Explain the importance of decision making?

Explain the importance of decision making?

What kind of steps have been taken in the process of decision making in you organization or any other organization you are acquainted with. How can they be improved? Briefly describe the organization you are referring to.


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The life of manage is filled with making decisions after decisions. Manager are decision making as their central job because they constantly choose what is to be dove, who is to do, when where and how to do. Decision making, through permeates all managerial decision functions, is at core of planning because it is the planning where major decisions are made which set the organizational tore. It has to be dove in correction with formulation plans, establishing objectives, laying down policies, and so on. They produce actions and events for operation of organization. Collectively to the behavior of the organization itself. Decision making is both a managerial function and an organizational process it is managerial in that it is a fundamental responsibility of the managerial itself. Decision making in both a managerial function and an organizational process it is organizational in that many decisions transcend the Industrial manage and become the product of groups, terms, committees, etc. Most Important decisions today are made by group of managers rather than by an individual.

Threw Simplest way to view decision making is to see decisions us an act of choice by which an Individual or organization selects one position or action from several alternatives. Sometimes the chosen behavior is not reflected in specific actions,. and actions are often not overt or directly observable. A decision not to act at all is also possible. However most frequently, the decision results in some tangible action, such as rules, policies or other concrete events.Shall at all, have defined decision making as " Decision making is a conscious and human Process, Involving both Industrial and social Phenomenon based upon factual and value premises, which provides with a choice of are behavioral activity from among one or mo0re alternatives with the Intention of moving toward some desired state of affairs."

Characteristics

1. The decisions is a major one which affects the whole or major part of the organization.

2. It contributes directly to the achievement of organizational objectives. Though all decisions try to contribute in this decision direction, strategic decisions contribute directly and other decisions are drived from these.


Decision Making Process (Steps);-

When a manage makes a decisions, it is in effect the organization’s response to a problem. As such, decisions should be thought of as means rather than ends. Every Decision is the outcome of a dynamic process which is influenced by multiple factors. However, this process should not be interpreted to mean that decision making is a fixed procedure. A procer is basically a dynamic concept rather than static. Events and relationship are dynamic, continuous and flexible and must be considered as a whole in which many forces. Interact; a force affecting others and being affected by others.

1. Specific Objectives

The need for decisions making arises in order to achieved certain specific objectives. Every action of human being is goal directed. This is clear for decision making also which is an action. Therefore, the starting point in any analysis of decision making Involves the determination of whether a decision need to be made. In fact, setting the objectives setting is an outcome of earlier decision, this many not be considered truly as the first step of decision process but provides framework for the decision.

2. Problem Identification

Since a particular decision is made in the context of certain given objectives, Identification of problem is the real beginning of decision making process. A Problem is a felt need, a question thrown forward for solution. It is the gap between present and desired state of affairs on the subject matter of decisions. It is just like the diagnosis of patient by the doctor makes a diagnosis he has a normal, healthy person and also has a fairly clear concept of what as healthy person is with this model as the derived result, he looks for disparities in the patient's actual state of health or factors which Indicate that this future health will fall short of normal. In the case of management decision, however, a manage can't rely on commonly accepted norm such as healthy person. A problem can be Identified much clearly, if manages go through diagnosis and analysis of the problem.



3.Search for Alternatives:

A through diagnosis defines both a specific problem and the situations in which the problem exists with this definition in mind, a decision maker seeks possible solutions. A problems can be solved in several ways, however, all the ways can't be equally satisfying. Further, if there is only one way of solving a problem, no question of decision arises. Therefore, decision maker must try to find out the various alternatives available in order to get the most satisfactory result of a decision.

3. Evaluation of Alternatives:

After the various alternatives are identified, the next step is to evaluate them and select the one that will meet the choice criteria. However all alternatives available for decision making will not be taken for detailed evaluation because of the obvious limitations of managers in evaluating all the alternatives. The energy of managers is limited and Psychologically most of them prefer to work on plans that have good prospectus of being carried out. In narrowing down the number of alternatives and grouping of alternatives of similar native. The decision maker develops a list of limits that must be met by a satisfactory solution. He may check proposed alternatives against limits, and if an alternatives does not meet them, he can discard it. In the second approach, various alternatives can be grouped in to classes on some specific criteria Important to decision makes. A representative alternative from one group may be selected for future analysis. They having trend the group that shows up the best, decision maker can concentrate on alternatives within this group.

4. Choice of alternatives:

The evaluation of various alternatives presents a clear picture as to how each one of them contributes to the objective under question. A comparison in made among the likely outcomes of various alternatives and the best one is chosen. Choice aspect of decision making is related to deciding there most acceptable alternatives which fits with the organizational objectives. It may be seen that the chosen alternatives should be acceptable in the light of the organizational objectives. Thus it is not reentry that the decision making alternatives is best one. This concept is based on the satisfying approach rather than the maximizing approach of decision making, to be discussed later in detail. In choosing an alternative, the decision maker can go through three approaches

1. Experience
2. Experimentation
3. Research and Analysis