DECISION-MAKING PROCESS

One of the main features of a manager is to be good at decision-making. The quality of the decisions that managers reach is the yardstick of their effectiveness. Decisions are organizational mechanisms through which an attempt is made to achieve a desired state. A necessary condition of a decision is a problem. It is easy to understand that some problems exist when a gap between desired results and actual results occurs.

Problems are usually of three types: opportunity, crisis and routine. Crisis and routine problems present themselves. Opportunity problems, in contrast, must actually be found, they await discovery. Before a decision is made, feasible alternatives or potential solutions to the problem should be developed and the potential consequences of each alternative should be considered. Once alternatives have been developed, they must be evaluated and compared. In every situation, the objective in making a decision is to select the alternative that will produce the most favourable outcomes.

The purpose in selecting an alternative is to solve a problem to achieve a predetermined objective. It means that a decision is not an end in itself, but only a means to an end.

Decision-makers are influenced by many psychological forces, both conscious and subconscious. One of the most important of these forces is personality. Decision makers’ personalities are strongly reflected in the choices they make. They vary greatly in their propensity for taking risks that greatly influences first their alternative and then the decision itself.

A manager’s job is not only to choose good solutions but also to transform such solutions into behaviour in the organization. This is done by effective communication with the individuals and groups.

Decision making is a common responsibility shared by all executives. Every day managers are required to make decisions that shape the future of their organizations as well as their own futures.