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Analyse five steps involved in the managerial decision making process.

      

Analyse five steps involved in the managerial decision making process.

  

Answers


Kavungya
(i) Define the problem
The decision-making process begins when a manager identifies the real problem. The accurate
definition of the problem affects all the steps that follow; if the problem is inaccurately defined,
every step in the decision-making process will be based on an incorrect starting point. One way
that a manager can help determine the true problem in a situation is by identifying the problem
separately from its symptoms.
(ii) Identify Limiting Factors
All managers want to make the best decisions. To do so, managers need to have the ideal
resources — information, time, personnel, equipment, and supplies — and identify any limiting
factors. Realistically, managers operate in an environment that normally doesn't provide ideal
resources. For example, they may lack the proper budget or may not have the most accurate
information or any extra time. So, they must choose to satisfice — to make the best decision
possible with the information, resources, and time available.
(iii) Develop potential alternatives
Time pressures frequently cause a-manager to move forward after considering only the first or
most obvious answers. However, successful problem solving requiresthorough examination of
the challenge, and a quick answer may not result in a permanent solution. Thus, a manager
should think through and investigate several alternative solutions to a single problem before
making a quick decision.
(iv) Analyze the alternatives
The purpose of this step is to decide the relative merits of each idea. Managers must identify the
advantages and disadvantages of each alternative solution before making a final decision.
a. Evaluating the alternatives can be done in numerous ways. Here are a few
possibilities:
b. Determine the pros and cons of each alternative.
c. Perform a cost-benefit analysis for each alternative.
d. Weight each factor important in the decision, ranking each alternative relative to
its ability to meet each factor, and then multiply by a probability factor to provide
a final value for each alternative.
(v) Select the best alternative
After a manager has analyzed all the alternatives, she must decide on the best one. The best
alternative is the one that produces the most advantages and the fewest serious disadvantages.
Sometimes, the selection process can be fairly straightforward, such as the alternative with the
most pros and fewest cons. Other times, the optimal solution is a combination of several
alternatives.
(vi) Implement the decision
Managers are paid to make decisions, but they are also paid to get results from these decisions.
Positive results must follow decisions. Everyone involved with the decision must know his or her
role in ensuring a successful outcome. To make certain that employees understand their roles,
managers must thoughtfully devise programs, procedures, rules, or policies to help aid them in
the problem-solving process.
Establish a control and evaluation system
Ongoing actions need to be monitored. An evaluation system should provide feedback on how
well the decision is being implemented, what the results are, and what adjustments are necessary
to get the results that were intended when the solution was chosen.
Kavungya answered the question on May 17, 2019 at 14:26


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