Decision making Process/Steps 1) Recognizing the need for decision: Decision making is necessary when problems exist in the organization. Example: The manager sees that the employee turnover has increased by 5%. 2) Searching alternatives: Both obvious and creative alternatives are desired. For example the manager can either increase wages, or give massive promotion or change hiring standard. 3) Evaluating alternatives: Each alternative is evaluated to determine its possibility, its suitability, and its consequences. For example increasing wages and changing hiring standard may satisfy all conditions. 4) Selecting the best alternative: Consider all situation factors, and chose the alternative that best fits the manager’s situation. Example: Changing hiring standards will take an extended period of time to cut turnover. 5) Implementing the chosen alternatives: The chosen alternative is implemented into the organizational system. Example: The human resource department establishes a new wage system. 6) Follow-up and evaluation: The manager should find out the level to which the alternative chosen in step 4 and implemented in step 5 has worked. Example: The plant manager notes that, six months later, turnover dropped to its previous level.