Introduction
The business world is the specific sphere where people are to make decisions. There are a great many different techniques and methodologies in decision-making. The better method is used, the better decision is made and this decision is sure to influence the whole working process. Taking the scenario of making a decision in paradise called Kava, the steps for the decision-makers are going to be discussed with thorough research of the evaluation steps, that is implementation and measurement. To the point, the situation related to the Horizon House Inc. required from Alex and Nik the concentration of the high level and consideration of all the information that is necessary for making the final decision, whether to use the Kava area for business or due to high risks refuse from the affair.
Steps for decision making
Three central sections identify the basic steps for decision-making. Before the evaluation and introducing the final decision, several other steps should be completed to be sure that the decision is strong. First of all, the framing of the problem should be done. Alex and Nik are to identify the problem. There are a number of those, namely, natural disasters (like tsunami, typhoons, tornadoes, floods, fires, volcanic eruptions, and earthquakes), health problems (e.g. HIV/AIDS and avian flu), and the disasters considered to be the results of human activities (petroleum spill and cases of terrorism). The next step is the definition of the criteria and objectives. This step helps identify those problems which can have a direct impact on the company’s future activities. The evaluation of the effect of the problem is going to be crucial in Alex’s and Nik’s realization of whether the Kava area is a paradise for company’s activities or another place should be searched for.
The second section is going to be really helping in the issue. Alex and Nik should come through the following four steps to make the decision: (1) identification of the causes of the problem, (2) the search for the alternatives to combat those, (3) the evaluation of the impact of those alternatives on human life in the area and on the business running, and (4) making a decision.
Still, this decision is not final as to make the final one, Alex and Nik are to come through the other two steps, implementation of the decision and measuring impacts. The evaluation of the final decision is the step that is extremely important as it allows both to implement and measure the made decision, and check the results. It is really important to be aware of the further results of the decision before using it in practice. The possibility to predict the results is a responsible work that should be completed perfectly. The implementation and measurement are two steps of the evaluation, the third section of the decision-making process. To make sure that the decision is correct and all the pros and cons are weighed, those two final steps should be perfectly completed.
Final decision: implementation
Making the final decision, the implementation of the chosen alternatives should be accomplished. The best way to decide whether the decision is really correct, is to provide the implementation into action. The decision-makers are to understand the reasons for the choice they have made. The implementation planning should be properly prepared and provided, according to Bateman and Snell (2007), in some steps. First, the decision-makers should define the real estate of the things when the decision is in action. How is it going to look like? Second, in chronological order of the whole scheme of the actions should be pointed to achieve a complete operational decision. Third, the necessary resources and activities should be listed’ they are required for the accomplishment of each step. Fourth, the time necessary for each step provided should be estimated. Fifth, to make sure that the work is done properly, each step of the made decision should be followed by the person. It is obligatory to “assign responsibility for each step to specific individuals” (Bateman and Snell, 2007, p. 85).
It is crucial to consider the potential problems and opportunities while completing this step. It is important to know that the decision is not going to be smoothly provided and the challenges should be evaluated. The readiness to combat the potential problems and to “seize on unexpected opportunities” is crucial in the prediction strategy on the implementation stage of the final decision making.
Final decision: measurement of the impacts
The final step in the evaluation process of the decision-making is the measurement of the impact of the decision on the manufacturing procedure of the company. It is crucial to know whether the time and efforts spent on the future implementation of the decision into action are not wasted. The final evaluation of the decision is the most important step as in case when some mistakes were made in the past, they may be corrected here. If they are not, the decision will be used in practice and in case of some defects occurrence the whole process may suffer.
The decision-makers should measure the final decision within three parameters, namely time, cost, and performance. All those mentioned parameters impact the decision greatly, and it is great if the issue under consideration remains in balance with all those. Still, in practice, it is not so easy to make a decision that is optimal in time, cost and performance. One of the parameters is always in privilege (Langdon, 2001).
It is crucial to create a blank for the impact measurement at this stage of the decision evaluation. The decision-makers should mention all the factors that influence the working process. It is significant to keep in mind three main criteria following which the decision should be evaluated: financial, technical, and practical ones. The words ‘maximize’, ‘minimize’, and ‘optimize’ are those which should be essential while evaluating and measuring the chosen criteria (Langdon, 2001). Different aspects that impact the decision implementation should be measured and the conclusion provided whether those impacts are essential or not and how those influence the decision. The negative impacts should be more thoroughly measured. It is accepted that it is impossible to reach the ideal condition, still, it is obligatory to tend to it. It can be useful to formulate the ideal criteria and tent to it with the decision that is made. That is the final stage for the decision-making that allows the state whether the made decision is appropriate or the alternatives should be considered.
Conclusion
In conclusion, it should be mentioned that there are nine steps, in total, that separates an identification of the problem from its final decision, that is, (1) identification of the problem, (2) criteria, objectives and goals defining, (3) evaluation of the problem effects, (4) identification of the causes of the problem, (5) framing of the alternatives for the problems combat, (6) evaluation of the impacts of the alternatives on the problem, (7) the decision making, (8) decision implementation, and (9) impacts measurement. The two last steps are crucial for making the final decision. It is important to remember that when some mistakes take, the final evaluation is created for the identification of those mistakes and for either correcting those or refusing the decision. It is a must to remember that before making a final decision it should be implemented into action and some impacts should be measured.
Reference List
- Bateman, T.S., & Snell, S.A. (2007). Management: Leading and collaborating in a competitive world. New York: McGrawn-Hill.
- Langdon, K. (2001). Smart things to know about decision making. New York: John Wiley & Sons.