Decision Making Step

Topics: Decision making, Decision theory, Decision making software Pages: 6 (1862 words) Published: February 20, 2011
Decision-Making Steps
There are six steps typically associated with effective decision processes. These six steps in the Managerial Decision-Making Process are recognition of Decision Requirement, Diagnosis and Analysis of Causes, Development of Alternatives, Selection of Desired Alternative, Implementation of Chosen Alternative and Evaluation and Feedback.(Daft 1995) First steps in the decision-making steps are recognition of decision requirement. The ability to recognize what is known is usually very important in the decision making steps. Therefore, during making-decision managers need to recognition problems and opportunity. This is because decision making is the process of identifying problems and opportunities and then resolving them. Problem is a situation in which organizational accomplishments have failed to meet established objectives. It can be also some aspect of performance is unsatisfactory. Opportunity is a situation in which managers see potential organizational accomplishments that exceed current objectives. (Daft 1995) Awareness of a problems or opportunity is the first step in the decision sequence. For example, in the human resource department, the managers are playing vital roles to determine whether the organization is satisfactorily progressing towards its goals by detect potential human resource problems. Besides that, talk to other managers gather opinions on how things are going and seek advice on which problems should be tackled or which opportunity should be embraced also is the first steps in the decision making.

In step 2, the managers need to diagnosis and analysis of causes to understanding which of the problems and opportunity of the situation should be refined. This is means that once managers have determined and defined their problems, they must begin to decide what they are going to do about it. Diagnosis is the step in the decision-making process in which managers analyze underlying causal factors associated with the decision situation. (Daft 1995) The managers gathers as much information as possible because having all the facts gives the decision maker a much better chance of making the appropriate decision. Managers may make the mistake if they jump right into generating alternatives without first exploring the cause of the problem more deeply. This is because when an uninformed decision is made, the outcome is usually not very positive, so it is important to have all the facts before proceeding. Kepner and Tregoe, who have conducted extensive studies of manager decision making, recommend that managers ask a series of question to specify underlying causes, including the following: •What is the state of disequilibrium affecting us?

When did it occur?
Where did it occur?
How did it occur?
To whom did it occur?
What is the urgency of the problem?
What is the interconnectedness of events?

In the step 3, the decision maker attempts to come up with as many alternatives as possible. This is because once the problem or opportunity has been recognized and analyzed, decision makers begin to consider take action. A technique known as "brainstorming”, is often used in this step. Therefore, the managers will generate possible alternative solution that will respond to the needs of the situation and correct the underlying causes. Furthermore, developing alternatives allows managers to resist an understandable inclination to solve their problem quickly and makes it more likely that they will reach effective decisions.(Stoner 1978) Possible alternatives will often suggest themselves after managers have analyzed a problem and gathered information about it. In addition, managers may use their imagination to come out with other posibble solutions to their problems. For example, if we would be faced with a high employee turnover rate, we could obviously (1) raise salaries, (2) increase benefits, and...
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