What is decision making process in management?

Posted by AxelPrice on June 2nd, 2014

Organizations use managers or teams to make decisions for planning, organizing, and leading, controlling and achieving the goals. The quality and effectiveness of these decisions determine the success of the company. The decision making process in management is very important in any major organization, as it focuses on solving important problems. The main element in any group decision making is the manager, who needs to analyze and find the best alternative among the many solutions given by the whole team. The job of a manager is very difficult and stressing, but the teamwork is as well important in this process.

There are a few steps which are involved in the decision making process in management. The first step is defining the problem. This is probably the easiest part of the decision making process. The second step is identifying the factors limiting solving the problem, closely followed by developing the potential alternatives. After that, the manager must analyze these alternatives, and select the best one. In the end, the manager is allowed to implement the decision taken and establish an evaluation and control system. These steps are much more complex than they sound, and involve a certain amount of time.

Using group decision making is a very smart decision for the management process, as a team that has a leader will work more efficiently than a single person. There a few key factors of teamwork, which lead to better decisions. The quality of the work is much related to the commitment of the participants. The decisions that are of high importance have to satisfy the needs of the company, so the team involved in the decision making process must be very serious and deliver the best results. Also, the manager must be very well informed on the problems and solutions found to it and choose the best one. However, the team must focus on the goal of the company instead of finding subjective alternatives.

The decision making process in management also uses specialized methods to make good decisions. The SWOT analysis is one of these methods, which helps the team check the results, and do a reality scanning. In this analysis, the team and manager will examine the strong and weak points, and also see which the threats in the taken decision are. However, even if these methods help, the manager and the team have to follow the basic steps to making decisions. The steps towards a good decision making process are, in order, identifying the problem, identifying possible options, gathering information, implementing the decision and evaluating that, usually with the SWOT analysis. Each organization has, however, its own methods to analyze and find alternatives to every problem, but all companies must follow the same basic steps.

Therefore, the group decision making is very often used in management, being one of the best choices a company can make when it comes to problem solving. The manager may be a very important factor in these decisions, but teams are also key elements to finding great solutions to major problems.

For a good decision making process in management, you need the best manager and team! That is why group decision making is the best method a company can use!