Decision making is the basis of the duties of managers and the whole organisation. The whole management process depends upon the decision making. It is the role of all the managers to take decisions, but the nature and significance of the decisions might be different. The decision making depends upon the situations and according to the abilities of a person. The decision making is helpful in case there is any problem in the organisation. Certain situations need to be tackled in the organisation, and for that, there have to be accurate decisions to handle the crisis. There is also the need of resolving the conflicts that can hinder the working quality in the organisation. there are some basic techniques of decision-making that one should know for the complete information on decision-making.
Decision making is the central point of planning. The planning process requires the managers to take suitable actions to be taken for the adoption of objectives. The manager has to choose the best action from the various alternatives. There is the process of decision-making when a lot of alternatives are available.
In other words of famous authors, decision making is the process to judge the options available and to cut them down to a suitable one.
There are different definitions by authors on the decision-making. And all the definitions seem to be comprehensive and broad. The definition of decision making covers the basic issues of the decision-making process.
Here we will discuss the features of decision-making in an organisation:
- It is an inseparable part of planning process. While planning anything, one has to choose the best options available for the various options. Planning process requires making a lot of suitable decisions so that one can decide on different steps of planning and make suitable decisions as per the requirement.
- The main aim of decision-making should be on the selection of the course of action by exploring the various alternatives. The manager has to study the alternatives and then choose accordingly.
- The process of decision-making involves judging and discrete the one who is deciding on anything. The process of decision-making is irrational as the decisions are affected by various factors such as likes and dislikes of the decision-maker and change the preferences also.
- The process of decision-making is not a task of some individual, but it also involves the agreement of people working in the organisation. Their acceptance is as important as the whole decision-making, without that the decisions would not have any importance. The organisation has to commit that they would adopt the course of actions decided by the manager. Only then the decision making would take place.
- The process of decision-making is social and human as it also implies the interference of the social factors as well as the individual also. For the better impact of decision making, an effect would always consider the implications of a human and social factor before deciding on anything.
- Decision-making is a process that is influenced by the achievement of the goals and objectives.
- Decisions are to resolve some situations such as if there are crises in the organisation, there are some conflicts in the organisation, or the manager has to tackle some situation in the organisation.
- The decisions can also have a negative impact sometimes. There can be decisions related to retrenchment, or to dismiss some employee, demote someone, reduce the production scale, or to withdraw some product from the market. Thus, all these decisions need the suggestion of the experts, and if something wrong happens, the manager would be held responsible. All these things might not be beneficial as decided so it can have a bad impact on the success of the organisation.
- With the decision-making, there is the requirement of more liberty that comes to the managers, and it makes them use their experiences, skills and judgement abilities. That is why the decision-making is flexible so that the manager can have the freedom to decide.
- The manager has to be persuasive with his decisions so that he can convince others with something he has decided. Decision-making is an important managerial activity. And the task of the manager is to make decisions on planning and implement those plans also.
The decisions have to effective, and there should be the quality of decisions by the skills, core competence, judgement and abilities of the manager. At some point in time, every manager has to be a part of decision-making.
We can also judge the quality of the managers through their abilities to make decisions.
If we talk about the hierarchy of the organisation, the structure of the organisation is made in such a way that the upper management has to delegate the authority to the lower level so that they can transfer the right of decision making. The decision-making of the top-level executives is only based on major issues of the organisation which are directly concerned with the profitability and growth of the company. The issues that are based on day-to-day dealings are in the hands of the lower-level management.
The decisions of the organisation are not only based on management, but it also involves several types of elements for the determination of goals of the organisation and the planning process of the company, building the structure, techniques of control, communication of network and forming the system of motivation. The decision making is also based on the functions of distribution, production, purchase, personnel, finance etc. Therefore, it is not at some point in the company, but it has to go through almost all the steps of management.
The organisation can also mobilise and use in the direction that it can help in the decision making. It is quite important for the managers to take quality decisions and to work as per the requirement of the company. The manager should also consider the social implications so that he can make sure that his decisions are ethically right.