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We will describe the traditional process of decision making, the factors that
go into decision making and some of the difficulties that can arise in
selecting a course of organizational action. We will conclude with an
overview of two emerging approaches to decision making game theory and
chaos theory.
Keywords
Time Perspective Delay Discount Time Perception Small Reward Choice
Reaction Time Task
These keywords were added by machine and not by the authors. This
process is experimental and the keywords may be updated as the
learning algorithm improves.
This article was written as part of the “European Platform for Life
Sciences, Mind Sciences, and the Humanities” initiative of the Volkswagen
Foundation.
References
2. ALLAN, L. G. (1998). The influence of the scalar timing model on human timing
research. Behavioural Processes, 44, 101–117.CrossRefGoogle Scholar
3. ARIELY, D., & LOEWENSTEIN, G. (2000). The importance of duration in judgment and
decision making. Journal of Experimental Psychology: General, 129, 508–
523.CrossRefGoogle Scholar
4. ARIELY, D., & ZAKAY, D. (2001). A timely account of the role of duration in decision
making. Acta Psychologica, 108, 187–207.PubMedCrossRefGoogle Scholar
The next step is to determine which course of action will best solve
the problem. ... Up to this point in the problem-solving, decision-making
process, leaders should have involved subordinates to research
the problem, gather information, and develop and analyze the various
courses of action.
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4What Are the Best Ways to Make a Time Budget?
Several types of decisions help reduce the stress of urgency, deadlines and high
demands on your time. Poor allocation of your time is the result of poor decisions
and can lead to mistakes as you progress toward your goals. Errors take time to
correct and can lead to an ongoing cycle of more stress, greater urgency and
ultimately more mistakes. Decision-making is crucial to time management.
5
Deciding on Now
We all share the same amount of linear time dictated by clocks and calendars.
Nobody has more hours in a day or days in the year than anyone else. However,
time is also a subjective experience of what is happening to you right now.
Deciding to focus primarily on your subjective experience of time in the present
moment, and only secondarily on your clock and calendar deadlines, gives you
flexibility to get more done in a scheduled time frame. For example, a two-hour
meeting will be two hours long no matter what happens during it. However, the
value of the meeting isn't controlled by how long it lasts but by how focused,
productive and results-oriented the participants are.
Aligning Priorities
Choosing what's most important gives you a structure by which you can organize
your day. Your daily tasks may change, but your top goals and values are more
important and lasting. Your priorities, then, are the tasks that most align with your
goals and values. The less control you have over your priorities, the more likely it
is that you'll spend too much time on distractions rather than productive activities.
Taking time to decide on, and regularly review, your professional and
organizational goals and values will help you prioritize your daily to-do list, while
helping you realize and eliminate less important tasks and distractions that may be
intruding on your time.
Delegating or automating some of the tasks you are responsible for is crucial to
time management. Whether to outsource tasks, automate a process within your
department, use technology to streamline some of your routine work, enlist help on
tasks or delegate them to employees are decisions that apply to how you manage
your personal workload. Pacing yourself and staying on top of your work can keep
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you in control of your schedule. You can stay focused more on the appointments
and activities most aligned with your goals.
Lifestyle Decisions
The training program focuses on understanding and mastering the models and
techniques for decision making, prioritization of tasks and structuring of tasks. The
effective prioritization of the individual tasks underlies the successful execution of
the overall business process. Optimized analysis and prioritization of working
projects saves time and reduces stress and anxiety levels within the team, resulting
in increased productivity and quality of work.
The program examines and discusses models, techniques and tools to achieve the
following objectives:
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reduce and manage stress and anxiety levels within teams and improve
emotional and working climate within the organization
effective delegation
multiplication
Wondering how you can make the decision-making process as transparent and
seamless as possible, where possible?
Today’s post shows you how to better manage your time so you won’t waste your
time (or anyone else’s for that matter!).
Here are several tips to help you make the most out of your decision-making time:
I know, this tip sounds rather simple, and it is. If you’ve come to a decision about a
problem or otherwise have an answer for someone, share your thoughts as soon as
possible. Waiting longer to share information can cause unnecessary troubles and
headaches on both sides; your decision might actually become irrelevant or no
longer valid or necessary in some situations. Once you’ve come to a decision,
share it, and keep on movin’ on with your life.
