Decision-Making Process

Decision-Making Process

Good Decision Making

Decision making pertains to choosing an alternative that fulfills the demand of the situation in the best possible manner, while meeting the limitations of resources. A good decision maker knows the models of decision making, situations of decision making, and the levels of decision making. The decision making is widely different in situations, characterized by the information available and time available to make decisions. A general example to clarify is, is there is fire on the shirt. The person will not think of the best possible source of water, rather whatever option is available to him, will be the best option. A juice might cost more than tap water to extinguish fire, however, the skin burn would have cost much more than that juice.

Managers at different levels make different types of decisions. Low level managers involved in operations usually make routine decisions. The information required is almost complete. Rules and regulations prevail to guide the actions. The risk involved with those decisions is also particularly low. Manager at the middle level involve in decision making that is somewhat of higher level of risk. The information available is less than complete, and the criterion of decision making is not always clear. Top management on the other hand involves in decision making situations marked by low level of information. The criterion for decision making is very vague and the risk associated with the decision is high (Daft, 2008).

A good decision is the one that meets the requirement of the decision i.e. it is effective. If there was a problem which needed a solution, then the effectiveness of the decision will li in the success of the solution proposed in the decision. Secondly the decision should be made in the right time, a decision made to late ...