In this tutorial, we will learn about decision making is regarded as the cognitive process resulting in the selection of a belief or a course of action among several alternative possibilities.
It permeates planning, organizing, controlling, and all other functions of management. It involves the selection of the best course of action. Decision making is a rational process.
Decision making is regarded as the cognitive process resulting in the selection of a belief or a course of action among several alternative possibilities. It is the process of identifying and choosing alternatives based on the value preferences and opinions of the decision-maker. Every decision-making process produces a final choice, which may or may not prompt action.
Principles Of Decision Making:
The entire process of decision making is heavily reliant on judgment, professional observations, and skills. However, there are a few principles the manager can follow to help him make correct decisions.
Principle of Definition:
A good description of the problem reduces the manager’s time and effort to find the correct decision. “P.F.Druker” has famously said that whatever a manager does, he does through making decisions. Decision making is perhaps an essential function of a manager. It is an integral component of all managerial duties. Let us learn more about the decision-making process and its principles.
The manager can work towards solving it. Too often, time and energy are wasted on solving the wrong problem.
Principle of Evidence:
Since decision making is one of the most critical aspects of an organization, it must be backed up by concrete working papers and documents which serve as evidence.
The general principle of the law of evidence is that every witness is a witness of fact but not a witness of an opinion. After taking the evidence from both parties, the court has to form an idea about the existence and non-existence of points to decide a case.
Principle of Identity:
A situation is viewed differently by different people. It will help in better understanding the problem and making quality decisions.
Every person has a different outlook and viewpoint about the same thing. So the same fact appears different people due to their varied thinking.
While making a decision, it is vital to accommodate the viewpoints of all the people involved. Every person should be heard, and their opinions weighed carefully before arriving at a decision.
Steps In Decision Making:
Making the right decisions is a method that must learn. It is not something with which we are innately born, but merely a step by step process that is usually ascertained from life experience.
That experience can be a costly, ineffective teacher that teaches more bad habits than good. Because decisions can vary so obviously from one situation to the next, the experience gained from making one important decision is frequently of little or no use when another decision-making problem arises.
- Identifying and diagnosing the real problem.
- Discovery of alternatives.
- If an analysis of the evaluation of available options.
- Selection of best choice.
- Communication of decision
- Hierarchy of decisions