Seven Steps To Effective Decision Making

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e) Discuss the steps necessary in decision making. What are the limits of rationality decision making. Answer: There are seven steps necessary in effective decision making according to Lewis, Goodman, Fandt and Michlitsch (2007). The first step of decision making is you need to know how to identify opportunities and diagnose problems. Problems and opportunities will easily occur as people always having differences between needs and wants. Thus, managers need to have tight grasp of correct information on certain situation by monitoring the performances of certain projects and works. The second step is you need to identify objectives. Objectives, according to Oxford’s Advanced Learner Dictionary, can be defined as something that you are trying…show more content…
The first step of decision making is you need to know how to identify opportunities and diagnose problems. Problems and opportunities will easily occur as people always having differences between needs and wants. Thus, managers need to have tight grasp of correct information on certain situation by monitoring the performances of certain projects and works. The second step is you need to identify objectives. Objectives, according to Oxford’s Advanced Learner Dictionary, can be defined as something that you are trying to achieve. It is also known as goals. As a manager, you need to set objectives as people will feel motivated as long they have goals to achieve. Which means, what they are working for is worth it. The third step in decision making is generating alternatives. Managers need to set different alternatives in order to work on your project. Besides, your resourcefulness and creativity is needed in order to create alternatives. However, you need to focus it on your goals and objectives that you try to achieve. When your first plan is not working, you can always switch to the second plan. Alternatives will avoid you from any existing nuisance and difficulty throughout your…show more content…
First of all, delegation of authority is no longer effective when it does not includes planning. Planning is important as it ensure the flow of works. It takes time and effort in order to have effective delegation of authority. Other than that, superiors may solely lack of confidence towards their aides’ abilities. They might pressure their workers in order to do works perfectly. Thus the works will not be as high quality as they thought it will be. Further hindrances that might stand in the way of effective delegation is the dual responsibilities of a manager. Managers are responsible towards their action and also their subordinates. If the employee at fault, managers will purely take the responsibilities towards their employee’s failure. This is way the manager prefer to do their work alone. Finally, managers are doubtful about their value to the organization. As a result, managers may hold back themselves from
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