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Decision Making
Decision Making Process
Management Textbooks Boundless Management Decision Making Decision Making Process
Management Textbooks Boundless Management Decision Making
Management Textbooks Boundless Management
Management Textbooks
Management
Concept Version 9
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Identify and Define the Problem

Identifying, defining, and understanding a problem is essential to analyzing and choosing between alternatives.

Learning Objective

  • Express the importance of properly framing and defining the problem prior to pursuing a decision


Key Points

    • Decision makers must first make sure that they completely understand the problem.
    • It is a good idea to be able to look at a decision from multiple perspectives. This can be accomplished through selecting a group of people who will look at and define the problem from different perspectives.
    • Data should be gathered on how the current problem is affecting people now. Some examples of important data to gather include efficiency levels, satisfaction levels, and output metrics.

Term

  • Output metrics

    Standards or data points that showm the rate and speed of production over a certain period of time.


Full Text

Decision making is a central responsibility of managers and leaders. It requires defining the issue or the problem and identifying the factors related to it. Doing so helps create a clear understanding of what needs to be decided and can influence the choice between alternatives.

An important aspect of any decision is its purpose, or objective. This is different from identifying a specific decision outcome; rather, it has to do with the motivation to make the decision in the first place. For instance, customer complaints can imply the need to change aspects of how service is delivered, so decisions must be made to address them. Factors that are not related to service delivery would not be in consideration in that decision.

There are a number of ways to define a problem, such as creating a team to tackle it and gathering relevant data by interviewing employees and customers.

Developing a Group to Define the Problem

It is a good idea to be able to approach decision definition from different perspectives. Doing so can capture dimensions of the issue that might otherwise have been overlooked. Involving two or more people can bring different information, knowledge, and experience to a decision. This can be accomplished through forming a group to consider and define the problem or issue, and then to frame the decision based on their collective ideas. Having a shared definition and understanding of a decision helps the decision-making process by creating focus for discussions and making them more efficient.

Gathering Data to Define the Decision

Most decisions require a good understanding of the current state in order to understand all implications of the potential choices. For this reason it can be valuable to consider the views of all parties that will be affected by the decision. These may include customers, employees, or suppliers. Data should be gathered on how the current problem is affecting people now. Some examples of important data to gather include efficiency levels, satisfaction levels, and output metrics. Interviews, focus groups, or other qualitative methods of data collection can be used to identify existing conditions that may be connected to the decision in question. As much information as possible should be gathered to build confidence that a decision has been accurately and appropriately formulated before additional analysis and assessment of alternatives begin.

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