Businesses make decisions everyday. Some are minor decisions, such as choosing a venue for a company party, and some are important decisions that could have significant consequences, such as choosing a CEO for the firm. There are various management techniques to compare the alternative choices facing managers as they go about their decision making. A prioritization matrix, of which there are three widely used types, is one such decision making technique.
These matrices involve setting up decision criteria and analyzing the different options based on these criteria. For instance, in terms of hiring a CEO, the decision criteria could involve factors such as knowledge of the business, leadership skills and educational background. The recruitment committee could weigh each candidate using these criteria. The matrix approach helps focus the committee on the best choice.
Full Analytical Criteria Approach
It is best to save the full analytical criteria matrix approach for important decisions because this is a complex technique. This approach involves assigning a priority to the different decision criteria, giving them weights and then coming up with a numerical value to choose the best alternative. This approach involves using matrices to compare different pairs of options before the final matrix emerges. It is best to have a smaller group of people involved in this approach. Otherwise, it becomes more complex to analyze the different perspectives.
The consensus criteria matrix approach is a simplified form of the full analytical criteria approach. It uses the same sort of decision making process but does not involve comparing different pairs of options. This means it is a quicker process to apply. The group comes up with the goal of the decision making and the criteria they want to apply to the decision process. Then they agree on what weights to assign to the criteria.
A combination matrix approach is suitable for complex situations involving a cause-and-effect relationship. It provides input on how best to start tackling the problem. It provides an idea about which cause to address first. The managers involved in this process should have a good idea about the process they are making the decision about.