Week 4 Discussion 1: five steps involved managerial decision-making.-Sample Solution

Managerial Decision-Making Steps

Managerial decision-making refers to the procedure organizations establish to identify and resolve problems affecting their performance. The decision-makers must choose between various options based on their experience and available information. Schermerhorn and Bachrach (2020) observe that decision-makers can effectively make decisions by following five steps of the decision-making process. The first step involves identifying the objective. Decision-making commences with the determination of the goals and significance of the decision to be made. The decision-makers must evaluate various aspects of the objective, such as the problems it solves and why it’s necessary to take the decision (Schermerhorn & Bachrach, 2020). This allows for a comprehensive, objective analysis, including its advantages and disadvantages. Secondly, the decision-makers need to define the problem. This involves performing assessments to collect information about the issue. For example, a hospital receiving poor reviews must perform an internal evaluation to determine the cause of poor reviews, which could be poor services resulting from poorly trained staff.(Managerial decision-making Steps Essay-Sample)

Thirdly, Schermerhorn and Bachrach (2020) explain that decision-makers must identify alternative solutions to the problem. It involves evaluating the advantages and disadvantages of the decision to establish various options to choose from. During this step, decision-makers develop assumptions and hypotheses to define alternative solutions. Fourthly, the decision-makers must evaluate the identified alternatives (Schermerhorn & Bachrach, 2020). They analyze every aspect of the specified options by collecting relevant data on each of them. They also identify possible outcomes of the alternatives before selecting the one that suits their capacity to implement. For example, in the case of the poor hospital reviews above, the management can choose between hiring new highly trained staff or creating room for career development among the current team. Lastly, the managers must implement the selected alternative (Schermerhorn & Bachrach, 2020). The organization implements the chosen solution and constantly monitors it to ensure it progresses towards the expected outcome. (Managerial decision-making Steps Essay-Sample)

Reference

Schermerhorn, J. R., & Bachrach, D. G. (2020). Exploring management. (7th ed., pp. 73-77). Hoboken, NJ Wiley. ISBN: 9781119704157