Contemporary Assignment #8:

You are kindly requested to apply, the five steps of decision making
on a situation that you are trying to resolve and elaborate on each
step on the decision making.

The 5 steps of the decision making for a specific problem

There are 5 steps of the decision making for a specific problem as
the following:

I. Step 1: Identify and define the problem

 Focuses on information gathering, information processing, and
deliberation
 Decision objectives should be established
 Common mistakes in defining problems:
– Defining the problem too broadly or too narrowly
– Focusing on symptoms instead of causes
– Choosing the wrong problem
EXAMPLE: There is a problem in the flow of information in an
organization, Lack of ownership around who collects and
disseminates information , Ambiguous data access rights, which
hinders sharing As we know the communications within large
organizations is interesting to theorize about, but hard to
measure and promote, Rich information flows of critical data is
akin to having healthy blood circulation in our body, Without
regular and nutrient-rich blood circulation, a body will quickly
lose vitality. For many companies, having timely information is
the lifeblood of customer service, operations, and financial
management.

II. Step 2: Generate and Evaluate Alternative Courses of Action

 Potential solutions are formulated, and more information is
gathered, data are analyzed, the advantages and
disadvantages of alternative solutions are identified
 Approaches for evaluating alternatives:
– Stakeholder analysis
– Cost-benefit analysis
 – Criteria for evaluating alternatives: (Benefits, Costs,
Timeliness, Acceptability, Ethical soundness)
– Common mistakes: Abandoning the search for alternatives
too quickly
EXAMPLE:
 Use the technology in data collection and analysis it correctly
to make the information properly that allows us to make the
right decisions.
 Make an open system.
 The Managers have to collect the inputs and sends the newly
revised document to his target audience.
 Improve the communication process and tools.
 Information flow in an organization should do in two ways:
– Vertically - Flow up and down among managers
– Horizontally - Flow sideways among departments

 Gathering and distributing information, and information

systems can make this process more efficient by allowing
managers to communicate rapidly. Email is quick and effective,
but managers can use information systems even more
efficiently by storing documents in folders that they share with
the employees who need the information. This type of
communication lets employees collaborate in a systematic
way. Each employee can communicate additional information
by making changes that the system tracks.

III. Step 3: Decide on a Preferred Course of Action

 Two different approaches
– Behavioral model leads to satisficing decisions
– Classical model leads to optimizing decisions
 EXAMPLE:
 Exclude the solutions that are not applicable
 Analyze the applicable solutions to short term, long term, and
mixed development decisions

IV. Step 4: Implement the Decision

 Involves taking action to make sure the solution decided upon
becomes a reality
 Managers need to have willingness and ability to implement
action plans
 Lack-of-participation error should be avoided
EXAMPLE:
 Implementing new system and Software that will save much
time and effort, reduce their mistakes, and help them provide
better service.
 Update website information
 The establishment of a specialized department in the
compilation and dissemination of information between
departments.

V. Step 5: Implement the Decision

 Involves comparing actual and desired results
 Positive and negative consequences of chosen course of action
should be examined
 If actual results fall short of desired results, the
manager returns to earlier steps in the decision-making
process
EXAMPLE:
 Do you control the exchange of information has been
effectively Is there is a change? Is this a return to the
organization benefit
 Taking the feedback from all employees