Techniques 6. The decision-maker identifies the problems and applies the pre-determined solutions. Use these decision-making process steps to help you make more profitable decisions. Using a step-by-step decision-making process can help you make more deliberate, thoughtful decisions by organizing relevant information and defining alternatives. List Possible pros and cons. Decision-making processes often founder under the weight of vested interests. Implementation of alternative should ensure the following: (a) The alternative should be communicated to everyone in the organisation. (ii) Rationalise the information and stimuli relevant to the problem so as to clarify the situation. In other words, alternatives should be evaluated in order to see how effective each would be. This criterion is considered to be very important in evaluating alternatives. Managers should not take any major decision without exploring all the possible alternatives. A heuristic is a sort of mental shortcut or rule of thumb that we utilize when making a judgment or decision. … 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. With relevant information now at your fingertips, identify possible solutions to your problem. Decision matrix analysis, Pugh matrix, SWOT analysis, Pareto analysis and decision trees are examples of rational models and you can read more about the most popular here. The consumer decision process also called the buyer decision process, helps markets identify how consumers complete the journey from knowing about a product to making the purchase decision. Most people recommend that it should be employed more often in managing and that it should be the only way by which a manager can make sure that the plans are right. This information will be very useful in taking the corrective measures and in taking right decisions in the future”. (d) Situation or Condition Prevailing at a Particular Time: The choice of a course of action very much depends upon the situation prevailing at a particular point of time. What are the 5 steps to making an ethical decision? Being somewhat bored you might say to your other half, “I’m feeling restless – I wouldn’t mind doing something tonight”. In order to achieve proper follow-up, the management should devise an efficient system of feedback information. (b) If the decision is a bad one, one will know what not to do the next time. Wrong definition of the problem leads to wrong solutions. Managers find causes of the problem by collecting facts and information that have resulted in the problem. In Economics, there is a term called “asymmetries of information” that indicates how incomplete and insufficient information leads to poor decisions and wrong choices. (d) Combine and improve on ideas that have been offered – Combining all the ideas helps to arrive at the best solution. Plagiarism Prevention 5. elseif statement − is used with the if...else statement to execute a set of code if one of the several condition is true. Once the problem is identified and diagnosed, the manager should identify the resources and constraints relevant to the problem. Managers should not devote too much time to generating alternatives when the data available is very limited. Ethics refers to the degree of compatibility of an alternative with the ethical standards and social responsibilities of the organization. Monitoring decisions involves gathering information to evaluate how the decision is working. One of the key researchers in the field of management and decision making was a Herbert Simon.He was among the pioneers of artificial intelligence, information processing, decision-making, organization theory and other very important scientific domains. It provides valuable feed­back on which the decision may be reviewed or reconsidered. A successful program, a profitable product promotion, or any other decision that turns out well, may provide avenues for such learning. PHP supports following three decision making statements − if...else statement − use this statement if you want to execute a set of code when a condition is true and another if the condition is not true. After the process of implementing the decision has begun, any number of situations, such as unexpected effects on cash flow or operating expenses, can arise. This ‘triggering point,’ will soon be highlighted by the formal information system in the form of decline in sales, profit and increase in the rejection level in the production department. In this step endeavour is made to identify the problem so that there is an absolutely clear understanding on what is happening and what the business problem is about. 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