Most Effective Decision Making Techniques in Management
While managing a department of several employees one tends to come across several crossroads where tough decisions have to be made. They may concern hiring, firing, promoting or handing out certain responsibilities, but whatever they concern it all boils down to how well you make the decision.
Nowadays companies concentrate on people who are quick and efficient in problem solving and decision making, as the position of manager centres mainly around those two qualities. Study of firms and managing has established several techniques and ways in which you can make better decisions at the office.
1. Identify the Decision to be Made
First, you have to be really clear about the decision you have to make. Make sure you understand the decision and its implication, for example, how does it affect your company and department.
2. Gather Relevant Information
Most decisions need to have relevant information viewed in great detail. You may need to make a self-assessment or review performance reports. It may even involve interviewing. So prepare yourself for this and read up on the situation carefully.
Also, note down what the decision is intended to solve. Is it to fill a position? Is it to promote someone? Is it to see who gets bonuses? Whatever the problem at hand, the decision you make in the end needs to solve the issue.
3. Identify Alternatives
While studying up you may come across alternative paths and decisions. Brainstorm and list all the possibilities that can influence the decision. Make sure to generate good alternatives because the wider range of choice you have the better you can pick and choose. For example, if you have a large pool of candidates to hire from, you can choose the most qualified candidate to fill the position.
4. Weigh Evidence
The information and list you made now need to be analysed. Each alternate needs to be weighed for risks and feasibility so you can cut off the ones that are high risk. Every decision has a risk involved in it but it is up to you to evaluate which risk is the most easily solvable. For example, even though hiring an experienced candidate means paying him a larger salary than a fresh graduate, it may seem more feasible compared to the training and time it will take to accommodate a fresh graduate.
5. Take Action
Now that you have come up with the decision involving the least risk, it is now time to implement it.
6. Review Decision and Consequences
Now that you have taken the decision you need to review it and see if it has actually solved the problem you identified in step 1. If not you can revise your decision or work to solve the problem still.
7. Remember to not make Emotional Decision
In a professional environment, it is important to never make decisions rashly and based on your emotions. You may choose accordingly to your gut feelings but emotions such as personally not liking someone or any other biases can never affect your decisions in a professional environment.
8. Remember to Never Procrastinate
Putting off a decision can affect the problem more than you may realise. The later you make the decision the more the problem can grow and accumulate into something unwanted. Managers need to be cautious of the problem at hand and work to solve it immediately.
Remember to weigh the pros and cons of any decision you are about to take. Never be rash as it could end up affecting your company negatively.
