Decision Making Process

Decision Making process has following steps : 

1. Awareness of the problem
2. Developing alternatives  which can solve problem 
3. Critical analysis of each alternative 
4. Selection of one or more alternative
5. Executing the decision 
6. Review of decision after its implementation 

The very first step is awareness about the problem. In other words you should know what is problem or issues about which you have to make a decision. It can be selection of an R&D engineer, hiring a particular supplier, or buying an advanced technological equipment for increasing efficiency. Once you know the topic of decision making it will be easier for you to go to next step. It is possible that a problem can be solved by multiple methods. For example, if issue is to increase the profit you may have following alternatives : 

1. Increase sales, 
2. Reduce cost, 
3. Develop market in new areas where company is not having presence, and 
4. Introduce new product. 

Which of these alternatives is better. Which one should be selected. This by job of person who is involved in decision making exercise. At this juncture he has to evaluate each alternative carefully. He should consider advantages and disadvantages of every alternative. Therefore, critical evaluation of every alternative is necessary.