Unit 2

Before you read the text, let us have a look at the following questions

1. Do you need steps to solve your problem?

2. If any, what is the first step you take?
3. How do you usually follow-up your first step?
4. Do you think your steps effective in giving solution to your problem?

STEPS IN THE DECISION PROCESS

One of the most important tasks a manager perform is decision-making. This
may be defined as the process of choosing a course of action (when alternatives are
available) to solve a particular problem. The steps listed below provide a simplified
framework of the ideal decision-making process:
Define Define Gather Develop Evaluate Choose Best
Problem Expectation Data Alternative Alternative Alternative
Step 1 Step 2 Step 3 Step 4 Step 5 Step 6

Figure 1

The first step, defining the problem, is perhaps the most difficult step. It
involves a careful analysis of a situation in order to state the problem and determine
its cause. For example, a factory may be experiencing low production (problem)
because the supervisor has failed to schedule the work shifts in the most efficient
manner (the cause).
Defining the expectation in Step 2 involves stating the result that is expected
once the problem has been solved. The expected result after solving the problem of
low production described above would be to increase the output of the factory.
Next, data about the problem are gathered. This information can be obtained
from various sources observations, surveys, or published researches. Many businesses
rely on computers to process, summarize, and report data. Having sufficient data that
are valid and reliable is necessary for Step 4.
Here the decision-maker develops feasible alternatives, or potential solutions
to the problem. Using the low production example, some alternatives might include:
(1) replacing the current supervisor; (2) providing the current supervisor with the
necessary information and training to schedule the work shifts more efficient, and (3)
creating incentives for workers, such as higher pay or time off, in order to increase
production.
In the fifth step, the decision-maker evaluates these alternatives in terms of the
expected result of the solution (which is to increase production) and limitations, such
as time and money. Alternative 1, replacing the current supervisor, does not guarantee
increased production, and it would involve training a new supervisor. Alternative 2,
providing additional training for the current supervisor, would be time consuming and
somewhat expensive, but would bring about increased production. Alternative 3,
creating worker incentives, may bring about increased production, but would be quite
expensive.
Finally, the decision-maker compares the alternatives and chooses the one that
has the best potential for providing the desired results. In the low production example,
the decision-maker decides to try providing the current supervisor with additional
training because this alternative should achieve the objective with the lowest
expenditure of time and money.
The decision-making process is followed by: (1) implementation of the chosen
alternative (putting it into action) and (2) evaluation of that alternative. If the
alternative achieves the desired result, it is known as the solution.

Business Concepts for English Practice

BARBARA TOLLEY DOWLING AND MARIANNE MCDOUGAL

Exercise 1
Answer the following questions about the decision-making process. The questions
which are marked asterisk (*) cannot be answered directly from the text.

1. What is decision-making?
Why does the definition include available alternatives?
2. What are the six steps of the ideal decision-making process?
3. Defining the problem involves two steps. What are they?
4. What is the expected result after solving the problem of low production?
5. In paragraph 8, what does the alternatives refer to?
6. Where can data be obtained?
7. What does the decision-maker do after obtaining data?
Why must the alternatives be feasible?
8. How does the decision-maker evaluate the alternatives?
9. Why was the second alternative in the problem of low production chosen?
Do you think it was the best choice? Why or why not?”
10. What follows the six steps outlined in the decision-making process?
Do you think evaluation is always necessary? Explain?