Wrestling with a decision and need to report back to someone? Set a deadline;
otherwise you might find yourself deciding for the next couple of years…or
longer! Meet with the person and tell them you’ll get back to them on a specific
date and time with your decision. Jot down your due date in your calendar or
schedule and keep to your word.
Sometimes the best way to finally come to a decision is to not consciously think
about a solution or answer to a problem, but to let the item turn over in your
subconscious. Give yourself both thinking and non-thinking time to come to a
decision on the subject at hand. Translation? Permission to veg out is hereby
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granted. Watch TV, daydream, play your favorite game app, take a nap or do any
other brain-off activity to give your mind a rest.
It’s not always easy to come to a decision, especially when new information
becomes available or changes, directly affecting the decision-making process!
Encourage communication amongst yourself and the people around you. This is
incredibly important if they have access to information that might make or break
your timely decision. Let them know it’s ok for them to check in with
you…remember, it’s all in the interest of time.
Now to you…what do you find you struggle with the most when it comes to making
a decision? Leave a comment below and join in the conversation!
and suggestions for developing the problem finding skills of gifted children
are discussed.
We often hear how important it is to be a strong problem solver; the skill is almost
always included in 21st Century Skills for students. One well-regarded framework
for problem solving is “Design Thinking,” a methodical process that guides
stakeholders through understanding, exploring and materializing solutions to their
challenges or products.
Something we don’t focus much on, however, is what problem we are solving. We
can solve all the problems we want but if we are not solving the right ones, our
efforts can be wasted.
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might we work with our internship partners to better ensure our students are
prepared to fulfill their needs?”
Attendees of the e2e Symposium were grouped into teams to work through unique
challenges that educators were facing. My team was a collection of talented
individuals from the corporate world, students who were in the process of
navigating career options, higher education representatives and other
teachers/administrators. As one would guess, I anticipated this variety of
perspectives would help immensely. Not only did it help, it was critical.
We began by empathizing. I presented my challenge and some data to the team for
them to better understand my problem. From there we moved into clarifying with
probing questions for them to get to know the climate I was working in, who our
students were and what our partners expected from the program.
Armed with this new insight, we moved to re-defining what my challenge really
was. This is where my aha moment unwrapped itself. We spent some quality time
challenging each other’s thinking and made a breakthrough. I did not have one
single challenge that needed a solution, like my mind had settled on….I had two!
(And perhaps even a third, but time did not permit us to address it.)
The Design Thinking Guide helped us with language to clearly express our (we all
owned it now, it was not just mine) problem statements. We agreed on the
following:
The rest of the time at the e2e Symposium was spent building prototype solutions
to address these problem statements. Our team of bright thinkers from across
professional continuum drafted two very valuable courses of action for me to take
back to Chicago.
15
The solution to our the first problem statement was a quick and engaging video
series for our partners that helps guide them through the internship month. Here we
can provide them with activities and questions to pose to the students while on
internship.
Our solution for the second problem statement was to build out a career
exploration curriculum that we will implement in grades 9 through 12. Students
will Explore, Investigate, Prepare and Execute career related activities to ensure
their internships are successful, and more importantly, to feel inspired about their
plans for life after high school.
Both of these solutions are the basis of work for our newly created Real-World
Learning Action Group at ChiTech. This action group is made up of me and one
representative from each grade level who will be the leaders of this work amongst
their respective teaching teams. We are testing and and implementing these
prototypes while keeping anchored in the problem statements that guide our work.
I am very optimistic and excited to continue the work that my e2e team helped
craft. Bringing together engaged minds from a variety of professional situations is
an incredibly effective way find out what the problem that needs attention actually
is……and then work to solve it!
The next step is to determine which course of action will best solve
the problem. ... Up to this point in the problem-solving, decision-making
process, leaders should have involved subordinates to research
the problem, gather information, and develop and analyze the various
courses of action.
