Effective Decision Making is Critical to Organizational Success in the 21st Century

Table of Contents

Background3

Introduction3

How to take effective decisions?3

Role of Decision Making in the Success of Organizations3

The levels of Decision Making4

The Leadership Styles5

Keys to success in Decision Making5

Objectives5

Brief description of research traced6

The key findings of this review7

References8

Effective Decision Making is Critical to Organizational Success in the 21st Century

Background

How to take effective decisions?

Decision making is the cognitive process of selecting between available choices and takes the steps best in the particular circumstances. Managers have to take decisions on the basis of their experience, market and knowledge to select the best option available with consideration of its staff. According to Scott, in line with the objectives of the company, it relies on the consideration of the aspirations and expectations of the staff (Scott 2005, P 818).

Role of Decision Making in the Success of Organizations

Decision making is very important for organizational growth. If an organization takes right decisions at the right time, then it can easily achieve its goals. According to Miller, the decision is a rational act which is opposed to a random act, due to chance (Miller 2006, 43). According to Basi, before jumping on to take any decision, organizations should consider their present (Basi 2008, 232).

The levels of Decision Making

Depending on the level of decision making, we can divide decision making in the following levels:

Risky strategic decisions

These are taken at the highest level of the company. These strategic decisions principally relates with the development, performance monitoring, and resources available in the organization.

Tactical decisions

These decisions involve allocation of resources. According to Theoret, these decisions include allocation of necessary resources with different functions or services of the company (Theoret, 2006, P 246).

Operational decisions

This decisions making associated enforcement officers. These decisions are easily reversible and can be corrected.

The Leadership Styles

Renis Likert (1961) identifies four leadership ...