What is the process of controlling and making decisions about a business?
In general, the decision making process helps managers and other business professionals solve problems by examining choices and deciding on the best route to take. Using a step-by-step approach is an efficient way to make thoughtful, informed decisions that positively impact your organization’s short- and long-term goals. Show
The business decision making process is commonly divided into seven steps. Managers may utilize many of these steps without realizing it, but gaining a clearer understanding of best practices can improve the effectiveness of your decisions. Steps of the Decision Making ProcessThe following are the seven key steps of the decision making process. 1. Identify the decisionThe first step in making the right decision is recognizing the problem or opportunity and deciding to address it. Determine why this decision will benefit your customers or fellow employees. 2. Gather informationNext, it’s time to gather information so that you can make a decision based on facts and data. This requires making a value judgment, determining what information is relevant to the decision, and how you can get it. Ask yourself what you need to know to make the right decision, then actively seek out anyone who needs to be involved. “Managers seek out a range of information to clarify their options once they have identified an issue that requires a decision. Managers may seek to determine potential causes of a problem, the people and processes involved in the issue, and any constraints placed on the decision-making process,” according to Chron Small Business. 3. Identify alternativesOnce you have a clear understanding of the issue, it’s time to identify the various solutions at your disposal. You likely have many options when deciding, so it is essential to come up with a range of options. This helps you determine which course of action is the best way to achieve your objective. 4. Weigh the evidenceIn this step, according to management experts Phil Higson and Anthony Sturgess, you’ll need to “evaluate for feasibility, acceptability and desirability” to know which alternative is best. Managers need to be able to weigh the pros and cons, then select the option that has the highest chance of success. It may be helpful to seek a trusted second opinion to gain a new perspective on the issue. 5. Choose among alternativesWhen it’s time to make your decision, be sure you understand the risks involved with your chosen route. You may also select a combination of alternatives now that you fully grasp all relevant information and potential risks. 6. Take actionNext, you’ll need to create an implementation plan. This involves identifying what resources are required and gaining support from employees and stakeholders. Getting others on board with your decision is a key component of executing your plan effectively, so be prepared to address any questions or concerns. 7. Review your decisionAn often-overlooked but important step in the decision making process is evaluating your decision for effectiveness. Ask yourself what you did well and what can be improved next time. If your decision didn’t work out the way you planned, you may want to revisit some of the previous steps to identify a better choice. Common Challenges of Decision MakingAlthough following the steps outlined above will help you make more effective decisions, there are some pitfalls to look out for. Here are common challenges you may face and best practices to help you avoid them.
In addition, relying on one single source of information can lead to bias and misinformation, which can have disastrous effects down the line.
Decision making is a vital skill in the business workplace, particularly for managers and those in leadership positions. Following a logical procedure like the one outlined here and being aware of common challenges can help ensure both thoughtful decision making and positive results. If you are interested in business management topics like these, consider Concordia University, St. Paul’s online MBA program. You can also download our free guide, “Climbing the Corporate Ladder: Your Guide to the MBA and Beyond,” for an in-depth look at the value of the MBA. Recommended ArticlesView All What is the control process in business?The controlling process in business management is when managers set, measure and refine their business operations and manage cost control. By using a controlling process, a company can navigate changes to the supply chain, customer demand and other variables that impact a company's livelihood.
What is the decisionIdentify a business problem. Seek information about different possible decisions and their likely effect. Evaluate the alternatives and choose one of them. Implement the decision in business operations.
What is decisionDecision making is the process of making choices by identifying a decision, gathering information, and assessing alternative resolutions. Using a step-by-step decision-making process can help you make more deliberate, thoughtful decisions by organizing relevant information and defining alternatives.
Which is the process of decision“Management is simply the process of decision-making and control over the action of human beings for the express purpose of attaining predetermined goals.” Stanley Vance has emphasized decision-making and control over the actions of employees for reaching the enterprise goals.
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