Concept and the Process of Decision Making | Mero Solution

 

Concept of Decision making :
Decision making is the process of selecting a best course of action out of many available alternatives. It is the process of identifying and defining the problems, developing alternatives solution, evaluating them in terms of possible consequences and choosing the best solution among them and implementing the decision effectively. Therefore, a manager continuously involves in the decision making process while setting goals, determining plans and taking action, formulating strategies and policies, assigning jobs to subordinates, and evaluating their performance. The success of the organization depends upon the decision making ability of the manager and its implementation in real work situations.                      

The Decision Making Process :
The decision making process can be explained as:

i. Identifying and diagnosing the problem:
The decision maker has to recognize and define the problem. It is the beginning stage of the decision making. The managers can identify the problems between the current state and the desired state. The decision maker must ensure that the resources and abilities exist for solving the problem.

ii. Generating alternative solutions:
In the second stage, problem diagnosis is linked to the development of alternative courses of action. Managers generate some alternative solutions based on past experiences, expert's views, etc. Brainstorming is the best technique to develop alternatives solutions.

iii. Evaluating alternatives:
This stage gives the answer to the questions of which solution will be the best? Alternatives are evaluated rationally or logically. Managers should consider several types of consequences. They should consider whether the alternative solution is feasible in terms of cost, time, resource, legal constraints, etc.

iv. Selecting the best alternative:
Once the decision maker considers the possible consequences of options, it is time to make decisions. The management has to consider both short term and long-term impact of alternative and organizational performance. While selecting the alternative, the decision maker also has to think on what if something unexpected happens during the implementation of this alternative.

v. Implementing the decision:
This is the process of putting decision into action. An efficient decision maker is required for effective outcome of decision. Those who implement the decision must understand the choice and they must be committed to its successful implementation.

vi. Evaluating the decision effectiveness:
The final stage in the decision making process is evaluating the decision. This means collecting information on how well the decision is working and knowing whether it resolves the problems. This evaluation is useful to figure out whether the feedback is positive or negative.
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