Putting a decision into action includes conveying the decisions to the persons who will be affected by it and getting their commitment to it.
What determines the best choices?
The critical act of choosing the best alternative from among those enumerated and assessed. Since we determined all the pertinent factors in the decision, weighted them appropriately and identified the viable alternatives, we merely have to choose the alternatives that generated the highest score. In one case the decision maker would choose the Skoda Octavia Car. On the basis of the criteria identified, the weights given to the criteria and the decisions maker’s assessments of each vehicle’s achievement on the criteria, the Skoda scored highest (224 points) and, thus became the best alternative.
Although the choice process is completed in the previous step, the decision may still fail if it is not implemented properly. Therefore, this step is concerned with putting the decision into action. Decision implementation includes conveying the decision to those affected and getting their commitment to it. Groups or committees can help a manager achieve commitment. The people who must carry out a decision are most likely to enthusiastically endorse the outcome if they participate in the decision making process.
What is the last step in the decision process?
The last step in the decision making process (step 8) appraises the result of the decision to see whether it has corrected the problem. Did the alternative chosen in step 6 and implemented in step 7 accomplish the desired result?
Making Decisions: The Rational Model
Rational: Describes choices that are consistent and value maximizing within specified constraints.
Managerial decision making is assumed to be rational in that managers make consistent, value maximizing choices within specified constraints. In this article, we take a close look at the underlying assumptions of rationality that determine how valid those assumptions actually are and then review the role of creativity in decision making.
A decision maker who was perfectly rational would be fully objective and logical. He or she would define a problem carefully and would have a clear and specific goal. Moreover, this step in the decision making process would consistently lead toward selecting the alternative that maximizes that goal. Exhibit summarizes the assumptions of rationality.
Assumptions of Rationality:
Rational Decision Making leads to,
1) The problem is clear and unambiguous
2) A single well defined goal is to be achieved
3) All alternatives and consequences are known
4) Preferences are clear
5) Preferences are constant an stable
6) No time or cost constraints exist
7) Final choice will maximize economic payoff
Certainty: The implication that, in making a decision, the decision maker knows the outcome of every possible alternative.
Risk: The probability that a particular outcome will result from a given decision.
Remember that the assumptions of rationality often do not hold true, because the level of certainty that the rational model demands rarely exists. That is, certainly implies that a manager can take an accurate decision because the outcome of every alternative is known. In the real world, however, most managers must try to assign probabilities to outcomes that may result. We call this process dealing with risk. When decision makers do not have full knowledge of the problem and cannot determine even a reasonable probability of alternative outcomes, they must make their decisions under a condition of uncertainty.
Rather than depending on other retailers to sell apple products, apple CEO Steve Jobs envisioned a buying experience as good as our products when deciding to launch Apple retail stores. Job’s creativity store design and service includes offering customers an interactive buying experience and the Genius Bar, where a technical support staff provides tips and advice on product usage, answers customers and repairs products when necessary.