Decision Making

MAJOR PROBLEM : DECISION MAKING

When ever a Company is in profit or loss , its due to the decisions that are taken by the managers .

Decision being the parameter for profit and loss in business, it is the most important and difficult task of a manager. Also after taking decision , it is managers responsibility to look after the implementation of the decision he has taken.

STEPS FOLLOWED IN DECISION MAKING

Their is no hard and fast rule for decision making , yet we have experienced a method which is most widely implemented for decision making in big Industries.

• As we see in this flow diagram , the first process is to identify the problem, this can be done by estimating the problem and its consequences ,
• Second is analyzing the problem i.e how much is the organisation effected by that problem ,
• Third is developing alternate solutions for solving that problem , 
• Fourth one is selection of the best possible solution/s economically fruitful in solving the problem, 
• Fifth one is implementation of the solution , & 
• The last step is supervising the action taken .

Once the problem's solution has been found out , almost half of the problem is solved.

TYPES OF DECISION MAKING AND IMPLEMENTATION 

These are the four types of decision making and their implementation. 

• In the first process , their is possibility of wrong decision being taken as the problem understanding and decision making is done by a single individual which might think according to his mind setup. In this case the performer is also one person so possibility of implementation of a good solution is also least.
• In the second one , everything is same except their is a group to perform the task. In such case if a good decision is taken , then the team can perform better than the first case.
• In the third one, a group decision is taken . This increases the chance of understanding the problem and coming to a useful solution but implementation still depends upon the single person who can make some mistakes as he is the only one performing the task.
• In the forth one , a group decision is taken along with a group implementation . This increases the chance of the problem being efficiently solved.

So in the above model , 'group decision and group implementation ' is the most successful one .