Decision-Making in Management - Essay Example

? Management Introduction Decision making is the process of generating any outcome by an individual through a process based on social, cognitive and contextual influences. The outcome of the decision making depends on the affective state such as frustration, satisfaction etc, implementation action and behaviour of the decision maker. However most of the individuals are unaware of the processes while they are conducting the decision making (Jones and Beck, 1996). Decision making is defined as the process of selection of course of action from amongst a series of choices. A plan can exist only when the decision is led by commitment of resources, reputation and directions are made. Decision making is often seen as the central job of the managers who decides what is to be done, who has to do it, where, when and how it is to be done. Decision making is regarded to the first step in the planning even when it is done quickly by taking a little time to decide and also influences an action just for a minute (Koontz and Weihrich, 2006). There are various theories related to philosophical, mathematical and economic sources. This study highlights on the various theories of decision making. The Classical Model The classical decision theory is straightforward. It assumes that there is only one best solution to the problem; the decision maker needs to identify it, select it and then finally implement it. According the following sequential steps has been designed. Step 1: Identification of the problem The actual and the desired outcome should be determined and then any type of disparity existing between the two should be identified. Step 2: Diagnose the problem The information should be collected and should be analysed properly in order to gain a clear explanation of the nature of the problem. Step 3: Define the alternatives After understanding the nature of the problem the potential options to the solution of the problems must be developed. Step 4: Examine the consequences The probable consequences of all the potential alternatives should be examined rigorously. Step 5: Make the decision The best amongst the potential alternatives must be chosen. While choosing the best alternative one should see that the objective and the goals are maximised. Step 6: Do it The decision must be implemented. The classical model leads to the optimization of strategy. This approach stands on the classical economic theory that is based on the assumptions of apparent goal, full information and cognitive ability to deeply analyse the problem. However practical problems exists that follows this perspective. Decision makers are human beings who have emotions, feelings and a variety of interests. Compromise and diversity are the stuffs that are their everyday requirement. One objective may be favoured over the other but no one allows one single goal that is an unrealistic one dimensionality to dominate in the working life (Hoy and Miskel, 1991). The notion that the organizational goals are simple and clear is oversimplification. Goals of the organization are often conflicting and complex. The problem of improbability is essential for the organization. Dealing with the problem of improbability has now become a common agenda in the organization share (Mintzberg, 1983). However there is no such common criterion for dealing with the improbability in the decision making (Thompson, 1967). It is virtually not possible to select the best alternative when the consequences are not known. Improbability makes optimizing an impractical choice. The unnecessary demand for human cognition that cannot be met is another problem with the optimizing strategy. Neither any organization nor any person is capable and smart such that they can conduct maximum utilization of anything. Even the modern computers are incapable to achieve this feat. For instance the computers are incapable of handling the huge quantity of information that is required to choose the simplified move in the game of chess (Feldman and Kanter, 1965; Hoy and Miskel, 1991). In simple words the main objective of the classical model is to find the best solution. The decision maker can never access all the relevant information one at a time or can generate all possible options or can predict the consequences. The classical model is perfect rather than descriptive about how the decision makers should function (Tarter and Hoy, 1998). Barnard’s Model on individual decision making In this model special attention is given to the social environment that affects the individual decision making. Moreover it has been claimed by Barnard that certain social conditions primarily evolves and functions as equipment of decision making. In simple words it signifies that social factors are responsible for triggering some of the decision making process and are seen to effect those and make them evolve in stages. Seven stages have been identified by Barnard as the levels of decision making (Novicevic, Clayton and Williams, 2011). Step 1: The trepidation and acceptance of the goal. Step 2: Organizing the situation. Step 3: Discriminating the various factors that leads to the situation. Step 4: Identifying and determining the best option. Step 5: Amalgamation of the various available options. Step 6: Transforming the strategic factors into actual terms of action. Step 7: Executing the best fit option. As the above mentioned steps occur one after the other, differentiation between each step is only caused by the analytical element. This signifies that the individual decision making process designed by Barnard is modelled to happen in inter-reliant steps. The problems that are occurring in the different stages of decision making can be resolved logically as signified by Barnard while stating that the operations should be implemented consciously by considering the facts and concepts, observations, scrutiny and testing. Hence the formal logic focuses on the need for decision that must be justifiable in order to make it accepted by others as a reasonable decision. As the various stages of decision making occurs either sequentially or simultaneously, the problems faced at each stage has a definite time frame. Barnard claimed that the intuition of the decision maker plays a major role in finding the solution of the problem, in regards to the timing of the various stages (Novicevic, Hench and Wren, 2002). He therefore emphasizes the through intuition the problems originating at the various stages are resolved. The behaviours of an individual that leads to the various stages is not always conscious but are sometimes prescribed, inspired or habitual. Learning Achievement The management skill I have chosen was decision making. Decision