Opportunity Finding and Deciding to decide
March 21, 2009Sree Rama Rao General / Interesting
Alert managers often sense problems early. A study by Majorie A Lyles and
Ian I Mitroff included data from case histories from upper level managers
of major organizations. Eighty percent of these managers said they had
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Problem finding is not always straightforward. Sara Kiesler and Lee Sproull
have identified some of the most common errors managers make in
sensing problems. They describe three main categories of pitfalls that
managers often encounter: false association of events, false expectation of
events, and false self perceptions and social image. For example, during
the 1960s and early 1970s managers at mainframe computer
manufacturers had false expectations: They believed that a significant
demand for personal computers did not and probably never would exist.
Their expectations were at odds with the reality that developed. Here is a
case where these managers past experiences were not a reliable guide to
future events. The past can play an important part in decision making but
that does not mean that what happened in the past will automatically
continue to happen in the future.
Opportunity Finding:
assumptions they are based on, considers the opposite of all of the
assumptions, and then develops counter solutions based on the negative
assumptions. This process may generate more useful alternative solutions
and identify unnoticed opportunities.
The problem finding process is often informed and intuitive. Four situations
usually alert managers to possible problems.
Cocoa Cola learned the hard way that the maxim if you don’t use it, you
lose it is painfully accurate. In this case the problem was found through a
deviation from a set plan (that is, employees were not using the TQM
tools).
Alert managers often sense problems early. Data from case histories from
upper level managers of major organizations. Eighty percent of these
managers said they had become aware of the existence of a major
problem before it showed up on financial statements or in other formal
indicators and even before it was presented to them by others. Informal
communication and intuition were described as the sources of their
information
decision making but that does not mean that what happened in the past
will automatically continue to happen in the future.
Characteristics:
Following are the characteristics of decision-making:
1. Decision-making is based on rational thinking. The manager tries to
foresee various possible effects of a decision before deciding a particular
one.
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Nature of Decision-Making:
A decision is always related to some problem, difficulty or conflict.
Decisions help in solving problems or resolving conflicts. There are always
differences of opinions, judgments, etc. Managerial decision helps in
maintaining group effectiveness. All problems may not require decision-
making but merely the supply of information may be sufficient. For
example, when will different groups report for re-orientation? The supply
of information about training programme may be enough.
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1. Intuition:
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With this technique of decision-making, decisions are taken quickly and the
decision-making capability of the person is also used. In case the intuition
of the decision-maker is wrong then decision will also be incorrect. The
other techniques of decision-making are also neglected.
2. Facts:
Facts are considered to be the best basis of decision-making. A decision
based on facts has its roots in factual data. Such decisions will be sound and
proper. The increasing use of computers has helped in systematic analysis
of data. The information has become a major tool in managerial decision-
making. It may not be possible to secure all relevant facts for taking
decisions. Managers, generally, complain of insufficient information. It is
also essential that facts should be properly diagnosed, classified and
interpreted. Facts alone may not be sufficient for decision-making. The
imagination, experience and beliefs of the decision-making also required to
comprehend the facts in proper perspective.
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3. Experience:
Past experience of a person becomes a good basis for taking decisions.
When a similar situation arises then the manager can rely on his past
decisions and takes similar decisions. The person sees and understands
things in terms of concepts with which he is familiar. Experience should not
be followed blindly. The new situations should be analyzed on the basis of
past knowledge. A successful decision in the past may not prove useful this
time also, on the other hand, a decision once failed need not be avoided for
all times in future. Though past experience is a good basis but present
situations should be properly analyzed and assessed before taking a
decision.
4. Considered Opinions:
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5. Operations Research:
The traditional methods of taking decision on the basis of intuition,
experience, etc. are replaced by systematic techniques based on analysis of
data. The operations research is one of the techniques used by modern
management for deciding important matters. It helps managers by
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6. Linear Programming:
This technique is used to determine the best use of limited resources for
achieving given objectives. This method is based on this assumption that
there exists a linear relationship between variables and that the limits of
variations could be ascertained. Linear programme can be used for solving
problems in areas like production, transportation, warehousing, etc.
Risk:
In a risk situation, factual information may exist but it may be insufficient.
Most of the business decisions are taken under risk conditions. The
available information does not answer overall questions about the outcome
of the decision. A manager has to develop estimates of the likelihood of the
various states of events occurring. The estimates may be based on past
experience, other available information or intelligence.
