Decision Making

Decision
Making a choice from two or more alternatives. And choosing that alternative that give us
maximum output

The Decision-Making Process

There are following steps are included in the decision making process
Step 1: Identifying a problem
Problem is discrepancy between existing and a desired condition. Lets work through an
example Ali is a sale manager who observe that our sales are less than our target so this is a
problem.

Now Ali starts to identify that problem to achieve his sales target he comes to know that due
to the old computers employees cannot perform their work they should get new laptops. So
this is the problem between existing and desired condition.

Step 2: Identifying decision criteria

Once manager has identified the problem he has to identify the decision criteria important
and relevant to the resolving problem.

Like now Ali who is a sale manager he has to select the required criteria for the new laptops

For example new laptop should have good hardware, memory and speed. Now he selected the
criteria for the decision. Cost that they have to incur to replace the machinery and the chance
of failure as well as the success of outcomes manager have to think in this process.

Step 3: Allocating weights to criteria

If the relevant criteria not equally important the decision maker must weight the item in order
to give them the correct priority in the decision. How? A simple way to give the most
important criterion a weight of 10 and then assign weights to the rest using that standard. Of
course you can use any number as the highest weight.
Step 4: Develop alternatives
The fourth step in the decision making process require the decision maker to list viable
alternatives that could resolve the problem. In this step decision maker needs to be creative
and alternatives are only listed.

For example Ali have listed companies for laptop according to his requirement

 HP
 Dell
 Lenovo
 Hair
 Sony

Step 5: Analyze alternatives

Once alternatives has been identified decision maker evaluate each one. How? By using
the criteria established in step number 2.

Like they should be economical for our business, hardware should be good and memory
also. Different alternatives are analyzed below in a table:
Step 6: Select an alternative
The sixth step in the decision making process is choosing the best alternative or the one that
generated highest total in the step number 5. In our example Ali choose the Dell Inspiron
because it scored highest among all the given alternatives.

Step 7: Implementing the alternative

In this step of decision making Ali has to put his decision into action by conveying it to those
affected and getting their commitment to it. We know that if the people who must implement
a decision participate in the process they are more likely to support it than if you tell them
what to do.

Step 8: Evaluate the decision effectiveness

The final step of the decision making is to evaluating the outcomes or the results of the
decision Ali had made.

For example due to the replacement of computers by laptops is the sale increase or not if yes
so our decision is effective if sales are not increased our decision is not so effective.
 Guideline For Effective Decision Making

Here are some additional guidelines to help you a Batter Decision Maker.

 Understand Culture Difference.

Managers everywhere want to make good Decision However ,is there only one best
way Worldwide To make decision
For Example if Manager want to take Decision in the any Country first see the
culture Belief Tradition values And religion of country then take decision
If a Food company start a business of Pizza in India if thy use beef in the pizza this
not good Decision because there culture is not allow
If we use vegetable in pizza it is a good decision.

 Create standard for good discoing making

Good discoing are forward looking use available information, consider all available
and viable options and don not create conflict of interest foundation employees are
obligated to avoid and disclose ethical legal financial or other conflicts of interest
involving the foundation
 Know when it’s time to call is quits
When its evident that are decision are not working do not be afraid to pull the plug for
instance only months after Steve Rowe became CEO of UK based marks and spancer
he decide to close of dozens of stores domestically and abroad in major move to boost
the retailers profitability. However as we said earlier many decision maker block are
distort negative information because they do not want to believe their decision was
bad,
 Use an effective decision making process

Expert says an effective decision making process has these six characteristics.
1. Its focus on what’s important
2. Its logical and consistent
3. It acknowledges both subjective and objectives thinking
 4. Its requires only as much information and analysis to resolve a particular
Dilemma
5. It encourages and guides the gathering of relevant information and
informed opinion.

 Developed your ability to think clearly so you can make better choice at work and in
your life
Making good decision does not come naturally you have to work at it. Read and study
about decision making. Keep a journal of decision in which you evaluate you decision
making successes and failures by looking at the process you used and the outcome
you got.

Design thinking and Decision making.

The way manager’s approaches decision making using a rational and analytical mindset in
identifying problems, coming up with alternatives, evaluating an choosing one of the method.

Design thinking.
Approaching management problems as designer approach design problems.

Example;

PepsiCo embraces the importance of design thinking and they manufacture the new function
about the machine and they introduce the new flavors to maintain and increase the interaction
between the customer and the machinery and the customers will enjoy the flavors and
machinery benefit.

Decision making.
Making a choice from two or more alternatives. When you have to make a product and the
manager had a option to use a machinery or a labor to made a product.

Like making a choice that you have a choice to make a product or to buy a product.
BIG DATA AND DECISION MAKING.

Decision making.
Making a choice from two or more alternatives. When you have to make a product and the
manager had a option to use a machinery or a labor to made a product.

Like making a choice that you have a choice to make a product or to buy a product.

Big Data.
The vast amount of quantifiable information that can be analysis by highly sophisticated data
processing.

Example

Ali baba s the Chinese largest online retailer that earn the profit and they personalize and
handle the products and they sell 175000 products per second they manage it by the big data
decision making.