Question

Please answer the following questions in complete sentences.

1. What is a decision?

2. Describe the steps in the managerial decision making process.

Answer 1

1. Decision is a course of action choosen from many alternatives to achieve organizational or managerial objectives. It is an important part of modern management. Decisions are made at every level of management to achieve organizational goals. It is a continuous process. Decisions in the organization are made to sustain its activities and day to day functioning. Success of the organization will be determined by the effectiveness of managing the decision.

2. Steps involved in the managerial decision making process are :

• Developing the objective
• Defining a problem
• Identifying alternative courses of action
• Making evaluation of the alternative courses of action
• Execute and evaluate the decision.

Developing the objective : The first step in the managerial decision making process is to develop or establish the objective of the organization. Different organizations may have different objectives.

Defining a problem : The second step in the managerial decision making process is to define the problem. Nature of the problem is to be defined . If the nature of the problem will be known then the cause of the problem is investigated.

Identifying the alternative courses of action : The third step in the managerial decision making process is to find out the alternative courses of action. In this the variables are considered that have an impact on the problem.

Making evaluation of alternative courses of action : The fourth step in the managerial decision making process is to evaluate the alternative courses of action. In this the data is collected and analysed. And this can be used to evaluate the result expected from each possible courses of action.

Execute and evaluate the decision : The fifth and the final step in managerial decision making process is to execute or implement the decision. Decision is taken after evaluating the alternative courses of action. Once the decision has been made it is implemented and after that the evaluation is done the taken decision . Evaluation of decision is done to check out whether the decision taken is correct or not . If not, then certain actions are taken.