3 EXERCISES STATISTICS PROBABLITY

Effective Decision-Making Process

JOSSFER SMITH

Effective decision-making process

An effective decision-making process refers to the process of identification of choices from the available options and then managed through the appropriate implementation process to achieve the objectives of an organization (Sanayei, Mousavi & Yazdankhah, 2010). The effective decision-making process is essential because it enables organizations to achieve business objectives more efficiently. The effective decision-making process, the decision maker must weigh both positive and negative effects of the available option to make the most appropriate one that will achieve the intended goals (Sanayei et al. 2010). Also, a decision maker must be able to forecast the possible outcomes of each option depending on the situation for making such decisions. Different organizations use various types of decision-making processes that best fit their activities and organizational structures for the success of their business activities. The primary purpose of this paper is to discuss the six steps involved in the effective decision-making process in an organization.

Typically, there are different steps involved in the effective decision-making process. For an organization to make an effective decision-making process, the management of an organization must follow these steps to ensure that all necessary processes are considered (Sanayei et al. 2010). The following are the key steps the must be followed in an effective decision-making process.

Identify the decision

Identification of decision is the first step in effective decision-making process; it involves realizing what an organization intends to achieve for selecting the available ways of doing certain activities (Lunenburg, 2010). Some of the key activities involved in this step include identifying and understanding the nature of the decision that the management wants to make. It also entails identification n of the essential factors the will be helpful in the decision making the process. In this step, the top management in an organization considers the key factors that may influence their choice before reaching in an agreement on which option to take. Lastly, identification of the current situation that may affect the desired outcome is also considered to ensure that the choice made by the top management is the best option. In most cases, senior management of an organization takes a lot of time to identify the most appropriate decision that can able their organization to achieve its goals (Lunenburg, 2010). As such, this is an essential step in an effective decision-making process because it determines the success of all decisions made by the management.

Gathering relevant information

Collecting relevant and vital information is the next step in the effective decision-making process. Generally, taking the most appropriate involve collecting foist hand information that will help to give the best choice alternative (Lunenburg, 2010). Gathering relevant information help in the following ways: it helps to boost the confidence of those who are involved in the decision making through the collection of information, they know their current situation and what should be done to solve the existing problems. Also, it helps in identifying the size gap available in the current condition and the vision of an organization. Lastly, gathering relevant information assists in strengthening the identification of the existing situations by creating awareness that aims at landing on the best alternative (Lunenburg, 2010). For instance, collecting data about the employees’ qualification and their job descriptions. In most cases, the management of many organization collect information such as the number of current employees, and whether they do they require work, the number of new professionals the company should hire to fill the available chances, and problem that the company might face if the management fails to recruit or retain more new employees. Occasionally, activities in this step involve judgment where the top management consists of reaching in an agreement by deciding on their own about the current situation.

Identification and evaluation of available alternatives

Upon identification and collection of information, the management sits to analyze and evaluate the convenient option to choose the most appropriate option they will help in achieving the goals of the company (Martin, 2017). The principal activities involved in this step include considering both positive and negative sides of the available option and possible outcome of each option. Usually, top management of organizations lands on the most appropriate alternative through imagination, doing thorough research, and discussing the issue with experts who have experience in those fields to help in choosing the best option.

In this step, some of the common question that the management consider is like, which is the best option among the available choices. This process help decision makers to land on the best alternative among the available choices (Martin, 2017). Another critical area which decision maker critically consider is the benefits that can be derived from each possible option. Evaluation of available option is essential in the effective decision-making process because it helps to determine which course of action is the best way that can enable the management to achieve organizational goals. Currently, in many organizations, the top management chooses that best option from the available list based on the ability of the opportunity to meet the intention of the company.

