Contents
Characteristics of Decision Making
Goal Oriented
Decision making is a goal-oriented process that focuses on the achievement of organization goals. All decisions are framed and implemented in accordance with the targets of the organization. Proper decision making assists an organization in an easy and timely accomplishment of their objectives.
Process of Selection
Decision making involves selecting the best alternative out of different options available for performing a task. It chooses the right course of action after properly analyzing its pros and cons for deriving maximum result out of it.
Based on Rational Thinking
It is a rational and intellectual process as every decision is taken after logical discussions, evaluation, and judgment. The manager thoroughly analyses each and every possible effect of the decision before implementing the same within the organization.
Continuous Activity
Decision making is a continuous and pervasive function that is practiced at every level of an organization. This is required regularly for taking every decision for performing routine and special tasks.
Situational Process
It depends upon the situations of the organization as the manager takes each and every decision as per the prevailing conditions. Decision making is a dynamic process that varies as per the situations of the organizations.
Requires Commitment
This requires commitment on the part of management for every decision they take for achieving the desired results. Commitment is of direction, resources, and reputation of enterprises.
End Product
Decision making is an end process where the decisions are taken after a series of discussions, deliberations, logic, and analytical analysis of alternatives. It is an end product of the planning process where final decisions are made.
Objectives of Decision Making
Identifying Goals
The Decision-making process focuses on identifying the goals that an organization aims to achieve. Proper analysis of the aims and objectives provides the basis for effective decisions. Decisions are unproductive and aimless unless goals are clearly recognized.
Efficient Utilization of Resources
It aims at fuller utilization of resources by taking proper decisions regarding their usage within organization. All decisions are framed and implemented after thorough analysis which ensures maximum productivity with minimum wastage.
Proper Communication
Efficient decision making aims at developing the right communication network for communicating all required information at different levels. Proper flow of information regarding decisions within the organization avoids any confusion and conflict. Employees are too motivated to participate in decision making and come up with new ideas and facts.
Selecting Best Alternative
It performs a proper analysis of different alternatives available to come up with the best possible one. Decision-maker selects the best course of action for performing a task which yields maximum results. He employs various analysis tools of finance, statistics and accounting for finding out the appropriate action.
Business Growth
Proper decision making plays an important role in enhancing the overall growth of business enterprise. It helps in efficient utilization of resources by properly allocating them within the organization. Business are easily able to face the problems and challenges of market through quick and rational decisions. This will boost up the probability of business and eventually contribute towards its growth.
Promotes Innovation
Adopting the changes and innovation as per the market requirements is must for every organization to ensure its survival. Decision-making process brings in large amount of information within organization by performing different types of analysis. All this information informs management of new ideas and market changes which facilitates innovation by taking decisions accordingly.