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).
First step in decision making process is identifying the problems. As McShane and Von Glinow (2000) stated, a problem can be defined as abnormality in present and preferred situation that happen in an organization. The actual process of decision making starts from problem identification. Questions should be asked in order to find a best solution (Prasad, 2008). If there is an inconsistency between the objectives and real situation, there will a need for action. Reliable information is very crucial in this step whereas wrong information will lead to unnecessary decisions in an organization as stated by Griffin and Moorhead (2010). For an example, the organization members should consider doing a need analysis to identify the difference between desired and actual achievements according to their current situation. When a manager diagnose and analyze the problems carefully, a problem can be identified obviously. When individual or the organization make a decision, there is important to take note more irretrievable the solution once appliance; they more concern about the real decision. In addition, the company more do analytical t...
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...tions do not take properly, the manager has to measures appropriate decision to correct the situation.
The last stage of decision making process is gather feedback from manager decision. As McShane and Von Glinow (2000), the decision models involves calculating the result whether the gap has tapering “what is” and “what ought to be”. Normally this information should come from efficient targets so that relevant feedback is objective and easily observed. The gather feedback present suggestion whether this decision and it is implemented properly (Prasad 2008). Evaluation is also an important part of decision making because decision making is a non-stop, endless process in management. Therefore, the decision making process in organizational behavior helps manager to identify a good solution for problems. These steps do not repeat again because this is a linear process.
Regarding this, one starts by identifying a problem such as increasing absenteeism/turnover rate or an opportunity such as the closure of a competing firm. The manager proceeds to set goals that aim at reducing the turnover rate and boosting the employees’ motivation (Griffin, 2015). Imaginatively, the manager generates a list of actions that might lead to the realization of the organizational strategic plans (Fishbein, 1967). Here, the list might be changing the pay, modifying the reward system, providing regular leave and providing training. Precisely, each course of action has associated consequences; thus, the supervisor collects information related to each of the alternatives. Notably, the collected information allows the manager to assess and evaluate the alternatives, systematically, which leads to choosing the best alternative, thus, decision implementation (Beach, 2014). Finally, the manager evaluates the effectiveness of the decision, say provision of training and development avenues, and employs the appropriate control (Griffin,
Each decision-making strategy has advantages and disadvantages and none are always better than the others. An effective team leader will consider the options and determine which strategy is the most appropriate one for the issues to be decided and the circumstances in which the decision is to be made and implemented. Outcome-oriented businesses need leaders skilled at decision-making. Decision-making styles are neither good nor bad. The effectiveness of any decision-making style depends on the situation in which it is used. Performance is enhanced by integrating all styles, by finding the style that works best in particular project, or by being able to move intentionally from one decision-making style to another.
Decision-making is a cognitive process that results choosing one of the alternative options. When we think logically, we exclude emotions and use only rational method of selecting the best choice that achieves the best possible outcome and consequences. In our daily life, we take many decisions and many changes over it. So, the question is; what factors influence the decision making process? According to the article, frontal cortex is the part of the brain that responsible for decision making, the researchers assume that human reasoning and decision making depends on many levels of cognitive operations which depends on many support processes as emotions, attention and working memory. The reasoning process is also depends on the knowledge about the situation and options for actions.
Similarly a development of a theory that “matches characteristics of a situation” (Riggio, 2009, p.356) in which a leader made their decisions highly impacted the success of the organisation. This good model is called the Decision- Making Model developed by Vroom and colleagues in 1973& 1988. Research that has been supportive of this model includes a study that was done to examine if work- related decisions made by managers were effective, this had statically significant results thus proving the efficiency of the
The outcome of a situation can sometimes be determined by the choices that have been made. Decisions are made by individuals based on the surrounding factors. The type of jobs or where one resides are some of the decisions that are made. In addition, one can be faced with problems that he or she must resolve in order to learn from it. In the business world decisions are made based on the given factors that are presented. Organizations can use the assistance of a decision support system to help facilitate with the decision making.
