DECISION MAKING
The word decision is derived from the Latin word “decidere” which means “to cut”. Thus, decision involves cutting alternatives between those that are desirable and those that are not desirable.
In the words of George R. Terry, “Decision making is the selection based on some criteria from two or more possible alternatives.”
See more information; What is decision making – Types of decision making
decision making processDECISION MAKING PROCESS
The decision-making process is shown in the figure below
1. Specific Objective:
The need for decision-making arises to achieve certain specific objectives. The starting point in any decision-making analysis involves determining whether a decision needs to be made.
2. Problem identification:
A problem is a felt need, an issue that needs a solution. In the words of Joseph L Massie “A good decision depends on recognizing the right problem”. The purpose of problem identification is that if the problem is precisely and specifically identified, it will provide a clue to finding a possible solution. A problem can be clearly identified if managers go through problem diagnosis and analysis.
Diagnosis:
Diagnosis is the process of identifying a problem from its signs and symptoms. A symptom is a condition or set of conditions that indicates the existence of a problem. Diagnosing the real problem involves knowing the gap between what is and what should be, identifying the reasons for the gap, and understanding the problem in relation to the organization's higher goals.
Analysis:
The diagnosis gives rise to the analysis. Analyzing a problem requires:
• Who would make the decision?
• What information would be needed?
• Where is the information available from?
Analysis helps managers get an overview of the problem.
3. Look for alternatives:
A problem can be solved in several ways; however, all forms cannot be equally satisfactory. Therefore, the decision maker must try to discover the different alternatives available to obtain the most satisfactory outcome of a decision. A decision maker can use several sources to identify alternatives:
• Your own past experiences
• Practices followed by others and
• Using creative techniques.
4. Assessment of alternatives:
After the various alternatives have been identified, the next step is to evaluate them and select the one that will meet the choice criteria. /the decision maker must check the proposed alternatives against the limits, and if an alternative does not meet them, he can discard it. Having narrowed down the alternatives that require serious consideration, the decision maker will evaluate how each alternative can contribute to the objective supposed to be achieved by implementing the decision.
5. Choice of Alternative:
Evaluating multiple alternatives presents a clear picture of how each of them contributes to the objectives in question. A comparison is made between the likely outcomes of several alternatives and the best one is chosen.
6. Action:
Once the alternative is selected, it is put into action. The decision-making process itself ends with the choice of an alternative through which the objectives can be achieved.
7. Results:
When the decision is put into action, it brings certain results. These results must correspond to the objectives, the starting point of the decision process, whether a good decision was made and implemented properly. Thus, the results provide an indication of whether decision-making and implementation are appropriate.
