9 Steps to effective decision making. process you know.

 Decision making:- Decision making is an act of choice, or conscious and human process,  which plays role in every human's life. to choose one option from several alternatives. we can say that Decision making is a process by which individual or organization select one or more from the several alternative which is given. 

some more definition of Decision making :- George R Terry - Decision making is the selection based on some criteria from two or more possible alternatives. "

D.E. Me Farland :- "A decision is an act of choice wherein an executive forms a conclusion about what must be done in a given situation.|"

Steps of Decision  making process - 

1. Problem Identification
2. Classification and Gathering Data 
3. Diagnosing the Problem
4. Developing Alternatives 
5. Analysis of Alternative 
6. Evaluation of Alternatives 
7. Selection of Best Alternative 
8. Implementation of Decision
9. Follow-up 

1. Problem Identification :- Decision making process begins with the identification of problem. We must have to know that, what is the main problem? That is need decision making. If decision maker find the problem and understand it well then he resolves the half of the problem. Though it is not easy task to identify the problem Which needs decision making. To identify  the problem quickly and efficiently, decision maker has to monitor the environment related to the phenomena, check data and reports, assess factors. To identify the exact nature of the problem decision maker has to use Experience, imagination and judgement. 

2. Classification and gathering Data :-   After identification of the problem next step of decision making is classification and gathering Data or information. Decision maker can classify the problem according to following guidelines. 

(a) Nature of decision 

(b) Impact of the decision

(c) Futurity of the decision

(d) Periodicity of the decision

(e) Limiting or strategic factors relevant to the decision. 

3.Diagnosing the Problem :- It is a third step of Decision making process. In this process Problem is diagnosed. it means  knowing the real gape between what is the problem and what should be. Diagnosing the problem is understanding the problem in relation  to the objective of the firm. The problem should be understood on basis of its magnitude, its elements, its causes, its urgency and its relation with other problem. 

4. Developing Alternatives :- It is important to the decision maker that should search for various alternative solutions of the problem. Decision maker should identify all the possible solution of the problem because the problem may have be many solution. The decision maker's or manager's past experience about the problem, practices followed by others and his creative techniques are the various sources of identifying alternative. 

5.Analysis of alternative :- It is a 5th step of the process of decision making process, After the developing of alternative, It is important to Analyse each alternative. Only good prospect alternative should be screened out. By taking the time and cost element into account. There are two approaches are  to screening process, either can be followed. 

(a) Constraints on Alternatives

(b) Grouping of Alternatives. 

6. Evaluation of Alternatives:- After the analysis of the alternative, Alternatives are to evaluated on the basis of risk involved and available resources. Alternative should be evaluate on the basis of accomplishment of some common objective. And both of the factor tangible and intangible should be evaluate and consider in relation to efforts involveed and result expected. 

Peter F. Drucker has suggested the following criteria to weigh the alternative causes of action. 

1Risk

2 Economy of efforts

3 Timing or situation

4 Limitation of Resources

7. Selection of best alternative- it is a seventh step of decision making process in this step the decision maker has to select the best alternative which contributes maximum to the given objective. The outcome of each alternative should be compared on the behalf of organizational objective so that they can provide maximum result in the given side of condition. There are four approaches which hell to select the best alternative-

Experience Research and Analysis experimentation personal values and aspirations

8. Implementation of decision :- after the selection of best alternative it is to put into action. Implementation of decision is a very important step of decision making process by which decision maker finds that the goal or objective is achieved or not. Without implementation no one can know that problem has solved for the objective has achieved. 

9. Follow up:- follow up is a large step of decision making process after implementation of alternative it is very important to monitor it continuously because there is no guarantee that the decision which is taken is 100% accurate is the monitor at continuously then if the decision need some changes so we can modify it and save the organization come loses.