What is decision making

Decision making is a process of selecting the best

among the different alternatives. It is the act of making
a choice. There are so many alternatives found in the
organization and departments. Decision making is
defined as the selection of choice of one best
alternative. Before making decisions all alternatives
should be evaluated from which advantages and
disadvantages are known. It helps to make the best
decisions. It is also one of the important functions of
management. Without other management functions
such as planning, Organizing, directing, controlling,
staffing cant be conducted because in this managerial
function decision is very important.

Importance of decision making

1. Implementation of managerial function:
Without decision making different managerial
function such as planning, organizing,
directing, controlling, staffing cant be
conducted. In other words, when an employee
does, s/he does the work through decision
making function. Therefore, we can say that
decision is important element to implement
the managerial function

2. Pervasiveness of decision making: the decision is made

in all managerial activities and in all functions of the
organization. It must be taken by all staff. Without
decision making any kinds of function is not possible.
So it is pervasive.
3. Evaluation of managerial performance: Decisions can
evaluate managerial performance. When decision is
correct it is understood that the manager is qualified,
able and efficient. When the decision is wrong, it is
understood that the manager is disqualified. So
decision making evaluate the managerial performance

4. Helpful in planning and policies: Any policy or plan is

established through decision making. Without decision
making, no plans and policies are performed. In the process
of making plans, appropriate decisions must be made from
so many alternatives. Therefore decision making is an
important process which is helpful in planning.
5. Selecting the best alternatives: Decision making is the
process of selecting the best alternatives. It is necessary in
every organization because there are many alternatives. So
decision makers evaluate various advantages and
disadvantages of every alternative and select the best
alternative.

6. Successful; operation of business: Every

individual, departments and organization
make the decisions. In this competitive world;
organization can exist when the correct and
appropriate decisions are made. Therefore
correct decisions help in successful operation
of business

 Step 1: Identify the decision to be made. You realize that a

decision must be made. You then go through an internal
process of trying to define clearly the nature of the decision
you must make. This first step is a very important one.
Step 2: Gather relevant information. Most decisions
require collecting pertinent information. The real trick in
this step is to know what information is needed, the best
sources of this information, and how to go about getting it.
Some information must be sought from within yourself
through a process of self-assessment; other information
must be sought from outside yourself-from books, people,
and a variety of other sources. This step, therefore, involves
both internal and external work.

 Step 3: Identify alternatives. Through the process of collecting

information you will probably identify several possible paths of
action, or alternatives. You may also use your imagination and
information to construct new alternatives. In this step of the
decision-making process, you will list all possible and desirable
alternatives.
Step 4: Weigh evidence. In this step, you draw on your information
and emotions to imagine what it would be like if you carried out
each of the alternatives to the end. You must evaluate whether the
need identified in Step 1 would be helped or solved through the use
of each alternative. In going through this difficult internal process,
you begin to favor certain alternatives which appear to have higher
potential for reaching your goal. Eventually you are able to place
the alternatives in priority order, based upon your own value
system.

 Step 5: Choose among alternatives. Once you have weighed all the
evidence, you are ready to select the alternative which seems to be
best suited to you. You may even choose a combination of
alternatives. Your choice in Step 5 may very likely be the same or
similar to the alternative you placed at the top of your list at the
end of Step 4.
Step 6: Take action. You now take some positive action which
begins to implement the alternative you chose in Step 5.
Step 7: Review decision and consequences. In the last step you
experience the results of your decision and evaluate whether or not
it has solved the need you identified in Step 1. If it has, you may
stay with this decision for some period of time. If the decision has
not resolved the identified need, you may repeat certain steps of
the process in order to make a new decision. You may, for example,
gather more detailed or somewhat different information or
discover additional alternatives on which to base your decision.

Ethical decision making

Ethical decision making involves taking into
consideration eithical issues at various stages
of decision making process. The basic steps
involved in ethical decision making are same
as in normal decision making process.but in
every step ethical aspect is given due
consideration. This approach is called PLUS
approach which take cares of

 P = Policies
Is it consistent with my organization's policies,
procedures and guidelines?
L= Legal
Is it acceptable under the applicable laws and
regulations?
U = Universal
Does it conform to the universal principles/values my
organization has adopted?
S= Self
Does it satisfy my personal definition of right, good and
fair?

PLUS presumes effective communication

with all employees so there is a common
understanding of:
PLUS presumes effective communication with all
employees so there is a common understanding of:
the organization's policies and procedures as they
apply to the situation.
the applicable laws and regulations.
the agreed to set of "universal" values - in this case
Empathy, Patience, Integrity, Courage (EPIC)
the individual's sense of right, fair and good springing
from their personal values set.

 The PLUS filters work as an integral part of steps 1, 3 and 6 of the

decision making process. The decision maker applies the four PLUS
filters to determine if the ethical component(s) of the decision are
being surfaced/addressed/satisfied.
Step 1
Define the problem (PLUS surface the ethical issues)
Does the existing situation violate any of the PLUS considerations?

Step 2
Identify available alternative solutions to the problem

Step 3
Evaluate the identified alternatives (PLUS assess their ethical impact)
Will the alternative I am considering resolve the PLUS violations?
Will the alternative being considered create any new PLUS
considerations?
Are the ethical trade-offs acceptable?

 Step 4
Make the decision

Step 5
Implement the decision

Step 6
Evaluate the decision (PLUS surface any remaining/new
ethical issues)
Does the resultant situation resolve the earlier PLUS
considerations?
Are there any new PLUS considerations to be addressed