Running head: DECISION-MAKING PROCESS PAPER

Decision-Making Process Paper Justin Randall MGT230 Thursday, December 20th, 2012 Lorrie Madden

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Decision-Making Process Paper According to Bateman and Snell (2011) people should make decisions every day, some of those decisions are easy to make, whereas others are quite difficult to implement. An appropriately combined and organized decision-making process will help to control this issue and bring a positive outcome for those involved. The decision-making process may become challenging for people because of the lack of structure and entailed risk, uncertainty, and conflict. That is why people trying to make important personal or professional decisions should have an appropriate model to follow avoiding these challenges. Bateman identified six stages of the decision-making process that may be attached to any problem or decision.

Stages of the Decision-Making Process Identifying and Diagnosing the Problem o The first stage in the decision-making process is to recognize that a problem exists and must be solved. The decision maker must dig in deeper and attempt to diagnose the situation. Generating Alternative Solutions o The second stage of decision-making links problem diagnosis to the development of alternative courses of action aimed at solving the problem. These solutions range from ready-made to custom made. Evaluating Alternatives o The third stage of decision-making involves determining the value or adequacy of the alternatives generated or alternative courses of action which can be implemented depending on how the future unfolds called a contingency plan.

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Making the Choice o The fourth stage of decision-making, once you have considered the possible consequences of your options, is making your decision. As you make your decision, important concepts include maximizing, satisficing, and optimizing.

Implementing the Decision o The fifth stage of decision-making involves following through with your decision. Adequate planning requires several steps: 1. Determine how things will look when the decision is fully operational. 2. Chronologically order, perhaps with a flow diagram, the steps necessary to achieve a fully operational decision. 3. List the resources and activities required to implement each step. 4. Estimate the time needed for each step. 5. Assign responsibility for each step to specific individuals. o Decision makers should presume that things will not go smoothly during implementation. It is very useful to take a little extra time to identify potential problems and identify potential opportunities associated with implementation. Then you can take actions to prevent problems and also be ready to seize on unexpected opportunities. The following questions are useful: 1. What problems could this action cause? 2. What can we do to prevent the problems? 3. What unintended benefits or opportunities could arise? 4. How can we make sure they happen?

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5. How can we be ready to act when the opportunities come? Evaluating the Decision o The final stage in the decision-making process is evaluating the decision. It involves collecting information on how well the decision is working. Always remember to be appropriately vigilant in making the decision. Vigilance occurs when the decision makers carefully and conscientiously execute all six stages of decision making, including making provisions for implementation and evaluation (Bateman & Snell, 2011, p. 90-95).

My Personal Decision-Making Process The problem at hand was the necessity to rent an own apartment. In 2010 I was living with my parents. The house was also shared with my sister and her children, and it was too small for all six of us to share. I had realized after a short time this living situation was not going to work out and that I should start looking for a place of my own. Because I did not own any furniture finding an apartment that was fully furnished was a necessity. Generating and evaluating alternative solutions (steps two and three in the decision making process) was not an option as I knew exactly what I would have to do if I were to obtain the right place to live. The only alternative solution in this situation would have been to rent a large two-bedroom apartment fully furnished so I would have a spare room for guests and I would not have to purchase furniture. Step four in the decision making process is, making the choice. I searched around for cheap fully furnished apartments and had finally found one in Fayetteville. This leads me to step five involving me implementing my plan to fill out necessary paperwork to rent the apartment

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and get all of my utilities turned on. After one month in my new apartment, I proceeded with the final step by balancing my checking account to plan for the monthly bills. I created a monthly spreadsheet and considered taking on a roommate to help with some of the utility bills. If I had taken the time to go through all the decision-making steps properly I would have done things a little differently. I would have taken the time to consider all my solutions and weigh every option. I would have considered possibly taking a roommate who has furniture to help with the cost and find a cheaper unfurnished apartment. The next time I decide to move I plan to go through each step of the decision-making process carefully and weigh all my options before making any quick decisions.

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References
Bateman, T. S., & Snell, S. A. (2011). Management : leading & collaborating in a competitive world (9th ed.). Retrieved from The University of Phoenix eBook Collection database.