Question

Define and discuss the following decision-making steps

1. Define the problem.

2. Identify the alternatives.

3. Determine the criteria.

4. Evaluate the alternatives.

5. Choose an alternative.

Answer 1

The decision making process is the one of the widely used approach in taking Decisions on various matters in an Organisation. It helps in selecting best alternative amongst the various alternatives by examining each alternative choices. Managers of the business and other business professionals use this mental process to solve problems and make a final choice in regard to action or opinion. In Involves the following of a sequential steps is an efficient way to make a well thought , informed Long term or short term decisions..

Following steps are followed in Decision making

1. Define the problem : The first step in Decision making Process starts with the identification of the problem. The recognition of the problem to be solved or opportunity to be grabbed is the first most prominent step for deciding to address it. Caution should be taken for not misidentify the problem. It defines the nature of the decision to be taken.

2. Identify the alternatives. After getting the clear understanding of the problem to be solved, it’s time to identify the several possible paths of action, or alternatives available for resolving the problem. it is important to come up with a range of options available at our disposal . This will help in the determination of the course of action or the alternative that is best suited to achieve objective or solve the problem.

3. Determine the criteria: This step deals with determination of the criteria on the basis of which  evaluation of feasibility, acceptability and desirability would be done of each course of action avaible at our disposal .This helps in determining the weigh pros and cons, on the basis of which the alternatives willl be analysed whether the necessary criteria is met or whether it pose any risk and the extent of the risk.

4. Evaluate the alternatives :  After Determination of the criteria and its time to weigh all the alternatives based on the criteria set in the earlier step ,it is i mportant to understand the risks involved with the chosen alternative/ course of action.Evaluate whether the problem identified in earlier step would be resolved through the use of various alternatives. Thus evaluation of feasibility, acceptability and desirability is to be evaluated in this step.

5. Choose an alternative. After evaluating alternatives on the basis of criteria determined earlier. Its time to choose the best possible alternative considering its potential risk and results of evaluation. it may involve choosing a  combination of alternatives for resolving the problem.