The process of making choices amongst the available alternatives/information to get a desired objective is defined as Decision Making. Designing a proper organization and being organized management team, the personnel have to be an efficient and effective decision maker. Not all the decisions made are always ‘correct’, as it totally depends on the nature of the information that the decision maker has. Thought it might be accurate information at times, but then still it is never sure of getting the correct decision as other factors like nature, third party etc come under consideration. Types of Decision All the professional managers, in their routine life are supposed make different types of decision. The individual process of decision making varies from one other as the nature of decision are always diverse. Decisions can be made at various times in various ways and at different moments, like some decisions are made on the urge of the moment because of uncertainty due to very little thoughtfulness. Decisions are also been made on account of confidence and gut feeling for which it requires no valid reasoning. Following are the types of decision: 1. Strategic Decisions Strategic Decision helps the decision maker or the organization to get a direction in achieving their mission, vision, long term goals; develop plans and strategies that can be used along with the resources to achieve it. This type of decision making has been profound and has a long term impact for the organization. Strategic decision making can be found expensive and fatal as well for the organization. High managerial department are supposed to take these decision as this decision is very un-programmed, unstructured. These decisions are risky and also have uncert... ... middle of paper ... ...steps are dependent on this one. 2. Identifying the Possible Decision Options This is another aspect of this procedure which is involved in decision making. Not even a single a problem can be solved in more than one way. If the decision maker doesn’t find any alternatives that means; the research has not been done as per the requirements. This process cannot be ended due to limitations of time and cost. If the manager is satisfied with the alternatives, he may put an end to this part to move forward. 3. Processing Information All the available alternatives having various (favorable and unfavorable) consequences should be analyzed and then it should be compared with one another, or against the desired objective like sales, volume, revenue etc. The alternatives with favorable and unfavorable consequences should be analyzed before it is compared against one another.
2. Alterative Solutions – Before this class when faced with a problem I would usually go with the first solution that seemed to fix the situation. However, establishing specific evaluation criteria is essential when valuing the merits of a potential solution. If a solution does not fit the criteria, it will not be successful. Judging alternatives through the same criteria allows you to produces the optimal solution and eliminate awful ones. When facing a strategic problem this process will be fundamental in making a
Each decision-making strategy has advantages and disadvantages and none are always better than the others. An effective team leader will consider the options and determine which strategy is the most appropriate one for the issues to be decided and the circumstances in which the decision is to be made and implemented. Outcome-oriented businesses need leaders skilled at decision-making. Decision-making styles are neither good nor bad. The effectiveness of any decision-making style depends on the situation in which it is used. Performance is enhanced by integrating all styles, by finding the style that works best in particular project, or by being able to move intentionally from one decision-making style to another.
Secondly, a leader should learn how to make a good decision. It is better to make good decision rattan than a fast decision. There are few issues that should be considered in order to avoid making a bad decision. Before the decision was made, they should collect information and data first, and identifies the relevant sources. Second, compare each of the decision and also have to measures the levels of profitability and losses that might incurs to the organization.
The six steps of the model are as follows: Identify the ethical dilemma, collect information, state the options, apply ethical principles to those options, make the decision, and implement the decision (Beemsterboer, 2010). The first step is to identify the ethical dilemma, which Beemsterboer describes as the most critical step in the model. To identify the ethical dilemma, one must recognize that the problem is an ethical dilemma with no one clear answer, and expound upon what the ethical question is. The next step is to collect information about the situation and values involved “as a basis for an informed decision.” (Beemsterboer, 2010, para. 8). After defining the ethical dilemma and gathering information about it, one must then state as many options as possible which may resolve the problem (Beemsterboer, 2010). Due to that fact that more than one decision may remedy an ethical dilemma, it is important to discuss all available options to better understand all angles of the situation and how to deal with as many of them as possible. Once all alternatives have been stated, each must be weighed against ethical principles. Beemsterboer suggests in the discussion of each option a list of pros and cons be made to demonstrate how the option may protect of violate ethical principles and values (2010).?? After analyzing each alternative it is much easier
Generally, strategic management is a set of managerial decisions and actions that determines the long-term performance of a company, involving both internal and external environmental scanning, strategy formulation, strategy implementation, and evaluation and control. According to the study of strategic management, the corporation should concentrate on monitoring and appraising outside opportunities and threats based on an organization’s strengths and weaknesses (Thomas Wheelen and David Hunger, 2012).
In dealing with most complex problems in today’s work environment, there may be more than one good answer to a problem. The question then becomes one of picking the best answer; this is called decision-making. Weighing the consequences of th...
