Decision Making Process Summary

Topics: Decision making, Decision theory, Decision making software Pages: 3 (990 words) Published: July 1, 2013
Chapter 2
The Decision Making Process
Decision making nature is a process oriented function; this can be seen by looking at the various decision modules provided by experts on the subject. Although the steps might change, the essence of decision making is still a structured process. From a business administration perspective we take into consideration three dimensions: personal, total process and the dynamism of that process. Decision making has several functions as follows:

1- Setting managerial objectives
2- Searching for alternatives
3- Comparing and evaluating alternatives
4- The act of choice
5- Implementing the choice
6- Follow-up and control
In reality all these functions are interrelated and the soundness of the decision rests on the degree of completion of each step; for example, without good objective setting, the generated alternatives won't tackle the discrepancy found in the situation properly. There is also the dynamic side of decision making process, meaning that depending on the results of a certain function might require a change in another. For example, through the follow-up and control function management found that reorganization is necessary for the implementation to work properly; or if the alternative is costly to implement a more realistic alternative must be chosen or generated. If the implementation isn't possible a revision of objectives might be detrimental. Setting Managerial Objectives

A good managerial objective is the cornerstone or base for any effective management to take place, because objectives clearly define the state or position we want to reach. These objectives are not abstract but are very specific and measurable (Follow the SMART approach). Managerial objectives have many advantages; such as, enabling managers to plan, appraise their decision process and to act as a measurement for how effective the implementation is. In reality, an organization has many objectives and usually these...
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