THE DECISION-MAKING PROCESS

 DECISION MAKING.

How would you define it?

Definition:- Decision-making can be regarded as the cognitive process resulting in the selection of a course of action among several alternatives.

Making a decision implies that there are alternative choices to be considered, and in such a case we want not only to identify as many of these alternatives as possible but to choose the one that best fits with our goals, desires, and so on.

THE DECISION-MAKING PROCESS 

Good decision-making is important at all levels in the organization. It begins with a recognition or awareness of problems and opportunities and concludes with an assessment of the results of actions taken to solve those problems. 

1. Identifying and Diagnosing Problems. 

The first step in the decision-making process is the clear identification of opportunities or the diagnosis of problems that require a decision. Discrepancies between actual and desired conditions alert a manager to a potential opportunity or problem. 

2. Identifying Objectives. 

Objectives reflect the results the organization wants to attain. Objectives are often referred to as targets or standards. Objectives can be expressed for long spans of time (years or decades) or for short spans of time (hours, days or months). 

Long-range objectives usually direct much of the strategic decision-making of the organization, while short-range objectives usually guide operational decision-making. 

Regardless of the time frame, objectives will guide the ensuing decision-making process. 

3. Generating Alternatives. 

Once an opportunity has been identified or a problem diagnosed correctly, a manager develops various ways to achieve objectives and solve the problem. 

This step requires creativity and imagination. In generating alternatives, the manager must keep in mind the goals and objectives that he or she is trying to achieve. 

Ideally, several different alternatives will emerge. In this way, the manager increases the likelihood that many good alternative courses of action will be considered and evaluated. 

4. Evaluating Alternatives. 

The fourth step in the process involves determining the value or adequacy of the alternatives generated. Which solution is the best? 

Fundamental to this step is the ability to assess the value or relative advantages and disadvantages of each alternative under consideration. The result should be a ranking of the alternatives. 

5. The Act of Choice 

Decision-making is commonly associated with making the final choice. Although choosing an alternative would seem to be a straightforward proposition, simply consider all the alternatives and select the one that best solves the problem. 

Because the best decisions are often based on careful judgments, making a good decision involves carefully examining all the facts, determining whether sufficient information is available, and finally selecting the best alternative. 

6. Implementing 

When decisions involve taking action or making changes, choosing ways to put these actions or changes into effect becomes an essential managerial task. The keys to effective implementation are:

 (1) Sensitivity to those who will be affected by the decision and

 (2) Proper planning consideration of the resources necessary to carry out the decision. 

Those who will be affected by the decision must understand the choice and why it was made, that is, the decision must be accepted and supported by the people who are responsible for its implementation. These needs can be met by involving employees in the early stages of the decision process so that they will be motivated and committed to its successful implementation. 

7. Monitoring and Evaluating 

No decision-making process is complete until the impact of the decision has been evaluated. Managers must observe the impact of the decision as objectively as possible and take further corrective action if it becomes necessary. 

Monitoring the decision is useful whether the feedback is positive or negative. Positive feedback indicates that the decision is working and that it should be continued and perhaps applied elsewhere in the organization. 

Negative feedback indicates either that the implementation requires more time, resources, effort, or planning than originally thought or that the decision was a poor one and needs to be re-examined. 

You have defined both problem-solving and decision-making. Think through for a while and consider the following activity.

Activity.

Write down in your notebook the difference between problem-solving and decision-making in your own understanding.

Thank you for your good work. Now read the difference stated below and compare it with what you wrote.

DIFFERENCE BETWEEN PROBLEM-SOLVING AND DECISION.

People tend to use ‘problem-solving’ and ‘decision-making’ interchangeably. Although they are somewhat related, these two phrases are not synonymous and are completely different. 

The major difference between the two is; problem-solving is a method while decision-making is a process.

Problem-solving, as the name implies, is solving a problem. Meaning, it is a method wherein a group or an individual makes something positive out of a problem. 

Decision-making, on the other hand, is a process that is done many times during problem-solving. Decision-making is the key that will help in reaching the right conclusion in problem-solving.