Contents
• Individuals at all levels and in all areas of organizations make decisions. This it, they make choices from two or more alternatives. Decisions are made in the best interest of the organization. For that matter, decisions made by the organization are to lighten the way forward. Every organization needs to make decisions at one point or another as a part of managerial process.
• What is Decision-making? As it was said in previous section, decision-making is an integral part of modern management. Essentially, rational or sound decision-making is taken as the primary function of management. Decisions play important roles as they determine both organizational and managerial activities. A decision can be defined as a course of action purposely chosen from a set of alternatives to achieve organizational or managerial objectives or goals.
• According to the Oxford Advanced Learner’s Dictionary the term decision making means - the process of deciding about something important, especially in a group of people or in an organization.
• Decision making has many features, some of which are considered below:
• Decision-making implies choice - decision making is choosing from among two or more alternative courses of action. Thus, it is the process of selection of one solution out of many available. The alternative selected may be correct or incorrect. This will however be decided in the future when the results manifests.
• Continuous activity/process - decision-making is a continuous and dynamic process. It pervades all organizational activity. Managers have to take decisions on various policy and administrative matters. It is a never-ending activity in management.
• Mental/intellectual activity - Decision-making is a mental as well as intellectual activity or process and requires knowledge, skills, experience and maturity on the part of the decision-maker.
• Based on reliable information/feedback - good decisions are always based on reliable information. The quality of decision-making at all levels of an organization can be improved with the support of an effective and efficient management information system.
• Goal oriented process - decision-making aims at providing a solution to a given problem or difficulty faced by an organization.
• Means and not the end - decision-making is a means for solving a problem or for achieving a target or objective and not the end in itself.
• Relates to specific problem - decision-making is not identical with problem solving but it has its roots in a problem itself.
• Time-consuming activity - decision-making is a time-consuming activity as various aspects need careful consideration before taking final decision. For decision makers, various steps are required to be completed. This makes decision-making a time consuming activity.
• Needs effective communication - taken decisions need to be communicated to all concerned parties for suitable follow-up actions. Such decisions will remain only on the paper if they are not communicated to concerned persons. Follow-up actions will not be possible in the absence of effective communication.
• Pervasive process - decision-making process is all pervasive. This means managers working at all levels have to take decisions on matters within their jurisdiction.
• Responsible job - decision making is a responsible job as wrong decisions prove to be too costly to the organization. Decision makers should be mature, experienced, knowledgeable and rational in their approach. Decision-making needs not be treated as routine and casual activity. It is a delicate and responsible job (Ogueri 2019).
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Title:
Basics of decision making
Keywords
Decision making, decision making process, decisions in organization
Author:
AGH
Languages:
English
b)Â Â Â Understand the role of decision making In organization management process.
c)Â Â Â Identify main characteristics of decision-making process.
Description:
• Individuals at all levels and in all areas of organizations make decisions. This it, they make choices from two or more alternatives. Decisions are made in the best interest of the organization. For that matter, decisions made by the organization are to lighten the way forward. Every organization needs to make decisions at one point or another as a part of managerial process.
• What is Decision-making? As it was said in previous section, decision-making is an integral part of modern management. Essentially, rational or sound decision-making is taken as the primary function of management. Decisions play important roles as they determine both organizational and managerial activities. A decision can be defined as a course of action purposely chosen from a set of alternatives to achieve organizational or managerial objectives or goals.
• According to the Oxford Advanced Learner’s Dictionary the term decision making means - the process of deciding about something important, especially in a group of people or in an organization.
• Decision making has many features, some of which are considered below:
• Decision-making implies choice - decision making is choosing from among two or more alternative courses of action. Thus, it is the process of selection of one solution out of many available. The alternative selected may be correct or incorrect. This will however be decided in the future when the results manifests.
• Continuous activity/process - decision-making is a continuous and dynamic process. It pervades all organizational activity. Managers have to take decisions on various policy and administrative matters. It is a never-ending activity in management.
• Mental/intellectual activity - Decision-making is a mental as well as intellectual activity or process and requires knowledge, skills, experience and maturity on the part of the decision-maker.
• Based on reliable information/feedback - good decisions are always based on reliable information. The quality of decision-making at all levels of an organization can be improved with the support of an effective and efficient management information system.
• Goal oriented process - decision-making aims at providing a solution to a given problem or difficulty faced by an organization.
• Means and not the end - decision-making is a means for solving a problem or for achieving a target or objective and not the end in itself.
• Relates to specific problem - decision-making is not identical with problem solving but it has its roots in a problem itself.
• Time-consuming activity - decision-making is a time-consuming activity as various aspects need careful consideration before taking final decision. For decision makers, various steps are required to be completed. This makes decision-making a time consuming activity.
• Needs effective communication - taken decisions need to be communicated to all concerned parties for suitable follow-up actions. Such decisions will remain only on the paper if they are not communicated to concerned persons. Follow-up actions will not be possible in the absence of effective communication.
• Pervasive process - decision-making process is all pervasive. This means managers working at all levels have to take decisions on matters within their jurisdiction.
• Responsible job - decision making is a responsible job as wrong decisions prove to be too costly to the organization. Decision makers should be mature, experienced, knowledgeable and rational in their approach. Decision-making needs not be treated as routine and casual activity. It is a delicate and responsible job (Ogueri 2019).