Decision making happens to be one of the most important and an ongoing task for managers. Whether communicating, commanding, organizing, problem solving or coordinating activities, some decision making is required at all times. Often managers, while taking decision, are stressed and uncertain of the positive outcomes. The following steps will help take better decisions:
Identify the problem
Often the real problem is not identified and therefore, the right decision is not taken. There are problems and there are symptoms of problems. Falling sales, for example, is not the problem that needs to be addressed. The root cause has to be identified such as poor advertising or faulty products.
List all possible alternatives
Brainstorm for possible solutions. It is also important at this stage to involve the workforce since they are more closely linked to the production process.
Apply appropriate techniques for analyses
There are a number of decision making techniques that are taught in the business administration class. Refresh your memories and apply the most appropriate out of the Pareto Analysis, SWOT, Six Thinking Hats, and the most common decision making trees.
Evaluate the outcome
Analyze and interpret the results of the decision so that if positive, the same approach can be used the next time and if not, change and improve the technique.