Uncertainty:
Under conditions of uncertainty a manager has only little information and
he is not sure about its reliability also. Since the manager does not have
proper information on which he can develop, the best he can do is to be
aware that he has no chance of predicting the events. The interaction of
various variables cannot be evaluated for taking decisions. The decision
making under uncertainty is a difficult proposition. For example, if a
company wants to enter a foreign market, if may not be sure about the
consumer preference for the product, economic situation, above all the
political conditions.
analysis, decision trees and preference theory can help in making proper
decisions under those situations.
Types of Decisions:
Different decisions differ in nature and significance. Some decisions are
taken in routine while some may have to be carefully evaluated.
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When decisions are taken by two or more persons, these are known as
group decisions. Generally, strategic or other important decisions are taken
by groups instead of individuals because of risk involved. The decisions of
Board of Directors or Committees come under this category.
latest technology, trying labour saving devices etc. may be better taken by a
group of specialists than by an individual. Group decisions are generally
time consuming but otherwise these are well discussed decisions.
George Terry
Decision making is the selection based on some criteria from two or more
alternatives.
Louis Allen
Decision making is the work a manager performs to arrive at conclusion
and judgement.
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The objective of Maruti Udyog Limited is to maximise profits (that is, the
present value of expected returns) to be earned from expansion of output.
Let S1 stand for strategy 1 or the first course of action (that is, expanding its
internal capacity), S2 for strategy 2 or the second course of action, that is, to
take over the other firm.
The objective function for the above decision-making problem
can be stated as:
Maximise profits (S1, S2)
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To choose from the two alternative strategies, the following decision rule
can be made:
But macroeconomics tells him how his business environment will change as
a result of movements in the aggregate economy such as situations of
recession or inflation, changes in economy’s balance of payments and the
Government policy adopted to tackle them. All these factors which affect
the outcome of business decisions. Thus, the managers during their
decision-making process must take into the account the current
macroeconomic outlook and likely changes in it in the future.
Related Articles
1Improve Decision Skills
2Problem Solving Skills Training & the Workplace
37 Guidelines for Making Ethical Decisions
4Implications of a Bad Organizational Structure
Like many small-business owners, you probably view time as your most valuable
commodity. And what you wouldn't do for more of it. Until a genie appears at your
door with a magic lantern, you can free up more time in your day by learning to
delegate programmed decisions to middle- and lower-level managers, while you
handle the thornier unprogrammed decisions that require more creativity and
strategic thinking. Technically, this management technique contains no magic,
even though it may feel this way.
Programmed Decisions Are Rote
Programmed decisions are those you've encountered many times before and so
know how to handle with ease. They often involve routine, straightforward matters
that are addressed in your company's rules and procedures manual. By now, these
are so familiar that you may know them by heart, too.
Programmed decisions also may share other characteristics:
They are often structured and automated (or capable of being automated). They
tend to have successful outcomes, because of their rote nature. Once they're
made the first time, they set the bar for formulating new rules and procedures
that should be simple for others to follow.
38
No one ever said that programmed decisions aren't time consuming. They can be.
And the fact that you're considering delegating some business decisions to your
colleagues suggests that you already know how you can spend an entire day
moving from one programmed decision to another.
It's not necessarily the time element that makes unprogrammed decisions different;
it's their qualitysince they often:
Defy easy answers, involving nuances and complexities. You won't find the
answer in a rules and procedures manual. Contain an element of novelty that
may give you pause and say, Not so fast. Require evaluation, brainstorming,
contemplation and, perhaps, some trial and error.
Unprogrammed Decisions Break the Mold
As your business grows, you hire new employees and gain new customers, so it
stands to reason that the number of unprogrammed decisions you encounter will
grow exponentially. These decisions often involve personal, strategic or crisis
situations – the type you know in your gut that you had better get right or the
consequences will reverberate through your business. Perhaps you've already seen
some of them in the form of:
Altering your marketing plan to address a new market niche. Dealing with a
competitor who is chipping away at your customer base by seemingly copying
some of your best tactics. Confronting a threatened work strike from one of
your vendors.* Addressing a customer complaint on social media (although for
some small-business owners, this occurrence is happening with such regularity
that it is moving into the programmed decision category).
