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.