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Decision making
Types of decision making process essay
Decision making
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Introduction Decision making can be defined as "the act of choosing from among alternatives" (Naylor, 1998, p. 339). In the organization, decision making is quite important for the managers to choose the best choice for establishing their goals. Manager will make a rational and logical decision to overcome the issues. As Daft (2010) mentions, there are six important steps in the decision making process which are recognizing the problem, generating the solutions, evaluating the alternatives, choosing the best decision, implementing the alternative and evaluating the effective of decision (refer to Figure 1 in Appendix). The process of decision making The first step in the process of decision making is recognizing the problem. The existence of the problems means that there still have other ways or opportunities to improve the certain activity. Cooke and Slack (1991) recommend that recognize the problem emerges because there are a lot of mistakes and dissatisfactions occur either from internal or external organizations and this is a chance to carry out the improvements. Problem must be understood well by the manager to ensure the alternatives can be generated more clearly. When the organizations do not have enough funds for the next project, manager shall consider about the financial problem by referring the budget in each department. Besides that, problems can also be detected by using the intuition instead of evidence support (Cooke & Slack, 1991). For example, demand of the product and services have decreased. By using the intuition, an experience marketing department manager can directly sense and detect that the problem is being raised from the product itself like quality and price. The second step in the decision making proce... ... middle of paper ... ...whole process (Cooke & Slack, 1991). For example, a manager expects to sell one hundred units of products with the gaining of ten thousand dollars profit but he fails to do so at the last. So, the manager shall redefine the problems. Lunenburg (2010) recommends that decision making process is constant and never ending. Evaluation of the outcome can be measured base on the satisfaction and dissatisfaction level of customers (Solomon & Stuart, 2000). Manager also can provide questionnaires to customers for the products’ evaluations. From those questionnaires, the customers’ points of view about their expectations after using the products like quality, attributes, functions and benefits of the products can be seen and referred. Once the decision making is carried out effectively and efficiently by the manager, the decision making process just can be considered as done.
There are two ways in which people make decisions in their daily life or at work: Intuitive or rational. If we talk about intuitive decision-making (IDM) we talk about the subjective decisions that are not based on any facts and purely instinctive, for example whether or not to cross the street. These decisions are fast occurring, have no any need for reasoning and are used if facts are unavailable or making a decision is very difficult.
Each decision-making strategy has advantages and disadvantages and none are always better than the others. An effective team leader will consider the options and determine which strategy is the most appropriate one for the issues to be decided and the circumstances in which the decision is to be made and implemented. Outcome-oriented businesses need leaders skilled at decision-making. Decision-making styles are neither good nor bad. The effectiveness of any decision-making style depends on the situation in which it is used. Performance is enhanced by integrating all styles, by finding the style that works best in particular project, or by being able to move intentionally from one decision-making style to another.
Moral decisions can be difficult to make if it goes against your beliefs. You could choose to either follow your orders or follow your instincts. The stories “Gregory” by Panos Ioannides and “The Day of the Last Rock Fight” by Joseph Whitehill, both have endings that results in a negative outcome; both the protagonists are conflicted whether they should be loyal to their leader or friend, or follow their instincts. The soldier from “Gregory” is conflicted to whether he has to kill Gregory or not, and Ronnie is in a situation where he has to make a decision to whether he should have reported his best friend Peter or not. These protagonists are negatively affected from the decisions they make. In “Gregory”, the soldier regrets killing “Gregory”, and in “The Day of the Last Rock Fight”, Ronnie is heavily burdened after making the decision not to tell the detective of how Gene Hanlon dies. Furthermore, both the stories portray how it can be difficult making decisions when you know that your decision could have a great impact on the society and yourself.
Secondly, a leader should learn how to make a good decision. It is better to make good decision rattan than a fast decision. There are few issues that should be considered in order to avoid making a bad decision. Before the decision was made, they should collect information and data first, and identifies the relevant sources. Second, compare each of the decision and also have to measures the levels of profitability and losses that might incurs to the organization.