39
that deal with frequently occurring situations, such as requests for leaves of
absence by employees.
In routine situations, it is usually much more desirable for managers to use
programmed decision than to make a new decision for each similar
situation.
In programmed decisions, managers make a real decision only once, when
the program is created. Subsequently, the program itself specifies
procedures to follow when similar circumstances arise.
The creation of these routines results in the formulation of rules,
procedures, and policies.
Programmed decisions do not necessarily remain confined to simple
issues, such as vacation policies or similar such things; they are also used
to deal with very complex issues, such as the types of tests that a doctor
needs to conduct before performing a major surgery on a patient with
diabetes.
To summarize; programmed decisions features are;
Non-Programmed Decision
Non-programmed decisions are unique. They are often ill-structured, one-
shot decisions. Traditionally they have been handled by techniques such as
judgment, intuition, and creativity.
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After reading this article you will learn about the programmed
and non-programmed decisions.
Programmed Decisions:
Decisions related to structured situations, where the problem is more or
less routine and repetitive in nature are known as programmed decisions.
For example, problems related to leave are solved by policy relating to leave
rules. Employees who take leave according to leave rules Eire granted leave
and those who do not follow the leave rules may not be granted leave. The
routine problems may not always be simple.
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Non-Programmed Decisions:
These decisions are taken in unstructured situations which reflect novel, ill-
defined and complex problems. The problems are non-recurring or
exceptional in nature. Since they have not occurred before, they require
extensive brainstorming. Managers use skills and subjective judgment to
solve the problems through scientific analysis and logical reasoning.
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These decisions affect part of the organisation and are based on pre-defined
policies and procedures. For instance, purchase of stationery and raw
material are day-to-day decisions which affect only the purchase
department and are taken according to pre-defined procedures defined for
the purchase department.
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These decisions affect the whole or major part of the organisation and
contribute directly to organisational objectives. They are usually not based
on past experience and involve a major departure from earlier business
practices regarding various business decisions like expansion of business in
international markets, diversification, change in marketing mix etc.
Unprogrammed Decisions
Unprogrammed decisions involve scenarios that are new or novel and for
which there are no proven answers to use as a guide. In such a case, a
manager must make a decision that is unique to the situation and results in
a tailored solution. Unprogrammed decisions generally take longer to make
because of all the variables an individual must weigh; and the fact that the
information available is incomplete, so a manager cannot easily anticipate
the outcome of his decision and be in a dilemma, or a state of confusion. In
short:
Canny helps you collect and track customer feedback to make better
product decisions. Free 14-day trial.
Ibrahim Raji
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It is also to be noted that the programmed decisions are taken at the lowest
level whereas the non-programmed decisions are taken at the highest level
of organization hierarchy.
Ahmed Abubacar
Answered Jul 10, 2018
Differences between Programmed and Non-programmed
decisions: ... Non-programmed decisions takes an out side of the box
unstructured, logical and creative approach. Programmed
decisions usually relate to structured problems while non-programmed
decisions are taken to solve unstructured problems.
1.7k views
51
Florio Potter
Answered May 29, 2018 · Author has 335 answers and 225.9k answer
views
Unprogrammed decisions involve scenarios that are new or novel and for
which there are no proven answers to use as a guide. In such a case, a
manager must make a decision that is unique to the situation and results in
a tailored solution. Unprogrammed decisions generally take longer to make
because of all the variables an individual must weigh; and the fact that the
information available is incomplete, so a manager cannot easily anticipate
the outcome of his decision.
commitment is likely to occur when decision makers must make a public show of
support for their decision. Once they have done that, it is much more difficult for
them to admit they were wrong.
The study of management categorizes decisions into various types. One such
category is programmed and non-programmed decisions. The difference between
these two kinds of decisions is basically in the way in which managers apply them.
Programmable decisions are those which are routine and repetitive in nature.
Managers often have standard operating procedures to deal with them. For example,
if an employee wants a holiday, he will just ask his supervisor for the same. The
supervisor may either approve or deny the leave as per the standard procedure.
