Mar 222013

Decision Making ProcessDecision making is the process of selecting the required course of action, from a set of available alternative scenarios, to achieve a desired organizational goal. A good manager should be capable of performing proper decision making.

Steps involved in Decision Making:

Decision making involves the following steps:

  1. Identification of Problem
  2. Evaluating the Problem
  3. Searching for solution alternatives
  4. Evaluating the available alternatives
  5. Choosing the appropriate alternative
  6. Implementation and Follow up

1. Identification of Problem:

It is the first step in the process of decision making. It involves identifying the problem for which solution is to be made. A well defined problem is half solved.

An organization may have several problems. Each problem should be identified individually so that a desired course of action can be followed.

2. Evaluating the Problem:

This is the second step in decision making. In this process, the problem is completely analyzed and evaluated. Once all the aspects of a problem are evaluated, the manager can proceed to the next step – searching alternatives.

3. Searching for Solution Alternatives:

Once the problem is completely identified and evaluated, a manager should search for all possible solution alternatives.

Solution for a problem can be achieved in several ways. If a manager chooses the first feasible way neglecting other alternatives, course of action may not be effective. Hence solution alternatives should be searched and listed so that the most appropriate alternative can be selected.

Also, the search should not be broad. It must be as narrow as possible.

4. Evaluating the available alternatives:

This is the fourth step. Once all alternatives are searched and listed, each of them should be completely evaluated. Evaluation is the process of identifying the positive and negative impacts of an alternative. It helps in choosing the appropriate alternative.

5. Choosing the appropriate alternative:

It is the process of choosing the optimum alternative i.e., alternative with high positive impact and less negative impact. If evaluation process is done correctly and completely, choosing the appropriate alternative is easy.

6. Implementation and Follow up:

Once an alternative is chosen, it must be implemented into the organization.

Implementation involves the following processes:

  1. Communication about the decision to sub-ordinates
  2. Acceptance of the decision by sub-ordiantes
  3. Time setting and manpower allocation
  4. Resource allocation

Every decision should be reviewed periodically so that it can be changed according to the circumstances.

Decision making is an important process in management. Good decision making always yields good results.

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I am a mechanical engineer with a passion for technical stuff. I am the founder and former editor-in-chief of