Power, Authority & Decision Making

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Power, Authority & Decision Making

Introduction

In today's world decision making holds the most integral and important position in not only the organization but it is also important ion your day to day life. Managers and CEO who are able to take decision are rewarded by the organizations. Making a decision is not a myth it is a process of analyzing the alternatives in a manner that they turn the decision into an effective one. From GE's Jack Welch to Microsoft's Bill Gates they all have one thing common in them that is they are quite well decision makers or it can be said that they take decisions and analyze alternatives properly as according to the situations (Basi, 2008). It directly affects the organizations future performance as well as, it has a long term perspective towards market, team's capacity, maintenance costs, administration, customer service, sales, marketing and other areas which is important for organization growth and stability.

Decision making

Decision Making is a basic function of management it is the most valuable guide to the manager. Decision making is a step wise process and there are basically two major models of decision making, the classic model and the administrative model. The decision is the most imperative act of the managerial role and in fact, from a number of qualities the most required quality in a leader is a good capacity for problem solving and decision making. Companies continue to make decisions at each and every step from going global to diversify into different businesses. Decision making is a process through which an alternative is taken out from a number of choices although not all choices are favorable the most important thing is to take decision in circumstances. Managers have to take decisions on the basis of their experience and knowledge of the concerned market in consideration of the company and its specifications. According to Marvin, companies need to make decision in crucial times and is relied on selection of the best available alternatives (Marvin 2005, P 818).

A decision maker is termed as a leader and a leader is one who can take risk and have the ability to manage in crucial circumstances and also has the ability to face the situation. Often these terms are considered equivalent, they are actually two activities different and distinct decision making is in second place, that is, after the process problem solving has highlighted a number of possible courses of action. The occurred problem is a situation which de-rails the company from achieving its organizational goals. The importance of decision becomes more important when the company is passing through some crucial situation. Her e the importance of decision becomes more value because more valuable because there are certain chances that the decision would even go wrong.

Models Of Decision Making

There are two types of decision making models a) Classical model and b) Administrative model. The classic model of decision making is a prescriptive approach that outlines how managers should make decisions ...