On the contrary, non-programmable decisions arise due to other problems that do not
occur routinely. Unlike programmable decisions, there can be no standard procedures
for these decisions.
53
For example, several employees might suddenly take a day off from work without
permission. The reasons for this could be willful insubordination, protest, inability to
commute, etc. This is no longer a routine problem because no manager might have
thought of it. Therefore, in this case, the top level management might step in and take
some unprecedented action.
Since managers do not have to take non-programmed decisions very often, they lack
standard procedures for solving them. These decisions generally require a careful
study of the problem using scientific analysis. Furthermore, managers have to probe
all possible alternatives before selecting one.
The following are some modern techniques managers can employ to take such
decisions:
1. Creative Techniques
Since non-programmable decisions do not have standard solutions, managers have to
come up with creative ideas. Creativity basically means the ability to think of new
and innovative ideas.
The technique of brainstorming generally involves more than one person. This, in
turn, leads to more creativity of ideas and opinions.
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2. Participative Techniques
Another method that managers can use for decision making using a democratic
approach is the participative technique. Under this method, managers actively
involve employees in the decision-making process. Managers encourage employees
to raise their grievances and suggest their solutions.
The most important benefit of this technique is that it fosters a sense of togetherness
between the management and employees. Since the employees also take decisions,
they are likely to implement them with more responsibility and commitment.
Furthermore, this boosts their morale and helps them perform better at their work.
3. Heuristic Techniques
This technique basically relies on the fact that taking complex decisions cannot
always involve systematic implementation. This is because the consequences of such
decisions are often unpredictable and sporadic.
Therefore, managers use a trial-and-error approach in this technique. They take each
step individually and evaluate it before moving on further. Managers can use
scientific techniques and modern technology to make the process easier.
(d) __________ techniques encourage the employees to raise their concerns and
suggest solutions.
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Decision-making process
56
December072017
right one. Use these decision making process steps to help you make more
profitable decisions.
Robert Frost wrote, “Two roads diverged in a wood, and I—I took the one
less traveled by, and that has made all the difference.” But unfortunately,
not every decision is as simple as “Let’s just take this path and see where it
goes,” especially when you’re making a decision related to your business.
Use these decision making process steps to help you make more profitable
decisions. You'll be able to better prevent hasty decision-making and make
more educated decisions when you put a formal decision-making process
in place.
59
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.
Once you have identified your decision, it’s time to gather the information
relevant to that choice. Do an internal assessment, seeing 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.
61
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.
You could also use Lucidchart to build a pros and cons list. With a ton of
colors and shapes available to customize your visual, you can clearly
highlight whether your options meet necessary criteria or whether they
pose too high of a risk. Any diagram you create in Lucidchart is simple
to embed into a presentation or share with stakeholders so everyone
involved sees your research.
63
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
64
6. Take action
Once you’ve made your decision, act on it! Develop a plan to make your
decision tangible and achievable. Use Lucidchart diagrams to plan the
projects related to your decision, and then set the team loose on their tasks
once the plan is in place.
If so, take note of what worked for future reference. If not, learn from your
mistakes as you begin the decision-making process again.
With a large selection of templates and shape libraries, Lucidchart makes all
of your processes run more smoothly.
Sign up for free today to get started—or, if you’re not sure, run through the
seven steps listed above to figure out whether Lucidchart is right for you
and your business.
like the one outlined here, along with being aware of common challenges,
can help ensure both thoughtful decision making and positive results.
All managers want to make the best decisions. To do so, managers need to
have the ideal resources — information, time, personnel, equipment, and
supplies — and identify any limiting factors. Realistically, managers operate
in an environment that normally doesn't provide ideal resources. For
example, they may lack the proper budget or may not have the most
accurate information or any extra time. So, they must choose
to satisfice — to make the best decision possible with the information,
resources, and time available.
Concentrate on the problem at hand. This rule keeps the discussion very
specific and avoids the group's tendency to address the events leading up
to the current problem.
Entertain all ideas. In fact, the more ideas that come up, the better. In
other words, there are no bad ideas. Encouragement of the group to freely
offer all thoughts on the subject is important. Participants should be
encouraged to present ideas no matter how ridiculous they seem, because
such ideas may spark a creative thought on the part of someone else.
