STEPS OR PROCESS OF DECISION MAKING

Managers have to make decisions whether they are simple or complex. Every decision is an outcome of a dynamic process, which is influenced by multiple forces. In order to make good decisions managers should follow a sequential set of steps. Various authors of management have described different steps in the process of decision making. According to Griffins the rational process of decision making follow the following six steps procedure.

(1) Recognize and Define the Decision Situation

The first step in the decision making process is to recognize that a decision is needed. The decision making process is initiated by the awareness of a problem. A manager must recognize the problem sufficient time and should define the problem precisely. The manager must develop a complete understanding of the problem, its causes and its relationships to other factors.

(2) Identifying Appropriate Alternatives

Once the decision situation has been effectively defined the second step is the identification of alternative courses of action. A problem can be solved in many ways. All possible ways should be identified. The decision maker should not jump on the first feasible alternative to solve the problem quickly. The manner must seek creative solutions and also recognize that various constraints often limit the alternatives.

(3) Evaluate Each Alternative

After the various alternatives are identified the next step is to analyze and evaluate each alternative. It is important to establish some common framework to evaluate each alternative to assure consistency and reliability. The manager must evaluate all the alternatives chosen one-by-one. The alternatives must be evaluate from each every sector.

(4) Select the Best Alternative

After evaluating all the alternatives, the manager must select a best alternative among all. Choosing the best alternative is the real crux of decision making. The best alternative is that which contributes maximum to the organizational goals. However, the manager selects the alternative that demonstrates the highest combined levels of feasibility, unsatisfactoriness,and affordable consequences.

(5) Implement the Selected Alternative

After selecting the best alternative the management takes necessary steps to implement it. Managers must also consider people's resistance to change when implementing change. They should anticipate potential resistance at various stages of the implementation process. Thus, all concerned parties should be well communicated and their full cooperation for the implementation should be obtained.

(6) Evaluate the Results and Follow-Up

The implementation of the decision should be constantly monitored and evaluated. Managers must determine the critical events to be measured, where and how they are to be measured, and how the measurements are to be evaluated. If the management feels that the decision taken is not yielding the desired results, necessary changes should be made in the decision or its implementation.