Bankinggyan

  The decision-making process involves the following steps − Define the problem Identify limiting factors Develop potential alternatives Analyze and select the best alternatives Implement the decision Define the Problem The first step in the process of decision making is the recognition or identification of the problem, and recognizing that a decision needs to be taken. It is important to accurately define the problem. Managers can do this by identifying the problem separately from its symptoms. Studying the symptoms helps getting closer to the root cause of the problem. Identify Limiting Factors In order to choose the best alternative and make a decision every manager needs to have the ideal resources − information, time, personnel, equipment, and supplies. But this is an ideal situation and may not always be possible. A limiting factor is something that stands in the way of accomplishing a desired objective. Develop Potential Alternatives Recognizing the limiting factor in a given si