Question

How important are the concepts of decision making?

Answer 1

Every organization however small or big may it be, has to make a decision on a daily basis. It is an integral part of modern management and an indispensable function of management.

Other managerial functions such as staffing, organizing, coordinating, planning and controlling are done only through a decision-making process. Decisions are made to sustain the day to day activities of a business.

There are a series of steps which are involved in every decision-making process which may be enumerated as:-

1. Problem Definition
2. Data collection and converting it to get information
3. Evaluating the various courses of action
4. Choosing the viable alternative
5. Planning and executing
6. Measuring the Progress
7. Taking Corrective Action to amend any mistakes

The above steps clearly show that decision making is a complex and challenging process involving many variables thus highlighting its importance in any organization and the need for a structured framework to arrive at the best possible alternative.

So, decision making is the systematic process of choosing a specific course of action from various alternatives in order to solve any problem.