Organizational decision making is the basic function of top level executives for most organizations. Although most executives have a specific area in which their decisions directly affect, those decision will affect the organization as a whole in some capacity. Most organizations meet annually to project or forecast next year’s goals, this is where section, area, and or department managers as well as executives meet in the decision making process.
Usually, this decision making process will identify what has worked and not worked based on prior or current year service or sales records or data of the organization. From that data, managers and executives, will put into play the six steps in the decision making process to identify next year’s courses of actions to meet the organizational goals. The first step in the decision making process is to identify the problem. Although in this process the first step is labeled as identifying the problem, there is also a potential that it could be identifying an opportunity as well.
When considering this process, step one is the most important step, as correctly identifying the opportunity or problem can have significant rewards to the organizations. Likewise inaccurately identifying the problem can provide dire consequences. This step is the foundation in creating courses of actions or plan development, good communication in identifying the problem or opportunity step will provide a good understanding of the factors creating the problem or opportunity. Step two is identifying the factors that affect the problem or opportunity.
... Form" o "Preparing Case Study Analysis" o "Problem Solving Tools and Techniques" o "Decision Making Steps" o "Decision Making Worksheet" WEEK Five NETg Simulation Assignment. Using ... Based on the advantages and limitations identified in the simulation, explain how this impacts your decision-making process? o List four key points from ...
In this step, most executives will call in the subject matter experts (SME’s) to get a better understanding of the issues causing the problem or opportunity. To give an example, an organization may be dealing with declining sales; executives that do not take the opportunity to uncover the true reasons to the decline may reduce sales cost to the customer to boost sales with the consumer. This method will reduce profits with no benefit, considering the true factor was bad market research and selling the wrong product to the wrong market base.
Good and accurate communication with the SME’s, to understand the factors, will allow the decision makers to develop relevant courses of actions or multiple solutions. Step three is identified as coming up with solutions and alternative solutions. This is also an important step in this process as the first or obvious answer is not always the best course of action or solution. This is the step where the quote by John Heywood, “two heads are better than one” applies. Ensuring all ideas are encourage without the fear of harassment or embarrassment, will create the open dialogue needed in this step.
Bring together the team to brainstorm and get opinions to compile multiple ideas is critical to long term success of either resolving the problem or taking full advantage of an opportunity. Analyzing all potential solutions to make sure they are relevant or viable is step four in the decision making process. In this step, generally the decision makers of the organization will reduce the number of personnel involved, as all of the solution gather in the previous step need to be reduced to the most viable solutions only.
This is critical as the cost of the execution and profit margins need to be considered along with short or long term success of each surviving solution or idea. Once the solutions or opportunities have been narrowed to the most viable solutions, the next step can be identified by a quote made by Admiral Author Radford in 1953, “the bigger bang for your buck,’ theory is what would apply to satisfy step six. Implementing the solution is step six and communication with the entire organization in this step is essential.
Step 1: Establishing a Sense of Urgency: Help others see the need for change and they will be convinced of the importance of acting immediately. Step 2: Creating the Guiding Coalition: Assemble a group with enough power to lead the change effort, and encourage the group to work as a team. Step 3: Developing a Change Vision: Create a vision to help direct the change effort, and develop strategies ...
Bad execution in resolving a problem or executing on and opportunity will start this process all over again with no doubt new factors to consider. To recap the paper, the six steps in the decision making process is identifying the problem, understanding the factors, come up with solutions and alternative solutions, analyze all solutions and make sure they are viable, and implement the solution. The one common factor to process success is effective communication. A fluid communication practice throughout the organization is and will always be the biggest key to success.