Decision Making

DECISION: A Choice Among Two Or More Alternatives.

Decision-Making Examples In Daily Life

These are common decision-making examples in daily life. Apart from these, you should know
about other decision-making examples.

You have many decision-making examples in daily life such as:

 Deciding What To Wear

 Deciding What To Eat For Lunch
 Choosing Which Book To Read
 Deciding What Task To Do Next

Examples Of Decision-Making In Management

At work, the core function of the management is to make decisions on business operations and
growth. Whether it is managing the workforce, servicing clients, ramping up production, or
hiring new employees, we see plenty of decision-making skills examples in everyday operations.

1. Decision-Making In Human Resources

Decision making involve in hiring , promotion, and terminating of employees.for exampling

hiring of employees through PPSC, in which huge no of applications of candidates are submitted
and small no of candidates are being selected. Imagine you are the CEO of an e-commerce start-
up. Your work is expanding and you need to hire the right resources to help you realize the vision
of creating a leading online retail platform.
You would need to hire people who are experienced and adept in their fields such as software
development, marketing, operations, procurement, and logistics.

Since the business is an online start-up, you won’t need to hire employees who work on the
premises exclusively. You can also get talented location-independent workers capable of
delivering the required technical support and services online.

2. Decision-Making In Production
In bakery, the owner take decisions about cakes, about shapes, size and color combinations. He
have multiple options (circular shape, square shape, doll shape). The next step would be to
decide about trending.

One of the most typical examples of decision-making in management is to take a call on

production facilities.

As your business expands and demand grows, you will be forced to increase your production
capacity. The next step would be to decide how much capacity installation is required to meet
demand effectively. You will also need to identify the right equipment for the purpose and the
workforce to run the production processes. Your decision has to be guided by the fact that the
ultimate aim is to increase production sustainably so that you have the flexibility of scaling up or
down without incurring a high cost.

3. Decision-Making In Marketing
In marketing management take decisions about place, price, promotion and produce.
They have multiple options for advertising such as online marketing, E-commerce, physical
marketing. So in next step they would take decision regarding marketing.
At some point or the other in their journeys, most companies undergo rebranding. Usually,
businesses are small initially, with only local or regional reach and branding, but as they start
expanding, the need for rebranding surfaces.

Quite often, logos, the company’s official mascots, and even names are changed to assert a new
identity, capability, and vision. Rebranding activities are strong decision-making skills examples
that take into account company values, products, target audiences, cultural and social
sensibilities, and business aspirations.

Decision Making Process

Step 1: Identify a problem

An obstacle that make its difficult to achieve a desired goals or purpose.any unexpected situation
is called problem. The first step in the decision-making process is identifying the problem.
Prior to identifying the problem, it is essential to first recognize that a problem exists.
Identification of the problem involves three stages: scanning, categorization, and diagnosis.
The scanning stage involves monitoring the work environment for changes that may indicate
the emergence of a problem.

Step 2: Identify Decision Criteria:

Criteria that define what is important or relevant to resolving a problem. The different
sources of information that managers can use include surveys, interviews, focus groups,
observation, and secondary data sources such as articles and reports. After gathering this
information, managers must then analyze it to determine which option is best.

For example, after identifying the course of action for the new recruits, you, along with your
team, have to gather proper information about the various hiring trends and how to recruit the
ideal talents

Step 3: Allocate Weight to the criteria

After gathering all the relevant information and alternatives for a decision, you’ll want to
weigh the evidence before making a choice. This step in the 7-step decision-making process
is crucial and ensures that you’re evaluating each option fairly.

For example, after identifying what alternatives you can offer to attract new recruits, consider all the options
to understand which would be the most profitable for your business. For this, you can take insights from
market research, financial data, and even gut instinct.

Step 4: Develop Alternatives

One of the most important aspects of the decision-making process in management is identifying the
alternatives. Without knowing what your options are, it can be difficult to make an informed decision. There
are a number of different ways to identify the alternatives, but some of the most common methods include
brainstorming, research, and consultation.

For example, after gathering the appropriate information on how to recruit the ideal talents, identify what
alternatives you can offer to attract talents. Like, can you offer remote working or a hybrid working model?
Step 5: Analyze alternative

Start by prioritizing your options. Analyze each alternative and determine which ones align
best with your objectives. This part could be as simple as ranking alternatives from most
desirable to least desirable. Prioritize based on factors such as potential benefits, risks, costs,
and resources available.

Step 6: Choose Among the Alternatives

One of the most important decisions that a manager has to make is which alternative to choose.
There are multiple ways to approach this, such as by first considering all available alternatives,
then assessing each against an explicit set of criteria. Finally, choosing one alternative over
another could depend on other factors such as political considerations and the influence of
stakeholders.For example, after considering all the alternatives and research regarding hiring
new recruits, choose the alternative which is the most profitable for your business.

Step 7: Implement Alternatives

There are many approaches to decision making, but one of the most popular is the "take action" approach.
This approach involves taking decisive action in response to a problem, without overthinking or second-
guessing yourself. While this approach can lead to quick results, it also carries the risk of making impulsive
decisions that may not be in the best interest of the company.

For example, after choosing the most profitable ways to hire new talents, take the course of action of
searching and interviewing the individuals.

8. Evaluate Decision Effectiveness

Finally, after a decision has been made, it is important to review the results and make any necessary
adjustments.

For example, after hiring the new recruits, review the whole process to see where you can make some
changes to make the process more efficient.
Constraints of Decision-Making:

An organization has to make decisions to achieve its objectives. Decision-making is a very

important managerial domain. Decisions can be classified into various categories, as listed
below:

(i) Programmed decisions – Routine decisions taken by a manager.

(iij Non-Programmed decisions – These are decisions that are unstructured and are made in
unforeseen conditions.

(iii) Strategic decisions – Long-term decisions of the organization, regarding its direction
and policy.

(iv) Tactical decisions – These are used to implement .strategic decisions and are medium-
term decisions.

(v) Operational decisions – These are the decisions which are made on a day-to-day basis
and are less contentious.

As a business operates in an environment that is constantly changing, a manager has to be

cognizant of both the external and internal factors that affect it.

A manager faces several constraints while making decisions. These constraints could be
internal (for instance, management style, organizational structure, current policy, employee
behavior, etc.) or external in nature.