STEPS IN DECISION MAKING PROCESS

STEPS IN DECISION MAKING PROCESS

Decision making process is like a school exam. Those who take good decisions will pass the exam and the rest who does not take right decisions will have to bear the consequences. Being able to take good decision is important for everyone, whether he/she is a student, teacher, administrator, principal, president, leader of any institution etc. A student has to take decisions about his career, a president has to take decisions regarding his country’s benefit, and an administrator has to take decisions regarding his organization and likewise the leader of any institution. So every single person has to pass this step in order to progress in their field.

In our view decision making power is the key to progress in life. You might have seen many people who do not take proper decisions and then they have to suffer. On the other hand people who have this decision making power, continues to progress in their life. Not all of us have this decision making power. We try to make right decisions but sometimes we make mistakes because we don’t know the steps that we should follow during the decision making process. So in order to take right decisions, it is important that we should know all the steps of decision making process and follow them.

The decision making process involves the following steps:

1.      Identify a problem or opportunity

The first step in the process is to recognize that there is a decision to be made. Decisions are not made arbitrarily; they result from an attempt to address a specific problem, need or opportunity. An administrator may realize that he has too many employees on the floor compared with the day's current sales volume, for example, requiring him to make a decision to keep costs under control.

Steps:

• The first step is to recognize a problem or to see opportunities
• Will it really make a difference to our clients?
• How meaningful will it be to solve this problem or realize this opportunity?

2.      Gather information

Administrators seek out a range of information to clarify their options once they have identified an issue that requires a decision. Managers may seek to determine potential causes of a problem, the people and procedures involved in the issue and any constraints placed on the decision-making process.

Steps:

• What is relevant and what is not relevant to the decision?
• What do you need to know before you can make a decision, or that will help you make the right one?
• Who knows, who can help, who has the power and influence to make this happen?

3.      Analyze the situation

Having a more complete understanding of the issue at hand, administrator’s move on to make a list of potential solutions. This step can involve anything from a few seconds of thought to a few months or more of formal collaborative planning, depending on the nature of the decision.

Steps:

• What alternative courses of action may be available to you?
• What different interpretations of the data may be possible?

4.      Develop options

Administrators evaluate the pros and cons of each potential solution, seek additional information if needed and select the option they feel has the best chance of success at the least cost. Consider seeking outside advice if they have gone through all the previous steps on their own; asking for a second opinion which can provide a new perspective on the problem and your potential solutions.

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• Generate several possible options.
• Be creative and positive.
• Ask “what if” questions.

5.      Select a preferred alternative

Administrators evaluate the possible choices and select the best potential solution for the problems from amongst the several alternatives he/she has.

Steps:

• Explore the provisional preferred alternative for future possible adverse consequences.
• What problems might it create?
• What are the risks of making this decision?

6.      Act on the decision

There is no time to second guess yourself when you put your decision into action. Once you have committed to putting a specific solution in place, get all of your employees on board and put the decision into action with conviction. That is not to say that a managerial decision cannot change after it has been enacted; intelligent administrators put monitoring systems in place to evaluate the outcomes of their decisions.

• Put a plan in place to implement the decision.
• Have you allocated resources to implement?
• Is the decision accepted and supported by colleagues?
• Are they committed to making the decision work?

7.      Evaluate Outcomes

Even the most experienced professional can learn from their mistakes. Always monitor the results of intentional decisions you make as a decision maker; be ready to adapt your plan as necessary, or to switch to another potential solution if your chosen solution does not work out the way you expected.