Showing posts with label Business. Show all posts
Showing posts with label Business. Show all posts

Wednesday, 2 June 2021

Management Approach for Correct Decision Making

Management Approach for Correct Decision Making
Decision-making is a very crucial aspect; human beings have to make decisions at every step of their lives. While some of these decisions do not have lasting and intense effects, some decisions have lasting and intense effects which makes it very tough for the decision-maker to determine what to do and how. We have to take all kinds of decisions during our lifetime in homes, offices, organizations, and countries and it is important to understand the significance of correct decision making and how it can affect lives.

Organizations can work by people making decisions and choices. A manager plans, organizes, staffs, leads, and controls a team by executing decisions. According to experts of PhD dissertation writing services, the effectiveness and quality of those decisions determine how successful a manager will be.

Difference Between Problem Analysis And Decision Making:

Many people mistake problem and analysis and decision making as the same; while they are related, they are two different activities. Decisions are commonly focused on a problem or challenge and decision-makers must have considerable data before they make a choice. Problem analysis, on the other hand, involves framing the issues by defining their boundaries, establishing criteria, and developing conclusions based on the available information.

Decision Making And Management:

In almost every scenario, managers are constantly called upon to make decisions to solve problems. It is important to know that decision-making and problem-solving are ongoing processes of evaluating situations or problems, considering alternatives, making choices, and they are followed up with the necessary actions. Making good decisions is a key leadership responsibility and if managers choose the wrong decision-making style, they could be in for a disaster. They must understand how decision-making affects management and vice versa to know it can lead to better outcomes in the long run.

Steps In Decision Making:

Decision-making comprises a series of sequential activities that structure the process and facilitate its conclusion. These steps are:
  • Establishing objectives
  • Classifying and prioritizing objectives
  • Developing selection criteria
  • Identifying alternatives
  • Evaluating alternatives against the selection criteria
  • Choosing the alternative that best satisfies the selection criteria
  • Implementing the decision

Approaches For Decision Making:

There are four approaches for decision making; these approaches are driven by two things; the urgency of making the decision and the size or impact of the decision. Both these factors affect the way decisions are taken.

Autocratic Decision-Making:

This approach is best for situations when the decisions are small and low impact but they get larger as the urgency goes up. In an environment where Autocratic decisions are made, work activities and roles are very tightly structured; they are monitored and well-controlled. Command and control are very important in such situations.

Participatory Decision-Making:

This approach works well when larger decisions have to be taken; there is higher urgency, the decision must be made timely and the impact is going to be big too. It is best used when a decision is made with input from people who will be impacted in the final call. In such decisions, there is a lot more risk and to ensure that things are moving in the right direction, more people are involved which lowers the burden of decision making from one person.

Consensus-Based Decision-Making:

Consensus-based decision-making style works well in situations when the decision is a big one but there is no urgency and there is plenty of time for the manager to think about it. For approach, the decisions are made with a cross-functional team and people from different departments can give their ideas and input to conclude. However, this type of decision-making takes a lot of time and everyone has to agree before the decision could be made.

Democratic Decision-Making:

This approach is best for mid-sized decisions where there is not much urgency to finalize things but a decision must be taken to move forward and focus on other important things. The democratic style is the one in which decision is reached by majority vote and the concerned parties can vote according to their choices without wasting time or thinking about things that do matter. Democratic decisions are mainly about matters that just need to be made to move on with life and this is the way people interact in life.

Such decisions might be made in a committee or the individuals are given a deadline to vote. Sometimes the decision‐making process is extremely short, and mental reflection is essentially instantaneous. In other situations, the process can drag on for weeks or even months before the results can be observed. The entire decision‐making process is dependent upon the right information being available to the right people at the right times who act on it appropriately