How to make important decisions.
Decision-making is an important aspect in every person’s daily life. The nature of decision a person makes, either for personal or organizational benefit will determine the future results as per the decision made. Being a firm’s senior manager can be demanding. The reason being, all other employees look up the manager’s final say. When a manager wants to make a decision, he may follow certain criteria to determine if the decision is worth making. Before making any decision, it is vital to analyze the problem. Many people think that decision-making is similar to problem solving. The difference between the two concepts is that, problem solving critically involves identification of a problem, defining it then finally deciding on the best alternative to solve the problem (Dail. n.d., para. 2). On the other hand, decision making is looking for the best alternative to solve a problem. There is always a need to make assumptions while in the process of decision-making. Assumptions help a manager to understand the implications that may be put in place in case a given decision is not proper (Good decision-making and practices, n.d., para1). For example, there are situations when the company does not meet their sales targets are required. If a manager does not find a solution to that problem then the company may not prosper. Therefore, his decision will be made via assumptions of how the future of the company will be if sales are not increased fast enough. Before carrying out a decision, one can use the business concept of opportunity cost. This concept determines the best alternative that a person can choose following the scale of preference (Henderson, n.d., para 1). Understanding the scope of the situation and determining the best alternative of solving the problem is very important. This step is vital as it gives the manager the opportunity to know how crucial the problem is. Understanding the scope of the problem, allows the manager...
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