Chapter 25, Problem 1DQ

To determine

Concept Introduction:

Decision making and strategies play important role in the management. The business deals with structured and non-structured types of problems; hence there may be structured or non-structured decision to be taken by the managers. Structured decisions are taken for the predefined and estimated situations and non-structured decision are taken for unknown situations.

To Indicate:

The five steps of managerial decision making process

Answer to Problem 1DQ

The five steps of managerial decision making process are as follows:

1. Determination of the Objective
2. Identification of the Problem
3. Identification of Possible Alternative Solutions
4. Evaluating Alternative Courses of Action
5. Implementation

Explanation of Solution

The five steps of managerial decision making process are explained as follows:

1. Determination of the Objective: The first step of the managerial decision making process is to identify the objective of the decision making.
2. Identification of the Problem: In the second step of the managerial decision making process, the problem is identified.
3. Identification of Possible Alternative Solutions: In the third steps of the managerial decision making process, the possible solutions for the problem are identified.
4. Evaluating Alternative Courses of Action: In the fourth step of the managerial decision making process, all the possible solutions are evaluated and one appropriate solution is selected.
5. Implementation: In the last step of the managerial decision making process, the decision is implemented and results are evaluated.