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Decision Making Skills in Business Environment Essay

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Decision making can be defined as a mental process of making choices among possible alternatives to make a practical decision (Reason, 1990; Wang, 2000). From selecting what items to buy in a supermarket to deciding which television channel to watch, we often have to make decisions in different conditions, particularly when we are facing uncertainties and trade-offs. Admittedly, decision-making skills have become increasing important when it comes to the highly competitive and ever changing business world. In view of that, a variety of models have been developed by the scholars from all around the world in an attempt to conceptualise the decision making process and maximise its potential output. In this paper, we will look at the role of…show more content…
In short, agreement between different stakeholders is the deciding factor of an ultimate decision in Carnegie Model. Although a consensus has been reached with the agreement of different stakeholders and parties, some critics pointed out that this will lead to a greater problem which they term it as “satisficing”. Satisficing means an organisation accepts a satisfactory rather than optimal approach to maximise the performance. In layman’s term, it means the final decision made by the coalition is just satisfying the stakeholders sitting on the board but that solution may not be the best one to optimise the performance of an organisation. Secondly, managers are concerned with immediate problem and short-run solutions or what Cyert and March (1963) termed as “problemistic search”. Problemistic search simply means the managers look around the environment to look around for a quick solution to solve the task as they don’t expect a perfect solution when it is ill-structured. To sum up the points, Daft (2010) opined that the managers normally look for a satisfactory solution that first emerges as they are constrained by several factors mentioned in the last paragraph. The Carnegie Model is particularly useful when it comes to problem identification stage. One recent example would be the United States government shutdown from October, 1st to 16th. The shutdown occurred as the Congress
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