Decision-making by Managers
Kyawthike tun, Student (MBA), Myanmar, Member
A decision making process typically involves five steps:
1. Define the problem
2. Identify the alternatives
3. Determine the criteria
4. Evaluate the alternatives
5. Choose an alternative
Decision-making is an important skill for business and life. Decision-making is especially important for managers and leaders. There are many processes, techniques and methods to improve decision-making
and the quality of decisions.
Decision-making is more natural to certain personalities:
- Managers that are natural decision-makers should focus more on improving the quality of their decisions.
- Managers that are less natural decision-makers are often able to make quality assessments, but then need to be more decisive in acting upon the assessments made.
Good decision-making requires a mixture of skills: creative development and identification of options, clarity of judgment, firmness of decision, and effective implementation.
Today’s managers confront difficult decisions daily and must consider an increasingly wide range of criteria in making those decisions. In the past, such decisions were often judged only on the basis of a single attribute, such as profit or cost. However, cost or profit alone often does not fully capture the desirability of a decision alternative.