Q. "Decision making is the primary test of management." Discuss this statement and explain the process of decision-making.
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Whatever a manager does, he does through decision making. Critically examine this statement.
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What is the significance of decision making? What procedure should be followed in arriving at a correct decision?
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Decision making is the vehicle for carrying managerial workload and discharging the managerial responsibilities. Evaluate the statement and examine the significance of rational decision making in management.
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Decision making is at the care of planning. Discuss this statement and spell out the nature of decision-making.
OR
Decision making is at the care of planning. Discuss this statement and spell out the nature of decision-making.
OR
What is decision making? What are the important factors that influence decision making?
OR
Whatever a manager does, he does through decision making. Critically examine this statement.
OR
What is the significance of decision making? What procedure should be followed in arriving at a correct decision?
OR
Decision making is the vehicle for carrying managerial workload and discharging the managerial responsibilities. Evaluate the statement and examine the significance of rational decision making in management.
OR
Decision making is at the care of planning. Discuss this statement and spell out the nature of decision-making.
OR
Decision making is at the care of planning. Discuss this statement and spell out the nature of decision-making.
OR
What is decision making? What are the important factors that influence decision making?
Meaning and Definition of Decision Making
Decision making may be reviewed as the process of selecting a course of action from among several alternatives in order to accomplish a desired result. The purpose of decision making is to direct human behaviour and commitment towards a future goal. If there are no alternatives, if no choice is to be made, if there is no other way-out, then there would be not need for decision making. It involves committing the organisation and its resources to a particular choice of course of action thought to be sufficient and capable of achieving some predetermined objective.
Managers at all level in the organisation make decision and solve problems. In fact, decision-making is the process of reducing the gap between the existing situation and the desired situation through solving problems and making use of opportunities. A decision is a course of action consciously selected from available alternatives, with a view to achieving a desired goal. It is an outcome of the judgement and represents a choice and commitment to the same. It is a final resolution of a conflict of needs, means or goals made are the face of uncertainty, complexity and multiplicity. A decision is conclusion reached after consideration it occurs when one option is selected to the exclusion of others - it is rendering of judgement.
Different management scholars have defined Decision making as follows:
George Terry
Decision making is the selection based on some criteria from two or more alternatives.
Heinz Weihrick and Harold Koontz
Decision making is defined as the selection of a course of action among alternatives, it is the care of planning.
Louis Allen
Decision making is the work a manager performs to arrive at conclusion and judgement.
Nature Or Characteristics of Decision Making
Decision making is globally thought to be selection from alternatives. It is deeply related with all the traditional functions of a manager, such as planning, organizing, staffing, directing and controlling. When he performs these functions, he makes decisions. However, the traditional management threorists did not pay much attention to decision making. Infact, the meaningful analysis of decision making process was initiated by Chester Bernard (1938) who commented, The process of decision are largely techniques for narrowing choice.
The nature of decision-making may be clearly understood by its following characteristics features:
1. Decision making is an intellectual process, which involves imagination, reasoning, evaluation and judgement.
2. It is a selection process in which best or most suitable course of action is finalized from among several available alternatives. Such selected alternative provides utmost help in the achievement of organizational goals. The problems for which there is only one selection are most decision problems.
3. Decision making is a goal oriented process. Decisions are made to attain certain goals. A decision is rated good to be extent it helps in the accomplishment of objectives.
4. It is a focal point at which plans, policies, objectives, procedures, etc., are translated into concrete actions.
5. Decision making is a continuous process persuading all organizational activity, at all levels and in the whole universe. It is a systematic process and an interactive activity.
6. Decision making involves commitment of resources, direction or reputation of the enterprise.
7. Decision making is always related to place, situation and time. It may be decision not act in the given circumstances.
8. After decision making it is necessary and significant to communicate its results (decisions) for their successful execution.
9. The effectiveness of decision-making process is enhanced by participation.
Elements of Decision Making
There are following elements in decision making.
* The decision maker.
* The decision problem or goal.
* Attitudes, values and personal goals of the decision maker.
* Assumption with regard to future events and things.
* The environment in which decision is to be made.
* Available known alternatives and their estimated or imagined outcomes.
* Analytical results in the whole perspective.
* The constraints.
* The act of selection or choice.
* Timing of decision.
* Proper communication of decision for its effective execution.