Decision Making in Organization.

Organization & Management

BUSN 513

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:Introduction

Decision-making is the rational process of selecting the most feasible course of action from
the available alternatives. It is the responsibility of the manager to make an effective
decision and implement it in the best possible ways for the prosperity of the organization.

The reason that strategic decision-making is important for an organization is that it helps
them to be more efficient. They will be able to make a lot more decisions that save them
.time and energy
:The Decision-Making Process

1- Identifying the Problem:

The first and most important step of the decision-making process is to identify the main

problems. Problems may arise due to the internal and external factors of an organization. A

problem becomes a problem when a manager becomes aware of it. There is pressure to

solve the problem. The manager must have the authority, information, or resources needed

to solve the problem.

:Analysis of Problems -2
Analyzing the problems is a part of the decision-maker to study the main reasons for
problems and their impact on short as well as long term organizational performance. A
quick analysis of the problem by accumulating all the related facts, data, and information is
.a must to find out the actual source of the problems
3- Developing Alternatives:
A problem may have various alternatives solutions. The decision-maker has to identify and
study all the possible solutions. A decision-maker should be creative and innovative to identify
all the alternative solutions.The more clearly identified alternatives provide more freedom for
brainstorming. A manager should concentrate on developing and finding those alternatives,
which are strategic to the problems. Therefore, the development of alternative solutions is
mental and creative work that requires discussion and creativity.
4- Evolutions of Alternatives:-
All alternatives should be studied by considering the efforts involved and the
outcome expected. Generally, the following queries are taken into consideration
while evaluating any alternative solution, firstly, whether the alternative solution is
feasible in terms of costs, time, legal, constraints, human and other resources,
secondly, whether the alternative is satisfactory for solving problems, thirdly,
whether the consequences of alternative are favorable to the organization.
5- Selection of the Best Alternative:

The decision-maker has to consider the above approaches to analyze and select the best
solution. He has to select an alternative considering the feasibility, satisfactoriness, and
financial soundness of the organization. The selection of the best solution helps for
implementation and to gain positive outcomes in organizational objectives.
6- Implementing the Alternative:
A decision-maker has to provide instructions to the operational authorities and
communicate them from time to time. He should use his alternatives and
communication skills for the successful implementation of the decision. For this, he
has to delegate authority to the subordinates based on the weightage of the
responsibility. Management has to consider the organizational objectives that can be
achieved if the course of action is implemented in the best possible way.
Review of Implementation -7
 As decision-making is a continuous process it is necessary to evaluate the performance from
time to time. In case the implementation does not give the desired results, it is necessary to
involve in the modification of procedures and techniques that can be made to bring the work to
the desired track. It also helps in taking an appropriate decision at the right time.

Steps from 1-to-5 are the main steps in the decision-making process and the steps from 6-to-7
are the supporting steps for the better performance of the selected course of action.
References:
Conclusion: