Now we have a problem-a disparity between the sales reps’ current computers (existing condition) and their need to have more efficient ones (desired condition). To make it simple, assume it’s not economical to add memory to the old computers and it’s the company’s policy to purchase, not lease. For our example, Amanda is a sales manager whose reps need new laptops because their old ones are outdated and inadequate for doing their job. Every decision starts with a problem, a discrepancy between an existing and a desired condition. Example: Amanda is a sales manager whose reps/ agents need new laptops. Problem: an obstacle that makes it difficult to achieve a desired goal or purpose.

This process is as relevant to personal decisions as it is to corporate decisions.ħ Decision-Making Process Step 1: Identify a Problem Evaluating the decision’s effectiveness.Įxhibit 2-1 shows the eight steps in the decision-making process. Developing, analyzing, and selecting an alternative that can resolve the problem. The Decision-Making Process Identifying a problem and decision criteria and allocating weights to the criteria. Decision Making Decision Making a choice from two or more alternatives. Source: Alex Segre/AlamyĬopyright © 2005 Prentice Hall, Inc. Why? Because decision-making is (and should be) a process, not just a simple act of choosing among alternatives.

Although decision-making is typically described as choosing among alternatives, this view is too simplistic. Managers at all levels and in all areas of organizations make decisions. Know how to recognize when you’re using decision- making errors and biases and what to do about it 2.5 Identify effective decision-making techniques.Ī key to success in management and in your career is knowing how to be an effective decision-maker.Ĥ What is a Decision? Decision-a choice among two or more alternatives 2.4 Describe how biases affect decision making. 2.3 Classify decisions and decision-making conditions. 2.2 Explain the four ways managers make decisions. 1 Management Fourteenth Edition Chapter 2 Making DecisionsĢ Learning Objectives 2.1 Describe the eight steps in the decision-making process.

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