explain the important elements of decision making
Answers
Answer:
Explanation:
THE ELEMENTS OF DECISION MAKING
You minimize risk by following seven elements of effective decision making, which are:
Determine whether a decision is necessary
Unnecessary decisions not only waste time and resources, but they also threaten to make all decisions ineffectual. When decision makers fail to distinguish between necessary and unnecessary decisions, their organisation can quickly become snowed under and turn cynical about all decisions. Even the most necessary and most important ones will soon be seen as mere busyness.
Classify the problem
Executives face four basic types of problems:
1. Generic events that are common within the organization and throughout the
industry.
2. Generic events that are unique for the organisation but uncommon
through out the industry.
3. Truly unique events.
Define the problem
The next key element is defining the problem. This has never occurred to most people. Aren’t problems obvious? This may be the most important element in making effective decisions—and the one managers pay the least attention to. They try to cure the symptom rather than the disease, to use a medical analogy.
One can almost take it for granted that what a problem appears to be is not what it really is. And yet—it cannot be said too often—nothing does as much damage as the right answer to the wrong problem.
Decide on what is right
When beginning to form the decision, the decision maker must start out with what is right. Most of us, and especially those who work in an organisation, tend to start out by asking questions like
- “What is acceptable to the boss?”
- “I know that the financial people won’t like that, but how I can make the
decision palatable to them?”
- “I know that contradicts what all of us were brought up to believe. How can we
start small and slow so as not to shock too many people?”
Every effective decision maker is different, but every one of them can make every conceivable compromise, and compromises are necessary in the end.
Get others to buy the decision
Unless the organisation has “bought” the decision, it will remain ineffectual; it will remain a good intention. And for a decision to be effective, being bought has to be built into it from the start of the decision-making process. If you wait until you have made the decision and then start to “sell” it, it’s un- likely to ever become effective.
Build action into the decision
A decision is a commitment to action. Until the right thing happens, there has been no decision. And one thing can be taken for granted: the people who have to take the action are rarely the people who have made the decision.
Test the decision against actual results
The results of an important decision are usually in the future, and often quite a few years in the future. Hence monitoring and reporting have to be built in to the decision to provide continuous testing of expectations against actual events.
To this end, effective decision makers build detailed organized feedback into their decisions, including reports, charts, figures, and studies. Yet, far too many decisions fail despite all of this feedback. This is because even the best-organized formal feedback is only an abstraction; while it can provide some useful information, it cannot present the complete picture of actual events.
Effective decision makers know this and follow a rule, which the military de- veloped long ago. The commander who makes a decision does not rely on reports to see how it is being carried out. Instead, the commander goes out and looks for himself or herself.
Failure to go out and look at actual results is the leading reason for persisting in a course of action long after it has ceased to be appropriate or even rational. This is because without actual firsthand knowledge of results, the decision maker will become increasingly divorced from reality.
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