In the complete process of decision making, there are different situations as per the nature of the problem, environment affecting it which might be internal or external, factors of cost and time. Decision-making is a systematic process which determines the factors on which the decisions have to be made. They do not describe the complete process of decisions made. We can say that there is no rational process followed by the managers. There are different factors affecting the different types of decision. Before reading this article, you have knowledge about 7 types of decision making in organisation.
The decision-making process has some steps to be followed:
- Recognising the problematic situation
Decision-making starts when we start recognising the problems and try to sort it out. It requires the knowledge of all the internal and external factors. When we identify some situation, there is the requirement to take a decision, and there is also the location of the problem on which the manager has to take a decision. The problematic area can be anywhere in the organisation. To locate the problem is not the only task but it requires to identify the nature so that the manager can implement the strategies as per the problem.
- Defining the situation
After the manager recognises the whole problem and the situation, he needs to analyse the situation so that he can find out the perfect solution and decide as per the requirement. Thus, the manager tries to define the issue with a clear perspective. There is an assumption that if we recognise the problem, we will get the half solution of it. If we have a clear definition of the problem, the solution will be more effective and result-oriented.
But it is not easy to define a problem, or we can say that it is not easy to recognise it. The actual problem can be something different to what appears from the front. Therefore, the manager needs to define the problem on the basis of their scope, origin, causes and symptoms etc. If the problem seems to be complicated, there should be proper division of it into sections so that we can get the desired results and study it easily. It is very time –consuming to define a problem, the managers work only on the strategic aspects so that they can save some time.
- Precise the objectives
It is a complicated task to specify the objectives of decision-making. But all these objectives work towards the achievement of the goals and solving the problem. If the company faces some problem, for instance, the problem of high competition in the market, then there have to be strategies to find out the solution of this kind of problems.
One cannot just select an option or another, but it would require a complete plan so that the person can work on it and make it effective. There is a need for tackling this critical situation and solving the problems minutely. The objectives can both be qualitative and quantitative, and they often serve to evaluate the effectiveness of the alternatives available.
- Collect the factual data
You also need to collect the information as it is the important role of the decision-making. One also need to gather the information from various sources to study the alternatives so that one can better implement the best ideas. There is the requirement to study both the internal and external factors so that they can better know the reasoning and to provide a factual framework for the solution of the problem.
The data used in the process helps to collect the information in the process of decision-making. There is the availability, surety and reliability of the decision taken based on the factual data so that one can obtain and determines the decision-making capability of the managers.
- Creating alternative ways
It is the next step that helps the managers towards the process of decision-making. The manager after the collection of the information has to study the alternatives and select the best one among them. But it is highly affected by the quality of decision making of the managers. Thus, the managers have to study all the aspects in detail before developing the possible solutions. It helps to make the process of decision making more meaningful.
Thus it is a challenging task for the managers to examine the alternatives and examine them to come up to the last solution. There are certainly alternative solutions that are obvious and clear, and the manager has to identify all the alternatives for the better working. The managers can also develop the alternatives as per their experience and knowledge, and they can also generate it through the research and analysis, thinking creatively and through the innovative minds.
- Evaluate the alternatives
The main target of decision making is to select the best one from the alternatives and that one should be that which provide the highest amount of wanted results and the minimum amount of unwanted results. But for this, they have to study the alternatives to a great level with the help of forecasting and other helpful tools.
The managers have to evaluate the alternatives and study the possible risks in that, the amount of time it will consume, how efficient is the option and how would it affect the organisation. After studying all this in detail, one should note down the facts and look for the qualitative factors to take into account. One also has to consider the ethical and moral values.
- Choose the best alternative
Then, there is the step to choose the best one among the alternatives to find out the solution. The process of selection is undertaken by analysing and conducting the evaluation for the elimination of the alternatives so that the extra ones are cut and there would remain the most effective one. While making a final choice, there should be a proper study of the past experiences, the skills of the manager and his judging capability.
The managers have to study various other things such as if the solution would be feasible or acceptable as per the company, the practicality and the simplicity so that one can know the as per the rules, regulations, philosophy of management. Thus, there would be proper solution that will ensure that the decision would be consistent.
- Implementing the chosen decision
The managers study the decisions so that they can implement that for getting the solution of the problem. The decision-making is also influenced by the utilisation of the resources. The implementation of the resources also involves the implementation of structural, logical and administrative arrangements etc. The manager has to look for the sources that can make them to implement the cooperation among the team, to commit and to accept the decisions even at the lower level have to think about the process.
Therefore, these elements help the managers to come up with the best solutions and the decisions for the betterment of the organisation.