Decision Making and It's Steps

Decision Making

Decision making is a process by which a person, group and people identifies various alternative and selects the best one in various alternatives according his objectives or goals, desires, life style, values and so on. Decision is based on knowledge, skills and observable action. Decision making is the most difficult and essential task a manager performs. (Kearney, Richardson & Giulio, 2000).

Decision Making Steps

Decision making is a process which consists of various steps. These are:

Define the problem and objectives: The first stage of decision making is to identify and define the problem or analyze the opportunities. It is the most important step in decision making process. If the problem is not clearly defined or understand then decisions will be not provide the accurate result. In this step, identify the objective and set the goal so it is providing the guideline in the process of decision making.

Gather information: In this step decision maker is gathering data or information for the relevant of decision. The problem-solving process taken enough time to gathering information related to the problem. The collection of information must be analyzed according to the problem (Harvard Business School, 2006).

Identify alternatives: After define the problem, the next step is identifying the various alternatives. This stage is dedicated to finding solutions to identify the available alternatives. In the searching of various alternative decision maker should focus on merits and demerits of the various alternatives and the nature of the problem.

Analyze alternatives: After identify the various alternatives decision maker evaluate the various options. Comparison of various alternatives is based on time, cost, risk and other benefits. Alternative should be timely, acceptable, desirable and ethical so it will provide a good decision result. After evaluate for various alternative selected the best of them (Vermeulen & Curșeu, 2008).

Develop Solution: Every problem suggest more than one alternative solution. This step is done carefully for each alternative solution. The decision maker thinking, values, skills and knowledge will play a crucial role in the analysis and evaluation of the various alternatives and they affect the problem solving decision.

Make a decision: After analyze each situation or alternative, select the best solution. This is the action taking stage. Review all the details of the remaining alternative so that decision will be clear in the mind. If the decision maker has gathered the data and facts, used logic, assumption and common sense than they are easily get a right decision (Huber, 2006).

Implement the decision: Once the decision is selected, decision maker must taken action to implement it in the right way. In this process, every related persons support is necessary in the implementation of decision. Effective implication of decision is solving the problem and given the best result.

Evaluate result: Decision making process is not completed without evaluation of result. This is a form of control of the result. It involves measuring performance result according to the goals and objectives and measure both positive and negative outcomes (Schermerhorn, 2009).
Decision making is a continuous process. If the decision maker follows each step in the decision making process, best possible decision is most likely to come.


References:
Harvard Business School. (2006) Harvard business essentials: decision making: 5 steps to better results. USA: Harvard Business Press.
Huber, D. (2006) Leadership and nursing care management. 3rd ed. USA: Elsevier Health Sciences.
Kearney, N., Richardson, A. & Giulio, P.D. (2000) Cancer nursing practice: a textbook for the specialist nurse. China: Elsevier Health Sciences.
Schermerhorn, J.R. (2009) Exploring Management. 2nd ed. USA: John Wiley and Sons.
Vermeulen, P.A.M. & Curșeu, P.L. (2008) Entrepreneurial strategic decision-making: a cognitive perspective. UK: Edward Elgar Publishing.