5 Steps in Decision Making
- Step one includes obtaining information. This can be done while reviewing the past, present and expected future information. Each and every little detail is important and relevant in decision making that can have a financial affect on the business.
- In step two, careful predictions are made regarding the future usefulness of the decision or alternative while considering all the information obtained from the previous steps.
- In step three, the management takes a decision of choosing the best possible alternative among all other alternative which is presenting a more profitable opportunity. This step is taken on the basis of all the relevant information obtained from the previous steps.
- In step four, the management implements the decision, this step is very crucial as implementation phase requires careful attitude and commitment to the every little detail by all the departments of the organization, as implementation of the decision is a coordinated and team effort.
- The last step of the decision making process is evaluating the performance after the implementation of the decision. Every step is very important in the decision making cycle but this step is very important as this steps reveals the mistakes or shortcomings in the decision. If the decision is working successfully then this process ends otherwise this again presents the opportunity of another decision making cycle basing on the shortcomings of the past decision or poor implementation.
At every step, communication among all the departments is very important and feed back is always given to the management involved in the decision making process.