Step 1: Identification of the purpose of the decision: In this step, the problem is thoroughly analysed.

There are a couple of questions one should ask when it comes to identifying the purpose of the decision. What exactly is the problem? Why the problem should be sol ed? Who are the affected parties of the problem? !oes the problem ha e a deadline or a specific time"line?

Step 2: Information gathering: # problem of an organi$ation will ha e many stakeholders. In addition, there can be do$ens of factors in ol ed and affected by the problem. In the process of sol ing the problem, you will ha e to gather as much as information related to the factors and stakeholders in ol ed in the problem. %or the process of information gathering, tools such as &'heck (heets& can be effecti ely used. Step 3: Principles for judging the alternatives: In this step, the baseline criteria for )udging the alternati es should be set up. When it comes to defining the criteria, organi$ational goals as well as the corporate culture should be taken into consideration. Step 4: Brainstorm and analyse the different choices: %or this step, brainstorming to list down all the ideas is the best option. *efore the idea generation step, it is ital to understand the causes of the problem and prioriti$ation of causes. %or this, you can make use of 'ause"and"+ffect diagrams and ,areto 'hart tool. 'ause"and" +ffect diagram helps you to identify all possible causes of the problem and ,areto chart helps you to prioriti$e and identify the causes with highest effect. Then, you can mo e on generating all possible solutions -alternati es. for the problem in hand. Step 5: valuation of alternatives: /se your )udgement principles and decision"making criteria to e aluate each alternati e. In this step, experience and effecti eness of the )udgement principles come into play. 0ou need to compare each alternati e for their positi es and negati es.

Step !: Select the "est alternative: 1nce you go through from (tep 2 to (tep 3, this step is easy. In addition, the selection of the best alternati e is an informed decision since you ha e already followed a methodology to deri e and select the best alternati e. Step #: $ecute the decision: 'on ert your decision into a plan or a sequence of acti ities. +xecute your plan by yourself or with the help of subordinates. Step %: valuate the results: + aluate the outcome of your decision. (ee whether there is anything you should learn and then correct in future decision making. This is one of the best practices that will impro e your decision"making skills.

o"jective # specific result that a person or system aims to achie e within a time frame and with a ailable resources. In general, ob)ecti es are more specific and easier to measure than goals. 1b)ecti es are basic tools that underlie all planning and strategic acti ities. They ser e as the basis for creating policy and e aluating performance. (ome examples of business ob)ecti es include minimi$ing expenses, expanding internationally, or making a profit. Advantages: 1.) Helps and increases employees motivation. 2.) Managers are more likely to compete with other manager. 3.) It reduces con licts and am!iguity. ".) It leads to good #lanning. $.) Identi y pro!lems. %.) &evelop leadership qualities. &isadvantages: 1.) 'ailure to give guidelines to goals. 2.) &anger o in le(i!ility. 3.)'ailure to teach philosophy o M)*. ".) Managers compitition may lead to tug o war.

&anagement By '"jectives: (efinition: )4Management By Objectives is a comprehensive managerial system that integrates many key managerial activities in a systematic manner and that is consciously directed towards the effective and efficient achievement of organizational and individual objectives. volving *oncepts In &B': arly Impetus to &B': (ince many centuries people ha e used their common sense and gi en importance to management by ob)ecti es. It was in 2536 that Peter F.Drucker first emphasi$ed that ob)ecti es must be set in all areas where performance affects the health of the enterprise. #bout at the same time General Electric Co. was using 7*1 in its reorgani$ation mphasis 'n Performance +ppraisal: In traditional appraisal programs personality traits were used for e aluating subordinates. *ut when 7*1 was implemented emphasis was gi en on performance rather than personality which lead to self appraisal and self de elopment. The acti e in ol ement of subordinates leads to commitment and creates an en ironment for moti ation. mphasis on short)term o"jectives and motivation: Indi idual goal setting is an important factor in moti ating employees. It is known that performance is higher when people ha e specific ob)ecti es than when they are asked simply to do their best. Inclusion 'f ,ong -ange Plan In &B': In 7*1 programs that emphasis performance appraisals and moti ation the focus tends to be on short term ob)ecti es, which may lead to undesirable managerial beha ior. !ue to these short"comings many organi$ation now include long range and strategic planning in 7*1 programs. .he System +pproach .o &B'8 7*1 has undergone many changes. It has been used in performance appraisals as an instrument for moti ating indi idual and in strategic planning. *ut there are still other managerial subsystems that can be integrated into 7*1 process. 9arious managerial acti ities need to be integrated into a system. %or 7*1 to be a comprehensi e system of managing indicates that most key managerial acti ities can and should be integrated with the 7*1 process. The degree of integration howe er differs for indi idual acti ities. %or 7*1 to be effecti e it has to be iewed as a comprehensi e system and it must be considered as a way of managing and not an addiction to the managerial )ob. .he Process 'f &anaging By '"jectives: The process starts at the top of an organi$ation and has the acti e support of the chief executi e, who gi es direction to the organi$ation. It is not essential the ob)ecti e setting starts at the top. It can start at the di isional le el, at the marketing le el or e en lower le el. #s in all planning, one of the critical need in 7*1 is the de elopment and dissemination of consistent planning premises. :o manager can be expected to set goals or establish plans and budgets without guidelines.

Setting preliminary o"jectives at the top: ;i en appropriate planning premises, the first step in setting ob)ecti es is for the top manager to determine what he or she percei es to be the purpose or mission and the more important goals of the enterprise for a gi en period ahead. 'ertain goals should be scheduled for accomplishment in a much shorter period and others in a much longer period. The goals set by the superior are preliminary based on an analysis and )udgment as to what can and should be accomplished by the organi$ation within a certain period.When setting ob)ecti es, the manager also establishes measure of goal accomplishment. *larifying 'rgani/ational -oles: The relationship between expected results and the responsibility of attaining is often o erlooked. Ideally, each goal and sub goal should be one particular person<s responsibility. #naly$ing an organi$ation structure, howe er, often re eals that the responsibility is ague and the clarification or reorgani$ation is needed. (ometimes it is impossible to structure an organi$ation so that a gi en ob)ecti e is someone<s personal responsibility. Setting Su"ordinates '"jectives: #fter making sure that subordinate managers ha e been informed of pertinent general ob)ecti es, strategies, and planning premises, the superior can then proceed to work with subordinates in setting their ob)ecti es. The superiors ask what goals the subordinates belie e they can accomplish, in what time period and with what resources. -ecycling of o"jectives: 1b)ecti es can hardly be set by starting at the top and di iding them up among subordinates nor should they be started from the bottom. # degree of recycling is a must. Top managers may ha e some idea of what their subordinates< ob)ecti es should be= but they will almost certainly change these preconcei ed goals as the contributions of the subordinates come into focus. Thus setting ob)ecti es is not a )oint process but also an interacti e one. Benefits of &anagement "y '"jectives: 10 Improvement of managing: 7anaging (ense in a 7anager Impro es. 20 *larification of organi/ation: 7anagement by ob)ecti es forces managers to clarify roles i.e. organi$ational roles and structures. 30 ncouragement of Personal *ommitment: It encourages people to commit themsel es to their goals. 40 (evelopment of ffective *ontrols: 7*1 helps in effecti e planning, it also aids in de eloping effecti e controls. 1ea2ness of &anagement "y '"jectives: 10 20 30 40 50 3ailure to teach the philosophy of &B'0 3ailure to give guidelines to goal setters0 (ifficulty of setting goals0 &B' programs are set for short terms0 (anger of infle$i"ility0