Topic > productionDecision making can be defined as "the act of choosing between alternatives" (Naylor, 1998, p. 339). In organization, decision making is very important for managers to choose the best choice to set their goals. The manager will make a rational and logical decision to overcome the problems. As mentioned by Daft (2010), there are six important stages in the decision-making process which consist of recognizing the problem, generating solutions, evaluating alternatives, choosing the best decision, implementing the alternative, and evaluating the effectiveness of the decision (refer to Figure 1 in the Appendix). The Decision Making Process The first step in the decision making process is to recognize the problem. The existence of problems means that there are still other ways or opportunities to improve a particular activity. Cooke and Slack (1991) suggest that recognizing that the problem emerges because there are many errors and dissatisfaction occurs on both the internal and external organizations side and this is an opportunity to make improvements. The problem must be well understood by the manager to ensure that alternatives can be generated more clearly. When organizations do not have enough funds for the next project, the manager will consider the financial problem by reporting the budget to each department. In addition to this, problems can also be detected using intuition rather than evidence support (Cooke & Slack, 1991). For example, the demand for the product and services has decreased. Using intuition, an experience marketing manager can directly perceive and detect that the issue is raised by the product itself such as quality and price. The second step in the decision making... middle of paper... ...whole process (Cooke & Slack, 1991). For example, a manager plans to sell one hundred units of products at a profit of ten thousand dollars, but ultimately fails to do so. Then, the manager will redefine the problems. Lunenburg (2010) recommends that decision making be constant and never ending. Outcome evaluation can be measured by the level of customer satisfaction and dissatisfaction (Solomon & Stuart, 2000). The manager can also provide questionnaires to customers for product ratings. From these questionnaires you can see and report customers' views on their expectations after using the products such as quality, attributes, functions and benefits of the products. Once the decision-making process has been carried out effectively and efficiently by the manager, the decision-making process can be considered concluded.
tags