Decision Making
Known in English as “Make decision,” decision-making is one of the most crucial processes employed by individuals daily across various aspects of life. This process involves thoughtful consideration necessary for arriving at the appropriate conclusion. In a managerial context, decision-making refers to a collection of methods and strategies used in different types of organizations with the aim of analyzing and studying the appropriate approach to make the right decision, thereby contributing to the achievement of desired objectives.
Phases of Decision Making
There are several fundamental stages that facilitate the decision-making process, including:
- Preparation for decision-making, which involves creating a conducive environment for initiating the thought process necessary for making a decision.
- Defining the subject or problem for which a decision is required to achieve the desired outcome.
- Information gathering, which relies on utilizing all available resources to collect a comprehensive set of information regarding the subject.
- Comparison of available alternatives after analyzing, categorizing, and prioritizing the information to select the best option for reaching a decision.
- Decision selection, dependent on recognizing all relevant factors, information, and insights to choose the most appropriate decision.
- Evaluation and monitoring, marking the final stage of decision-making which determines the accuracy of the decision taken.
Decision-Making Techniques
For a successful and appropriate decision to be made regarding a particular topic, it should be based on specific decision-making techniques. The most significant of these include:
Decisive Approach
This direct decision-making method is commonly employed but may not be suitable for business environments. Here, the decision-maker relies solely on their personal opinion without considering input from others or consulting individuals within their home or workplace. Typically, this approach is associated with decisions pertaining to personal matters.
Flexible Approach
This important decision-making style contrasts with the decisive approach, wherein the decision-maker engages with others to gather their insights and opinions regarding the topic at hand. This method does not rely on a single, direct opinion but rather encourages the sharing of all viable and acceptable perspectives to identify the most suitable option. This approach is usually applied to decisions involving groups of individuals.
Sequential Approach
As an administrative decision-making style, this method establishes a plan based on a series of consecutive stages, each with a defined starting and ending point that must be successfully completed to progress to the next phase. This approach enhances negotiation skills, particularly within organizations that focus on project investment, product development, or introducing new services.