Essential Principles of Effective Decision Making
Definitions of Decision Making
Melinkof's Definition
Defines the faculty of choosing the best and most convenient potential alternative from a set of options.
Terry's Definition
Defined as one or more choices of possible solutions.
Types and Strategy
Types of Decisions
Empirical Decisions
Decisions based on observation or experience.
Strategy and Tactics for Large Decisions
Large decision projections involve finding available resources between decisions that are the same as others. These decisions involve the life of an enterprise, a government, or any other institution.
Certainty and Strategic Decisions
The degree of certainty influences a large majority of the more strategic decisions.
Rules for Decision Making
Intuition (Empirical Rule)
It is recommended not to have a subjective bias that makes the decision doubtful.
Fact-Based Decisions
This is one of the most recommended approaches. It means basing decisions on certain forecasts. It reveals the use of a methodology influenced by rationality. These are real decisions that emphasize actions and activities based on working with reality.
Key Phases of the Decision Process
Phase 3: Search for Alternative Solutions
Once the problem has been analyzed, it becomes necessary to seek a solution. Do not limit the search to only one alternative. This avoids falling into extreme positions and allows for filling the gap between opposing viewpoints.
Selecting the Best Alternative
The option selected must represent the best solution to the problem, surpassing other alternatives considered.
Phase 5: Converting Decision into Effective Action
Turning the successful decision into effective action.
Phase 6: The Essentials (Action Validation)
This phase gives content and value to the others. It is useless to make a decision if the solution is not implemented through action; solutions alone have no value.
Bases for Decision Foundation
Experience
Deciding based on a situation that has already been encountered and is therefore acknowledged.
Authority
Authority will have no effect as a basis unless its inherent value is converted into tangible action or results.
Problem Solving and Decision Process Phases
The problem-solving process requires defining the problem and searching for necessary decisions. The recommended method emphasizes determining the effect, searching for essential conditions, and developing the phenomenon.
Problem Analysis
This requires studying the problem, discovering all its contours, and then establishing the facts.
Presentation and Review
Present the content to the relevant parties so they may understand or learn about it, empowering them to ask any questions related to the problem.