Business & Marketing

Decision Making

Decision-making is an act where one or more alternates to a situation are explored and a choice is decided.  Decision-making is the heart of all management functions.

The rational decision-making model is a series of steps that managers often follow to make logical, intelligent, and well-founded decisions.  The steps are sometimes referred to as the 7 D’s.

  1. Define the situation
  2. Describe and collect needed information
  3. Develop alternatives
  4. Develop agreement among those involved
  5. Decided which alternative is best
  6. Do what is indicated
  7. Determine whether the decision was a good one, and follow up

A few of the tools and techniques that can be utilized are:

  •  Brainstorming: Coming up with as many solutions to a problem as possible in a short period of time with no censoring of ideas
  •  PMI: Listing all the pluses of a solution in one column; all the minuses in another, and the implications in a third column

AcqLinks and References:

  • [1] Nickels and McHugh, “Understanding Business” McGraw-Hill Irwin 2010

Updated: 7/24/2021

Rank: G

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