Components of effective decision-making

Components of effective decision-making

The process of making a decision enables a manager or a leader to solve problems that face them by examining alternative solutions and deciding on the best option to apply in a given situation. To meet organizational short and long-term goals, leaders and managers should use a step by step approach to arrive at efficient, thoughtful, and informed decisions. According to Hussung (2017), effective decision making is made up of seven components, which include;

First, the leader should identify the decision. In this component, the leader or manager recognizes the opportunity or problem to address and the rationale for addressing the particular issue. The leader or manager should then gather information about the chosen opportunity or challenge to ensure that the decision made is based on facts and data. For instance, what is the cause of the challenge? What are the processes involved in the problem and any challenges that may be faced while resolving the issue? In this component, the leader or manager makes a value judgment and determines what information is relevant for the issue at hand. Thirdly, the leader/manager, identifies alternative methods of resolving the problem in the most effective manner. Fourth, the alternatives derived are weighed to ensure that the decision to be implemented will have the highest chances of success. After considering alternatives, the leader/ manager chooses the best options, executes it, and evaluates the decision periodically to determine its effectiveness.

Models to improve the quality of decision-making

The Vroom-Yetton-Jago Decision Model

The Vroom-Yetton-Jago decision model is based on the fact that not all decisions are created in an equal manner (Reader, 2017). It is based on the notion that some decisions are crucial while others are not. Therefore, not all decisions are made using a single decision-making process. In this model, three factors need to be analyzed in making decisions. They include the quality of the decision, the commitment of subordinates, and the time available to make a decision. This model enables leaders and managers to customize their decision-making based on the situation at hand.

Paired comparison analysis

According to Reader (2017), the paired comparison analysis model involves comparing several options against the other until a decision that has the highest pros is arrived at. The manager draws a table, which lays out all the available options for resolving an issue. Every choice is listed on the chart and written down, both across the top and down the side. The options are then compared directly against each other, and the best option is determined by what option wins the most head-head showdowns.

References

Hussung, T. (2017). 7 Steps of the decision making process. Concordia University. Retrieved O Reader, T. W. (2017). Team decision making. The Wiley Blackwell handbook of the psychology of team working and collaborative processes, 271-296.October 18, 2017.