Decision-making is primarily a mental act. Whether it is about investing in new technology or choosing the venue for the next corporate outing, every decision requires careful analysis.
Arriving at the right decisions can ease the management process. A manager who is adept at decision-making techniques is bound to succeed.
Techniques Of Decision-Making
Decision-making is a step-wise process. There are certain highly effective as well as systematic approaches that can help us in taking the right decisions with great consistency. While there is nothing that can guarantee error-free decision-making, some decision-making methods can reduce the likelihood of making poor decisions.
Let’s go ahead and take a look at them:
In this method, decision-making is an executive power, and the decisions are taken by a central authority. This is an authoritative or dictatorial method as it doesn’t necessarily involve the opinion of other stakeholders. One of the major drawbacks of this method is ignorance about alternate options or opinions.
At the same time, this is also the fastest and clearest decision-making process as it doesn’t involve conflicts and discussions with other people. This decision-making technique is beneficial in emergencies when there is not enough time to hold discussions or undertake lengthy analysis or review processes.
Consultation is the commonest among all the decision-making techniques for taking long-term decisions. Under this technique, the decision-maker seeks inputs from others and considers them diligently, but the eventual power of decision remains with her.
It usually takes longer when you apply this technique compared to the time the command decision-making methods as it involves taking the opinions of multiple people and in-depth evaluation and discussions. This process makes others feel valuable as it takes into account their opinions. It can do wonders for employees’ satisfaction and loyalty as they would feel involved with the decision-making process even though the final decision is not taken by them.
Voting is considered one of the most democratic techniques of decision-making in management. During this process the available options are brought to the notice of all group members and each action is deliberated upon. Once the discussions are complete, the present members vote in favor of the option they find most suitable. The option selected by the majority of the voters is regarded as the final decision.
Voting is the preferred decision-making method among committees, boards of directors, or senior company executives. Voting techniques of decision-making in management are time-bound which ensures that the process does not drag for too long.
Brainstorming is among the various techniques of decision-making that proves beneficial when there are no clear options in sight. Under this technique, all group members get together to find options through discussion and debate.
Decisions related to strategy, policy-making, laying down of rules and procedures and operations usually involve a lot of brainstorming. This is one of the lengthier processes of decision-making as there are usually a lot of ideas and differences of opinions that have to be overcome before a final decision is taken.
This is easily among the best decision-making methods while going for an acquisition or a major purchase. Under this technique, businesses undertake a systematic evaluation of all options available to them. Factors such as cost, return on investment, quality, performance, and skill required, among other relevant points, get evaluated.
Suppose a company needs to buy a fleet of vehicles for transporting its employees safely. Various vehicle makers will submit their proposals which will then be evaluated on factors such as comfort, mileage, safety, number of passengers, and driving ease.
Among all the decision-making techniques, the consensus method is the most difficult and time-consuming. In this process, the group holds several rounds of discussions until everyone unanimously agrees upon a decision.
Since this is one of those decision-making methods that requires everyone to overcome their differences and decide in favor of one option, it often drags on endlessly without any result.
Barring scenarios where the decision affects all members of the group directly and they are all equal stakeholders in the decision, this is among the techniques of decision-making in management that should be rarely used.
Various techniques of decision-making can help us in becoming effective decision-makers. Harappa Education’s Making Decisions course is designed to empower and familiarize you with good decision-making skills. The course delves into the different stages of decision-making and tells you the different techniques of decision-making.
It is a life-enriching online course that offers you the option of self-paced learning and certification that will add an impact to your profile. So get going and make a good decision today!
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