DECISION MAKINGSTEPS & IT’S ESSENTIALS

Introduction• According to Haynes and Massie “a

decision is a course of action which is consciously chosen for achieving desired results”.

• It is the starting point of management process and is the basis of planning.

• Decision making is a continuous process.

• It is essential to face new challenges.• Right decision at right time facilitates

growth.

Steps in decision making

identifying problemsProblems faced by a corporate

organization….

*Low profits or declining sales*High costs*Low morale of the employees*High rate of absenteeism

Studying the problem*Includes analyzing the problem.*finding the causes of the problems by using the

questions why, how , what & when.* Finding a potential solution for the problem .

Clarifying the objectives.*Clear objectives helps in setting up

immediate as well as long term goals… analyzing alternative solutions.* Analyzing alternative solutions refers to

having alternative options. It results in lesser cost of production.

* Eg –cheaper production alternatives like raw materials ,machinery ,labor force etc

Predicting immediate and long-term consequences of the decision..

*it is essential to predict the long term effect of the decision taken as it will affect the growth of the individual as well as the organization.

Making the best choice..* After considering the

alternatives ,long-term consequences the organization as well as the individual should make decision.

Taking action*Taking action refers to implementing the

decisions and plan made into action…*taking action is the most important step as it

materializes decisions ,objectives and goals into results..

Taking feedback*A feedback helps to knowIf the decision takes is Really effective or not. If feedbackIs positive then the decision taken Are continued and if not then theDecisions are modified

ESSENTIALS OF DESICISONMAKING……

Gathering information*The decision maker must make an Informed

decision.*He must gather information about essential

details concerning the decisions.

Seek counsel &advice • Seeking council through his

friends ,colleagues• And family member helps the decision

maker to consider the aspects which he may have overlooked…as well as it helps him by giving a new outlook and point of views.

Making a list of pros and cons*Making a list of pros and cons helps in

knowing the positive and negative aspects of a particular decision..

Timely and thoughtful decisions .*Taking right decision at the right time

is extremely important . Decisions need to be made thoughtfully as they have certain element of risk and no guarantee that the decisions taken will be right.

Fact based*The decision maker should make decisions on the basis

of sound judgments . he should take time to firmly establish the truth by studying his facts deeply and filtering out the information.

Using logical techniques

Objective evaluation & emotional stability.

*the decision maker must make sure that his decisions are not affected by his emotions ,assumptions ,expectations , opinions and personal biases.

Other essentials*Decisions should be fair and

balanced*Decisions should be evaluated

along with their patterns.*Determining the appropriate

levels of decision making.*Considering all options* Assessing risks….