Decision making models

The Five Step Model by Harvard Business School and the Analytical Hierarchy Process (A.H.P) by Thomas L. Saaty are two vital decision making models. These models have strengths and weaknesses, and they contrast in their mode of approaching issues and problems. They also differ in their application. According to the five step decision making model, managers make decisions on a daily basis, which impact on the company. Some of the decisions have straightforwardness such as the determination of subordinates to delegate duties. Though such a decision may seem straightforward, it requires the manager to have a satisfactory knowledge of his/her subordinates for effective and efficient delegation (Milkman, Chugh, amp. Bazerman, 2008). Other decisions such as tendering and employment decisions have complex characteristics. Also, decision making process cannot be described as an easy process because some of the decisions may involve risks, trade off and interplay of other factors, which include cost, and risk of failure or undesirable outcome (Harvard Business School, 2006). Decision-making is a complex process especially when it involves uncertainty and raises interpersonal issues. Uncertainty causes hesitation because individuals may feel that they lack facts that enable them to make desirable decisions. Some individuals may choose not to make decisions than take a leap to uncertainty. According to Harvard Business Essentials, decision-making involves five steps, which include the, establishment of a context for success, framing the issues properly and generating alternatives. It also involves an evaluation of the alternatives and choosing alternatives that work the best (Harvard Business School, 2006). The establishment of a context for success involves the creation of an environment that enables effective decisions to work. This process involves the evaluation of the decision maker’s surrounding to identify antithetical factors that affect sound decision-making. For instance, internal conflicts within an organization may affect the outcome of a decision (Armesh, 2005). This habit eliminates the possibility of rational thinking. hence, the management cannot sustain different levels of diverse opinions (Harvard Business School, 2006). Other organizations do not support open communication, which may, affects decision-making. An all-powerful management affects decision making because decisions are made according to their preference. Decision-making needs a friendly environment that ensures the right individuals participate in the process. The decision makers or those involved in the process should meet in a physical setting that encourages deliberation and careful thinking. Such an environment has ground rules for determining decision-making (Harvard Business School, 2006). In decision-making, successful decisions depend on the clear understanding of issues at hand. It also depends in an understanding of the issue’s impact on the company or business. Therefore, it becomes crucial to determine the character of the issue. Framing the problem offers an opportunity to ask the correct questions to the right people. It is vital for the decision makers to frame the problem in a manner that does not constrain potential solutions to the problem. Framing the issue involves questions on how the issues/situation rose, and how to solve the situation (Harvard Business