When we talk about the decision making process, we need to remember that modern decision making and decision taking have been done more easily with the intelligent computer software. Most of the Energy, Health Care, Transportation, Telecommunication and other Organizations are using the effective and efficient intelligent software for the Decisions rather than humans. We are going to discuss the Decision Making and taking processes by the Managers. A good decision leads the organization towards its sustainability and success, which every manager wants. The decision making depends upon all four managerial areas of an organization and these functional managers are called as Decision Makers.
Decision Making Situation
Decision making situations vary in accordance with problems occurred during the process & progress and their handling.
- If the outcome of an alternative decision is known, then there is certainty to the managers for the accuracy at the time of implementation.
- If the outcome is unknown and there is insufficient information about the processes carried in alternative decisions, then there remains Uncertainty to the managers.
- There remains a risk of possible losses than planned results. Uncertainty is the major cause of risk while the rapid changes of environment, is another major cause.
Decision Making Process
The Decision is to make from the alternative plans for the growth of the company or an organization through multiple steps from identification of the problem, proper handling, development of products, analysis, selection of alternatives ideas and suggestions. Implementation of a decision depends upon its effectiveness. Decision making models may be descriptive or normative.
- Descriptive Decision Making Models
It describes the actual way that how managers made the decisions.
- Normative Decision Making Models
It follows the way of most effective and authentic decision making process.
These models normally contain four steps.
Steps to Effective Decision Making Process
- Identification of Problem
First step contains the identification of the organizational problems and issues that are discrepancies in current states or conditions and desires.
01- The scanning state is involved in monitoring of the work situation of changing conditions, which may be a signal of a problem.
02- The categorization state involves the attempts for understanding and verifying signs of discrepancy between the current state and the desired state.
03- Diagnosis is a stage that involves the collection of information and specification of the nature and cause of issue or problem.
- Alternate Solution
In association with brainstorming, four principles are used for the generation of alternative solutions that are;
01- When you generate the possible solutions, do not avoid or criticize the ideas.
02- Freewill; that means provide even wild ideas as an effort to increase more usable ones from others.
03- Provide so many ideas to for the increase in probability of effective solutions.
04- Combination and Improvement of the ideas offered.
- Choosing the Best One
After the alternatives of a decision are evaluated systematically, the choice of an alternative step occurs. It contains six general criteria:
01- The alternative decision should be feasible in relation to organizational parameters that are policies, technology & equipment, time and budget.
02- The quality of the alternative decision should be effective in the solution of the problems.
03- Acceptability of the person that is going to be affected by the implementation of the alternative decision.
04- Alternative Decision should not be exceed the cost limits, to reduce unwanted side effects.
05- There must be reversibility in the alternative decision, if necessary, it can be reversed.
06- Compatibility with social responsibilities of the organization should meet its ethical standards by the alternative decision.
- Monitoring and Implementation
01- Monitoring and Implementation are the final stage to be taken for the chosen alternative decision with planning to avoid any failure. It contains following steps:
02- Careful planning is required for the implementation. Its amount is dependent on the changes introduced, either major or minor. A great amount of planning is required for the irreversible changes.
03- Sensitivity of the involved or affected persons is required. Involved or affected persons should support or to be informed while implementation.
04- Monitoring is compulsory to look after the progress as planned and the problems triggering the process should be resolved on immediate basis.