Decision Making is one of the most difficult as it require high
level of conceptual understanding. Decisions involve tricky
situation where a manager has to analyse the cost and benefits and
unless the decision is not based on proofs and explanations, it’s
not a decision but only intention. The most effective decision
making process which can be applied to almost all of the situations
is –
- Identification of the problem- The first step is to define the
decision you have to make. What is the nature of the
probem,etc.
- Collection of Information- It involves the information
collection regarding the decision, it may be internal or external.
Important sources like self-assessment, past experiences, etc. for
Internal whereas books, other people, for external.
- Identification of the Alternatives- After information
collection, several alternatives are identified which will be
divide into possible and desirable alternatives.
- Weighing the Alternatives and section of alternative-
Evaluation of each alternate with the objective of higher potential
for goal achievement and after finding the most potential
alternative it will be selected for implementation.
- Action- At this step, implementation of chosen alternate will
be started.
- Decision Review- After implementation, consider the results and
evaluate whether it has solved the problem which is being
identifies at step 1. If not, why and what other actions need to be
taken.
This decision making process is most
effective as it have all the steps essential for any type of
decisions to be taken. It does not deal with any particular problem
rather all situations can be dealt with these steps
effectively.