Rational decision-making process contains the following steps:
the Decision-making Process
decision-making process contains the following steps:
Define the Problem
Problem definition is the most
crucial step in the entire decision-making process. As the saying goes, “a problem well defined is a problem half-solved,” utmost care has to be
exercised in this stage for wrong definition
of the problem leads to wrong solutions. This is also called diagnostic stage.
Jumping to conclusions on the basis of certain symptoms has to be avoided. The
problem has to be examined from different angles so as to identify the exact
causes. Unless exact causes are identified, right decisions cannot be taken.
Analyze the problem
The problem has to be thoroughly
analysed. The past events that contributed to the problem, the present
situation and the impact of the problem on the future have to be examined.
Problems do no crop up overnight. The genesis of the problem and the various
contributing factors need to be analysed. In analysing the problem, personal
prejudices have to be avoided. As far as possible, an objective assessment of
the situation is useful to arrive at right decisions.
Proper analysis of the problem
helps the manager to assess the scope and importance of the problem. If the
problem is of minor nature, he can authorize his subordinates to solve it. If
it is a major problem requiring the involvement of many people, he can initiate
the necessary steps. Interestingly, at times some of the problems may not
warrant any decision. Leaving the problem as it is could be the better option.
There are hardly few problems for
which there are not many alternatives. Effective decision-making depends on the
development of as many alternative solutions as possible. The underlying
assumption is that a decision selected from among many alternatives tends to be
a better one. The ability to identify and develop alternative courses of action
depends on the manager’s creativity and imagination. As the thinking of two
people may not be similar, the skills and abilities in developing alternatives
significantly vary from one manager to the other.
The next step in the
decision-making process involves evaluation of the alternative courses or
solutions identified to solve the problem. Alternatives have to be evaluated in
the light of the objectives to be achieved and the resources required.
Evaluation involves a through scrutiny of the relative merits and demerits of
each of the alternatives in relation to the objectives sought to be achieved by
solving the problem.
and Implement the Decision
Scientific evaluation of the
alternatives reveals the acceptability of various alternatives. After weighing
the pros and cons in detail, the best alternative has to be selected and
implemented. It may not always be possible to select the best alternative for a
given problem for want of complete information, time and resources. In such a
case, the manager has to satisfy with limited information and optimize the
yields under a given set of circumstances.
Once an alternative is selected
that becomes the decision and it has to be implemented in a systematic way. The
required resources for the implementation and the necessary cooperation from
the people concerned with or affected by the decision have to be ensured.
Otherwise, however good the decision may be, it may encounter stiff resistance
in the implementation stage.
and Feed back
Once the decision is implemented,
it has to be closely monitored. Adequate follow-up measures have to be taken.
In the course of implementation, so many unexpected events may render the
decision ineffective. The decision may not yield the desired results. Constant
follow-up helps to take corrective measures as and when necessary. Further,
such a follow-up enables to identify the shortcomings or negative consequences
of the decision. It provides valuable feed-back on which the decision may be
reviewed or reconsidered.
Tags : Management Concepts & Organisational Behaviour - Decision Making
Last 30 days 680 views