Making Effective Decisions
(Ken Shah & Prof. Param J. Shah) total 3 parts
For performance of every single activity, decision making is unavoidable. Every small amount of work performed needs analysis of the options concerned. This is more so where the major activities are related to controlling and managing work force. Decision-making is that tool in the hands of a manager that renders him, either effective or ineffective, depending upon his judgmental skills.
For a manager, it is necessary to understand that, a decision is a judgment or choice between two or more alternatives, and arises in an infinite number of situations, from the resolution of a problem to the implementation of a course of action. As managers are to handle a number of issues at the same time, the need to be aware and careful is more intense. It is one activity that lies at the heart of management.
A decision is a choice between a variety of alternatives, and a decision- maker is the one who makes such a choice. Though decisions are made in a spur of moment there is a long thought of future and guiding experience of the past, leading to that particular decision. Hence, Managers of people need to be able decision-makers.
THE MAKING OF DECISIONS
1. Identification :
It is the phase of decision recognition. It includes such situations which generate opportunities, problems, crises. Recognition of the need for a decision is triggered by information, but that information forms a part of the ongoing flow of communications, originating both, inside and outside the organization. At times the decision-making originates just by a single stimulus, for example loss of a important customer, where as in other types the decision may be recognized after a long period of time, which has been triggered by a number of stimuli.
Individuals receive information that indicates the need to make a decision, but that may not necessarily lead to decision–making activity. A decision maker is more likely to act if there appears to be a solution to the problem or the opportunity promises to help with a difficulty.
2. Development :
The greatest amount of activity is concentrated in the developmental phase of the decision process. It leads to the development of one or more possible solutions to meet the problem or crisis, also elaborates the choice of ways that are available for exploring an opportunity.
This development phase is divided into two basic routines. A search routine for locating ready-made solutions and a design routine to modify either found solutions or eleborate custom-made solutions.
3. Selection :
Selection is not the single and final step in the decision process. It is a multistage process involving progressive deepening of the investigation of alternatives.
A screening routine is appropriate to the extent that search has provided more ready-made alternatives than can be intensively evaluated. At the end, the ready-made alternatives are either accepted or rejected.
4. Time :
Decisions do not develop along a path of steady and undisturbed progress. Problems are encountered along the way that have to be explored and, if possible, overcome. The decision takes place in the context of an organization that exists in a changing environment with new priorities emerging. The progress of a particular decision may need to be speeded, slowed or even delayed as new issues are presented to the organization and other decisions start to be developed.
The whole process of decision-making is overshadowed by degree of uncertainty. At the identification stage, there prevails the impact of Individual’s psychology, organizational perceptions and group-behavior as well as that of the past model building of the firm. The existence of an opportunity, problem or crisis leads to recognition of the need for decision. The manager, in the development phase of the decision selects an alternative, either the one that has been tailor made or the one that is being followed since a long time. While selecting a particular course of decision, the goals, objectives and ethics need to be made the yard stick. The ultimate decision is adopted after the authorization from the top. Throughout the whole process there prevails an element of uncertainity, which the decision- maker tries to eleminate.
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