Decision Making Skills in Business Environment Essay

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

The decision making process includes cognitive processes that eventually lead to a choice in action while taking into consideration the alternative possibilities (Allen, Dorozenko, & Roberts, 2016). Not all choices have to lead to an action. The values and preferences of the person making the choice also comes into play when making the final decision. Problem-solving to obtain a certain goal or satisfactory by a solution is the main reason people go through the decision making process (Stefaniak, & Tracey, 2014). This process has many factors that end with one final result or solution. The decisions made can be rational or irrational and can be determined by explicit or tacit knowledge (Qingyao, Dongyu, & Weihua, 2016). Since the decision making process can be very difficult at time, psychologists have viewed the process in different perspectives to get a better understanding (Rossi, Picchi, Di Stefano, Marongiu, & Scarsini, 2015). The different perspectives include; psychological, cognitive, and normative or communicative rationality.

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.

People should make decisions every day, some of those decisions are easy to make, while others are quite difficult to implement. An appropriately combined and organized decision-making process will help to control this issue and bring a positive outcome for those involved. The decision-making process may become challenging for people due to “the lack of structure and entail risk, uncertainly and conflict” (Bateman and Snell, 2012, p. 86). That is why people trying to make important personal or professional decisions should have an appropriate model to follow in order to avoid these challenges. Bateman and Snell identified six steps or stages of decision-making process

For the most part, our decision-making processes are either sub-conscious or made fairly quickly due to the nature of the decision before us. Most of us don't spend much time deciding what to have for lunch, what to wear, or what to watch on television. For other, more complex decisions, we need to spend more time and analyze the elements of the decision and potential consequences. To assist with this, many people employ the use of a decision-making model. Utilizing a

Top-level executives and key managers are at the helm of the decision-making process with the focal point being selecting the best choice. Selecting the best choices or alternative of choices derive from assessments, interviews, surveys and audits that evaluates the strategic position of the selected choices. Consequently, the chief executive officer at some point should show how the middle-managers, front-line managers, employees and client fit into the decision-making process.

In today’s economy, decision-making skills vary for each household; however, the bottom-line goal for every individual is to get the most for their money. In order to do this, there are 4 principles of individual decision-making: facing trade-offs, evaluating what one is giving up to obtain their goal, thinking at the margin, and responding to incentives.

Every day we have to make decisions. Some of the decisions are small and some of them are life-changing. Some of the decision we make, sometimes, is pretty simple. We have to wait longer to see if our decision was the correct one or not. We might have found the right solution to our problem or maybe we will have to go through the whole decision-making process again until we find the perfect solution to our problem. Decision making is not always simple. Many times, we think that we have made the best decision ever and later on we realize that it was not. As humans, we tend to answer with our heart and feelings. We tend to answer right away without thinking. The understanding that critical thinking and decision making hand and hand is an important key. Many times, time and perseverance will be the key to the best result

Decision-making can be a cognitive process of selecting a course of action form various options. Some of us are logical. Some of us are risk taking. Either way such characteristics play a role in our decisions. In my experience decision-making can

Organizational behavior helps managers to improve the organization in a good way. Decision making process is the one of the behavior in human organizational behavior. According to McShane and Von Glinow (2000), “decision making a conscious process of making choices among one or more alternatives with the intention of moving toward some desired state of affairs”. Decision making is a linear process and it includes six steps such as identifying the problems, gather and evaluate data, list and evaluate alternatives, select best action, implement the decision and getter feedback (refer to Figure 1 in Appendix 1).

Thinking critically and making decisions are important parts of today’s business environment. It is important to understand how the decision making process works and the steps involved. The nine steps of the decision making process are: identifying the problem, defining criteria, setting goals and objectives, evaluating the effect of the problem, identifying the causes of the problem, framing alternatives, evaluating impacts of the alternatives, making the decision, implementing the decision, and measuring the impacts. (Decision, 2007.) By using various methods and tools to assist in making important business decisions an individual can ensure the decisions they make will be as successful as possible. In this paper it

A model of decision making known as the Rational Decision Making Model arises from organization behavior. This includes working through series of five stages path from problem identification and to the solutions.

The decision is to select an action among a number of actions that solves a given problem, that prevents a problem from happening, or that forces to apply new ideas for development. The need for understanding decision making process is increasing because the complexity of modern organizations is increasing, and because the modern organizations' effectiveness depends on the decisions made by the managers. The question is how to select the most appropriate action to solve the problem satisfying all stakeholders.

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.