Decision making in Business

Every organization faces some problems. Due to this, a decision has to be made by the top management. Decision making is an essential part in business organization. It is a decision made by the managers by choosing and selecting the best alternative from different alternatives in an organization. Decision making is a part of planning. Good decision has to be made quickly and at the right time .

Steps of decision making :

  1. Identify the problem:
    The first step is to understand what the issue is arising. We have to state the problem and then we can take what type of decision we need to make.
  2. Analysis of the problem: The second step is to understand why this problem has arised and what are the reasons behind this particular problem. A detail analysis will be done on a particular problem. They will work on how the problem can be resolved.
  3. Generating alternative solution:
    To list all possible solution can be taken to solve the problem. Different people give different opinions. We have to give the best solution so that the target will be finished at the right timing.
  4. Evaluate alternatives:
    Whatever options that had come out, we have to evaluate it. It is to state out the advantages and disadvantages of the alternatives. We have to evaluate the alternative at a company’s risk,time and budget. Cut out all the options which can hinder the organization. We have see which will be the most highest demand alternative that can be brought into the market.
  5. Select alternative:
    We have to choose the best alternative out of different alternatives, we have to select the best choices for the profit of the organization.
  6. Implement the alternatives:
    To take positive action and implement the alternative that have been chosen. We have to practically implement the decision taken.
  7. Monitoring the decision:
    To take review and feedback of the alternative decision taken for the organization. It is to see whether everything is going according to the planning.

These are the important steps that every organization should follow. This can strengthen the leadership qualities and help creating innovative ideas and can survive very well in the business world.