Management

Schermerhorn · Davidson · Poole · Simon · Woods · Chau

// Information and decision making

Steps in decision making and problem solving

The specific act of decision making involves making a choice between alternative courses of action. However, the decision-making process involves a cycle of activities and events that begins with identification of a problem and ends with the evaluation of implemented solutions.

Step 1: The first step in decision making is to find and define the problem. This is a stage of information gathering, information processing and deliberation.

Step 2: Once the problem is defined, it should be possible to generate and evaluate potential solutions. More information may need to be gathered, the pros and cons of possible courses of action identified, and cost–benefit analyses conducted.

Step 3: From this process, a preferred solution can be evaluated against ethical criteria and, if deemed acceptable, this preferred solution can proceed to the implementation or ‘action’ stage.

Step 4: Managers need not only the determination and creativity to find a solution to a problem, they also need the ability and willingness to implement their decision. The implementation phase may have a greater chance of success if during the decision-making process the manager has involved people whose support is necessary for a solution to be implemented, rather than merely presenting a solution or decision to those affected without any prior consultation.

Step 5: After implementation, it is crucial that the decision be evaluated against measurable targets and timetables. If the desired results have not been achieved, the process may need to be revisited and corrective action taken.

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