The Decision-making Process Decision making is every manager’s primary responsibility. To make good decisions, managers should invariably follow a sequential set of steps as presented here.
(a) Identifying and diagnosing the real problems: The first step in the decision-making process is the identification of the problem. Diagnosing the problem implies knowing the gap between what we would like to happen and what’s probably to occur if no action is taken. As pointed out, identifying the cause of the gap’ and understanding the problem solve the problem. Critical factor analysis is helpful in identifying the causes of the problem properly. A decision maker should collect as much information as possible before attempting to solve it. If possible, in addition to tacts, the opinion should also be collected, which would aid in diagnosing the problem effectively.
(b) Developing alternatives: While selecting the alternative course of action a manager should consider the viable and realistic alternatives only. Further, he ought to contemplate the time and value constraints and psychological barriers that might prohibit the number of affordable alternatives. The brain storing and group participants may be fruitfully employed in developing alternatives. Ingenuity, research, and inventive imagination are needed to make sure that the most effective alternatives are thought of before a course of action is chosen for the inclusion of it among the alternatives.
(c) Evaluation of alternatives: Perhaps one of the most important steps in decision making is the evaluation of each alternative. Here, the decision-maker draws a balance sheet of every alternative by identifying the advantages as well as disadvantages of these alternatives. All pertinent facts about each alternative should be collected, the pros and cons must be considered and the important points must be distinguished from the trivial or peripheral matters. The purpose of all this exercise is to limit the number of alternatives to a manageable size so contemplate the alternatives for the choice. Some of the criteria for evaluating an alternative could be —
(i) Resources available for implementing the alternative
(ii) Economy of effort
(iii) An element of risk involved
(iv) Results expected
(v) Time constraint
(vi) The accomplishment of a common goal
(vii) Implementation problems etc.
(d) selection of an alternative: consecutive necessary step within the decision-making method is that the choice of the most effective alternative from numerous obtainable alternatives. Indeed, the flexibility, to pick out the most effective course of action from many attainable alternatives separates the prospering managers from the less prospering ones. The risk, economy of effort timing, and limitation of resources, before one alternative are selected among the available ones.
(e) Implementation and follow up of the decision: The final step in the decision making process is the implementation of the selected alternative in the organization. The alternative-selected should be properly communicated to those members of an organization who are concerned with the decision. Acceptance of the decision by group-members is completely essential to the victorious implementation additional, once the implementation of the decision it’s necessary to follow up to examine whether or not the decision is yielding the desired results. A manager ought to least hesitate to last out a choice that doesn’t accomplish its objective. A manager should see it necessary, that all organizational members participate in the decision making as decision implementation.