Rational Decision Making - Coursework Example

Personal Reflection Student’s Name Institutional Affiliation Date of Submission Introduction Rational decision making is essential for the organization performance. Organizational goals and objective helps in setting standards in performance and productivity. There are various factors that influences rational decision making. The reflective paper seeks to introduce rational decision making, risks and uncertainty involved in decision making and socio-economic influences in management. Rational Decision Making In making rational decision, one is supposed to initiate different aspects such as theories and models that reflect on issue at hand. I realized having clear understanding of the decision making theory and models; it is easier in coming up with the solution regarding the problem solving. In management level, the need of understanding factors influencing decision making are supposed to be considered in order to rationally choose correct model. Rational decision making provides platform for higher performance through initiating appropriate approach toward the organizational objectives and goals [Eph14]. I came to realize management has a major role to play in an organization by initiating the correct format required in development and higher performance. Some of the factors influencing rational decision making are direct and indirect related to the problem being solved. The management has to seek full information regarding the issue and understanding possible results depending on the decision to be undertaken. The consequences of the decision are essential in providing grounds of deciding whether decision made was rational or irrational. Therefore, management has to consider all possible outcome of the decision before embarking on implementation. If the results of the decision expected are accordance to the organizational objectives, then management is supposed to undertake it in order to achieve expected consequences [Ste10]. Consequently, if the expected results have partial benefit to the organization and certain margin of negative influences, management has to undertake cost benefit analysis in order to choose the best move. Therefore, the major concern is initiating appropriate strategy that would help in providing rational decision regarding on the organization position. In relating the rational decision making, I sought to understand the process involved through research and involvement of the group members. The first step understands the issue at hand or problem is required to be solved. In coming up with the solution, I understood that extensive research on the possible channels and means regarding the issue are supposed to be elaborated according to the objective. Managers are supposed to follow the organization mission and visions that articulates on the objectives and goals [Eph14]. These factors are essential in determination of the appropriate decision that covers the interest of the organization. Furthermore, I realized undertaking further research on other potential solutions and identifying them is helpful in rational decision making. The most important is choosing the best decision that suites the organization performance in realization of the objective and goals. Seeking to understand whether the decision made is worth, management supposed to analyze the outcomes depending on the organization performances. The analysis includes the effects caused on production, cost and customer demands. An organization has the standards that help in measuring the outcome. Thinking what might have happened, the management should have an alternative process that would correct situation is decision made do not match to the organization expectation [Ste10]. At this position, I realized having a couple of possible model in regard to the problem helps in controlling the negative results. In free market operation, there are many influencing factors that are not foreseeable and affect organization performances. Therefore, it is important to have different approaches in making a rational and sound decision. Risks and Uncertainties in Decision Making Risks and uncertainty are some of the factors influencing application and implementation of the results of decision made. Through the extensive research, I came to realize that in decision making, there is a range of possible outcomes that are related to the choice being implemented. Some of these outcomes are undesirable and hence involving risks while making decision. The management uses similar approach in choosing the risks and hence chooses the appropriate model that pose to have fewer risks [Rob99]. The approach shows that there is always ac chance of making decision and later to understand some emergence of uncertainties in future. Therefore, it is important to have a clear definition of the model being initiated for a decision making and related risks that are anticipated to emergence in both short terms and long term approach. Another issue is connection of the possible risks whereby the management accepts them and starts implementing the decision made. I came to realize not all the potential risks outcomes are experienced and hence understood. The emergence of the new dimension of risks depending on the current organization performances develops and hence creating uncertainties in decision making [RVe13]. The management is supposed to be ready on any result that would come up depending on the decision model or plan initiated. Uncertainties are realized if the organization implementations of the decision are influenced by external factors that were not expected to occur. Therefore, it is essential for the management develop appropriate consideration on the strategies being implemented in organization. The approach of uncertainly emergence affects the final results being anticipated by the management