Introduction
In
our ever-changing society, organizations are forced to progress with the times
in order to remain dynamic. Each day, organizations are required to make sound
decisions that will potentially improve the organization. Decision making can be regarded as the mental processes (cognitive process) resulting in the selection of a course of
action among several alternative scenarios. Every decision making process
produces a final choice. The output can be an action or an opinion of
choice.
We
use our decision making skills to solve problems by selecting one course of
action from several possible alternatives. Decision making skills are also a
key component of time management skills.
Decision
making can be hard. Almost any decision involves some conflicts or
dissatisfaction. The difficult part is to pick one solution where the positive
outcome can outweigh possible losses. Avoiding decisions often seems easier.
Yet, making your own decisions and accepting the consequences are the only way
to stay in control of your time, your success, and your life.
Decisions
•
Made
up of a composite of information, data, facts and belief.
•
Data
by itself does not constitute useful information unless it is analyzed and
processed.
A Decision
•
Is
only as good as the data that informed it
•
Is
only as good as it is an informed one
•
Is
only as good as the system which exists to implement
•
Is
only good if you have the means to implement it
•
Is
only good if other people understand it and what it means
Kinds of Decisions
There are several basic kinds of decisions.
1. Decisions whether – This is the yes/no, either/or decision
that must be made before we proceed with the selection of an alternative.
Should I buy a new TV? Should I travel this summer? Decisions whether are made
by weighing reasons pro and con. The PMI technique discussed in the next
chapter is ideal for this kind of decision.
It
is important to be aware of having made a decision whether, since too often we
assume that decision making begins with the identification of alternatives, assuming
that the decision to choose one has already been made.
2. Decisions which – These decisions involve a choice
of one or more alternatives from among a set of possibilities, the choice being
based on how well each alternative measures up to a set of predefined criteria.
3. Contingent decisions – These are decisions that have been
made but put on hold until some condition is met.
For example, I have decided to buy that car if I can get it for the right
price; I have decided to write that article if I can work the necessary time for it into my schedule. OR
even, we’ll take the route through the valley if we can control the ridge and
if we detect no enemy activity to the north.
Most
people carry around a set of already made, contingent decisions, just waiting
for the right conditions or opportunity to arise. Time, energy, price,
availability, opportunity, encouragement--all these factors can figure into the
necessary conditions that need to be met before we can act on our decision.
Some contingent decisions are unstated or even exist below the awareness of the
decision maker. These are the type that occurs when we seize opportunity. We
don't walk around thinking, "If I see a new laser printer for $38, I'll
buy it," but if we happen upon a deal like that and we have been
contemplating getting a new printer, the decision is made quickly. Decisions
made in sports and warfare is like this. The best contingent and opportunistic
decisions are made by the prepared mind--one that has thought about criteria
and alternatives in the past.
Decision making Model
"Decision
making is a process of first diverging to explore the possibilities and then
converging on a solution(s)". To come to these decisions, management often
implements a decision-making model that outlines the steps necessary to make
logical and effective decisions. The following paper will discuss how the 5
steps included in the decision making model assist in generating productive and
positive outcomes. The steps discussed include framing, deciding,
communicating, implementing and evaluating.
Framing
The
first section in the decision-making process is framing. Framing involves
clarifying the reasons and restrictions for the decision, gathering of
information, identifying who is affected by the decision and who will make the
decision. Additional parts of framing include identifying any expertise needed
to make an informed decision, identifying information or resources which will
assist in the decision making process, defining a timeline for which the
decision needs to be made and communicating to the involved parties who will be
responsible for making the decision and why that person is qualified for the
role.
Deciding
The
second section discussed is deciding. The four steps illustrated in deciding
are to explain in detail how the decision will be made, appropriate tools
available to support the gathering of data, make the decision with the
consideration of several ideas and identify who will execute the decision. When
deciding how the decision will be made, organizations often use a consensus.
The consensus allows all affected people to voice their opinion on the issue.
Organizations will also apply several methods when gathering information, such
as brainstorming and designing flowcharts.
Communicating
Communicating
is another essential section in the decision-making process. In the
communication section, parties summarize the reason for the decision and
communicate why the decision was made. If a group within the organization lacks
the ability to properly convey their views, reaching a final decision can be a
timely and stressful process.
Implementing
Implementing
is the next section in the decision-making model. The steps involved in
implementing are to define the steps for executing the decision, which includes
determining the timeframe for expected completion, and defining the process for
reporting a complete decision.
Evaluating
The
final step in the decision-making process is evaluation. This step is crucial
because evaluating allows the organization to observe the outcomes of its
decision. Without evaluating the outcome, an organization would not know if the
decision was effective or ineffective.
Conclusion
In
everyday life we often have to make decisions fast, without enough time to
systematically go through the above action and thinking steps. In such
situations the most effective decision making strategy is to keep an eye on
your goals and then let your intuition suggest you the right choice.
Decision-making models are a useful tool when deciding upon important issues. They help to give structure and encourage critical thinking. Many organizations in the past, allowed individuals to make important decisions without consulting the people who would be affected. In turn, decisions failed and proved to be timely and costly for the organization.
Decision making is used to solve problems by selecting one course of action from several possible alternatives. It also can be a key component of time management skills. Different individuals and companies use various types of decision-making models. Most models must move through the basic stages in decision making. They are every part of producing good judgment.
References:
http://www.the-happy-manager.com/rational-decision-making-model.html
http://www.1000ventures.com/business_guide/crosscuttings/decision_making_main.html
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