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  • Essay / THE DECISION-MAKING PROCESS - 1036

    IntroductionDecision making can be defined as “the act of choosing among alternatives” (Naylor, 1998, p. 339). In the organization, decision making is very important for managers to choose the best choice to establish their objectives. The manager will make a rational and logical decision to overcome the problems. As Daft (2010) mentions, the decision-making process involves six important steps: recognizing the problem, generating solutions, evaluating alternatives, choosing the best decision, implementing the alternative, and evaluating the effectiveness of the decision (see Figure 1). in the appendix).The decision-making processThe 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 given activity. Cooke and Slack (1991) recommend recognizing that the problem arises because there are many errors and dissatisfaction on the part of internal or external organizations and that 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 should think about the financial problem by referring to the budget of each department. Furthermore, problems can also be detected using intuition rather than evidence (Cooke & Slack, 1991). For example, demand for products and services has decreased. Using intuition, an experienced marketing department manager can directly sense and detect that the problem is with the product itself, such as quality and price. The second stage of the decision-making process...... middle of paper... ...the whole process (Cooke & Slack, 1991). For example, a manager hopes to sell one hundred units of product at a profit of ten thousand dollars, but he ultimately fails to do so. The manager must therefore redefine the problems. Lunenburg (2010) recommends that the decision-making process be constant and never-ending. The evaluation of the outcome can be measured based on the level of customer satisfaction and dissatisfaction (Solomon and Stuart, 2000). The manager can also provide questionnaires to customers for product reviews. From these questionnaires, customers' views on their expectations after using the products, such as product quality, attributes, functions and benefits, can be accessed and referenced. Once decision making is carried out effectively and efficiently by the manager, the decision making process can simply be considered complete..