lesser scale at other levels of
management.
Source: Management Decision

7. What is the decision making process
the efficient managers use?
The thought process of selecting a logical choice from the
available options.
When trying to make a good decision, a person must weight
the positives and negatives of each option, and consider all the
alternatives. For effective decision making, a person must be
able to forecast the outcome of each option as well, and based
on all these items, determine which option is the best for that
particular situation.
Source: Business Dictionary

8. The Steps in Decision Making:
I. Problem definition: Problem must be clearly defined
II. Analysis of the problem: Gathering of data to
understand the problem
III. List of alternatives: This has to do with listing of solutions
to get rid of the problem
IV. Evaluation of the alternatives: Best option is usually the
one which yields economic effort, yet best result
V. Implementation and follow-up: Keeping track of the
best option in action and changing it if it does not work
Source: Afidated

9. Tips for Making Decisions
 Collaborate with other employees of the organization
 Let the decision making be a team effort
 Have consensus on the selected option
 Use incremental method to correct mistakes emerging from the
selected option
 Never underestimate the power of record keeping

10. REFERENCES
(2005),"How decision making can be led", Development and Learning in
Organizations: An International Journal, 19(11), 22-24
Harrison E. F. (1996). A process perspective on strategic decision making.
Management Decision, 34 (1), 46 -53
Decision Making. (n.d). Business Dictionary. Retrieved from:
http://www.businessdictionary.com/definition/decision-making.html
Understanding Decision Making Process Steps. (2015, August). Afidated. Retrieved
from: http://www.afidated.com/2015/08/understanding-decision-making-
process.html