Managers should be ready to teach the importance of decision-making skills and reinforcing organizational policy. Avoiding hasty, careless decisions, which can have devastating results on the manager's unit or the entire organization. Decisions made with forethought, using the many managerial tools available will lead to better and more profitable operatio...
Make the decision through the integration of ideas and data, and negotiation and prioritization of ideas
Management will continue to encounter new challenges that require problem solving and decision-making strategies. Some problems may be easily resolved while others could take much longer depending on the complexity of the problem. In order for management to make effective decisions and achieve success for their businesses, the decision makers need to have adequate knowledge of the situation, critical thinking and excellent communication skills, and a sophisticated approach for tackling problems. Every business should have a systematic approach for solving problems and making decisions. Without one, decision making would be insufficient and businesses would be unproductive.
Therefore, to achieve this objective, managers have to make choices in decision-making, which is the process of selecting a course of action from two or more alternatives (Weihrich & Koontz; 1994, 199). A sound decision making requires extensive knowledge of economic theory and the tools of economic analysis, that are directly related in the process of decision-making. Since managerial economics is concerned with such economic theories and tools of analysis, it is very relevant to the managerial decision-making process.
Making decisions is an important part of our everyday life. Decisions define actions and lead to the achievement of goals. However, these depend on the effectiveness of the decision-making process. An effective decision is free from biases, uncertainties, and is deeply dependent on information and critical thinking. Poor decisions lead to the inability to achieve set objectives and could lead to losses, if finance is a factor. Therefore, it is important to contemplate about quality and ways to achieve it in decision-making, which is the focus of this paper. The purpose is to look into the needs of decision-making, including what one should do and what one should not do.
“Decision making is a process of first diverging to explore the possibilities and then converging on a solution(s). The Latin root of the word decision means "to cut off from all alternatives". This is what you should do when you decide.” (Kotelnikov, 2008). In fact, the decision making process helps reduce doubt and uncertainty about alternative choices to allow individual to choose the best reasonable choice. In addition, the decision making process can make the difference between a successful and an unsuccessful organization. Consequently, management tries to use the best techniques and tools possible to make the best decision. Nowadays, most organizations seem to think that they have the most effective and efficient decision making process. So what are the different styles of decision making processes have organizations implemented? In order to answer this question, the team members will investigate and observe the decision-making processes most prevalent in their organization. As a result, these papers will first compare and contrast the problem identification and formulation styles in the team members’ organizations. Then the most favorable aspects of each style will be discussed to describe a process by which a problem can be identified and described to stakeholders in a manner that is sensitive to their perspective.
Decision making is one of the most important aspects in life and work because of its strong link to success and effectiveness. Actually, successful people achieve their goals in life and work through effective and efficient decision making. The decision making process is usually guided by an individual’s beliefs, values, and attitudes as well concepts. While a person can use various concepts in making decisions, they should be very careful to select a concept that is effective and contributes to huge success. Nonetheless, these concepts exist to help an individual become a better decision maker in the world around him/her.
Some decisions prove to be vital and any miscalculation that may be involved may prove dire for the individual or the organization. In identifying the criterion to use while evaluating different decisions, many factors pertaining the structure should be considered. The pros and cons of every decision made should be evaluated to ensure that the option chosen has the most positive effect on the individual and the organization. Some of the activities that may require keen decision making include project development, finance and operations. With the knowledge attained it will be easier to cope with tough decisions that may come up in my career. Decision making models may be generated to give an in depth view to the problem and also provide critical analysis ability. It is also vital noting that for those in managerial positions, they face a bigger task in decision making. A good understanding of the business function and structure will provide an in depth knowhow to those that have studied the
Strategic management has shown to enhance the company’s profits and market shares. Companies need to utilize strategic management in order to improve that their performance and organizations are set. Some of the benefits of strategic management are it brings new opportunities and development, the manager is more involved in their job role, the quality of the company is enhanced, implementing models that will bring the company growth and profits, it helps the manager to be organized in order for them to be successful, it brings certainty to the company, and provides management with a guide to what the company is needing to accomplish with their goals for the future. According to Nmadu (2007) he stated “strategic management has become more important to managers in recent years and defining the mission of their organization in specific terms have made it easier for managers to give their organization a sense of purpose” (Dauda, Akingbade, and Akinlabi, 2010, p.100). Strategic management can also have its disadvantages. A few disadvantages are time and effort that is put into the company, and discussing what is important for the company’s long-term goals. Another disadvantage is managers stay on the planning stage but forget to implement and take control of the plan. If strategic management is not enforced than this can cause effects on the companies market shares, and profitability. Enforcing a strategic plan will play a major role in the companies