In: Management What are the 7 steps of Decision Making? What are the 7 steps of Decision Making? 1 Answer Neha Rawat 18 Questions 16 Answers 0 Best Answers 27 Points View Profile Neha Rawat Added an answer on August 17, 2020 at 9:40 pm Perception or identification of decision problem: The decision making process begins with the uncovering of or discovering a problem situation which is basically either an unsatisfactory or a promising situation calling for a conscious intervention, In the course of his job, a manager confronts several such situations in the internal and external environment of the organisation. Problem situations may relate to any area of management: planning, organising, direction and control in a broad sense. Diagnosis and definition of the decision problem: Once a problem surfaces and perceived or discovered, the next task of the manager is to analyse what exactly is the problem. He has to define it in clear terms so as to identify its scope and ramifications. It is a clinical process of critically looking into the problem and piercing through it to find out the origin and its degree of gravity or importance. In this step, the manager should go past the peripheral symptoms and reach the core of the problem so as to know its nature. Specification of objectives: In this step, the manager has to set the objectives which he would like to achieve by solving the problem. He has to be dear in his mind what the decision is about and what the decision is for. Objectives may be qualitative or quantitative; they may also be multiple, flexible, attainable and realistic. Objectives are the endpoints towards which the manager directs his decision making. Collection of Data: A lot of information is required to classify any problem. So long as the required information is not available, any classification would be misleading. This will also have an adverse impact on the quality of the decision. Trying to analyse without facts is like guessing directions at a crossing without reading the highway signboards. Thus, the collection of the right type of information is very important in decision- making. It would not be an exaggeration to say that a decision is as good as the information on which it is based. Developing Alternatives: After defining and analysing the problem, the next step in the decision-making process is the development of alternative courses of action. Without resorting to the process of developing alternatives, a manager is likely to be guided by his limited imagination. It is rare for alternatives to be lacking for any course of action. But, sometimes, a manager assumes that there is only one way of doing a thing. In such a case, what the manager has probably not done is to force himself to consider other alternatives. Unless he does so, he cannot reach the decision which is the best possible. From this can be derived a key planning principle which may be termed as the principle of alternatives. Alternatives exist for every decision problem. Effective planning involves a search for the alternatives towards the desired goal. 0 Reply Share Share Share on WhatsApp Share on Facebook Share on Twitter Share on LinkedIn Sorry, you do not have a permission to answer to this question.