Guidelines for Making Effective Decision
Any decision can be made effective if decision-making process is followed properly. However, to make a decision effective, managers should take care of certain variables affecting their decision making and its implementation. The attempt should be to make a realistic decision rather than attempt an ideal decision. The success of an executive depends on his ability to make the right decision at the right time and to pursue its effective implementation. The following guidelines ae offered as an aid to effective decision making.
1. Define the goals
The decision maker should define the goals that he seeks to achieve by making a decision. The goal of a decision is derived from his objectives which in turn are a part of the total organizational objectives. Thus, the goal of a decision should be compatible with and contribute to larger goals.
2. Ensure that the Decision Contributes to the Goal
Once the goal has been determined, it becomes the criterion for making the decision, as well as for evaluating its results. Often, an executive seeks to achieve not one but more than one goals through a decision. For example, the goal of a marketing decision may be not only to increase the sales volume but also increase the profit margin. These goals may not always to compatible. It requires the decision maker to balance the conflicting goals in such a manner that he can achieve all the goals simultaneously.
3. Adequate information
Information is the life blood of an organization because all decisions are based on this. More is the quantity of reliable information, higher is the validity of decision. Therefore, every aspect of decision should be backed by sound and adequate proofs.
4. Involve subordinates in Decision Making
Involvement of subordinates in decision making process serves many purposes. It improves the quality of the decision, particularly if the decision maker does not possess all the special abilities required for making a particular decision. The most important stage at which subordinate’s participation can enhance the decision quality is the stage of development and evaluation of alternative solutions to problems. Their participation can bring not only new insights to the problem, but also elicit their commitment to implement the decision. Those who participate in making a decision tend to become ego involved in it, and thereby committed to its successful implementation.
A decision to be effective must be at proper time. A delay in decision making may result into loss of opportunities in this fast-changing environment. In fact, one of the reasons for slow growth of organizations is that they have not been able to make fast decisions, particularly the strategic ones. Therefore, decisions must be made within the specified time.
6. Evaluate the results
The purpose of a decision is to accomplish some goal which will not be attained without it. The results of the decision should, therefore, be evaluated in terms of its predetermined goals.
7. Be Flexible
The decision maker should adopt a flexible approach not only in making the decision but also after the decision has been put into implementation. If it is not yielding the desired results, he should modify, discard or replace it with another decision which may produce better results.