making is an important aspect that is required by an individual in their day to day life. It involves the process of selecting the best option from a list of several options. In simple word it is the act of making choices. Before the alternatives are selected the decision maker needs to examine the situation closely and then make choices regarding the solution of the problems. After this the decision maker need to evaluate each of the alternatives so that he can have a clear understanding regarding the possible advantages and the disadvantages resulting from the various options. This method provides the decision maker with a clear insight regarding all possible consequences. This helps in selecting the best option suitable for providing a solution to the problem. It is also an important function followed in the management of an organization. The managers in the organization need to conduct these steps of decision making in order to reach to a conclusive result. The various function acting within an organization like planning, controlling, organizing, directing, staffing cannot be conducted without proper decision making. Decision making is defined as the selection of proper course of action from a set of two or more alternatives such that the goals are properly met. Therefore decision making has helped and taught me to handle many complex situations I am facing in my academic field and will further help me in facing in my future career. It taught me how to deal with limited resources. It taught the ways to better and optimum utilization of the resources. I have now learnt how I can use the resources available to me and make the best possible outcome happen. Whatever may be the resource whether it is money, material or method I can use them and get my desired outcome. Even while doing this project I have made use of the books, my group members and my knowledge to get the best possible result. This skill will help me in my future in my professional life. Learning about decision making has also made me more competent to face the challenges. Now I know the step by step procedure that would help me in getting a solution to the problem. Decision making has provided me with the correct and quick decision framing ability to solve the problem and accept the challenges and fight with it. Decision making should be pervasive. There are various functions within an organization and the decision taken needs to be implemented properly within the various functions due to which the staffs of the various departments should be well aware of the decision and should take the responsibilities properly. The same can be correlated when we are working in any group project. While in a group project each member is designated with a particular task and he has to accomplish that task in order to make his group reach the main objective and goal. Therefore this has made me to understand the importance of each member involved in any decision making. The decision taken should be evaluated from time to time, in order to determine the capability, efficiency of the decision maker. If the decision maker is correct in his decision then it proves his efficiency. Thus if the decision adopted by me is correct then it will prove myself to be efficient and capable of taking fruitful decision. Therefore before finally implementing any decision it must be thoroughly checked. The correctness of the decision also ensures growth and success of the group. It also ensures a planed and optimum utilization of the resources available with them. On the other hand if the business decision is wrong then it slowdowns the growth and causes loss and confusion among the group. The right decision making helps in attaining the objective of the group, which increases the efficiency of the group members. Efficiency here signifies the return and the achievement of the group. At the same time rational decision also facilitates innovation. Innovation is very important in a group. It helps in providing the group with a competitive edge, by incorporating new and innovative ideas and new processes. This will help the group in excelling over the other groups. This will also provide motivation to the member who are participating in the group and therefore increase their efficiency. This project on decision making has also provided me a deep insight of the decision making process. The various steps involved in it. I have also come to know about the various theories related to decision making and implication of these theories. I have come to know that the various steps involved in the decision making are to be executed simultaneously and sequentially. This makes the outcome of each step very crucial since it impacts the next step. The final output of the decision will also get affected by the step involved. This criticality has made me to be more careful while involving in any decision making process. This will be given equal importance even while pursuing my career. Finally I would like to conclude that this whole process has made me a more competent and confident person while taking any decision. At different point of time every individual needs to take some type of decision. I know the criticality and the steps involved in decision making, so I can take better decision than a person who is not aware of this fact. While dealing in group I will try to use my skills in a more effective way so that my group can gain from them. In future also after completing my academics when I will join the corporate I can use the same skill to deliver optimum solution and result for my organization. REFERENCES Feldman, J. and Kanter, H.E., 1965. Organizational decision making, in March, J.G. (Ed.), The Handbook of Organizations. Chicago: Rand McNally & Co. Hoy, W.K., and Miskel, C.G., 1991. Educational Administration: Theory, Research, and Practice. 4th ed. New York: McGraw-Hill. Jones, R. And Beck, S., 1996. Decision making in nursing. Connecticut: Cengage Learning. Koontz, H. And Weihrich, H., 2006. Essentials Of Management. New Delhi: Tata McGraw-Hill Education. Mintzberg, H., 1983. Power in and around Organizations. New Jersey: Prentice-Hall. Novicevic, M., Hench, T. and Wren, D., 2002. Playing by ear . . . in an incessant din of reason: Chester Barnard and the history of intuition in management thought. Management Decision, 40, pp. 992-1002. Novicevic, M.M., Clayton, R.W. and Williams, W.A., 2011. Barnard’s model of decision making: a historical predecessor of image theory. Journal of Management History, 17(4), pp. 420-434. Tarter, C.J. and Hoy, W.K., 1998. Toward a contingency theory of decision making. Journal of Educational Administration, 36(3), pp. 212-228. Thompson, J.D., 1967. Organizations in Action. New York: McGraw-Hill. Read More