The manager is the person who carries out the task and function of managing at any level and any type of company either in a general manner or by department according to the organization. That is why the director, administrator, manager is the visible head of the institution that is responsible for putting into practice and responding to the methods of administration. You must make many decisions every day. Some of them are routine or inconsequential decisions, while others have drastic repercussions in operations, as it could involve profits or loss of a large sum of money.
It is necessary to mention that modern companies are framed in the process of globalization of economies, which is why they must be more efficient in the management of resources if they want to achieve a competitive position that allows to strengthen their finances; Therefore, it must have good managers and administrators, capable of leading and making efficient decisions, which guarantee the continuity and success of the organization, under its policies, objectives and goals.
However, managers must make decisions under three different conditions or environments for the solution of problems in organizations: certainty, risk, and uncertainty.
So we have that, in an environment of certainty there is enough information so that the people who have to solve the problems know the possible alternatives and results of each of them. This is an ideal condition for problem solving. The challenge is simply to study alternatives and choose the best solution.
Very few administrative problems occur in an environment of certainty, but sometimes steps can be taken to reduce uncertainty.
On the other hand, in an environment of risk, the person who must solve problems lacks complete information about the alternatives of action and their consequences, but has an idea of the probabilities associated with their occurrence.
Now, the atmosphere of uncertainty is a more difficult environment of problems. Uncertainty forces managers to rely heavily on creativity to solve them, requires unique, novel and often completely innovative alternatives for existing behavior patterns.
In such situations, groups are used to solve problems. In all cases, the answers to uncertainty depend very much on intuition, the ability to make conjectures and hunches, all of which leave a considerable space for error. Since, decision making is the process of specifying the nature of a problem or a particular opportunity to select the available alternatives to solve a problem or take advantage of an opportunity.
It is common for managers to admit decision making as their primary activity, since they must permanently determine what to do, who will do it, when and where they will do it and how they will do it.
However, to fulfill this responsibility the manager must determine the decision-making process.
It is often said that effective decision-making must be rational, but what is rationality? When does a person think or decide rationally? To such effects, the individuals that act or decide rationally pursue the fulfillment of a goal, which would be impossible to achieve without actions.
That is why they must have a precise knowledge of the different courses of action for the fulfillment of a goal within the framework of the existing circumstances and limitations. Likewise, they must have information and the ability to analyze and evaluate alternatives, from the perspective of the proposed goals. Finally, they must have the determined interest to identify the best solution, by selecting more effective alternatives for the fulfillment of the goals. Under this approach, the rational process for decision making includes:
1.- Identify and define the problem
2.- generate and evaluate solution alternatives
3.- Choose a solution and carry out the double ethical verification
4.- Implement the solution
1.- Identify and define the problem: It refers to determining what is the cause, situation or circumstance that prevents productive activities or processes from efficiently achieving the established objectives or goals, in such a way to clearly have a truthful and necessary information about the limitations and failures that are being presented.
2.- Generate and evaluate alternative solutions: Information is collected, data are analyzed and the pros and cons of possible alternative courses of action are identified. The information can be collected through rains of ideas obtained by the participation, both of the managers, and of the workers in general, depending on choosing between several alternatives, and thus seek the most effective solution to a specific problem.
3.- Choose a solution: Once the alternatives have been developed, each one of the alternatives or courses of action is evaluated, with the purpose of choosing the one or ones that best suit the solution of the problem.
4.- Implement the solution: In determining which alternatives or courses of action were selected to solve the situation presented, they must be implemented and executed, under constant supervision or monitoring, in order to verify that these alternatives are carried out according to they settled down, and in that way correct errors opportunely. In this way, it is easier for the objectives to be achieved as planned.
5.- Evaluate the results: The process of decision making does not end until the results are evaluated. If the desired results are not achieved, the process must be resumed to allow corrective actions. In this sense, evaluation is a form of administrative control. It implies a continuous commitment to gather information about performance results. In any evaluation, the positive and negative consequences of the chosen course of action should be examined.
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