Introduction to Managerial Decision Making

Introduction to Managerial Decision Making

Steps in managerial decision making.

The decision-making process involves five steps. They include:

1. Defining the objective- this stage involves establishing the organizational objectives and finding out how the decision affects its goals.
2. Defining the problem- This stage involves identifying the actual problem which requires a decision to be made.
3. Exploring alternatives- at this stage, all possible solutions are explored. The organization draws a set of solutions that are proposed for addressing the problem.
4. Evaluation- At this level of decision making, the alternatives provided in the previous step are analyzed carefully. Several analytical tools can be used to guide the management in drawing proper conclusions. Their impact on the organization is evaluated to ensure the selected solution serves the interests of the organization.

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5. Implementation- This is the final stage in the decision-making process. It involves making the actual decision after critically evaluating the possible solutions and defining an action plan to support its implementation.

Week 2: Judgment in managerial decision making

Strategies for making better decisions

Decision making involves six key strategies. These include:

1. Learning

An ethical decision-making process starts with gathering all information that may be necessary to guide them in making the decision. At this stage, the manager should listen attentively and comprehend all the data from all other levels of the organization.

2. Trust (seeking Diversity)

This strategy involves seeking advice from peers. It consists of selecting trusted people who offer guidance rather than validate your arguments.

3. Experience

Leaders bring their adventure from previous scenarios, which involved similar challenges. Experience helps in identifying viable decisions and anticipate problems.

4. Detachment

This strategy consists of identifying and challenging individual biases. This strategy ensures the decision is not in favor of the manager’s opinion but instead a well-collaborated decision involving the views collected from others.

5. Options

This stage involves analyzing the available options. The managers should go through the solution set offered to ensure the best option is selected.

6. Delivery

Delivery of judgment consists in evaluating the feasibility of the decision and anticipating risks.