5 Steps in Decision Making Process

5 Steps in Decision Making Process in Management

(Last Updated On: April 18, 2021)

The decisions that seem to be the most difficult are those that require a deep level of thought. There are 5 crucial steps in decision making process to smoothy run the business. Examples of difficult decisions include where to go to college, what career path will be best, and / or get married or start a family. These kinds of decisions are difficult because they are life-changing decisions; They are who we are and they shape our future. This article will be describing  the 5 steps in decision making process a business undergo.

Making good decisions is a method that needs to be learned. This is not something that we are born with, but only a step-by-step process that is usually determined from life experience. Most adults know that experience can be expensive, ineffective teachers that teach bad habits rather than good; And decisions can obviously vary from one situation to the next, so the experience of making an important decision is often of little or no use when another problem arises.

5 steps in decision making process

When making decisions, many steps can be taken; However, there are only five steps to consider when making good decisions. These steps are as follows:

Step 1: Identify your goals

One of the most effective decision-making strategies is to target your goals. Does this mean identifying the purpose of your decision by asking yourself what the problem really is? And why does this problem need to be solved?

Deciding what is most important to you will help you make good decisions. When you know the reason for making a specific decision; It will serve you better in staying with it and protecting it.

Step 2: Gather information to weigh your options

When making good decisions it is best to gather the necessary information directly related to the problem. Doing this will help you better understand what to do to solve the problem, and help you create ideas for possible solutions.

It is good to make a list of every possible option when collecting data; Even those that may initially seem silly or unrealistic. You should always look for people’s opinions that you trust or talk to experts and professionals, as this will help you come up with different solutions when considering all the options for the final decision. You will want to gather as much resources as possible to make the best decision.

5 steps in decision making process

Step 3: Consider the results

This step can be just as important as the first step as it will help you decide how the final decision will affect yourself and / or the others involved. In this step, you ask yourself what the outcome of your decision might be. How will this affect you now? And how will this affect your future?

This is an important step because it allows you to review the benefits and cons of the various options listed in the previous step. This is also important because you want to be comfortable with all your options and the likely outcome of any one you want.

Step 4: Make your decision

Now that you have identified your goals, gathered all the necessary information and weighed the results, it is time to make the time and execute your final decision. Have to keep

Although you may still be somewhat reluctant about your final decision, you need to consider how it feels. Ask yourself, does this look right? And is this decision most effective for you now and in the future? When you answer these questions, you should feel good about the result.

Step 5: Evaluate your decision

Once you have made your final decision and have it implemented, it is important to evaluate the decision and what steps you have taken to ensure it is implemented. This final step is probably just as important as the first step, if not more important, as it will help you improve your decision making skills for future problems. This step is also fundamental because you may have to look for new information and make some changes along the way.

Remember, this step requires some patience, and it can also encourage perseverance. Why? Because it can take some time to see the final result. If the first decision doesn’t work, you can go back to step two and choose another option

Always looking for and anticipating unexpected problems will help to reduce unnecessary stress when a problem arises. Although these five steps can help facilitate the decision-making process, there are some common deficiencies that you must take into consideration. Consider these:

Misrepresenting the problem

Many times the problem will be obvious; However, there may come a time when identifying the underlying problem is not so easy. When this issue arises, figuring out exactly what it is and where your efforts need to focus will save you a lot of time and energy in the long run.

There is a single source

When considering the consequences, you must be open to a wide range of options for the best solution. If you rely on a single source of information, this can become a problem because one source may not be reliable, or may not be fully inline with the problem; Thus changing your chances of making the best decision.

There are many sources

Having different sources is usually not a bad thing; Not every circumstance, however. Collecting as much information as possible can be very helpful in reaching conclusions, but overloading information can leave you confused and confused and prevent you from following your insights. Remember, trust in your gut instinct is the key to good decision making.

5 steps in decision making process

Review the results

You should have taken care to weigh all the legitimate options when making a decision and executing your plan. Making decisions based on what may or may not result in the outcome will not help you solve the problem.

Bad time

Time can be useless friends. Sometimes it’s good, and sometimes it’s not. When making big decisions, it is beneficial to take your time to make the best choice from your options. However, understanding the time process is important because many times it is best to postpone the decision and at other times delaying the response can lead to more problems. There are also times when making a quick decision is beneficial because it gives you more time to make the necessary changes when a problem arises.

Decision making process: A deeper dive

There are 5 steps in the customer decision-making process that identify a need or a demand, the process of searching, comparing, selecting a product or service and evaluating a decision.

Problem recognition

Most decisions start with some kind of problem. The customer develops a demand or a desire that they want to remain satisfied. The consumer feels that something is missing and needs to be resolved in order to return to normal feeling. If you can determine when your target population develops or wants these needs, this will be an ideal time to advertise to them. For example, they have run out of toothpaste and now they have to go to the store and get more.

The search process

Most of us are not experts in everything around us. At the exploration stage we research for products or services that can meet our needs or wants. Search engines have become our primary research tool for answers. This is an instant and easy way to find what you are looking for.

Don’t forget about real people too. Our friends and family all have different experiences and can give us recommendations. In most cases, recommendations are preferred from real people rather than from search engines. You then have a reason to trust you more with the people closest to the computer program.

You may also have past experiences that help you solve your problem. You may have had a life experience in the past that will help you make the right purchase decision. Over the years, you will also learn what you can decide by choosing how to solve things.

At this stage, you are also starting to manage your risk. To help you decide, you can create a pro’s vs Con’s image. People often do not want to regret making a decision so it may be worthwhile to put in extra time to manage the risk. People remember bad experiences even better, keep this in mind.

Evaluation of alternatives

Once customers have determined what will satisfy their wants or needs, they will start looking for the best deal. It can be based on price, quality, or other factors that are important to them. Customers read many reviews and compare prices, ultimately choosing one that satisfies most of their parameters.

Election Stage

After detailing all the criteria for a decision, customers will now decide what to buy and where. They have already taken into account the risk and are specific about what they want to buy. They may have previous experience with the right decision or they have become self-conscious about advertising this product or service and would like to try it out.

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Assessment of decisions

Once purchased, does it meet the need or want? Is it above or below your expectations? The goal for every marketer is not for a one-time customer but for a repeat customer. Customer remorse is a bad experience and your brand perception can be forever tarnished. On the other hand, a great experience can take a brand loyal customer who can even be a brand publicist for you.

In short we all have to make many decisions throughout our daily lives. Some of these decisions require a little effort, others require more time and deep thought before coming to a final solution. Remember, there are five primary steps to making good decisions. Why these five ideal numbers? Because a significant part of decision making skills is understanding and knowing a common strategy; And practice that strategy regularly.

When one side has more steps than we can believe, most people either forget a step, or mistakenly discover the steps to take. If you follow these five steps and also remember the common issues addressed earlier, you will be well on your way to making good decisions for yourself.

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