If you understand the market, customer, and restrictions within the company, you are better to come up with best ideas and options that can solve the problems while considering the elements that will be impacted by the decision. “In important challenge for effective decisions is to evaluate to what extend the managers utilise quantitative and qualitative criteria in decision making” (Ytanyi et al.). “Nevertheless to do these actions the managers need to have three skills, to have the courage to be rational, to prove creativity and to balance judgment” (Anderson). Steps which make decision making process successful starts from establishing a object, defining the problem, identifying possible alternative actions, evaluating the options and choosing the best of all and at last monitoring and implementing the decision. Without creative thoughts and skills needed it will be tough for the manager to overcome a problem of an organization and made a best decision for the betterment and growth of the
Explain the importance of defining the objectives, scope and success criteria of the decisions to be taken
People make decisions every day; some might not be as big as others, but they are still important. Everyone has their own process for determining which solution will be best for different situations. These processes are called decision making styles. The four main decision making styles are the analytical style, the conceptual style, the directive style, and the behavioral style. Although most people have a main decision making style, it is possible for them to learn the other styles as well to make sure they are making the best possible decision. Every situation is different and requires a different decision making style. It is up to the one making the decision to determine which style is most appropriate to the situation.. This is why it is important to know about the different decision making styles - learning all of the styles would benefit someone not only in a working environment, but also in everyday
Besides that, OB can serve managers, leaders and customers’ purposes. To begin with managers who have to expand their information about the attitude and group’s behavior to improve the organization work environment and to create a business plan to have a successful organization. First of all, managers can build a better workplace by recognizing the challenges that face any organizations because of some strategies that used in business environment. For example, one of the challenges are that having a cultural diversity in organization, so managers can build the organization with different cultures which help to encourage employee to do their job well and communicate with others in appropriate way. Secondly, managers can measure the effectiveness and efficiency; also, they can identify the strength and weakness of the organization. According to national institutes of health, Organizational effectiveness is about each individual doing everything they know how to do and doing it well (NIH, 2004). Moreover, OB offers ways that provide ways in how managers can trust their employees’ potential and using a reward system to enhance employees’ performance. OB is helping the managers on providing some strategies such as indentifying problems by searching and gathering information to have an accurate decision.
“And thus, the actions of life often not allowing any delay, it is a truth very certain that, when it is not in our power to determine the most true opinions we ought to follow the most probable” (René Descartes). Much of a manager’s day-to-day work involves solving problems and making decisions. To assist in decision-making they often use a management theory approach to reach their goals. The Rational Choice Theory is a decision-making theory that uses an analytical approach, suggesting that using systematically and logic approaches in decision-making, weighing the risk against the benefits, will help best in achieving a desired objective (Ogu, 2013). The Rational Choice Theory often criticized for being unethical and based on probabilities.
Good business decisions are the heart of a successful organization. Without a process decisions may be made by the most powerful or influential person in the group or not made at all. Good decision-making is a balance between getting the most of what we want with as little risk as possible. It means that we include the right people and use a process that encourages participation while keeping or focus clearly on the decision at hand. This allows people to make the decision with a high degree of confidence and efficiency.
There is always a problem in an organization that must be resolved. There are many different types of decision making processes that an organization can use to help resolve these problems. This paper will examine some of the different types of decision making processes with examples from four organizations. This includes the decision making processes strengths and weaknesses, as well as comparing and contrasting them with each other. This paper will also describe how a problem can best be identified and described to stakeholders in a manner that is sensitive to their perspectives.
An employee does an unsatisfactory job on an assigned project. Explain the attribution process that this person's manager will use to form judgments about this employee's job performance.
Some decisions prove to be vital and any miscalculation that may be involved may prove dire for the individual or the organization. In identifying the criterion to use while evaluating different decisions, many factors pertaining the structure should be considered. The pros and cons of every decision made should be evaluated to ensure that the option chosen has the most positive effect on the individual and the organization. Some of the activities that may require keen decision making include project development, finance and operations. With the knowledge attained it will be easier to cope with tough decisions that may come up in my career. Decision making models may be generated to give an in depth view to the problem and also provide critical analysis ability. It is also vital noting that for those in managerial positions, they face a bigger task in decision making. A good understanding of the business function and structure will provide an in depth knowhow to those that have studied the
Managerial decisions are an important component in achieving the objectives of the organization. The success or failure of a business depend upon the decisions made by managers (Jurina, 2011). Today’s increasing complexity in the world of business brought forth greater challenges for both the firm and its managers. The rapid rate of technological and digital advance as well as greater focus product innovation and processes that influence marketing and sales techniques have contributed to the increasing complexity in the business environment.