Decision Making
Decision making is a part of everyday life, making good decisions is the key to being successful in life and in business. If I as an individual make a bad decision it most likely will only affect me, however if the leadership of a company make a bad decision the ramifications can affect many people. The key to making good decisions is to have a process for analyzing the problem or situation at hand. By going through the process and evaluating all possible solution the best course of action can be identified. There are six steps in making a decision. First one must identify the issue. Next all the relevant facts must be considered and understood. Third is to brainstorm possible solutions. Fourth is to compare the pros and cons of the proposed solutions. Fifth is to select the best possible solution to the problem. The final step is evaluate the decision and to ensure proper implementation. At times this process can be completed very quickly for simple decisions possibly in seconds. For more important decision one must really weigh the options and outcomes of making a particular decision. (1)
It is important that the correct person makes the decision. A firm should have people making decision based on their training and experience. For example someone who has no experience in business should not decide that their firm needs to heavily invest in an oversea facility in Thailand. It is crucial that the correct decision maker or makers be identified. More so when making business decision emotion should not play a role. That is why many companies do not allow spouses to report to each other. “Do not make any serious decisions because you are angry, hurt, depressed, desperate, or frightened.” (2) This could lead do a poor decision that has serious consequences going forward. (2)
