Prepared by:
Dolon Champa Das
Syllabus
Importance and necessity of Decision
Making,
Process and practical way of Decision
Making,
Weighing Positives & Negatives
Importance & Necessity of Decision
Making
A decision is an act of selection or choice of one
action from several alternatives.
Decision-making can be defined as the process of
selecting a right and effective course of action from
two or more alternatives for the purpose of achieving
a desired result.
Decision-making is the essence of management.
Importance & Necessity of Decision
Making
A decision is a choice made between two or more
available alternatives. Decision making is the process
of choosing the best alternative for reaching
objectives. (Samuel C. Certo, 2003)
Decision making can be defined as a process of
choosing between alternatives to achieve a goal. It is
the process by which an individual chooses one
alternative from several to achieve a desired objective.
(Manmohan Prasad, 2003)
Steps to Decision Making
Steps for decision making
Being aware of the influences we have is very important if we
want to make good decisions. Decision making processes can
help us as they encourage us to take a step back from our
situation and assess it more objectively.
Steps to decision making:
Outline the goal or outcome/analyse the problem
Gather data/consider factors
Develop alternatives/courses of action
Consider the pros and cons of each alternative
Make the decision
Implement the decision/take action
Learn from the decision
Steps to Decision Making
1. Identify the Problem
To make a decision, you must first identify the
problem you need to solve or the question you need to
answer. Clearly define your decision. If you
misidentify the problem to solve, or if the problem
you’ve chosen is too broad, you’ll knock the decision
train off the track before it even leaves the station.
If you need to achieve a specific goal from your
decision, make it measurable and timely so you know
for certain that you met the goal at the end of the
process.
2. Collect Information
Once you have identified your decision, it’s time to
gather the information relevant to that choice. Do an
internal assessment, see where your organization has
succeeded and failed in areas related to your decision.
Also, seek information from external sources, including
studies, market research, and, in some cases, evaluation
from paid consultants.
Beware: you can easily become bogged down by too
much information—facts and statistics that seem
applicable to your situation might only complicate the
process.
3. Indentify the
Alternatives
With relevant information now at your fingertips,
identify possible solutions to your problem. There is
usually more than one option to consider when trying
to meet a goal—for example, if your company is
trying to gain more engagement on social media, your
alternatives could include paid social advertisements,
a change in your organic social media strategy, or a
combination of the two.
4. Weigh the Evidence
Once you have identified multiple alternatives, weigh
the evidence for or against said alternatives. See what
companies have done in the past to succeed in these
areas, and take a good hard look at your own
organization’s wins and losses. Identify potential
pitfalls for each of your alternatives, and weigh those
against the possible rewards.
5. Choose from the alternatives
Here is the part of the decision-making process
where you, you know, make the decision.
Hopefully, you’ve identified and clarified what
decision needs to be made, gathered all
relevant information, and developed and
considered the potential paths to take. You are
perfectly prepared to choose.
6. Implement Action
Once you’ve made your decision, act on it!
Develop a plan to make your decision tangible
and achievable.
7. Review Your Decision
After a predetermined amount of time—which
you defined in step one of the decision-making
process—take an honest look back at your
decision. Did you solve the problem? Did you
answer the question? Did you meet your goals?
Weighing Positives & Negatives
Depending on the decision made, you might want to
weigh evidence using a decision tree. For Example, you
are trying to find out how many fit or unfit members
are there in your locality. The different branches record
the probability of fit and unfit person and the reason for
it.
Weighing Positive &
Negative
A decision matrix is another tool that can help you
evaluate your options and make better decisions.
Weighing Positive &
Negative
You can also create a classic pros-and-cons list, and clearly
highlight whether your options meet necessary criteria or
whether they pose too high of a risk.
Thank You
