Do you hold one of the managerial positions of your company? So you are actively involved in the decision-making process and you need to be very careful in your decision-making.
The changes in the economic scenario, in particular, involve a detailed decision-making process in order to exempt or minimize the negative impacts of decision-making.
To do this, you need to know and understand the types of decisions and how these techniques help you not to err in the decision making process.
It is important to say here that these processes do not solve the problems of your organization. They are techniques for you, as a manager, to deal with these problems.
The main function of the types of decision-making is to structure the decision-making process, increasing its certainty at the time of making the right decision.
Let’s give you three tips for not going wrong in the decision making process. They involve knowing and identifying the types of decisions, knowing how to structure the decision-making process, and the importance of strategic planning for the decision-making process
Through the types of decision you will be ready to apply one of the techniques, concepts and skills in your decision making process. In addition, you will be able to analyze the difficulties faced by the organization and how they should be addressed throughout the decision-making process.
Choose the type of decision appropriate for the decision-making process
To begin with, we’ll show you the two most important classifications that reflect corporate decision-making. These are the scheduled and unscheduled decisions.
This type of decision is known to the company’s managers. They are those decisions that have solved problems already faced by the company and always rise against the organization in the same way.
In these situations you do not need to do a scenario analysis, collect data to develop the decision making process. It is enough for you to apply established methods to reverse or rectify the situation.
In general, they are standardized solutions for decision making, making the decision making process more agile.
The unscheduled decision is the problem not expected by the company. To make these decisions you need to treat each one individually.
These new situations need to go through an analysis process from understanding the problem to making a decision.
One of the main goals of the decision-making process must be to look for solutions to unscheduled decisions in order to create programmed decisions, since the programmed decisions save time and intellectual expenses.
Thus decision makers do not wear out by solving problems that already present a standardized solution.
Develop a problem-solving process for decision-making
The process for solving problems and making decisions is basically to seize opportunities and evaluate decision-making possibilities.
For you to understand better, let’s think of this problem-solving process as a five-step cycle: problem identification, diagnosis, generation of alternatives, choice of an alternative for decision-making and decision-making.
Let us separate the five phases of the decision-making cycle for you to apply in your decision-making process.
Identification of the problem
Solving the problem begins with identifying a situation of frustration, anxiety, doubt, opportunity, challenge or interest.
The manager should investigate the cause of the situation to be faced. It is the phase where the problem will be discovered and the decision process begins.
Considering that the situation is an opportunity and not a problem, you should analyze it as a process in the same way and know how to take advantage of this condition.
After identifying the problem you will need to understand this problem (or opportunity) by identifying the causes and possible consequences of each of the possibilities for decision making.
Review and study these issues to avoid errors in the steps ahead. And to increase your confidence in your decision, there are two techniques to help you when problems require in-depth study: the Ishikawa diagram and the Pareto principle.
Generation of alternatives
At this stage you begin the first steps to solve the problem. It is from here that you think of the solutions.
For unscheduled decisions there are no ready alternatives. You will need to create these alternatives. At this stage you can use two processes to stimulate your creativity: brainstorming and brain writing.
Choosing an alternative
Raise all alternatives and judge them by considering the consequences for the decision-making process, and the external factors that may affect your choice.
Thinking strategically is critical to decision making. It is necessary to evaluate the advantages and disadvantages through the data obtained in the initial phase of the process.
Observe the alternatives and establish an order for them, such as priority, quality, or utility.
Another way of analyzing the alternatives is to strike a balance whereby decision makers study the problems and analyze the data operationalized for the company to continue to make a profit.
Evaluation of the decision
The decision-making process ends when it is put into practice the chosen decision and analyzed its effects.
This decision assessment can be rational or intuitive according to the information on one side and the other the opinions and feelings. Rationality and intuition are two completely different attributes.
Thus, the greater the amount of data converted into information, the more rational the process will be. But if feelings and opinions stand out, the process will be intuitive.
The evaluation of the decision restarts the problem-solving process, and may be the default for the scheduled decisions.
We know that authority is necessary and sufficient in times of stability, but in an environment of constant change, leadership is needed to make the decision-making process well structured. Thus, the company stands in the midst of external factors that affect it.
Your decisions must be in line with organizational strategic planning. Thus, your decision-making process will be consistent with the values of your company.