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Decision Making: The Essence of The Manager's Job

The document discusses decision making as the essence of a manager's job. It outlines an 8-step decision making process that managers should follow: 1) identify the problem, 2) identify decision criteria, 3) allocate weights to criteria, 4) develop alternatives, 5) analyze alternatives, 6) select an alternative, 7) implement the alternative, and 8) evaluate the decision's effectiveness. Today, managers often have to make risky decisions with incomplete information under time pressure. To make effective decisions under these conditions, managers should understand cultural differences, know when a decision isn't working, use an effective decision making process, and build highly reliable organizations with five key habits.

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Ansa Malik
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23 views3 pages

Decision Making: The Essence of The Manager's Job

The document discusses decision making as the essence of a manager's job. It outlines an 8-step decision making process that managers should follow: 1) identify the problem, 2) identify decision criteria, 3) allocate weights to criteria, 4) develop alternatives, 5) analyze alternatives, 6) select an alternative, 7) implement the alternative, and 8) evaluate the decision's effectiveness. Today, managers often have to make risky decisions with incomplete information under time pressure. To make effective decisions under these conditions, managers should understand cultural differences, know when a decision isn't working, use an effective decision making process, and build highly reliable organizations with five key habits.

Uploaded by

Ansa Malik
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Decision Making: The Essence of the Manager’s Job

Decision:
Making a choice from two or more alternatives
The Decision-Making Process:
 Identifying a problem and decision criteria and allocating weights to the criteria.
 Developing, analyzing, and selecting an alternative that can resolve the problem.
 Implementing the selected alternative.
 Evaluating the decision effectiveness

A. Step 1: Identifying a problem. A problem is a discrepancy between an


existing and a desired state of affairs. In order to identify a problem, you as a
manager should recognize and understand the three characteristics of
problems:
1. You must be aware of the problem. Be sure to identify the actual
problem rather than a symptom of the problem.
2. You must be under pressure to act. A true problem puts pressure on
the manager to take action; a problem without pressure to act is a
problem that can be postponed.
3. You must have the authority or resources to act. When managers
recognize a problem and are under pressure to take action but do not
have necessary resources, they usually feel that unrealistic demands
are being put upon them.
B. Step 2: Identifying decision criteria. Decision criteria are criteria that
define what is relevant in a decision.
C. Step 3: Allocating weights to the criteria. The criteria identified in
Step 2 of the decision-making process do not have equal importance, so the
decision maker must assign a weight to each of the items in order to give
each item accurate priority in the decision.
D. Step 4: Developing alternatives. The decision maker must now identify
viable alternatives that could resolve the problem.
E. Step 5: Analyzing alternatives. Each of the alternatives must now be
critically analyzed by evaluating it against the criteria established in Steps 2
and 3.
F. Step 6: Selecting an alternative. This step to select the best alternative from
among those identified and assessed is critical. If criteria weights have been
used, the decision maker simply selects the alternative that received the
highest score in Step 5.
G. Step 7: Implementing the alternative. The selected alternative must be
implemented by effectively communicating the decision to the individuals
who will be affected by it and winning their commitment to the decision.
H. Step 8: Evaluating decision effectiveness. This last step in the
decision-making process assesses the result of the decision to determine
whether or not the problem has been resolved.

DECISION MAKING FOR TODAY’S WORLD


Today’s business world revolves around making decisions, which are often risky ones
made with incomplete or inadequate information and under intense time pressure.
How can managers make effective decisions under these conditions?

A. Understand cultural differences.

B. Know when it is time to call it quits.

C. Use an effective decision-making process.

D. Build highly reliable organizations (HROs) that practice five habits:


1. Do not be tricked by your own success.
2. Defer to the experts on the front lines.
3. Let unexpected circumstances provide the solution.

4. Embrace complexity.

5. Anticipate, but also recognize the limits to your ability to anticipate.

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