Eight Steps of Decision Making Process in Management - Research Paper Example

? The decision making process is a cognitive process that results to the selection of an action among the various alternative in a scenario. The final outcome of a decision making process is choice. In management, there are eight very important steps in the decision making process. For an organization to achieve efficiency in meeting its objectives, then it has to follow these steps. The first step is the definition of the problem. In this step of decision making, policy makers identify the root cause of the problem, and the various concerns of the stakeholders (Lynch, 2012). 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 organization, 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 either 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 effective, to the least effective. The sixth stage involves selection of an alternative (Robbins and Coulter, 2012). Under this stage, policy makers will select an alternative that is the most efficient in solving the problems under consideration. This selection must be based from the results of an analysis done in the fifth stage. The solution selected must therefore be the most efficient and effective in solving the problems identified. Policy holders will know of its efficiency and effectiveness from the results of their qualitative and quantitative analysis. The seventh step involves the implementation of the alternative. At this stage, policy makers implement the solution identified for solving the problem at hand. For effective implementation of the solution, policy makers must communicate the idea to every stakeholder of the organization (Lynch, 2012). This is for purposes of making them to own up the idea, see its value and thus implement it. The organization must create mechanisms of ensuring that the policy under consideration will be implemented in the most efficient and effective manner. It can do this by establishing an office whose sole mandate is to monitor how employees of the organization are implementing the policy identified. At this stage, failure is not an option. Any employee who will try to frustrate the implementation of the solution, or who tries to resist change, must face some disciplinary actions. The eighth and final step is the evaluation of the effectiveness of the solution identified (Robbins and Coulter, 2012). The main intention of this process is for a decision maker to identify on the effectiveness of the policies developed for purposes of solving the problem at hand. This process involves a careful scrutiny of the results of the solution, and this can be seen on the effectiveness of an organization to achieve its objective. If the solution is effective in addressing the problems identifies, then the management will continue implementing it. However, if the solution does not solve the problems identified, the management will once again repeat the decision making process until they find the most suitable solution to the problem at hand. It is important to denote that the management can use third parties to evaluate the performance of its organization. These third parties can either be auditors or other professionals in a relevant field. References: Lynch, R. L. (2012). Strategic management (6th ed.). Harlow, England: Pearson. Robbins, S. P., & Coulter, M. K. (2012). Management (12th ed.). 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