Every organization needs a manager that is able to make the right choices because there is a very thin line between success and failure. Every decision counts and every time a manager makes the right decision, all levels of the organization are affected and profitability will increase. So how can a manager make effective decisions that will enhance the overall profitability of the company? There are seven steps a manager needs to be aware of.
The first step is to identify the cause of the problem. For example, a manager needs to know the reason why the sales are decreasing. After the problem has been identified, it is time to identify the decision criteria. This means that the problem is because of lack of computers, the manager needs to know the different aspects of what to look for in a computer. Some of the considerations he can look into include the price, the warranty, the screen size and the reliability of the computer.
Meanwhile, the second step in decision making is allocating weight to the considerations found in step one. So if the criteria include price, warranty, screen size and reliability, the manager should know which among these aspects is the most important. For example, if the most important criteria is price then the manager needs to give it a score of 10 and then give the appropriate score to the remaining criteria to determine what kind of computer to buy.
Then the third step is developing the alternatives. In this step, the manager find out the different brands that is available in the market to come to the best decision for the organization. The fourth step is the analysis of the alternatives. Basically, a manager needs to look at the features that can be found in each of these brands. The fifth step then is the selecting from the alternatives. After looking at the different features, the manager can now select the best computer model that will suit the needs of the organization.
The sixth step in the decision making process is the implementation of the alternative. The concept behind this step is conveying the decision to all members of the organization that are affected by the decision. In the case of our example, the manager should inform the members that they will be using computers and that training will be provided if necessary. This leads us to the last step in the decision making process which is to evaluate the effectiveness of the decision. The manager needs to know if the organization is actually better off after the computers had been introduced and if the problem in step one still exist, then analyzing what went wrong in this endeavor is important to be able to make more effective decisions in the future.
The Decision Making Process
Do we understand the advertising and how the market works? When you go to the supermarket to by shampoo, what dictates what we buy? There are over 50 different choices, which one do you buy? You don't have time to process all the information, analyze ingredients, or figure the cost per ounce. Why do we make the decision we do.
Does it just feel right? Is it a past commercial you saw, the color combination on the bottle, the one your mother bought, the one on sale, or did you pick the one that felt right. Many times we really don't know why we buy. For most of us we buy on emotion and figure out later (logically) why we bought it. When you ask someone why they bought a BMW, you will hear things like, top quality car, high resale value, performance. Now think about it ? do you really think that is why they bought that car? We are not aware and cannot articulate why we buy.
Eighty percent of all new products or services fail within six months. Think about it. Only 2 out of 10 products make it in today's market. We know companies spend billions of dollars on research. They talk to consumers and they like the idea and the product and say they will buy ? but they don't. In one study, consumers were shown a kitchen appliance and 60% of them said they were very likely to buy a kitchen appliance in the next three months. Here is the challenge, only 12 percent actually bought the appliance. What happened? When they were asked why they did not buy, they could not explain it. Brain has separate structures for processing logical and emotional reasoning
Even in blind taste tests people say they like A over B, but when the see the actual product their opinions change. All consumers know the store brand and the national brands are identical, (medication) however when their symptoms are severe they buy the more expensive national brand. We know when we see a product for $9.99 it is the same as $10.00, but our mind still is programmed to accept the lower price, even if it is a penny. In an interesting study, the researchers found that our companionship at a restaurant would affect how the food tasted. When the subjects ate with someone they did not like it dropped how they rated the food they ate. Months later when they dined again with someone they liked, the rated the food much better. Again, 95% of the reasons we buy involve a subconscious decision.
There are two levels of the mind. There is the conscious (logical) and the subconscious (emotional). Thoughts in your head can dictate things that happen in your body. For example, if you are afraid of snakes or spiders, one look and your body does the rest. Your body reacts to your thoughts. The bottom line is your thoughts control your emotions and your emotions control your actions. Change your thoughts and you will change the future. Just the smell of perfume can trigger emotions and then action. Emotions contribute to all our decision making. Always take into account what emotional triggers could happen during your persuasive presentation.
Both Obinna Heche & Kurt Mortensen are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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