Scribd
Upload
96 views2 pages

Decision-Making Process 1.D 2.A 3.A 4.D 5.E 6.M 7.I 8.E: Iagnose Roblem

The document outlines an 8-step decision-making process that includes: 1) diagnosing the problem, 2) analyzing the environment, 3) articulating the problem or opportunity, 4) developing viable alternatives, 5) evaluating alternatives, 6) making a choice, 7) implementing the decision, and 8) evaluating and adapting the decision results. It emphasizes that properly identifying and diagnosing the problem is key to solving it, and analyzing the internal and external environment is important to consider constraints when making decisions.

Uploaded by

Ann Olerie Bautista
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
96 views2 pages

Decision-Making Process 1.D 2.A 3.A 4.D 5.E 6.M 7.I 8.E: Iagnose Roblem

The document outlines an 8-step decision-making process that includes: 1) diagnosing the problem, 2) analyzing the environment, 3) articulating the problem or opportunity, 4) developing viable alternatives, 5) evaluating alternatives, 6) making a choice, 7) implementing the decision, and 8) evaluating and adapting the decision results. It emphasizes that properly identifying and diagnosing the problem is key to solving it, and analyzing the internal and external environment is important to consider constraints when making decisions.

Uploaded by

Ann Olerie Bautista
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

DECISION-MAKING PROCESS

1.DIAGNOSE PROBLEM
2.ANALYZE ENVIRONMENT
3.ARTICULATE PROBLEM OR OPPORTUNITY
4.DEVELOP VIABLE ALTERNATIVES
5.EVALUATE ALTERNATIVES
6.MAKE A CHOICE
7.IMPLEMENT DECISION
8.EVALUATE AND ADAPT DECISION RESULTS

DIAGNOSE PROBLEM
IF A MANAGER WANTS TO MAKE AN INTELLIGENT DECISION, HIS FIRST MOVE MUST BE TO IDENTINFY THE PROBLEM. IF THE
MANAGER FAILS IN THIS ASPECT, IT IS ALMOST OMPOSSIBLE TO SUCCEED IN THE SUBSEQUENT STEPS. AN EXPERT ONCE SAID
“IDENTIFICATION OF THE PROBLEM IS TANTAMOUNT TO HAVING THE PROBLEM HALF-SOLVED.”

TO MAKE AN INTELLIGENT DECISION,THE MANAGER’SFIRST MOVE MUST BE IDENTIFY THE PROBLEM.


AN EXPERT SAID “IDENTIFICATION OF THEPROBLEM ISTANTAMOUNT TO HAVING THE PROBLEM SOLVED.”

WHAT IS A PROBLEM?
A PROBLEM EXISTS WHEN THERE IS A DIFFERENCEBETWEEN ACTUAL SITUATION AND A DESIRED SITUATION.
FOR INSTANCE, THE MANAGEMENT OF A CONSTRUCTION COMPANY ENTERED INTO A CONTRACT WITH ANOTHER PARTY FOR
THE CONSTRUCTION OF A 25-STOREY BUILDING ON A CERTAIN SITE.
THE ACTUAL SITUATION OF THE FIRM IS THAT IT HAS NOT YET CONSTRUCTED THE BUILDING. IN THIS CASE, TGE ACTUAL
SITUATION IS DIFFERENT FROM THE DESIRED SITUATION. THE COMPANY, THEREFORE, HAS A PROBLEM AND THAT IS, THE
CONSTRUCTION OF THE 25-STOREY BUILDING.
ANALYZE ENVIRONMENT
THE ENVIRONMENT WHERE THE ORGANIZATION IS SITUATED PLAYS A VERY SIGNIFICANT ROLE IN THE SUCCESS OR FAILURE OF
SUCH ORGANIZATION. IT IS, THEREFORE, VERY IMPORTANT THAT AN ANALYSIS OF THE ENVIRONMENT BE UNDERTAKEN.

THE OBJECTIVE OF ENVIRONMENTAL ANALYSIS IS THEIDENTIFICATION OF CONSTRAINTS, WHICH MAY BE SPELLEDOUT AS EI


THER INTERNAL OR EXTERNAL LIMITATION.EXAMPLE OF INTERNAL LIMITATIONS ARE AS FOLLOWS:

INTERNAL LIMITATIONS
1.LIMITED FUND AVAILABLE FOR THE PURCHASE OFEQUIPMENT.
2.LIMITED TRAINING ON THE PART OF EMPLOYEES.
3.ILL-DESIGNED FACILITIES.

EXTERNAL LIMITATIONS
1.PATENTS ARE CONTROLLED BY OTHER ORGANIZATIONS.
2.A VERY LIMITED MARKET FOR THE COMPANY’S PRODUCTS AND SERVICES EXISTS.
3.STRICT ENFORCEMENT OF LOCAL ZONING REGULATIONS.

WHEN DECISIONS ARE TO BE MADE, THE INTERNAL AND EXTERNAL LIMITATIONS MUST BE CONSIDERED. IT MAY VE COSTLY,
LATER ON, TO ALTER A DECISION BECAUSE OF A CONSTRAINT THAT HAS NOT BEEN PREVIOUSLY IDENTIFIED.
AN ILLUSTRATION OF FAILURE TO ANALYZE THE ENVIRONMENT IS AS FOLLOWS:

COMPONENTS OF ENVIRONMENTTHE INTERNAL ENVIRONMENT REFERS TO ORGANIZATIONALACTIVITIES WITHIN THE FIRM T


HAT SURROUNDS DECISION-MAKING.
THE EXTERNAL ENVIRONMENT REFERS TO VARIABLES THAT AREOUTSIDE THE ORGANIZATION AND NOT TYPICALLY WITHIN T
HESHORT-RUN CONTROL OF TOP MANAGEMENT.

ORGANIZATIONAL ASPECTS
MARKETING ASPECTS
PERSONNEL ASPECTS
PRODUCTION ASPECTS
FINANCIAL ASPECTS

DEVELOP VIABLE ALTERNATIVES


1.PREPARE A LIST OF ALTERNATIVE SOLUTIONS.
2.DETERMINE THE VIABILITY OF EACH SOLUTIONS.
3.REVISE THE LIST BY STRIKING OUT THOSE WHICH ARE NOT

You might also like