Topic > Why Decision Making Plays an Important Role in Modern Business Management

Decision making is an integral part of modern management. Fundamentally rational or sound decisions that unconsciously or consciously make him the critical component in the role of manager. Decisions play an essential role as they determine both organizational and managerial activities. A choice can be defined as the goal of a course of action chosen from a set of alternatives to achieve organizational or administrative goals or objectives. Decision making and problem solving is an ongoing process of evaluating situations or problems, considering options, making choices, and following up with necessary actions. The first step is to define the problem. Phase two identifies limiting factors, phase three develops potential alternatives, phase four analyzes other options, phase five selects the best choices, phase six implements the decision, and phase seven establishes a monitoring and evaluation system. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay The mental process of selecting a logical choice from available options, when trying to make a right decision, a person must evaluate the positives and negatives of each option and consider all alternatives to make useful decisions, a person must also be able to predict the outcome of each choice and, based on all these elements, determine which option is best for that situation. Define the problem. Ask “why” to get to the heart of the problem. Asking “why” is a good way to delve deeper into the problem. Keep asking yourself “why” until you can't think of anything else to say about the problem. Identify what you already know about the problem. If you're working with a group of people to define a problem, ask everyone in the group to do the same. List the information you know or write it in complete sentences. Identify limiting factors. When the moment of decision comes, limiting elements always come into play. Knowing the limits and constraints will improve your decision making by placing limits around the extent of what could be done. When defining what you can do you need to consider what you can't do. Develop potential alternatives. Look at your problem in different ways; find a new perspective that you hadn't thought of before. Brainstorming or quickly looking at alternatives, no matter how silly, is an excellent discovery process. Once you've listed or mapped out alternatives, be open to their possibilities. After listing the possible alternatives, evaluate them without prejudice, no matter how attractive or unpleasant they are. Analyze the alternatives. When you are satisfied you have a good selection of realistic options. It's time to evaluate the feasibility, risks and implications of each. Almost every decision involves some degree of risk. Other considerations are whether your resources are adequate, the solution matches your goals, and whether the decision is likely to work in the long term. Select the best alternatives. After evaluating your other options, the next step is to make your decision. The decision tree is also useful when choosing between different options. These help you clearly define your options and include the likelihood of your project succeeding or failing in the decision-making process. Implement the decision. To implement your decision, you need to act accordingly, keep yourself on track and determine how well you have done. Establish a monitoring and evaluation system. During an assessment you need to make a number of decisions including; like data.