Choosing among the alternative and making of appropriate decision

Once the management of an organization has identified and evaluated all possible options, they follow by selecting a choice that seems to the best among the available options and can enable the management to achieve its goals more efficiently. Occasionally, decision makers in some organization choose more than one alternatives based on the outcome of the evaluation (Blenko, Mankins & Rogers, 2010). However, in some organizations, the top management who engage in decision-making process choose a combination of alternatives to provide back should the most prioritized option fails. For instance, some organizations consider recruiting employees with more than one area of the profession to help in serving in more than department to reduce the cost of operation that can be used to pay for more employees to perform specific roles (Blenko et al. 2010). For instance, the management may choose to recruit few employees who can do many tasks to reduce extract cost that can be incurred if the management's decision to hire many employees to represent every department in an organization. Consequently, this always leads to excellent performance and profitability of the company due to reduced operating costs.

Execution of the decision

Implementation of a decision another essential step in the effective decision-making process. It involves putting into use the choice which decision-makers in an organization have to choose among the available alternatives (Blenko et al. 2010). For the decision makers in an organization to have a successful decision-making process, some essential factors must be considered. First, the top management who engage in the decision-making process should set good plans for execution of the decision. The method used should be clearly defining the purpose of the decision and all steps that must be followed during the execution process.

Also, the set plan should ensure proper time management to ensure that all necessary steps are covered during the decision making process. Secondly, the control of the organization should ensure that all decisions made prior are implemented according to the plan to help in achieving the goals of the organization (Blenko et al. 2010). The latter can be done by systematic implementation of the best option the management have chosen as the most appropriate method that can help to achieve organizational goals. On the other hand, the execution process involve continuous checking of the implementation process to confirm if every step followed aim at meeting the objective of the organization. Constant assessing of execution process is essential because it helps to identify and quick adjustment of unwanted deviations that might be witnessed during the implementation process to ensure that every activity undertook aims at achieving the objective of the company.

Evaluation of the outcome from the decision

Evaluation of the result is one of the essential steps in the effective decision-making process. Typically a good decision maker should follow up the decision-making process to ensure that the intended organizational goals are achieved (Blenko et al. 2010). In this process, most managers of an organization assess whether the decision-making process is done appropriately and also if the intended goals why decisions are made has been achieved. Besides, at this step, managers make audit trail to asses if the implementation process was done appropriately according to the laid down plans that guided how all activities should be done to enable the organization to achieve its goals.

Furthermore, managers in charge of the decision-making process can do some modification on some few errors to increase the effectiveness of the decision made. Lastly, at this step, the manager in charge of decision-making process give rating whether the intended objective of the organization has been achieved or not (Blenko et al. 2010). Also, the manager responsible for the process comment about the implementation process and make appropriate recommendations that can be used to improve on areas that were not well handled during the decision making the process.

Finally, the last step in the decision-making process is the appropriate taking actions to solve the emerging issue and to correct areas that were not proper handle by during the decision-making process. It involves going through recommendations from the manager in charge and results to make correction where applicable.

Conclusively, effective decision-making process refers to the process of identification of choices from the available options and then managed through an appropriate implementation process to achieve the objectives of an organization. It involves six main steps that should be followed by decision makers in an organization help in achieving the goals of the company. The measures should be implemented systematically to promote uniformity in the implementation process of a plan.

References

Sanayei, A., Mousavi, S. F., & Yazdankhah, A. (2010). Group decision making the process for supplier selection with VIKOR under fuzzy environment. Expert Systems with Applications, 37(1), 24-30.

Martin, T. H. O. M. A. S. N., (2017). Smart Decisions: The art of strategic thinking for the decision making process. S.L.: Palgrave Macmillan.

Blenko, M. W., Mankins, M. C., & Rogers, P. (2010). Decide & Deliver: 5 steps to breakthrough performance in your organization. Boston, Mass: Harvard Business Review Press.

Lunenburg, F. C., (2010, September). The Decision Making Process. In the National Forum of Educational Administration & Supervision Journal (Vol. 27, No. 4).