Decision making Process

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					                         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.

				
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