Decision Making

Decision Making: 

Decision Making

What is Decision Making? : 

Decision Making is an Art of Problem Solving. It is the Study of Identifying and choosing alternative based on the value and preferences of the decision maker. Definition :- “A decision is a judgment. It is a choice between alternatives. It is rarely a choice between right and wrong. It is at best a choice between “almost right” and “probably wrong”. “DRUCKER” “Successful leaders have the courage to take action while others hesitate.” - John C. Maxwell What is Decision Making?

Concept of definition: 

Concept of definition Information Information is Wealth. “ The More Information, the better “ is not true. Too much Information can actually reduce the quality of a decision. Alternatives These are the possibilities one has to choose from. Alternatives can be identified (that is, searched for and located) or even developed (created where they did not previously exist). Goals What is it you want to accomplish? Decision Quality This is a rating of whether a decision is good or bad. A good decision is a logical one based on the available information and reflecting the preferences of the decision maker.

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Acceptance Those who must implement the decision or who will be affected by it must accept it both intellectually and emotionally. The Result of the Decision making process gives Suggestion to the problem or it leads to take the further steps.

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Decision Making Procedure “ Making good decisions is a crucial skill at every level. ” - Peter Drucker In a typical decision making situation, as you move from step to step here, you will probably find yourself moving back and forth also.

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Identify the decision to be made together with the goals it should achieve. When thinking about the decision, be sure to include a clarification of goals. We must decide where to go on vacation, where we can relax and get some rest from the fast pace of society. 2. . Get the facts. But remember that you cannot get all the facts. Get as many facts as possible about a decision within the limits of time imposed on you and your ability to process them .

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3. Develop alternatives. Make a list of all the possible choices you have, including the choice of doing nothing. . But sometimes the decision to do nothing is useful or at least better than the alternatives, so it should always be consciously included in the decision making process. 4. Rate each alternative. This is the evaluation of the value of each alternative. Consider the negative of each alternative (cost, consequences, problems created, time needed, etc.) and the positive of each (money saved, time saved, added creativity or happiness to company or employees, etc.).

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5. Rate the risk of each alternative. In problem solving, you hunt around for a solution that best solves a particular problem, and by such a hunt you are pretty sure that the solution will work. Risks can be rated as percentages, ratios, rankings, grades or in any other form that allows them to be compared. See the section on risk evaluation for more details on risking. 6. Make the decision. If you are making an individual decision, apply your preferences (which may take into account the preferences of others). Choose the path to follow, whether it includes one of the alternatives, more than one of them (a multiple decision) or the decision to choose none. And of course, don't forget to implement the decision and then evaluate the implementation, just as you would in a problem solving experience.

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Monitor your Solution : Just making the decision and implementing it is not the end of the decision making process, it is very important to monitor your decision regularly. At this stage, you have to keep a close eye on the progress of the solution taken and also whether it has led to the results you expected. These 6 steps to decision making process may, at first, seem very complicated. However, these are essential decision making techniques that would aid you in taking proper decisions in your personal as well as professional life.

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Elements of Decision-Making A problem is fully analyzed and the available alternatives are considered before taking a decision. The best decision-making requires intelligence, experience and insight into a problem. A decision is taken according to the environment of business. Centralization and decentralization of authority affect the decision indirectly. If authority is centralized, all important decisions are taken by the chief executive. If it is decentralized, key decisions are taken by the top executive and routine decisions are taken by the lower level management people.

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The psychology of an individual is involved in decision-making. Decisions are taken when they are needed. As soon as the decisions are taken, they must be communicated to the concerned persons. Decisions are communicated without ambiguity. Employees are involved in a decision-making process.

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Kinds of Decisions Decisions whether. This is the yes/no, either/or decision that must be made before we proceed with the selection of an alternative. 2. Decisions which. These decisions involve a choice of one or more alternatives from among a set of possibilities, the choice being based on how well each alternative measures up to a set of predefined criteria.

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3. Contingent decisions. These are decisions that have been made but put on hold until some condition is met. For example, I have decided to buy that car if I can get it for the right price.