Everyone takes decisions whether in a business or dealing in ordinary business of life. There are people who have worked hard to find the way through which we can solve our problems in an easy and convenient way. They have specified certain steps. This technique is mostly used in the business organizations but you will find this material very useful. This is also known as a decision making process.
If we are going to exert our forces and efforts then we should already know the direction. If you are making efforts and doing hard work without selecting your direction then there is chance that you are wasting your time. Keeping in view this fact the first step involves, identifying a problem. Sometimes we are confused and do not know where the root cause of problem is, you can go on cutting branches but they will grow again until you find the rote cause of the problem. Once you figured out the problem area the half problem is already solved. Now you have to identify the decision criteria; the boundary lines in which your decision will fall and that is relevant to resolve the problem.
The two main steps have been taken now it is time to assign the weights to the decision criteria. This will be better for decision making. You are now ready to develop alternative; these alternative are the ways to solve a single problem, just like there are different ways to reach a certain place. Analyzing the alternatives will help you to select the one solution that is easy to follow and favorable for the decision maker. There may be more than one best option available there. Then the next step is to select the best solution among different alternatives. The decision maker will then implement the selected option in a prescribed manner to solve the problem; here the problem can be anything from maximizing the profit to the production level or any other technical problem.
The final step is to evaluate the output. This step informs us about how much effective the decision was. And if the decision has meet the given standard and expectations, you can modify the decision if there is still any error. So before you take a decision make sure that it is flexible. The main decisions of the organization like setting overall objectives are always the responsibility of upper level managers. Then there comes other two categories of managers, the middle level managers that are engaged in making decision about production level and sales level etc. The last level of managers manages the employees and their work performance. In last but not the least employees are the managers of their work and performance. In this way the decisions of organizations are taken and managed.