Decision making is a daily activity for any human being. There is no exception about that. When it comes to business organizations, decision making is a habit and a process as well. Effective and successful decisions are rewarding where as the adverse decision’s cost the organisations to the extent of extinction. Therefore, corporate decision making process is the most critical process in any organization.
In the process of effective decision making we need to choose one course of action from a few possible alternatives using different measuring tools, comparative studies, analyzing techniques and perceptions to arrive on projected rewards or results. we may make our own private decisions or may prefer a collective decision.
Usually, decision making is hard. Majority of corporate decisions involve some level of dissatisfaction or conflict with another party but what is more important is to take a rational decision based on scientific studies and data analysis which involve market trends ,comparative studies and studies of different design models before application. In any organisation there are decisions involved to the extent of changing the direction of the business model, which need to be carefully analyzed and studied before application
Decision making is the mental process of choosing from a set of alternatives. Every decision-making process produces an outcome that might be an action, a recommendation, or an opinion. Since doing nothing or remaining neutral is usually among the set of options one chooses from, selecting that course is also making a decision.
LET’S FIRST UNDERSTAND THE DIFFERENCE BETWEEN PROBLEM ANALYSIS AND DECISION MAKING
While they are related, problem analysis and decision making are distinct activities. Decisions are commonly focused on a problem or challenge, read again commonly focused not necessarily be always as at times the process of decision making is required for further development plans or overlooking the broader industrial and technological changes .Decision makers must gather and consider data before making a choice. Problem analysis involves framing the issue by defining its boundaries, establishing criteria with which to select from alternatives, and developing conclusions based on available information. Analyzing a problem may not result in a decision, although the results are an important ingredient in all decision making.
WHAT IS THE PROCESS OF EFFECTIVE DECISION MAKING?
ESTABLISHING OBJECTIVES –this is important as we need to understand the objective of the problem or challenge, it is a crucial step to identify the real challenge and one should analyze this by interpreting few questions
WHAT –WHY –WHO IS AFFFECTED –OUTLINE –TIMELINE
INFORMATION GATHERING – is a process of gathering all the relevant information on the problem or challenge, data mining and appropriate data analytics can provide useful comparatives and relationship analysis in the process of decoding the challenge; you will have to gather as much as information related to the factors and stakeholders involved in the problem. For the process of information gathering, tools such as ‘Check Sheets’ can be effectively used.
CRITERIA OF JUDGEMENT..Establish the criteria of weighing the alternatives in the process of arriving to conclusions ensure keeping in mind the corporate philosophy and long term vision of the organisation.
IDENTIFYING ALTERNATIVES..Brainstorm to list down all the ideas and their retrospective effects, immediate and long term. This will help to establish clear line to choose the right alternative.
SELECTION OF BEST ALTERNATIVE..Select the best alternative which is acceptable to all the stakeholders in the challenge, identification of the problem to the best extent and arriving to relevant alternative solutions, study of the third party application of the alternatives also provide relevant data of the after effects.
EXECUTION OF THE DECISION..this is important step, application mis management can sometimes lead to negative results, evaluate the training needs of the team before the execution of the alternatives, in some organisation it has been evident study of revamping the hierarchy levels and responsibility levels to assist better execution, step by step execution is always suggested and strict monitoring is required to study the lapses in the process.
COMMON CHALLENGES OF DECISION MAKING
Decision making is a vital skill in the business workplace, particularly for managers and those in leadership positions. Following a logical procedure like the one outlined here, along with being aware of common challenges, can help ensure both thoughtful decision making and positive results.
Although following the steps outlined above will help you make more effective decisions, there are some pitfalls to look out for. Here are common challenges you may face, along with best practices to help you avoid them.
Having too much or not enough information. Gathering relevant information is key when approaching the decision making process, but it’s important to identify how much background information is truly required. “An overload of information can leave you confused and misguided, and prevents you from following your intuition.”
In addition, relying on one single source of information can lead to bias and misinformation, which can have disastrous effects down the line.
Misidentifying the problem. In many cases, the issues surrounding your decision will be obvious. However, there will be times when the decision is complex and you aren’t sure where the main issue lies. Conduct thorough research and speak with internal experts who experience the problem firsthand in order to mitigate this. It will save you time and resources in the long run.
Inefficient execution. Even if you follow the steps of the decision making process, there is still a chance that the outcome won’t be exactly what you had in mind. That’s why it’s so important to identify a valid option that is plausible and achievable.
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