Decision Making Process Overview

Decision Making Process

• Decision-making involves choosing from multiple options.
• The process involves identifying a problem, defining criteria, evaluating options, and implementing the best choice.
• It culminates in judging the decision's effectiveness.

Step 1: Identifying the Problem

• A problem arises when an existing situation differs from a desired one.
• Awareness, pressure, and resources are crucial for problem identification.
• A manager needs the authority, information, and resources to solve the problem.

Step 2: Identifying Decision Criteria

• Decision criteria are factors important for problem resolution.
• Examples include costs, risks, and desired outcomes (like firm growth).

Step 3: Allocating Weights to the Criteria

• Criteria are not equally important.
• Assigning weights prioritizes criteria for the decision.

Step 4: Developing Alternatives

• Generate viable problem-solving options.
• This step does not evaluate the options.

Step 5: Analyzing Alternatives

• Assess each alternative's strengths and weaknesses.
• Evaluation is based on how well the alternative addresses the criteria and weights.

Step 6: Selecting an Alternative

• Choose the alternative with the highest total weight.

Step 7: Implementing the Alternative

• Put the chosen alternative into action.
• Secure commitment from those responsible for implementation.

Step 8: Evaluating the Decision’s Effectiveness

• Assess the decision's outcome to judge its success.
• Determine if the problem was resolved; if not, identify areas for improvement.

This quiz explores the key steps in the decision-making process, detailing how to identify problems, define decision criteria, and evaluate options. Learn about the importance of prioritizing criteria and generating viable alternatives for effective management decisions.