DECISION MAKING

Decision Making

Decision Making

The Importance of Management Decisions

Decision-making is a part of managing the organization. A skilful manager is separated from an incompetent manager by the decisions that are made. The multitude and complexity of organizational decisions made it difficult to examine and evaluate a manager's ability to make decisions that will accomplish the organizational mission while ensuring the welfare of the people in it. Decisions are based upon an individual's morals, integrity, and values (Heifetz 2001 141).

Edmunds (2000, p. 28) defined the decision process as a conscious and human process involving both individual and social phenomena based upon factual and value premises that include a choice of one behavioural activity from among one or more alternatives with the intention of moving toward some desired state of affairs. Decision-making can be treated as a process identical with the whole process of management.

In the strategic management process, managers are key players. Managers with different skills are needed to manage new information technology and technological change. Managers must be educated and trained in the skills most needed for their jobs. Rather than specialists, top managers are advised to be generalists whose functions require more conceptual skills and less human relations (Crawford 2005 54). The core competencies of problem solving and decision-making are the essential skills managers need.

According to Cameiro (2004, p. 430), attribute organizational leaders must have is making timely decisions. The success of an entire organization depends on smartest decisions at all levels of the organization. Informed decisions lead to high performance. Successful and competitive companies have leaders who make good decisions and act on them promptly. The strategic intent is to align decisions with potential developed markets to maintain the company's capability of performance. First-rate decision-making practice translates into managerial power and responsibility for high-risk tolerance, growth, and performance.

Benham (2006, p. 387) identified the following seven major mistakes a manager must avoid:

Not promoting the company vision,

Failing to listen to everyone on the team,

Holding all the authority,

Making poor decisions,

Withholding praise and recognition,

Not investing in staff's growth, and

Failing to improve one's skills.

The most crucial mistake is making poor decisions. Sound decision-making is not easy, and indecisiveness slows the workflow. Some managers develop a reputation for being uninformed and making snap decisions (Benham 2006 387). To make informed decisions on the right time, managers must solicit input from staff and exercise diligence in gathering facts. Once all options are considered, decisions must be made without delay. However, overload of information hinders the decision-making process.

Management Traits and Their Impact on Decision-making

According to Beattie (2002 199), Beattie once stated, “Nothing is more difficult and therefore, more precious than the ability to decide” (p. 1). Findings from Beattie's research indicated the leaders of nations and organizations, as well as individuals, often make decisions leading to disastrous consequences, in normal times or in time of crisis. Urgent crisis conditions are enormous challenges for even the most trained managers and trained crisis managers. Leaders in all types of organizations (i.e., not-for-profit, public sector, private sector) must face events causing ...