Decision Making Process Analysis

Running head: DECISION MAKING (DM) PROCESS
Decision making (DM) process
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Author Note

Decision making (DM) process
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Table of Contents
1. Introduction............................................................................................................................2
2. Defining DM..........................................................................................................................2
2.1 Importance of DM tools...................................................................................................4
2.2 Application of DM...........................................................................................................6
3. Identification and outlining a descision problem...................................................................8
4. Application of Single Multi Attribute Rating Technique....................................................10
5. Limitations and strengths.....................................................................................................18
6. Conclusion............................................................................................................................19
7. References............................................................................................................................21

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1. Introduction
SMART is defined as the type of framework which is very much useful to make
descision regarding multiple criterias (Elgendy and Elragal 2016). The alternatives of some
criteria can be identified with the help of this framework as well.
This report will be very much beneficial for the readers of this report to understand
the significance of analytical thinking and descision making. Critical review of the literature
shall be one of the prime highlights of this report. The application of the SMART framework
will be the other highlights of this report as well, at the same time the report shall also focus
on the limitations and strengths of the analysis. Thus, this report will be very much useful to
investigate the impact of the descion making styles which is followed on the organizational
learning process.
2. Defining DM
Descision Making (DM) is defined as the cognitive process which is very much
useful to identify and choose alternatives based on the preferences and values of the
descisuion maker (Dijkstra et al. 2017). The role of the entrepreneurs is very much useful in
the descision making procedure as huge amount of time is required in the descision making
procedure. Descision making is one of the most critical pricess and it is very much useful to
solve the business problems.
Researchers view
As discussed by Deli and Şubaş (2017), a systematic approach has to be maintained in a
descision making process in a commercial establishment. The journal helped in
understanding that there are numerous factors which has to be considered in the descision

Decision making (DM) process
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making procedure such as the descision making styles and selection of the DM tools (Bals,
Kirchoff and Foerstl 2016). The researchers of the article also highlighted that the
entrepreneur must be understanding the impact of the DM procedure befotre the selection of
a DM process. On the other hand, as elaborated by De et al. (2016), there are numerous
factors which influences the leadership DM in commercial establishments such as
technology, communication and cognitive biases. The following pictorial illustration will
very much useful to understand the factors in a detailed modus.
Figure 1: Factors influencing leadership descions
Source: Dai et al. (2016)
But, as elaborated by Borgonovo and Plischke (2016), there are few limitations
related with DM procedure as well such as its inability to to take quick descisions. The
scholars highlighted that success and failure of the projects depends hugely on the quality of
descision making.

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2.1 Importance of DM tools
 DM is a very risk procedure and it might have a long or a short term impact in a
project or a business (Biswas, Pramanik and Giri 2016). Selectiong from a set of
alternative outcomes is one of the most signigficant aspects of the descision making
procedure.
 Learning procedure and the experience of the entrepreneur are the very significant
charateristics features required from the entrepreneurs during the DM process
(Amuna, Al Shobak and Naser 2017). Most of the management activities in a
commercial setting can be done with the help of the DM tools.
Figure 2: Principles of DM tools
(Source: Gatlin, Hallock and Cooley 2017)

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 The above model is very much significant to understand the entire cycle which is
followed by the entrepreneurs while making a descision in an organizationl setting
(Ghorbanzadeh, Feizizadeh and Blaschke, 2018).
 Identification of the problem is the initial step of a descision making process, the
following step is the establishment of the descision criteria and then the descision
criteria is measured (Herath and Prato 2017). In the ensuing step the alternative
solution is identified and evaluated (Giannoccaro 2018).
 The following step is the most critical step of the entire cycle when the best
alternative is chosen by the entrepreneur. Enactment of the chosen descision and
evaluation of the chosen descision is the closing step of this cycle (Gul and Guner
2016).
Thus, it can be said that any sort of complex business descision in a commercial
establishment can be conducted with the help of this cycle. The techniques which are very
much useful in the DM techniques such as random, analytical and intuition process.
However, there are numerous challenges related with a DM procedure such as the followings:
 Level of power: Some of the middle level manager gets confused while taking a
significant descision in a complex project.
 Lack of time: Unavilability of time requied to make a descision is a huge
drawback of thid DM process.
 Lack of data: Ambigous or incomplete data have an adverse impact on the DM
process as well.
 Risk taking ability: Casual attitude of the entrepreneurs can have an adverse
impact on the DM process.
 Inadequate support: Lack of support from the top level or the grass root level
employees can lead in ineffective DM.