Decision Making Process in Management With A Problem

Decision making process is a central responsibility of managers. It requires defining the issue or a problem and identifying the factors related to it.

The decision‐making process involves the following steps:

1. Identifying a Problem

The first step in making a decision or solving a problem is to define it. This first step is one of the most critical ones. You have to accurately and adequately define the constraints, the current operations, and the goals.

An example problem: John is a senior manager in Manufacturing Department of Auto-mobile Company whose department needs brand new car models for their show room because the old ones needs to be re modeled and re constructed because of severe manufacturing defects.

But there is a difference within his department that which models should be chosen for the new cars or not to develop the new ones and just rebuild the old models.

2. Identifying Decision Criteria

Decision Criteria are factors which are important for resolving the problem. They may include investments required, chance of failure, growth of the firm etc.

In the above example, John decides that battery control system, Tire rims, Engine system, Speedometer, Wire Connector and Brake plates are relevant criteria in his decision.

3. Allocating Weights to the Criteria

Decision Criteria are not of equal precedence and they should be prioritized by assigning weight in an order according to their importance.

In my problem, the decision criteria are allocated weights in this order.

Decision Criteria	Weights
Engine System	10
Tire rims	9
Battery Control System	8
Brake plates	6
Wire Connector	4

4. Developing Alternatives

In this step, certain alternatives are listed that can resolve the problem.

	Engine System	Tire Rims	Battery Control System	Brake plates	Wire Connector
BMW	10	8	9	10	8
Atlas Honda	8	9	7	3	5
Hyundri	8	8	7	8	9
Suzuki	7	6	3	7	5
Toyota	4	9	6	10	3

5. Analyzing Alternative

	Engine System	Tire Rims	Battery Control System	Brake plates	Wire Connector
BMW	100	85	92	100	85
Atlas Honda	84	95	74	38	50
Hyundri	86	82	75	85	98
Suzuki	70	65	30	78	55
Toyota	49	90	60	100	37

6. Selecting an Alternative

In this step, the best alternative which has the highest weights out of all is chosen. After selecting an alternative it is implemented in the next step.

In the above problem, BMW is the best alternative to be selected because it has the highest total of weights.

7. Implementing the Alternative

The alternative which has been selected as the best one is implemented and it is put into action. The final decision is sent to those who will carry out the alternative.

For example, the decision of alternative to be implemented (BMW) is conveyed by John to the project team of the manufacturing department.

8. Evaluating Decision Effectiveness

At the end, the effectiveness and soundness of the implemented decision is judged by its outcome. Evaluating that how the problem is resolved by outcomes resulting from the chosen alternative.