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The Decision-Making
Process in an
Organization
NATALIA NOWAK PAULINA KOWALSKA MONIKA KOT
What is decision-making?
Decision-making is the
process of making choices
by identifying a decision,
gathering information, and
assessing alternative
resolutions.
- Indentify the problem (^) Recognize the problem or opportunity and decide to address it. (^) How worthwhile will it be to solve this problem or realise this opportunity? (^) What is the objective to be achieved?
- Collect revelant infromation (^) What is relevant and what is not relevant to the decision? (^) What do you need to know before you can make a decision, or that will help you make the right one? (^) Who knows, who can help, who has the power and influence to make this happen or to stop it?
- Weigh and analyze the alternatives (^) What criteria should you use to evaluate? (^) Consider the costs and benefits of each alternative. (^) Ask “what if” questions. (^) Place the alternatives in a priority order.
- Choose among alternatives Choose the best alternative based on the previous careful analysis of all the options.
- Review your decision
When do we make
decisions as a group and
when do we make them
individually?
As a group, when the decisions to be made are related to:
significant information needs
knowledge and experience in many
areas of organization's operations
significant market and financial risk
need for assistance from other
decision-makers or specialists
The disadvantages of group decision-making
- (^) time-consuming and effortfulness
- (^) pressure to conform to the group (compromise and conformism)
- (^) possibility of minority domination (participation of superiors,
experts)
- (^) potential for conflict of interest
- (^) high costs
- (^) ambiguous liability
And what are the methods
of group decision-making?
Brainstorming
Affinity Diagram – Kawakita Method
Walt Disney Method