When trying to make a good decision, a person must weight the positives and negatives of each option, and consider all the alternatives. For effective decision making, a person must be able to forecast the outcome of each option as well, and based on all these items, determine which option is the best for that particular situation.
Decision making is the process of choosing a solution from available alternatives.
Individual at all levels and in all areas of organizations make decisions. Decisions determine how the organization solves its problems allocate resources, and accomplishes its objectives.
Top level managers make decision about their organizations goals where to locate manufacturing facilities, what new markets to move into, and what products or services to offer.
Middle and lower-level managers make decisions about weekly or monthly production schedules, problem that arise, pay raises and disciplining employees.
Some decisions are critical and can have a major impact on personal and organizational lives. Other decisions are more routine but still require that we select an appropriate course if actions.
Step 1: Define the Problem
Problem definition is crucial for making a good decision. This step identifies
root causes, limiting assumptions, system and organizational boundaries and interfaces, and any stakeholder issues.
A good problem definition expresses the issue in a clear, one-sentence statement that describes both the initial conditions and the desired conditions. Everybody involved in the decision-making process needs to agree on a written problem definition before proceeding.
Step 2: Determine Requirements
Any acceptable solution to the problem must meet the requirements. Requirements describe what the solution to the problem must do.
Step 3: Establish Goals
Goals are broad statements of intent and desirable programmatic values.