The document outlines a 7-step process for making decisions: 1) Identify the decision, 2) Gather relevant information, 3) Identify alternatives, 4) Weigh the evidence, 5) Choose among alternatives, 6) Take action, and 7) Review the decision. Managers make decisions under conditions of certainty, risk, or uncertainty depending on how much information is available. Certainty exists when outcomes are known, risk when probabilities are known, and uncertainty when little is known. The amount of reliable information determines the likelihood of making a good decision.

1. STEP 1: IDENTIFY THE DECISION
YOU REALIZE THAT YOU NEED TO MAKE A DECISION. TRY TO CLEARLY DEFINE THE
NATURE OF THE DECISION YOU MUST MAKE. THIS FIRST STEP IS VERY IMPORTANT.
STEP 2: GATHER RELEVANT INFORMATION
COLLECT SOME PERTINENT INFORMATION BEFORE YOU MAKE YOUR DECISION:
INFORMATION IS NEEDED, THE BEST SOURCES OF INFORMATION, AND HOW GET IT.
THIS STEP INVOLVES BOTH INTERNAL AND EXTERNAL “WORK.” SOME INFORMATION
INTERNAL: YOU’ TO LL SEEK IT THROUGH A PROCESS OF SELF-ASSESSMENT. OTHER
INFORMATION IS EXTERNAL: YOU’LL FIND IT ONLINE, IN BOOKS, FROM OTHER
AND FROM OTHER SOURCES.
STEP 3: IDENTIFY THE ALTERNATIVES
AS YOU COLLECT INFORMATION, YOU WILL PROBABLY IDENTIFY SEVERAL POSSIBLE
PATHS OF ACTION, OR ALTERNATIVES. YOU CAN ALSO USE YOUR IMAGINATION
ADDITIONAL INFORMATION TO CONSTRUCT NEW ALTERNATIVES. IN THIS STEP, YOU
WILL LIST ALL POSSIBLE AND DESIRABLE ALTERNATIVES.

3. STEP 4: WEIGH THE EVIDENCE
DRAW ON YOUR INFORMATION AND EMOTIONS TO IMAGINE WHAT IT
BE LIKE IF YOU CARRIED OUT EACH OF THE ALTERNATIVES TO THE END.
EVALUATE WHETHER THE NEED IDENTIFIED IN STEP 1 WOULD BE MET OR
RESOLVED THROUGH THE USE OF EACH ALTERNATIVE. AS YOU GO THROUGH
THIS DIFFICULT INTERNAL PROCESS, YOU’LL BEGIN TO FAVOR CERTAIN
ALTERNATIVES: THOSE THAT SEEM TO HAVE A HIGHER POTENTIAL FOR
REACHING YOUR GOAL. FINALLY, PLACE THE ALTERNATIVES IN A PRIORITY
ORDER, BASED UPON YOUR OWN VALUE SYSTEM.
STEP 5: CHOOSE AMONG ALTERNATIVES
ONCE YOU HAVE WEIGHED ALL THE EVIDENCE, YOU ARE READY TO SELECT
ALTERNATIVE THAT SEEMS TO BE BEST ONE FOR YOU. YOU MAY EVEN
COMBINATION OF ALTERNATIVES.
STEP 6: TAKE ACTION
YOU’RE NOW READY TO TAKE SOME POSITIVE ACTION BY BEGINNING TO
IMPLEMENT THE ALTERNATIVE YOU CHOSE IN STEP 5.
STEP 7: REVIEW YOUR DECISION & ITS CONSEQUENCES
. IF THE DECISION HAS NOT MET THE IDENTIFIED NEED, YOU MAY WANT TO
REPEAT CERTAIN STEPS OF THE PROCESS TO MAKE A NEW DECISION. FOR
EXAMPLE, YOU MIGHT WANT TO GATHER MORE DETAILED OR SOMEWHAT

