Define the Concept of Effective Decision Making
In every organization, effective decision-making approach is followed at every level. Decision making in the company is all about making choices and compromises for meeting the business goals. Decision making varies greatly and different types include strategic decisions, managerial decision and operational decisions. It is rather a very demanding process. If the decisions are correct, it brings gratifying results. On the contrary, ill-structured and uncertain decisions can be drastic in achieving business objectives. Generally, the managers are involved in taking the decisions on behalf of the organizations. Effective decision making follows a systematic approach with clearly defines objectives with steps outlined elaborately.
[Image will be Uploaded Soon]
What are the Guides to Decision Making?
Managers must employ guides to decision making so that they can operate the organizations smoothly.
Multiple Decentralized Centres
Too much centralization of power is the biggest obstruction to achieve goals. It is advised to have managers at every level to make decisions effectively.
The responsibility of decision making needs to be implemented at every level. If the top management is vested with less power it creates bottlenecks in the organization.
There must an effective communication channel at every level. This ensures the team members coordinate properly.
In every level of decision making there needs to be an advisory unit that offers creative and intellectual expertise in decision making. It should comprise of internal members as well as outside consultants.
Regulatory Framework for Decision Making
An organisation should have access to various tools for regulating the decision-making process. For example, managers need to frame effective goals, policies and procedure for this purpose.
Effective decision support systems are crucial for organisations. It incorporates control and information systems that make communication with the managers smooth and easy.
What are the Different Types of Decision Making?
The decision-making process is a part of a manager’s job responsibility. It involves making difficult and challenging decisions for the common goal of an organisation. There are basically three types of decision-making process.
What are Guides to Decision Making in Complex Situations?
Decision making in complex situations is never easy. It requires the manager to have critical decision-making skills by the leaders.
The critical factors need to be identified with possible outcomes.
Assessing the various options and establish priorities.
See the logical consequences and predict the outcomes.
Mitigate the uncertainty and risk.
Offer reasoning with quantitative analysis.
Did You Know?
SWOT Analysis is an essential managerial decision-making tool based on strength, weakness, opportunities and threats.
Strength - the areas where the company is doing good.
Weakness - the areas where the company is performing badly.
Opportunity - things that can help the company grow.
Threat - things that prevent the company from meeting goals.