Decision Making Strip

Decision Making Defined

In its simplest sense, decision-making is the act of choosing between two or more courses of action.

In the wider process of problem-solving, decision-making involves choosing between possible solutions to a problem. Decisions can be made through either an intuitive or reasoned process, or a combination of the two ~ Intuition & Reasoning.

• Decision making is about identifying and choosing alternatives based on the values and preferences of the decision maker.
• It is also a part of everyone’s daily living.

Business and Life Management Function

• Decision making is an important step in the “planning” function of business management.
• It is also a part of everyone’s daily living.

Decision making is the process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Using a step-by-step decision-making process can help you make more deliberate, thoughtful decisions by organizing relevant information and defining alternatives. This approach increases the chances that you will choose the most satisfying alternative possible.

• Step 1: Identify the decision

• Step 2: Gather relevant information

• Step 3: Identify the alternatives

• Step 4: Weigh the evidence

• Step 5: Choose among alternatives

• Step 6: Take action

• Step 7: Review your decision & its consequences

Effective Decision-Making

Decisions need to be capable of being implemented, whether on a personal or organizational level. You do, therefore, need to be committed to the decision personally, and be able to persuade others of its merits.

Decision Making Processes (Models)

Herbert A Simon Model

Major three phases:

1. Intelligence: Searching the environment for conditions calling for decisions.
2. Design: Inventing, developing and analyzing possible courses of action. Creating alternative solutions.
3. Choice: Selecting an alternative or course of action from e ones designed. Choice is made and implemented.

Extended Model

1. Recognition of problem or need for decision.
2. Analysis and statement of alternatives.
3. Choice among the alternatives.
4. Communication and implementation of decision.
5. Follow-up and feedback of results of decisions.

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