Decision making is a daily activity for any human being. There is no exception about that. When it comes to business organizations, decision making is a habit and a process as well. Effective and successful decisions make profit to the company and unsuccessful ones make losses. Therefore, corporate decision making process is the most critical process in any organization. In the decision making process, we choose one course of action from a few possible alternatives. In the process of decision making, we may use many tools, techniques, and perceptions. In addition, we may make our own private decision or may prefer a collective decision. Usually, decision-making is hard. Majority of corporate decisions involve some level of dissatisfaction or conflict with another party. Let.s have a look at the decision making process in detail.
Steps of Decision Making Process:
Following are the important steps of the decision making process. Each step maybe supported by different tools and techniques.
Step 1: Identification of the purpose of the decision:
In this step, the problem is thoroughly analysed. There are a couple of questions one should ask when it comes to identifying the purpose of the decision. •What exactly is the problem?
•Why the problem should be solved?
•Who are the affected parties of the problem?
•Does the problem have a deadline or a specific time-line? Step 2: Information gathering:
A problem of an organization will have many stakeholders. In addition, there can be dozens of factors involved and affected by the problem. In the process of solving the problem, you will have to gather as much as information related to the factors and stakeholders involved in the problem. For the process of information gathering, tools such as 'Check Sheets' can be effectively used. Step 3: Principles for judging the alternatives:
In this step, the baseline criteria for judging the alternatives should be setup. When it comes to defining the...