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Who Makes Decisions and Why?
A decision is a choice between
a variety of alternatives, and a decision maker is whoever makes such choice.
It can be any leader, manager, employer, employee, student or any person who
need to take decisions. We can't talk about any specific reason for why we have
to make decisions; it is day today occurrence in our life. However, we have to
make decisions rightfully and also need to have a good idea about the future
results or about the future consequences of that decision.
Categorizing Decisions
01. Routine
Firstly there should be an introduction
and identification for these decisions. Then they become regular basis
decisions. These decisions are regularly taken, answers are obvious and
sometimes a little consideration or sometimes no even a little consideration
when taking. These decisions are usually sufficient, but they do occasionally
fail. The failures provide an opportunity to improve decision making.
E.g.: - Which button needed to push to start the production machine.
02. Strategic
They are the decisions which
are considering about entire processing environment of the organization, all
the recourses and the formers of the organization and the interface between
those two.
- Long term decisions
- Taken by upper management
- Future oriented
- Non-repetitive
- Centralized
- Affect for long term success
- Complex decisions
- Affect for company direction
- Related to counter planning of all organization
- Accordance with organizational vision and mission
- Deals with organizational growth
03. Operational
These are the
decisions which are taken to manage the day to day business. Lower or the
manager for operations will take these decisions. They can be repeated and have
a short term horizon.
E.g.: - pricing, discounting,
promotions, collecting information, maintaining inventory, logistics decisions,
sales and outreach, customer management, employee management, etc.
04. Emergency
Emergency
decisions are made especially in an emergency if a decision is substantial to
take right now. The management usually made such decisions in a time of crisis.
An important factor to effective decision making in a crisis is to be
systematic. These are non-programmed decisions that are related to a difficult
situation where there is no easy solution.
Difference Between Problem Solving And Decision Making
Problem Solving and Decision
Making are completely different concepts from each other. The major difference
is, problem-solving is a method, and decision making is a process. Decision
making is needed during problem-solving to conclude.
Decision Making Process
“Decision-making
involves the selection of a course of action from among two or more possible
alternatives to solve a given problem."
-Trewatha & Newport-
It is an essential
and continuous component for managing organizational activities. It is helpful
to achieve organizational goals. So it is more important for the functioning of
an organization. Decision making is a central responsibility of managers and
leaders. We can breakdown the Decision Making Process into five (5) steps. They
are as follows;
01. Identify Issues
In the first step, we have to
identify and define the issues or problems. The difference between expected
situation and the actual situation can be identified as an issue. So we have to
have a clear idea about expected situation and the actual situation.
02. Undertake Analysis
Do an analysis by gathering
all the information and identify all the effects happen due to these issues.
03. Evaluate Options
Find or brainstorm possible
options and solutions. Consider and compare all the pros and cons of each
option. Consult others if necessary or useful. Create a template which enables
measurements according to the different strategic factors. Tools like SWOT
Analysis can be used to identify strengths, weaknesses, opportunities, and
threats in each option.
04. Identify Choices
Select best options. Choose
most effective options which help to determine the team's final goal. Avoid
vagueness and weak compromises in trying please everyone.
05. Implement Plan
Before implementation team should be prepared to understand and utilize the decision. Convert the selected decision to a plan. Explain your plan to others and follow up to ensure proper and effective implementation.
Therefore the following steps can be used to detect the reasons for the
communication issues in the organization by recognizing them with the cause and
can find out solutions to overcome them.
Identify Issues
There are some problems in
communication such as misuse of the informal communication network and not
using communication network properly by subordinates and superiors.
Undertake Analysis
Gathering information from subordinates
and superiors and how they use communication network interact with each other
and engage in transactions. I question the employees about problems and get
some idea about their opinions. Then I have identified the root cause; some
people try to use organizational comities and employees for their political
expectations.
Evaluate Options
Identifying and gathering a
collection of strategies and alternatives to minimize or eliminate these
communication issues in the organization. I can remove these people from my organization or
advise them. I can make strong rules and regulations to deal with this kind of
situations. I can take legal actions on them.
Identify Choices
Selecting
the proper and most suitable alternative to overcome the communicate issues
effectively by following a methodology to derive it. I can perform all the above solutions as they do not perform
any harmful impact on my organization and all of them help to solve and
eliminate this issue completely.
Implement Plan
Change over the choice made into a plan and classification of exercises with the help of subordinates and superiors. Assess the results of the given decision. Look at whether it is presently beneficial to the both subordinates and superiors. Analyze the implementation of communicational and informal networks and identify whether decisions are working and other issues.