cessful decisions make profit to the company and unsuccessful ones make losses. Therefore, corporate decision making process is the most critical process in any organization.
In the decision making process, we choose one course of action from a few possible alternatives. In the process of decision making, we may use many tools, techniques, and perceptions.
In addition, we may make our own private decision or may prefer a collective decision.
Usually, decision-making is hard. Majority of corporate decisions involve some level of dissatisfaction or conflict with another party.
Let.s have a look at the decision making process in detail.
Step 1: Identification of the purpose of the decision:
In this step, the problem is thoroughly analysed. There are a couple of questions one should ask when it comes to identifying the purpose of the decision.
Step 2: Information gathering:
A problem of an organization will have many stakeholders. In addition, there can be dozens of factors involved and affected by the problem.
Step 3: Principles for judging the alternatives:
In this step, the baseline criteria for judging the alternatives should be setup. When it comes to defining the criteria, organizational goals as well as the corporate culture should be taken it to consideration.
Step 4: Brainstorm and analyse the different choices:
For this step, brainstorming to list down all the ideas is the best option. Before the idea generation step, it is vital to understand the causes of the problem and prioritization of causes.
Step 5: Evaluation of alternatives:
Use your judgement principles and decision-making criteria to evaluate each alternative. In this step, experience, and effectiveness of the judgement principles come into play. You need to compare each alternative for their positives and negatives.
Step 6: Select the best alternative:
Once you go through from Step 1