Employees are more likely to be satisfied and to support the final decision.
This method can be more time‐consuming than one individual making the
decision on his own.
Groups may have difficulty performing tasks because the group, rather than
a single individual, makes the decision, resulting in confusion when it
comes time to implement and evaluate the decision.
So, are two (or more) heads better than one? The answer depends on
several factors, such as the nature of the task, the abilities of the group
members, and the form of interaction. Because a manager often has a
choice between making a decision independently or including others in the
decision making, she needs to understand the advantages and
disadvantages of group decision making.
The purpose of this step is to decide the relative merits of each idea.
Managers must identify the advantages and disadvantages of each
alternative solution before making a final decision.
73
Evaluating the alternatives can be done in numerous ways. Here are a few
possibilities:
After a manager has analyzed all the alternatives, she must decide on the
best one. The best alternative is the one that produces the most
advantages and the fewest serious disadvantages. Sometimes, the
selection process can be fairly straightforward, such as the alternative with
the most pros and fewest cons. Other times, the optimal solution is a
combination of several alternatives.
Sometimes, though, the best alternative may not be obvious. That's when a
manager must decide which alternative is the most feasible and effective,
coupled with which carries the lowest costs to the organization. (See the
preceding section.) Probability estimates, where analysis of each
alternative's chances of success takes place, often come into play at this
point in the decision‐making process. In those cases, a manager simply
selects the alternative with the highest probability of success.
Managers are paid to make decisions, but they are also paid to get results
from these decisions. Positive results must follow decisions. Everyone
involved with the decision must know his or her role in ensuring a
successful outcome. To make certain that employees understand their
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Was the wrong alternative selected? If so, one of the other alternatives
generated in the decision‐making process may be a wiser choice.
So, once you realize you have to make a decision, then you’re already at step one.
At this point in the decision-making process, it’s critical to define the issue and the
decision that must be made. Make sure that you’re being as specific as possible,
because if you’re too broad in your definition, then your decision is going to swing
wide and likely miss its mark.
2. Collect Information
Now that you’ve got a decision to make, what’s the relevant data you need in order
to make a well-informed decision? That includes establishing where to gather the
best information. Seek out where you can get accurate data on the problem and,
therefore, set you on the right course to making the correct decision.
Look at the decision from all angles. That means, both internally and externally.
So, go through a process of self-assessment, and get input from your team and
those who are interfacing with the issue that requires a decision. Also, seek
guidance from outside sources, whether that be online, in the library or from other
76
people who have experience and skill solving similar problems. Reporting
tools can also be a huge help during this step.
3. Develop Options
As you research, you’ll likely have many avenues in which to address the problem.
That’s good. You want to have as many alternatives as possible. Think of this as a
fact-gathering mission. It’s not part of this step to decide. That will come later in
the decision-making process. For now, list all the decisions that meet the criteria of
the research you’ve done. Feel free to get creative when listing all of your possible
options because you never know where the best decision will reveal itself. It may
even come in the form of a combination of options.
This is not solely a cerebral process. In fact, it’s easy to get stuck in this step for
too long if you continue to analyze data and evaluate options. In order to escape
this trap of analysis paralysis, you must also trust your instincts.
Managers have experience and a history from which to turn to for guidance. What
does your gut say? If there are several options that are so close that it’s hard to see
the difference, think about what acting on that decision would look like for you,
your team, the project and the organization. Run each alternative through your
head. See how they play out. Then list them in order of priority to get a sense of
which one you favor. The one scenario that comes the closest to achieving the goal
you have is likely going to show itself, as you carefully work through this process.
5. Make a Choice
Okay, you’ve made it! It’s time for the decision. It’s not yet time for action though,
as in enacting the decision, but before you can do that you have to make a choice.
This is often the most difficult part. Prior to this you had a process to play with, but
there was nothing at stake—now there is.
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You could make this step more of a continuation of the previous step, if you need
more time to process the alternatives to see which one rises to the top of your list.
That’s fine. There’s nothing wrong with making sure you’ve done the due
diligence, as long as you’re getting closer to making that decision.
