Question

Three of the steps in management's decision process are: (1) Review results of decision. (2) Identify the problem. (3) Make the decision. The steps are performed in the fol- lowing order. a. (1), (2), (3). c. (2), (1), (3). b. (3), (2), (1). d. (2), (3), (1).

Short answer

The correct order is option d: (2), (3), (1).

Step-by-step solution

Understanding the Steps

First, understand the meaning of each of the steps in the management's decision process: 1. 'Identify the problem': Recognizing there is an issue that needs to be solved. 2. 'Make the decision': Choosing the best course of action among alternatives. 3. 'Review results of decision': Evaluating the outcome of the decision to see if it solved the problem.

Logical Order of Steps

Consider the logical order in which these steps should occur. Typically, a problem must be identified first (Step 2: Identify the problem), then a decision must be made to address this problem (Step 3: Make the decision), and finally, the results of this decision need to be reviewed to ensure that the problem is resolved (Step 1: Review results of decision).

Matching with Options

Now match the logical sequence from Step 2 (2, 3, 1) with the given options: - Option d: (2), (3), (1) matches this logical order.

Key concepts

Decision Making Steps

The process of decision-making in management typically involves a few essential steps that guide individuals through taking effective action. These steps confirm that decisions are made systematically and logically. A clear order ensures that decision-makers have a structured approach to solving problems.

Initially, decision-makers have to identify the problem, which is crucial because it sets the stage for all subsequent steps. Recognizing and understanding the issue is the foundation upon which solutions are built. Once a problem is clearly defined, it establishes the context for making choices.

After identifying the problem, the next step is to make a decision. This involves considering various alternatives and assessing them to come up with the best possible solution. It requires careful analysis and may involve evaluating the pros and cons of each option.

Lastly, the results of the decision need to be reviewed. This step is about checking if the decision has effectively resolved the initial problem. It is an evaluation process that helps in understanding whether the outcomes meet the expectations set during the decision-making phase. Each of these steps ensures a logical flow and provides a framework to improve the decision-making process.

Problem Identification

Problem identification is the first and probably the most critical step in the decision-making process. Without correctly identifying the problem, all further efforts may go in vain. It involves acknowledging that there is an issue and knowing its nature and scope.

Here are some tips for effective problem identification:

• Observe and analyze the situation to find discrepancies or issues needing attention.
• Gather data and feedback from relevant sources to have a comprehensive view of the problem.
• Define the problem clearly, with precise language to avoid misunderstandings.

By having a well-defined problem, decision-makers can focus on targeted solutions, saving time and resources later on. It's also important to periodically revisit and refine the problem statement as more information becomes available.

Evaluation of Decision Outcomes

Evaluating the outcomes of a decision is the final but vital step in the decision-making process. This retrospective analysis helps in understanding whether the decision effectively solved the problem and what lessons can be learned for the future.

This evaluation typically covers several aspects:

• Assessing whether the outcomes align with the original goals and objectives.
• Collecting and analyzing feedback from stakeholders impacted by the decision.
• Learning from mistakes or unexpected results to inform future decisions.

Effective evaluation involves both quantitative and qualitative measures. These insights can lead to better decision-making processes in the future by highlighting what works and what doesn't, ultimately driving continuous improvement.