through influencing the process either through internal or external process. Uncertainties and risks focuses in affecting the results of the decision and hence leading to negative effects. The approach by the management is to ensure appropriate measures are in place with the aim of ensuring the effects of undesirable results are minimized. I got more information regarding the state of the decisions and hence should be initiated in a manner that induces positive effects [Tho09]. The opposite of the risk and uncertainty can be directed to positive results that can achieve higher organization performance. This approach makes the organization to become competitive and high productive. Therefore, the management should be ready for any issue that can result from the decision making. I came to realize that risks and uncertainty are different things that have different effects to the decision making. Risks tend to cover the known possible outcome that can affect the decision being made. Risks influence the results in a manner to change the anticipated requirements in terms of either distorting the outcome or changing the magnitude of the response [Eph14]. On the other hand, uncertainties are unforeseeable factors that might arise unsuspected. They focus also on influencing on the outcome of the decision but they may cause a greater damage before being realized. The both risk and uncertainty differs depending on the objective of the organization and how it should respond to these changes. Socio-economic influences in decision making Social economic approach is essential factor that contributed in developing appropriate decision making in regard to the problem being faces. An organization seeks to improve performance and high quality product to the community. This is designed I a manner of attracting many people as customers to engage and relate to the products and services being offered. I understood the need of studying the surrounding communities depending on their social life, culture, social class and lifestyle. The approach enables the organization in achieving higher performance depending on the decision being made. I focused on developing research regarding the culture and social life of the community living around the organization [Ste101]. The basic approach is maintaining decisions that are beneficial to the community and achieving their social need. Some of the organization makes their decision in regard to organization performance but forgetting on the social life. Therefore, negative effects are felt in terms of the pollution on both air and water dumping. The main achievement is the social benefit decision that supports the organization performance improvement and wellbeing of the community welfare. The issue of the decision making and the comparative advantage to the community are at stake and hence should be considered for a good relationship. The factors influencing decision making at the basis of the socio-economic approach are directed to culture and social integration. The basic consideration is how the organization is supposed to deal the member of the community through provision of the essential services to enhance their relationship. According to the achievement of the organization, the members of the communities are supposed to share some goodies that are initiated through development [RVe13]. Therefore, it is important to consider surrounding before implementing the decision [Ste10]. Culture helps in guiding on the needs of the community and hence giving guidelines on the production depending on demand. Some culture and religion do not support certain activities or products and hence meanings no market for the products being produced. Another issue the beliefs whereby the organization should consider the community understanding and how they relate to their production. This would help in giving appropriate approach to performance and relating to the community at large. In decision making, it is important to consider economic development and type of the strategies required in improving situation. Problem solving might be easier but is should be directed to the objective that seeks to be realized. According to the organization framework, I found it’s important to seeks having decisions that incorporates all people from surrounding and providing them with the good social life, providing them with more chances of employment and giving back to community through social incentives [Rob99]. This helps the community to support the organization produce through being the intermediate customers and offering the raw material required by the company. Therefore, it is essential to involve them in decision making through recognizing their presence and need of good life. Conclusion Rational decision making, risks and uncertainty and socio-economic influences are major factors that are considered in organizational management. The approach by the management in deciding on the best option requires assessing different factors. The range of the factors depends with the objectives and goals of an institution that reflects on productivity and performance. References Fernandes, T. ( 2009). Strategic leadership and decision making 2. Chandni Chowk, Delhi [India]: Global Media. Freeman, R. M. (1999). Correctional organization and management : public policy challenges, behavior, and structure. Boston: Butterworth-Heinemann. Nikoi, E., & Boateng, K. (2014). Collaborative communication processes and decision making in organizations. Hershey, PA : Business Science Reference. Eph14: , (Nikoi & Boateng, 2014), Ste10: , (Sinofsky & Iansiti, 2010), Rob99: , (Freeman, 1999), RVe13: , (Rao, 2013), Tho09: , (Fernandes, 2009), Ste101: , (Sinofsky & Iansiti, One strategy : organization, planning, and decision making, 2010), Ste10: , (Sinofsky & Iansiti, One strategy : organization, planning, and decision making, 2010), Read More