Question

Identify the five steps involved in the managerial decision-making process.

Short answer

Steps involved in the managerial decision-making process are defining the decision, identifying an alternative course of action, evaluating each alternative, selecting the preferred course of action, and the last one is analyzing and assessing the decision.

Step-by-step solution

Definition of decision making

Among the different alternatives, choosing the best one to achieve the organization's objectives is termed decision making.

Five steps included in the managerial decision-making

1. Define the decision:

In the first step of the decision making the task of the decision is identified by the company.

2. Identify alternative courses of action:

In the second step of the decision-making, different alternatives to making the decision are identified by the company.

3. Collect relevant information and evaluate each alternative:

In this step information related to the alternatives is collected by the company.

4. Select the preferred course of action:

In this step, the best option from many alternatives is selected by the

company.

5. Analyze and assess decision made:

In this step, the selected course of action is analyzed by the company.