The consumer decision process consists of these six steps. First, problem recognition: Awareness of an unmet need. Second, information search: Search for alternatives that will meet your needs. Third, alternative evaluation: Evaluate the alternatives. Forth, purchase decision: Decide on the best alternative for you based on your criteria. Fifth, post-purchase behavior: Determine if you are satisfied with your choice. Sixth, disposal of product: Determine if you will keep it, upgrade it, or get rid of
Strategic thinking is an essential leadership skill. Our learning team has learned to consider our current decision-making strategies, and examine our options for choosing the best strategy for any situation be it one-sided, compromise, collaboration and deciding-by-majority rule.
In everyday real life situations, one keeps on making various decisions depending on a number of factors. Thus, decision-making is an integral tool in human life, and one cannot avoid it. In view of this, experts report that individuals make use of varying decision-making models to arrive at a decision that suits them. Here, the writer presents four decision-making models, namely the classical, behavioral, satisficing, and optimizing models.
6 PROBLEM SOLVING Problem-solving is the process of taking corrective action in order to meet objectives. Some of the more effective decisions involve creativity. Problem-solving Îs a process in which we perceive and resolve a gap between a present situation and a desired goal, with the path to the goal blocked by known or unknown obstacles. In general, the situation is one not previously encountered, or where at least a specific solution from past experiences is not known. Problem-solving and decision-making, which is a part of problem-solving has been identified as a core function of management and it is-important to managerial effectiveness as viewed by managers of hospitals, nursing faculties, medical clinicians, staff, finance and
Managers should be ready to teach the importance of decision-making skills and reinforcing organizational policy. Avoiding hasty, careless decisions, which can have devastating results on the manager's unit or the entire organization. Decisions made with forethought, using the many managerial tools available will lead to better and more profitable operatio...
Make the decision through the integration of ideas and data, and negotiation and prioritization of ideas
Problem solving and decision-making are fundamental in all managerial activities. Although these defining characteristics of management can be used interchangeably, current literature makes a comprehensible delineation between the two. Problem solving can be defined as a mental process and is part of a larger process that begins with identifying the problem and ends by assessing the efficiency of the solution. Decision-making is also considered a mental process and identifies several alternative scenarios before making a final selection. For the purpose of this analysis, I will discuss the similarities and differences of problem solving and decision-making. I will also explain the steps of the decision-making process and discuss the different decision-making approaches.
An employee does an unsatisfactory job on an assigned project. Explain the attribution process that this person's manager will use to form judgments about this employee's job performance.
Managerial decisions are an important component in achieving the objectives of the organization. The success or failure of a business depend upon the decisions made by managers (Jurina, 2011). Today’s increasing complexity in the world of business brought forth greater challenges for both the firm and its managers. The rapid rate of technological and digital advance as well as greater focus product innovation and processes that influence marketing and sales techniques have contributed to the increasing complexity in the business environment.
Rational decision making is one of the most common problem solving methods and can be used to solve almost all problems. Rational decision making and problem solving processes can be explained in a logical manner. Effective leaders use rational decision making processes to identify the problem, think up solutions, evaluate alternatives along with select a solution, implement and evaluate the final solution. In rational decision making leaders analyze the problem to achieve the most efficient choice through different possible alternatives from different scenarios before making a selection.
Some decisions prove to be vital and any miscalculation that may be involved may prove dire for the individual or the organization. In identifying the criterion to use while evaluating different decisions, many factors pertaining the structure should be considered. The pros and cons of every decision made should be evaluated to ensure that the option chosen has the most positive effect on the individual and the organization. Some of the activities that may require keen decision making include project development, finance and operations. With the knowledge attained it will be easier to cope with tough decisions that may come up in my career. Decision making models may be generated to give an in depth view to the problem and also provide critical analysis ability. It is also vital noting that for those in managerial positions, they face a bigger task in decision making. A good understanding of the business function and structure will provide an in depth knowhow to those that have studied the