Steps in Decision Making in an Organization, Essay Example

In deciding, two individuals can be provided with the same case or scenario, but their decision-making process will vary because each has its decision-making process. The result may be the same, but the rationale behind their choices will differ because of the different decision-making strategies embedded within our minds. This is the same case for leaders, managers, and organizations alike when they need to make decisions that impact the wellbeing of their businesses or activities they are involved in. A simple decision like buy pens for the office to the most complicated operations will have to undergo similar processes. However, the strategies used for these will vary, as will used below. The document’s purpose is to research and discuss the possible steps an organization can follow when deciding. Different articles and documents will provide adequate information on some strategies used when making choices.

When making any purchase on an item, individuals are always faced with the challenge of selecting the best item from several products from different producers. The buyers will have to choose one item over the other based on varied factors and reasons as long as the item can perform the function adequately. Organizations are also faced with the same dilemma individuals have when deciding. However, for an organization, the process is much more complicated with the exercise going through a variety of steps before the decision can be approved. Before the main steps begin, one step that is often overlooked is selecting the best team to handle the decision-making process. Having members of the decision-making team who are quite experienced in the industry is very important. The firm can also see the help of advisors skilled in that field. The team should also comprise people who have varying opinions on various concepts.

The decisions being made by the company will also vary with the impact it may have on the company. The already identified types of choices to be made are big bet decisions that are likely to shape the future of the company (Smet et al., 2017). Ad hoc decisions are low stake decisions that are rather infrequent and out of the regular. Delegated decisions involve decisions that are made by a select number of individuals who have limited input of others in the exercise. These decisions are rather frequent but are of low risk to the company. The high-risk decisions are referred to as cross-cutting decisions. These are made by different groups who work collaboratively to complete the whole process.

There are various steps that a decision has to undergo before it is approved in an organization. Different examples will be provided where appropriate. The first step undertaken by any organization is defining the problem (University of Massachusetts Dartmouth, 2020). This step involves understanding the situation that needs to be solved. The possible strategies that can help to solve the problem are mostly defined through this step. Assuming the company was facing a major problem, meetings of those who are easily affected can be held, and brainstorming will help understand the nature of the problem and how it can be solved. This is considered as the most important point of the decision-making process because getting the data wrong will easily lead to the decision-making process is a failure. Take the case of buying a company bus that will transport workers to and from the company to a common collection point in their city. The company will first list possible vehicle models, the companies offering this bus, the various prices of the buses. Other factors like the repair expenses and cost of maintenance will also be discussed, but not as much as after the final decision has been made. All alternatives are also discussed here to ensure that all related information will be collected adequately to ensure the process is completed successfully.

The second step involves identifying and understanding the decision criteria. The decision criteria involve highlighting the variables influencing the choices on what item will be selected. Here, an in-depth analysis of the factors identified in the first step is conducted. Here factors such as producer history and the success of the products in the market, reviews, and different priority data are used to validate various arguments why one option can be chosen over the other. The third process is quantifying the criteria levels used in the discussion (University of Massachusetts Dartmouth, 2020). This process involves using already collected evidence and new information on why one alternative looks more lucrative and solid than the other. Here those involved in the process will adopt rationality more than intuition in making the choices. Rationality involves using rules and various models to explain why one option is better than the other i.e. making rational choices. Each decision factor in the discussion is prioritized based on the needs and options of the organization. In the company’s case assuming that they have settled on the bus, they seek to get, factors like costs (price of the bus and maintenance cost), durability of the bus, the number of passengers the bus can accommodate and sometimes, the after-sales services that can be offered by the company after the purchase has been completed. Different alternatives are also discussed here.

Once the alternatives have already been researched and discussed. It would be time to select the main choice from the alternatives that have been selected. The choice will depend on what the company has and what it wants by the end of the process. Even with a choice to be made, other variables may further influence the decision to be made here. Intuition may also be at play at this point since much of the decision-making process will involve well using one’s judgment from the already provided data. After the option has been selected, the next process would be to implement the decision that has already been made. In the example of this company, it will put into action by getting the bus. The financial department will be informed of the decision made by the team, and the finances will be disbursed for the purchase of the bus. After the delivery of the bus, the review process will begin (Smet et al., 2017). The review process is the last step in the exercise as the firm will look if the choice made is the best for the company. The variables in selecting the alternatives are the ones used to compare how successful the choice made was. Comparisons are made between the actual figures and the projection figures provided in the information collection processes. For most organizations, the process does not end here as some officials may see if the alternatives are better, and if it is so, more purchases are likely to be made on the item.

References

?Considering college? Check out this 8-step decision-making process. (2017, September 20). Ball State Journalism Workshops. https://bsujournalismworkshops.com/index.php/2017/09/20/considering-college-8-step-decision-making-process/

Marchisotti, G. G., Almeida, R. L., & Domingos, M. L. C. (2018). Decision-making at the first management level: The interference of the organizational culture. Revista de Administração Mackenzie, 19(3). DOI:10.1590/1678-6971/eRAMR180106

Smet, A., Lackey, G., & Weiss, L. (2017, June 26). Untangling your organization’s decision making | McKinsey & Company. McKinsey & Company. https://www.mckinsey.it/idee/untangling-your-organizations-decision-making

The University of Massachusetts Dartmouth. (2020). Decision-making process | First Year Course Modules – UMass Dartmouth. Umassd.Edu. https://www.umassd.edu/fycm/decision-making/process/