Decision Making Process Of The Theory Of Organization

Managers within organizations are faced with the challenges daily of making excellent decisions. In everyday life we are challenged in making sound decision, decision that will last for a life time. Folk often wonder after making a decision if it was the right choice, will it affect the people around me, was this a good choice for my family, and will the decision affect them. In order to be an effective manager you have to possess the skill of outstanding decision making skills. In order for one to be successful within their personal life they may also need to possess an understanding of effective decision making. The decision- making process should be one that makes a positive change. Can the decision making process work

Decision-making in the workforce is a process of responsibilities used by upper management to implement, enforce rules, regulations, and maintain a successful environment. Decision-making implemented more effectively by making a plan, thinking it through, accepting more than one opinion and determining what is best. However, decision-making often utilized more effectively by opening doors of opportunities for a suggestion, question, discussion, and feedback. Although, more involvement helps improve understanding, utilize behavior skills and present opportunities for better communication. Everyday life consists of decision-making, the right decision may not always be applied, but ensure room for improvement and opportunity. Individuals approached decision-making in many different ways. As stated by (Jones, Graham, & Bateman, 2006) decision making is a procedure used to recognize a problem, weigh the alternatives and evaluate a solution in which, certain situations will require different approaches to become effective.

Decision-making is critical to a business helping mitigate risk and requires good judgment, considering social, humans, and ethical values before final decisions are made. Additionally, making good decisions enables organizations to identify and resolve problems, also providing organizations with the ability to identify and exploit opportunities.

Making a decision is one of the main activities of a leader. Wren and Voich (Wren and Voich, 1994) believe that decision making is mandatory for successful execution of any managerial function.

As we make decision throughout our day, for most of us we make a lot of decisions within the workplace. Those who are in leadership roles make decisions within the organization such as determining organizational goals, missions, visions, and other decisions that can greatly affect the organization either in a positive or negative way. According to Robins and Judge everyone play in the role of decision making in the workplace. “Non-managerial employees also make decisions that affect their jobs and the organizations for which they work. They decide whether to come to work on any given day, how much effort to put forth at work, and whether to comply with a request made by the boss” (Robins & Judge 2009, p. 147). These particular decisions that non-managerial employees make can affect the workplace in numerous of ways such as impacting views and decisions of other employees, impacted the set atmosphere in the workplace as well as impacting

The rational decision-making model describes a series of steps that decision makers should consider if their goal is to maximize the quality of their outcome. In other words, if you want to make sure that you make the best choice, going through the formal steps of the rational decision-making model may make sense. The following are the steps taken to come to a rational decision: 1. Identify the problem, 2. Establish decision criteria, 3. Weigh decision criteria, 4. Generate alternatives, 5. Evaluate the alternative, 6. Choose the best alternative, 7. Implement the decision, 8. Evaluate the decision.

The concept of ‘rationality’ has been talked through the centuries. According to Grey (2013), rationality is a big question because of this proposition which has the meaning and difficulties seem to be defining of a whole set of issues which have resonated through both organisation theory and practice ever since. And rationality is the basis of a decision, rational decision makers are objective and logical, they reach the goal that maximises the value. Not only rationality is important to organisations, and also it can be identified in various kinds of management theories. This essay will introduce the different aspects of the concept of ‘rationality’ and make explanations that how these are recognised in different management theories.

In any organization, decision making serves as a factor which could either break it or make it. Hence, it is important that sound decisions are made so that the goals of a certain organization or company are realized. Aside from that, profits and productivity are expected to increase if decisions are able to meet the demands of business trends. In traditional organizational structures, decisions are lodged in the topmost stages of the ladder. In other words, only the top executives make the decisions for the company’s future and direction. In some instances, only the chief executive officer will only decide for the company. As a

As stated by Prasad (2008), the managers should identify the different choices available in order to get most acceptable outcome of a decision. From searching different alternatives the managers can evade blocks in operations as choices are suitable if a particular idea goes wrong. Khanka (2000) expresses the view that selections can developed from in many ways such as can get from sources like experience, do training other organizations, and take others ideas and suggestions related in problems. Furthermore to improve alternatives solution the managers may investigation the signs of a problem for clues or fall back on intuition or result that stated by Griffin and Moorhead (2010). For an example in marketing department a non-programmed decision is compulsory the manager have to produce alternatives for raise market share. As McShane and Von Glinow (2000) pointed out that in a programmed decision is a standard operations is not to generate choice but can take out from the documented that already saved. Next an organizer should search the mission of a decision. In other words they need to define what is to be accomplished by it (Quick & Nelson, 2013). The decision criteria are important as mentioned by Dubrin (2002). The several criteria are consumers must aware of varies in quality of products, there not happen inflation, workers must consider the quality of improvements and lastly job satisfaction should not be reduce.

Owing to limited rationality of man, Herbert Simon contends that most decisions are based on limited rationality, that is, the organization is working like a brain. It would be impossible for organizations to attain perfection since their members have limited information-processing abilities (Morgan, G, 1997)

Simon presented the bounded rationality as a result of human and organization constraints. He sees that the managers would not achieve the requirements of rational behavior. He observed that different types of decisions can be processed in different ways, namely: programmed decisions and non-programmed decisions. The programmed decisions category included decisions that occur frequently. Managers are used to these types of decisions and they already have developed some kind of protocols and procedures for making them. These decisions usually are left for the lower posts in the organizational hierarchy.

There are many theories about decision-making, and how these affect organizations. Herbert A. Simon expressed the idea that human decision making was based on “bounded rationality”, which was that decisions were made on the available information, available time, and one’s cognitive information-processing ability (Simon, 1997). He made a distinction between “maximizing” and “satisficing” when making decisions. While maximization, or “optimizing” was the preferred rational method of making decisions, people often lacked the environmental or cognitive resources and information to do so. Simon postulated that “satisficing” was an adaptive approach, when necessary, and when information was limited and time was short. Satisficing, he said, was part of the human condition. Maximization was studied by other researchers, who identified three characteristics of maximization (Schwartz et al., 2002):

The focus of my term paper is the decision making process used by today's top-level managers. Top-level managers, such as Chief Executive Officers (CEOs), Chief Operations Officers (COOs), and Chief Financial Officers (CFOs), must make critical decisions on a daily basis. Their choices and the resulting outcomes affect the company, the employees, and the stakeholders. Due to the high importance of their decisions, the process they use to reach them merits a close examination.

Decision Making is “A commitment to action” (Mintzberg, H., 1983, p. 188) ; Management decisions are made for a lot of different reasons, mainly because decision making is a fundamental aspect of the management functions and management decision-making which makes it a key management role. (M. Teale, V.Dispenza, J. Flynn, D.Currie, 2003, p. 10)

This report will discuss about the approach to rational decision making process. It discusses how an everyday problem faced by management can be tackled by using