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Process Of Effective Decision Making - Coggle Diagram
Process Of Effective Decision Making
What do executives do
Differentiate what is strategic and generic.
Make decisions which will change decide the companies future.
concentrate on a few important tasks.
what to choose between pragmatic or principle based decisions.
Steps Part 2
Action
It is usually the most time consuming step in decision
If a decision is not acted upon it will remain at most good intention
Converting the decision into action requires a few questions to answered
1) Who has to know about the decision?
2) What action has to be taken?
3) Who has to take it?
4) What does the action have to be so that the people who have to do it in the future can do it?
The converting of decision into action is very much required
Feedback
to resolve this issue decision makers need to need to build information and feedback around direct exposure to reality
But reports cannot be relied on every time because as information passes through different channels it changes
It is the step of monitoring the information and reporting it to test if the decision is meeting the required targets and goals set.
Decision
to do that they need to know what are the boundary conditions.
Executives need to select what is right over what is acceptable
As not understanding the boundary conditions can led to compromising on the wrong condition
Steps Part 1
Defination
When a problem is classified it can be easy to answer it. like - what is it ?
what is the solution to the problem ?
Problem has to be classified as unique or generic.
Caution
we have to maintain is that we might define the problem but it might be incomplete.
Solution
to the caution is that we should check whether the definition of the problem is covering all the points in the problem.
Specification
It tell us what the decision has too achieve
what are the objective, minimum goals, conditions to be achieved.
A decision can become obsolete as the boundary condition are changing all the time and the executive’s need to keep to the boundary conditions clear.
Classification
New generic problems
these situations are those which have happened for the first time but rules and policies can be made to handle them as they might happen again in the future.
Truly exceptional events
they are events which truly happen once in a life time and executives have to find a new way to tackle them
Unique Events
these events are unique for individual companies but are generic as they happen with almost all the company there are.
Generic events
they happen in every executives tenure and there are rules and plans to handle them.for example inventory decisions
concluding note
It requires little time but they are the only ones who have the authority as the have proven that they have the capability to take right decision and help the company succeed
Decision making is one of the most important task of an executives.