Whatever you do, don’t implement your decision blindly. Watch what happens at
the onset carefully, as you’ll want to collect data and results to review later.
7. Review
All decisions are teaching moments, if you take the time to see how the decision
worked out (or not) and chart the consequences of your action. Look at the results
of your decision. Did the decision go as you proposed it would? Evaluate whether
or not you made the right choices throughout the previous decision-making steps.
If your decision proved ineffectual, then maybe you didn’t clearly define the
problem in step one.
Don’t worry. It’s not the end of the world. This, too, is a process. Use what you’ve
learned from this decision-making process and, if the decision wasn’t the right one,
explore why it didn’t serve the goal you had set for it and how you could approach
the process differently. The process isn’t perfect—remember, it’s only as good as
what you put into it.
4 Develop options
Generate several possible options.
Be creative and positive.
Ask “what if” questions.
How would you like your situation to be?
5 Evaluate alternatives
What criteria should you use to evaluate?
Evaluate for feasibility, acceptability and desirability.
Which alternative will best achieve your objectives?
6 Select a preferred alternative
Explore the provisional preferred alternative for future possible adverse
consequences.
What problems might it create?
What are the risks of making this decision?
7 Act on the decision
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?
These 7 steps in decision making will give you the essential elements
of a structured process model.
From issue identification to action, evaluation and learning. Improve your
decision making … in just a minute!
This is one of our Manage in a Minute pages. These contain practical tips
on essential management topics.
No fuss or side-tracks, they get straight to the point.
And don’t miss out on our great half price e-guide offer. You can get our
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Find out more about this great offer here, OR download them straight away
by clicking on the image below:
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decision making process
4 Develop options
Generate several possible options.
Be creative and positive.
Ask “what if” questions.
How would you like your situation to be?
5 Evaluate alternatives
What criteria should you use to evaluate?
Evaluate for feasibility, acceptability and desirability.
Which alternative will best achieve your objectives?
6 Select a preferred alternative
Explore the provisional preferred alternative for future possible adverse
consequences.
What problems might it create?
What are the risks of making this decision?
7 Act on the decision
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?
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1. Small Business»
2. Business Planning & Strategy»
3. Making Business Decisions»
What Are the Steps in the Decision-Making Process of a Manager?
by David Ingram; Reviewed by Michelle Seidel, B.Sc., LL.B., MBA; Updated
February 05, 2019
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Small business owners and managers make decisions on a daily basis, addressing
everything from day-to-day operational issues to long-range strategic planning.
The decision-making process of a manager can be broken down into seven steps.
Although each step can be examined at length, managers often run through all of
the steps quickly when making decisions. Understanding the process of managerial
decision-making can improve your decision-making effectiveness.
Identify Problems Requiring Decisions
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.
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A supervisor in a retail shop 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.
Seek Information to Clarify Options
Managers 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 processes involved in the issue and
any constraints placed on the decision-making process.
Brainstorm Potential Solutions
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
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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; savvy
managers put monitoring systems in place to evaluate the outcomes of their
decisions.
Evaluate the Outcomes
Even the most experienced business owners can learn from their mistakes. Always
monitor the results of strategic decisions you make as a small business owner; 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.
If we use the two examples from this section, we find that the
parent has decided to stay home and spend the time finding a
quality daycare replacement. In this case, it is the father, and he
is spending the morning contacting nursery schools in the area
and setting up visitations for the following day. He and his wife
have agreed to take turns staying home with the children over
the next few days until a proper solution can be found. The
individual who is trying to decide whether or not to attend college
has come to the conclusion that he will need an advanced
education if he is going to be able to enter environmental work.
He does have limited funds, however, and does not want to live
at home. So he has enrolled in a nearby community college,
found gainful full-time employment, and is moving into an
efficiency apartment near the school.
If you are venturing into this study to become more adept, if not
expert, in decision making, then it is valuable to remember the
four steps of the process. First, state the problem in clear and
plain language. Second, research all of the options that are
available to address the problem. Third, make the choice from the
alternatives considered. Fourth, enact the decision and evaluate
to ensure that it is the correct one to meet its stated purpose.
Remember, practice makes perfect, and this is especially true of
decision-making.