Decision making in management is the process of making a choice between two or more options based on a set of goals or criteria. It is an essential business skill that drives organizational performance. Effective decision making can immensely impact organizational performance, and by developing decision-making skills, managers can exercise sound judgment and guide their team through the appropriate frameworks and processes, resulting in more data-driven decisions. The decision-making process involves identifying a decision, gathering information, assessing alternative resolutions, and choosing the best alternative. The following are the main steps to take when making a decision as a manager:
- Identify the decision that you have to make.
- Review relevant information.
- Identify alternatives.
- Evaluate alternatives.
- Choose the best alternative.
- Take action.
- Evaluate the decision.
There are different types of decision-making techniques that managers can use, such as the Pareto analysis, decision trees, cost-benefit analysis, and SWOT analysis. Effective decision making involves focusing on game-changing decisions, convening only necessary meetings, and clarifying the roles of decision makers and other voices. It is also important to push decision-making authority to the front line and tolerate mistakes. By following a step-by-step decision-making process, managers can make more deliberate, thoughtful decisions by organizing relevant information and defining alternatives, increasing the chances of choosing the most satisfying alternative possible.
