Six Steps in Decision Making Figure 7.4 7-18
{"Image DocumentName": "Six Steps in Decision Making", "Image ImageDescription": "Using the work of March and Simon as a basis, researchers have developed a step-by-step model of the decision-making process. There are six steps that managers should consciously follow to make a good decision. Step 1. Recognize Need for a Decision. Sparked by an event such as environment changes; can be internal or external. Be it proactive or reactive, it is imperative that managers immediately recognize this need and respond in a timely and appropriate manner. Step 2. Generate Alternatives. Managers must develop feasible alternative courses of action. If good alternatives are missed, the resulting decision is poor. It is hard to develop creative alternatives, so managers need to look for new ideas. Step 3. Evaluate Alternatives. What are the advantages and disadvantages of each alternative? Managers should specify criteria, then evaluate. Successful managers use four criteria to evaluate the pros and cons of alternative courses of action. Often a manager must consider these four criteria simultaneously. Some of the worst managerial decisions can be traced to poor assessment of the alternatives. Step 4. Choose Among Alternatives. Rank the various alternatives and make a decision. Managers must be sure all the information available is brought to bear on the problem or issue at hand. Step 5. Implement Chosen Alternative. Managers must now carry out the alternative. Often a decision is made and not implemented. Step 6. Learn From Feedback. Managers should consider what went right and wrong with the decision and learn for the future. Without feedback, managers do not learn from experience and will repeat the same mistake over. Figure", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}