The document outlines the key steps in the decision making process: 1) Recognizing the problem, 2) Identifying the objective of the decision, 3) Gathering and evaluating relevant data, 4) Listing and evaluating alternative courses of action, 5) Selecting the best alternative, 6) Implementing the decision, and 7) Gathering feedback. It emphasizes that decision making involves tradeoffs between alternatives that are rarely clearly right or wrong. Managers must make decisions despite uncertainty and rely on others while ultimately being responsible. The process described aims to help managers select a desirable course of action to provide solutions to problems.
2. “A decision is a judgment. It is a choice between
alternatives. It is rarely a choice between right
and wrong. It is at best a choice between “almost
right” and “probably wrong”.
“A manager by profession is a decision maker;
Uncertainty is his opponent, overcoming it
is his mission.”
3. The decision making process describe the
element of an organization that accepts and
processes information inputs and transforms
them useful conclusions help in selecting a
desirable course of action which ,when
implemented ,will provide a solution to a
management problem. Decision making is a
process involving a series of steps
4. Recognize the problems
and the need for a decision
Identify the objective of the
decision
Gather and evaluate data
and diagnose the situation
List and evaluate alternatives
Select the best course of
action
Implement the decision
Gather feedback
Follow up
5. The first step in the decision making process is
recognizing a problem. Problems generally
arise because of disparity between what is and
what should look for problems that need
solving. Identification of the real problems is
important; otherwise ,the manager may be
reacting to symptoms and fire fighting rather
that dealing with the root cause of the
problems.
6. It is important at this stage to
identify the objection of the
decision . In other words the
manager must determines
what is to be accomplished by
the decision
7. This step of the decision making process
involves gathering information relevant to
problem. The manager must pull together
sufficient information about why the problem
occurred. This including conducting a
thorough diagnosis of the situation and
undertaking a fact-finding exercise
8. The fourth step is listing and evaluating
alternative courses of action. During this step ,a
thorough “what if” analysis should also be
conducted to determine the various factors that
influence the outcome. It is important to
generate a wide range of option and creative
solution in order to be able to move on to next
step.
9. In this step ,the decision maker tries to outline the
advantage and disadvantage of each alternative.
The consequences of each alternative would also
be considered. Sometime the alternative develop
may meet internal demand but may fail to meet the
environmental condition while evaluating the
available alternatives, the decision maker should try
t visualize both the desirable and undesirable
characteristics .all pertinent fact must be collected
they must be classified the process the cons must
be considered and the important points must be
distinguished from trivial or peripheral matter .the
attempt is made chiefly to limit the alternative to a
manageable and economically feasible number.
10. In this is step ,the decision maker merely
select the alternatives that will maximize the
result in terms of existing objectives .if the
problems has been diagnosed correctly
correctly and sufficient alternatives have
been identified ,this step is much easier.
Peter drucker has offered the following four
criteria for making the right choice among
available alternatives.
11. The decision maker has to weigh
the risk of each course of action
against the expected gains
12. The alternatives that will give the
greater output for the least inputs
in terms of material and human
resources is obviously the one to
be selected.
13. If the situation is extremely urgent, the best
alternatives is one that dramatizes the
decision and serves notices on the
organization that something important is
happening . On the other hand ,if consistent
effort is needed ,a slow start that gathers
momentum may be preferable
14. Physical ,financial and human resources
impose a limitation on choice of selection .
Of these, the most important resources
whose limitation have to be considered are
the human being who will carry out decision.
No decision can be better then the people
who have to carry out the decision.
15. Finally, the solution is implemented . The situation
must then be monitored to see whether the decision
meet its objectives . Consistent monitoring and
periodically feed is an essential part of the follow-up
process . Feed allow managers to become aware of
the recent problems associated with the solution .it
permits manager to monitors the effect of their
success . They can also take the opportunity to
evaluate their own decision-making abilities
16. Decision making can be stressful . Manager
must make decisions with significant risk and
uncertainty ,and often without full information.
The must trust rely on other in arriving at their
decision , but they are ultimately responsible
and often meet considerable criticism
17. 1.ANALYSE THE SITUATION
2.SHOW FLEXIILITY TO INCREASE
ACCEPTABILITY
3.BEWARE OF PERSONAL BIASES
4.DON’T BE AFRAID TO IMPOSE YOUR
INTUITION ON TOP OF RATIONAL ANALYSIS
5.ADAPT TO JOB REQUIREMENT
6.APPLY ETHICAL DECISION GUIDES
7.LATERAL THINKING