Phases Of Decision Making Essay

When a manager makes a decision related to a problem, it is considered as the organization's response to a problem. Hence a decision should be thought of as a means rather than an end. Every decision is considered as the outcome of a dynamic process which is influenced by multiple factors. In an attempt to study various stages in this dynamic process of decision-making, Herbert Simon, an expert on decision making has proposed three phases of decision-making which include intelligence phase, design phase, and choice phase [5]. Further, Rubenstein and Haberstroh [6] have refined the decision-making process by proposing five phases which include : recognition of problem or need for a decision, analysis and statement of alternatives, choice among

2 : Phases in the decision-making process [5].

Various phases of decision-making process presented in Figure 2 are more relevant for unstructured and semi-structured non-programmed decisions. Problems that occur infrequently are semi-structured and unstructured and a great deal of uncertainty is associated with the outcomes of various alternatives, require the managers to utilize all the phases decision-making process [5]. The various phases of the decision-making process, the problems involved therein, and the type of information systems required to furnish information to overcome these problems are discussed below :
(a) Intelligence Phase :
A problem is a difficult situation which demands a solution to overcome. In the organizational context, a problem exists whenever one faces a question whose answer involves doubt and uncertainty. A problem is remains vague at the initial stage of identification. In order to make it more specific and clear, problem formulation is required so that design and choice phases operate on the right problem. The manager in his role of a decision maker, study the problem to reduce the complexity by comparing the difference between desire and reality.

(b) Design Phase

However, all alternatives available for decision making will not be taken for detailed evaluation. The energy of managers is limited and psychologically most of them prefer to work on plans that have a good prospect of being carried out. Evaluation of various alternatives presents a clear picture as to how each of these contributes to the solution of the problem comparing likely outcomes of the various alternatives. Choice aspect of decision making is, thus, related to deciding the most acceptable alternative which fits with the organizational objectives. Since chosen alternative should be acceptable in the light of organizational objectives, the manager requires information tools that can keep track of the consequences, costs, and opportunities by each alternative generated at the design