In this topic, you will learn about, Decision Making.
Decision Making (Various steps):
For any business organization, it is not that only planning plays a vital role, decision making is also an important essence of management. Decision making is a mental process. It is a process of selection of one best alternative for doing a particular job.
The decision making has the following characteristics:
- An intellectual activity.
- It should be a process of choice.
- In decision making an evaluation of alternatives is made.
- An element of commitment.
- Decision-making always is taken to realize a certain objective.
- Time also plays an important role in decision making.
Various Elements In Decision Making:
- The concept of good decision: the decision should be sound and result-oriented. The decision should be based on facts and careful analysis.
- The environment of decision: decision-making management should create a favorable environment in the organization for good decision making. (internal as well as external environment) (Scanning the information and gathering the information).
- Physiology elements:
- In decision making the importance of communication cannot be ignored. There should not any ambiguity, it should be crystal clear, it should be at the point, and it should be clear, simple, and easy to understand.
- Participation of employee: another element that needs to be conceded is the participation of the employee as far as possible. The employee should be given due to participation in the process of decision making. They should be motivated and educated for it.
Various Steps In The Process Of Decision Making:
- The first step in decision making is to know one objective. It should be clearly understood and clearly defined.
- Decision-making should be not only clear but a description of the problem is equally important.
Perception involves defining and recognizing the problem in a clear manner. A clear understanding of the real problem is the most important task in the process of decision making.
- Emphasis and analysis of the problem: after defining the problem the next step in decision making is to analyze the problem. The problem should be thoroughly understood analyzed. The problem should be divided into many sub-problems and each element of the problem must be thoroughly investigated.
- Developing alternative solution: after analyzing the problem with the help of relevant information the decision-maker should formulate several alternatives and solutions for the problems.
- Screening the alternatives: judging and evaluating them thoroughly on some decision criteria.
- Finding /selecting the best solution: after careful analysis, it requires the ability to draw a distinction between seen and unseen forces. Thus, a good decision maker takes into consideration, not only his past experiences but also his judgment in taking a vital decision.
- Implementing the best alternatives: after taking the final decision the next problem is to put the design into effect. The means of communication of decisions, the motivating of employees,s and the coordinating of their efforts or other phases of implementation of the decision.
- Feedback and control: the last step in the process of the right decision s to follow the decision. The management should receive continuous information and evaluate them regarding the effects of his implemented decision of the management does play an important role.
Thus, from the above discussion, we can conclude that for a success of a business organization a rational business decision i.e. taking a decision after evaluating all the alternatives and their consequences and the vision of management does help the organization in not only making it successful but also having a unique and competitive position in today’s volatile environment.
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