Skip to main content

Decision-making Process

The decision-making process was designed by Herbert Simon. The model comprises three distinct elements which are as follows:

Intelligence: This refers to raw data which is gathered and probed. This data helps in identifying the problem which requires decision-making. It helps in knowing problem is about.

Design: This element focuses on developing, designing, inventing and examining various alternatives which can result in decision-making. Once, these alternatives are identified, they are tested for feasibility and implementation. Probing is done to calculate the value of the outcome of the decision.

Choice: After the manager has developed various substitutes, the final element is to select the best alternative. This selection is done on the basis of predetermined criteria.

Following steps are involved in decision-making:

Identify the Decision: This deals with the identification of the decision is to make. It also identifies what outcomes are desired to be achieved. Whether it is a strategic decision or routine decision.s and what will be the impact of this decision on the organisation. It encompasses identifying the nature of a decision to be made, which can be short-term or long-term, or reversible or irreversible.

Gather Information: This step deals with the collection of information about various sources. The various decision is to be and with regard to what type of information is required and from where the data will be collected. After identifying the sources of input, the manager has to identify how he can reach the sources. In this step, the manager has to deal with the internal (reports, internal surveys, facts, documents etc)  as well as external (published articles, internet, libraries, government agencies etc) environment to collect the data.

Identify Alternatives: The third step is to identify various alternatives for decision-making. On the basis of the data collected, the manager lays down all the possible course of action. Sometimes he uses past knowledge or information to build new alternatives. Hence, all the desirable and feasible alternatives are identified here.

Weigh the Evidence: As the manager is equipped with all the possible action pans, he then weighs each of them. Keeping the requirement of Step 1 in mind, he judges whether the stated plan will give the desired results. The decision-maker uses his emotions and intelligence while evaluating the course of actions. He will rank the alternatives on the basis of priority and desirability.

Select Among Alternatives: In this step, the manager will choose among the ranked action plans. This choice is based on a cost-benefit analysis. Various pros and cons are looked upon before selecting the said alternative. The decision-maker can choose a blend of one or two alternatives.

Take Action: Here, the decision-maker actually takes the action and implements the chosen alternative in the organisation.

Review Decision: After the decision is made, the manager must review the decision and see whether the desired consequences have been achieved or not. If the decision lacks certain consequences then the decision-maker should repeat step 1.

Comments

Popular posts from this blog

How to identify Calculator is Programmable or Non-Programmable Calculator ?

Some competitive examinations allow the use of a calculator but may permit to use of only a calculator of the non-programmable type. Calculators that are NOT programmable: This is what a non-programmable calculator looks like. List of non-programmable calculators of some famous brands like  Casio , Sharp , Texas Instruments , Hawlett Packard . Calculators that are programmable: Programmable calculators can automatically carry out a sequence of operations under the control of a stored program, much like a computer. Examples of the programmable calculator are at the top picture. These calculators runs on a Computer Algebra System (CAS). A CAS helps to make certain difficult algebraic functions automatic and less tedious. As you can see, these calculators also have graphing capabilities. A calculator with graphing capabilities is most likely to be programmable. The easy way to tell if the calculator has graphing capabilities is by looking at the larger screen than would

Flood and Drought Affected Areas in India

In India, the regional and seasonal distribution of rainfall is uneven. On the one hand, Jaislamer receives less than 9 cm of annual rainfall and on the other hand, Mawsynram, near Cherapunji, receives more than 1140 cm of annual rainfall. Similarly, most of the rainfall in India is received in the months of June, July, August and September. Generally, variations in the amount of rainfall are found more in the regions where the rainfall is uneven and less and these regions are more affected by droughts. Droughts Drought is an abnormally long dry season, which creates a clear imbalance in the availability of water. both, the vagaries of monsoon and dominant factor, which cause drought and drought like conditions. The irrigation commission, on the basis of the amount of rainfall and its variability, has divided the drought affected areas into two types: Drought Areas: Drought areas have annual rainfall less than 50 cm and variability is more than 25%. Under these areas are in

The Advent of European Companies in India

In 1453, land routes were blocked by Ottoman Turks. So, new sea routes discovered by the Europeans to promote their business. Colombus of Spain discovered America where as in 1498, Vasco-da-Gama of Portugal discovered India. He came to India via Cape of Good Hope (Africa). First of all, Vasco-da-Gama reached to Calicut (Kerla or Kozhicode) where Zamorin ruler welcomed his arrival. The Portugese soon established political power along the west coast of India. he was succeeded by Captain General Alfonso de Albuquerque who conquered Goa in 1510. Sequence of Arrivals:- Company Year H.Q./Capital Potugese East Indian company (Formed by Vasco-da-Gama) 1498 Cochin (1510-30), Goa (1530-1961) Dutch East India Company 1602 East coast; Coromandal, Pulicut, Bengal English East India Company 1608 West coast: Surat, Bombay east coast: Coromandal, Masulipatanam, Madras. French East India Company (Formed by Colbert) 1664 Surat (1668-73), Pondi