How The Decision Tree Affects The Process of Business Decisions | A Decision Making Tool Used By All Firms
How is the Decision Making Tool, Decision tree, used?
In Human Resource & Organization Needs, the decision tree makes it possible for the manager to make an informed decision. Here, I will discuss how the Decision making Tools, Decision tree, used?
Your first task is to write down an issue or problem.
You start your decision tree by drawing a small square at the left side. That square is going to be
Then we branch out, starting from left to right. We add solutions and steps to solve the problem. We divide it into many subdivisions. There are no limits to how many you write. And there are no patterns you have to follow, the decision tree is used to capture how your decisions progress.
Draw out lines towards the right for each possible solution, and write that solution along the line. With each though or solution, we keep the lines apart so we can make it more extensive.
And by continuing this, overtime you will find your answer with your decision tree.
Example of a Decision Tree
Here is an example. This is a Decision Tree on deciding whether to approve a development budget for an improved product.
The very start, it says “your present decision”. And the branch that deviates creates two decisions, the first says to authorize the project and the second branch says to kill the project.
The whole idea of this decision tree is whether to continue the project or not, and we must figure out what is our reasoning behind the decision.
Now look at the two vertical dash lines, which text says “Decision point 1” and “Decision point 2”.Those two vertical lines divide the decision branches.
In understanding this decision tree, you will have to make a choice of what the final decision is, after laying out the possible decisions.
In having to accept this project leads to being successful, it will give you a competitive edge. But if you do not do this project or develop the product, your competitor may — and may seriously damage your market share.
At the end of each line, consider the results. Pick the result which will be the best for the business.
