Sunday, October 6, 2019

Eight steps of decision making process in management Research Paper

Eight steps of decision making process in management - Research Paper Example Under this process, policy makers must identify the problem under consideration, and clearly state it out, in a sentence that describes the causes of the problem and its consequences. This process also involves an identification of what an organization wants to achieve in case the problem under consideration is eradicated. This stage needs a consensus amongst everybody involved within the decision making process. The second step is the identification of the criteria (Robbins and Coulter, 2012). This involves identifying the various requirement needed for purposes of solving the problem under consideration. Under this stage, policy maker identify what the solution to the problem must accomplish. For example, if an organization is making losses, then the solution that the organization seeks is on how to increase the profitability of the business organization. On this basis, the solutions to be identified are methods of increasing the profits of an organization. The criterion therefore is that the solution must have the capability of increasing the profitability of the business organization. The third step in the decision making process is allocating weights to the criteria identified (Robbins and Coulter, 2012). This involves setting up of goals for the purpose of achieving a desirable outcome. For example if the problem under consideration is loss making in an organization. Allocation of weights will involve; how or at what percentage a criterion identified can increase the profitability of an organization. At this stage, terms such as high profit, low profit, or even 100% profit can be used. The fourth step is the identification of the various alternatives to the solution. It is important to denote that there are various solutions to a problem identified. For example in our case above, if a company is making losses, the organization can come up with a variety of solutions. These solutions include reducing operational costs, injecting more capital into the organ ization, or even diversifying its business operations. Under this fourth stage, policy makers only identify the various solutions available for purposes of solving the problem under consideration. They do not carry out an analysis of the problems. The fifth stage involves analyzing the alternatives presented. This stage involves an analysis of the various alternative solution to the problem identified. The method to use in analyzing these alternatives will emanate from the criteria identified at the second stage (Lynch, 2012). For instance, in a loss making organization, the criteria of identifying a solution is based on how a method will increase the profitability of a business organization. On this note, policy makers will analyze the various alternative solutions to the problem. At this stage, policy makers must rank the various alternatives to the solution from the most effective, to the least effective. Under this stage, policy makers can analyze the alternatives by using eithe r qualitative or quantitative methods, or a combination of both. The intention here is to find the most effective solution to the problem identified. For example, the solutions identified to increase the profitability of a company are, reduction of operational costs, injecting capital into the organization, or even diversifying the operations of the business. Policy makers will analyze all these options, and grade them from the most eff

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