Decision Making

When a person is buying a home, there is more to it than just picking the home and getting the loan. Where to buy the home, what features are desired and how much you can afford are some things to consider. When I bought my home, I first made a list of the amenities I desired and also a list of the ones I could live without. I then took this list and compared it to homes that were in my price range and also the area I wanted to live in. Once I came up with a list of homes that fit the profile, I visited each and surveyed them for possible problems. This helped me narrow down the list. Eventually I was left with one home that had the amenities I wanted and the price range I was looking for in the area I wanted to live. The steps I took closely resemble the management decision making process.

Identifying the problem was simple; I wanted to buy a home. I created alternate solutions by outlining the things I wanted my home to have. I then analyzed those solutions by touring the homes that fit my criteria. Finally I made a choice and implemented it by buying the home. The one step I did not take at the time was evaluating the outcome. This was something that I could have done by researching home values in the area and the potential increase or decrease in value over time. This may have affected my decision at the time. If home values in the area I had chosen were steadily declining I may have decided to purchase my home in another area that had more stability or even more of a chance of appreciating quickly. Making a big decision requires much thought and careful analysis before making a decision.

Identify your problem, create and analyze solutions, make a choice and analyze the outcome of that choice. In management, these steps must be followed to be able to effectively manage a company and the team. Without taking these steps, the possibility of time wasting errors and profit loss are great. By initiating the decision making process, managers can view the problem from different angles and be able to come to an intelligent, well thought out decision.