Decision Making in Organization | Assignment
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Added on 2020-03-16
Decision Making in Organization | Assignment
Added on 2020-03-16
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Running Head: DECISION MAKING IN ORGANIZATIONSOrganizational Decision MakingStudent’s Name:Institution Affiliation:
DECISION MAKING 2Introduction In today’s organizational life, decision making is perceived as a continuation of the man’s systematic ways of looking for guidance from the stars and unforeseen powers (Koksalan et al., 2013).Sometimes back, Chester Barnard who, a retired telephone executive and author of The Functions of Executive used the term decision making from the Lexicon of Public Administration into the world of businessand started replacing the descriptors such as” resource allocation” and “policy making.” With the introduction of the phrase, managers changed their way of thinking and spurred on the new crispness of actions desiring for conclusiveness (Vaimanet al., 2012). According to William Starbuck, a professor in residence at the University of Oregon’s Charles, policy making is a continuous process that needs constant allocation of resources; therefore, decisions imply the end of deliberations and the beginning of the actions as Albert Camus, concludes that” life is the sum of all our choices.” The study of decision-making by some intellectuals and disciplines all finds that every decision have ultimate influence on our behaviors. Therefore more research has been accomplished to help the current managers on how to make decisions.DefinitionsA decision is a conscious choice to behave in a set particular way in a given circumstanceeither formally or informally. The formal decisions are the more relative, non-routine, complex and non-repetitive since the procedure used does not always exist while the informal decisions tend to be repetitive and have a nature of routine since there is an existence of the systems used (Asemi et al., 2011). Decision making has received different definitions according to different philosophers and researchers such as Mintzberg Henry, James Stoner, and Peter Drucker.
DECISION MAKING 3According to James Stroner, decision-making is a process of identifying and selecting a suitable course of actions to solve a particular problem. By following these steps, one can make more deliberate thoughtful decisions by organizing the relevant information’s and defining options. According to James Stoner, the decision-making has three components which are the alternatives, the choices and the problem (Damnjanovic & Jankovic, 2014). According to Peter Drucker, decision-making is a process whereby an individual performs a conclusion about a situation following a course of behaviors that must be done. According to Henry Mintzberg, decision making is the process of diagnosing a problem, identifying possible solutions, evaluating on the best and the making the action (Cooper et al., 2014). Decision making is critical for every organizational management as it tends to differentiate a real manager form a non-manager as decisions are always required in planning, controlling and organizing (Cui, 2015). According to all these three authors, it is evident that decision-making is a process followed by an individual to arrive at the best solution for a particular problem.Decisions are made in accordance to different kinds of situations such as; Decisions on Whether, Decisions on Which and Conditional or Contingent Decisions. Decisions on Whether, involves a yes or no instances; a situation whereby the individual has only two fixed choices to make ( Cooper et al., 2014). A Decision on Which means a situation where an individual has more than two options to make hence picking on the best alternative while the Conditional decisions are always as a result of already made conditions hence making it easier for the action.A great number of individual faces imperfectability of making decisions, due to ignorance of the models, strategies, approaches and techniques required for the process, therefore, several models and approaches have been made by several theorists to achieve them (Del Messier et al., 2011). Decision theory is the study of the reasoning underlying individual
DECISION MAKING 4choices classified into two branches; that are normative decision theory which gives the best advises to arrive at the best solution (Damnjanovic & Jankovic, 2014). The theory aims at finding the tools, methodologies, and software to assist individuals to make better decisions while the descriptive decision-making theory aims at analyzing how the existing, possibly irrational people make their best choices. In short, the normative theory explains how decisions should be made while the descriptive theory explains how to make decisions. There have been other several theories that have been developed and implemented in many organizations that are believed to be mathematical, such as casual, evidential, game and Bayesian theories (Salama, 2015). The causal theory, according to Immanuel Kant, is an old one that adopts the principle of rational choice that implies that every outcome is as a result of the type of the made decisions. Game theory is a mathematical study of strategic decision-making as it takes into the account theconflict and cooperation between decision-makers and the reasonable rationale. Evidential decision theory believes that the best option is always the best outcome of the irrational thinking while the Bayesian theory that adopts the probability aspects and logical reasoning in making decisions. Different decision-making theories can also be viewable through analyzing different approaches and procedures that are involved. The main approaches that are involved include authoritarian, group and automating system. The authoritarian approach is where an individual ora leader makes a decision based on personal knowledge and experience and later communicate the decisions to the subordinate to follow (Margalit, 2011). The leader's vision is transmitted intothe minds of the subordinates and carefully supervised to complete the tasks. According to Douglas McGregor’s theory X, leaders are supposed to coerce and control followers to accomplish the organization's objectives. The approach is characterizable by a downward one-
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