5. DECISION MAKING CONDITIONS
EVERYDAY A MANAGER HAS TO MAKE HUNDREDS OF DECISIONS IN THE ORGANIZATION.
THERE ARE DIFFERENT CONDITIONS IN WHICH DECISIONS ARE MADE. MANAGERS
SOMETIMES HAVE AN ALMOST PERFECT UNDERSTANDING OF CONDITIONS
DECISION, BUT IN OTHER SITUATIONS THEY MAY HAVE LITTLE INFORMATION ABOUT
CONDITIONS. AT THE SAME TIME, THE DECISION TAKEN BY THE MANAGERS AT PRESENT
ALSO HAVE AN EFFECT ON FUTURE. FOR THIS PURPOSE, THE DECISION-MAKING PROCESS
INVOLVES THE VISUALIZATION OF THE CONDITIONS THAT MAY BE PRESENT IN FUTURE.
SO, THE DECISION MAKER MUST KNOW THE CONDITIONS UNDER WHICH DECISIONS ARE
BE MADE. GENERALLY, THE DECISION MAKER MAKES DECISION UNDER THE CONDITION OF
CERTAINTY, RISK AND UNCERTAINTY. THERE ARE THREE CONDITIONS THAT MANAGERS
FACE AS THEY MAKE DECISIONS
. THEY ARE (1) CERTAINTY, (2) RISK, AND (3) UNCERTAINTY.
CERTAINTY
WHEN THE CERTAINTY CONDITIONS ARE PRESENT, IT CAN BE REASONABLY EXPECTED BY
MANAGERS WHAT IS GOING TO HAPPEN WHEN A PARTICULAR DECISION HAS BEEN TAKEN
THEM. CERTAINTY IS A CONDITION UNDER WHICH THE MANAGER IS WELL INFORMED
POSSIBLE ALTERNATIVES AND THEIR OUTCOMES. THERE IS ONLY ONE OUTCOME FOR
CHOICE. WHEN THE OUTCOMES ARE KNOWN AND THEIR CONSEQUENCES ARE CERTAIN,
PROBLEM OF DECISION IS TO COMPUTE THE OPTIMUM OUTCOME. SIMILARLY, IF THERE
MORE THAN ONE ALTERNATIVE THEY ARE EVALUATED BY CONDUCTING COST STUDIES OF
EACH ALTERNATIVE AND THEN CHOOSING THE ONE WHICH OPTIMIZES THE UTILITY OF
RESOURCES. THE CONDITION OF CERTAINTY EXISTS IN CASE OF ROUTINE DECISIONS
ALLOCATION OF RESOURCES FOR PRODUCTION, PAYMENT OF WAGES AND SALARY ETC.
THERE IS A LITTLE AMBIGUITY AND RELATIVELY LOW CHANCE OF MAKING AND
DECISION. IN THESE SITUATIONS, THE MANAGERS USE A DETERMINISTIC MODEL, AND IT IS
ASSUMED THAT ALL THE FACTORS ARE EXACT AND THERE IS NO ROLE FOR CHANCE.

6. RISK
IN A RISK SITUATION, ALTHOUGH THE FACTUAL INFORMATION MAY BE PRESENT
IT CAN BE INSUFFICIENT. MOSTLY THE MANAGERS HAVE TO TAKE BUSINESS
DECISIONS UNDER RISK SITUATIONS. A MORE DECISION MAKING CONDITION IS A
STATE OF RISK. IN SUCH A CONDITION, MANAGERS HAVE KNOWLEDGE ABOUT
ALTERNATIVE COURSE OF ACTIONS BUT OUTCOMES ARE ASSOCIATED WITH
PROBABILITY ESTIMATES. IT IS MORE DIFFICULT TO PREDICT FUTURE CONDITIONS
WITHOUT FULL INFORMATION, SO THE OUTCOME OF AN ALTERNATIVE CANNOT BE
ACCURATELY DETERMINED. THEREFORE, MANAGERS CAN GUESS THE PROBABLE
OUTCOME ON THE BASIS OF THEIR EXPERIENCE, RESEARCH AND OTHER AVAILABLE
INFORMATION. THEY CAN CHOOSE AN ALTERNATIVE WITH HIGHEST EXPECTED
OUTCOME. HOWEVER, SUCH DECISIONS ARE LARGELY SUBJECTIVE AS NO
CRITERIA ARE FULLY RELIABLE. DECISION MAKING UNDER CONDITIONS OF RISK IS
ACCOMPANIED BY MODERATE AMBIGUITY AND CHANCES OF AN IMPRACTICAL
DECISION. ON THE OTHER HAND, THE MANAGERS MAY ALSO USE SUBJECTIVE
PROBABILITY THAT IS BASED ON THEIR EXPERIENCE AND JUDGMENT. FOR THIS
PURPOSE, SEVERAL TOOLS ARE AVAILABLE TO THE MANAGERS THAT CAN HELP IN
TAKING DECISIONS UNDER RISK CONDITIONS.

7. Uncertainty
In case of uncertainty conditions, very little information is available to the
managers and the managers are not sure regarding the reliability of such
information. A state of uncertainty occurs when managers are unaware of the
problem they face. They do not know all the alternatives, the risk associated
with them or the likely consequences of each alternative. This uncertainty
from the complexity and dynamism of contemporary organization and their
environments. Managers have limited information to calculate the degree of
risk, so statistical analysis is not possible. The condition of uncertainty arises
when the organization introduces a new or innovative product or service,
adopts new technology, selects new advertising program etc. To make
decision in uncertain conditions, managers must acquire as much relevant
information as possible and approach the situation from a logical and rational
perspective. Intuition, judgment and experience always play major roles in the
decision making process. However, decision under uncertainty is the most
ambiguous for managers and there is more possibility of error. However, there
are certain techniques that can be used by the managers for making a better
decision under uncertainty conditions. For example, they may use decision
trees, risk analysis and preference theory for making the right decisions in
uncertainty conditions.
Hence, In conclusion, we can say that greater the amount of reliable
information, the more likely the manager will make a good decision. Hence,
manager should make sure that the right information is available at the right

8. Evidence-based practice is about making decisions through the conscientious,
explicit and judicious use of the best available evidence from multiple sources
by
1. Asking: translating a practical issue or problem into an answerable question
2. Acquiring: systematically searching for and retrieving the evidence
3. Appraising: critically judging the trustworthiness and relevance of the
evidence
4. Aggregating: weighing and pulling together the evidence
5. Applying: incorporating the evidence into the decision-making process
6. Assessing: evaluating the outcome of the decision taken