Strategic Decision Making Process:

What are the major categories or processes of  Decision Making?  Researchers have found it difficult to spell or specify any one strategy for Decision Making Process.

Decision making is both intuitive and analytical.   A rational decision making is based on several assumptions.  Greater inputs of information lower ambiguity and uncertainty can be minimized.

The decision making process has to be objective. Criteria must be established and weighted mathematically and factors are added up, thus reducing the chances for subjectivity to drive the right decision.

Different management gurus and writers have propounded different theories for decision making.  Let us view a few here:

In any situation confronting an organization, the decision makers go through a cycle of defining moments -

• observe the situation
• recognize the problem
• orient on the situation
• make estimate, value judgment and analysis
• make a decision
• act on decision that affects the situation
• feedback to observe the situation.

A linear model of an example of rational decision making steps is –

• set organizational goals and objectives
• develop alternatives
• compare/evaluate alternatives using objective criteria and weights based on the leader’s guidance.
• choose among alternatives the one that best matches the criteria
• implement the decision
• command, lead and manage
• feedback loop-observe results and begin process again as required.

In 1976, Mintzberg, Raisinghani and Theoret provided a model for strategic decision making process with sub-routines and sub-phases within each. These are:-

The Identification Phase:

• the decision recognition routine: opportunities, problems and crises are recognized and evoke decisional activity.
• the diagnosis routine: information relevant to opportunities, problems and crises is collected and problems are more clearly identified.

The Development Phase:

• the search routines: organizational decision maker goes through a number of activities to generate alternative solutions to problems.
• the decision routine: ready made solutions which have been identified are modified to suit the particular problem or new solutions are designed.

The Selection Phase:  

• the screen routine: the routine is activated when the search routine identifies
• more alternatives that can be intensively evaluated. Alternatives are quickly
• analyzed and most obviously infeasible ones are eliminated.

`The Strategic Decision Making Process` is analytic, deliberate, systemic and rational approach because time is available to do it right.