Explain the decision making process
1 Answer

Process of decision making

Meaning Decision making is the process of selecting best course of action from two or more alternative courses of action.

Decision is taken based on past experience present condition and future experimentation

Decision is to be taken properly otherwise we have to face more difficulties


1.Defining the problem

First step is to find the correct problem.

If the problem is not correctly defined money spent on wrong decision will go waste

2.Analysis of problem

We must analyse that the data which is available would be sufficient or not. If not more and more information should be collected otherwise it involves high risk and rigidity.

3.Developing alternative courses of action

Developing alternative courses is necessary because each problem has two or more alternatives.

For example to fill up vacancy there are alternative solutions such as promotion or recruitment of a person from outside the organisation.

These helps in taking the right decision.

4.Selecting the best course of action: Merits and demerits of every alternative should be evaluated best solution should be selected.

Selection is based on the following:

  • Experience

  • Experimentation

  • Research and analysis

5.implementation of decision:

If the decision is taken that decision must be translated into action.

Proper communication should be there with the employees about the decision to be taken.

Decision should be implemented at right time and at right place.

6.Following up the decision

Following up of decision means checking the results.

Following up is necessary because of the following reasons:

1) To see whether the decision implemented properly by the employees or not

2) To find out whether the decision taken by the management is right one or not.

3) if the taking decision is found wrong then modifications should be done.

4) management should develop an efficient system of feedback.

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