Decision making is a complex business subject which combines the most complicated elements of the operational and theoretical aspects of management. The ability to implement the decision-making process is often determined by environmental factors rather than the steps in some “ideal” model.
Decisions are frequently influenced more by the environment and structure of the organization than by the method itself. The process of decision making will, therefore, be examined in light of environmental factors. One of these factors—social and cultural background—affects the interaction among people involved in the decision process and provides the cultural framework within which they may comfortably operate.
The best alternative for solving a problem, for example, might be to replace an employee who is unsuited for a position. However, if in the society’s culture there is a tradition of lifetime employment with one company, that alternative is not really feasible because of social and cultural restrictions.
With regard to the structure of an organzation, a number of factors may alter the ideal decision-making process. The amount of flexibility within an organization and the available resources (such as facilities, technology, or fiscal reserves) are often controlling factors. The amount of data available may also limit the range of alternatives that can be considered.
Another organizational factor is the importance of the decision being made in relation to other problems and responsibilities of management. The relative importance of one decision is weighed against the amount of effort involvedin finding a solution and the benefit the company will receive from its implementation.
Three other factors also influence the following of a model decision process: time, creativity, and risk. The amount of time available to make a decision for a given problem is often detetmined by the environment, not the management. The time factor may affect the creativity of the solution to a problem. The risk associated with a particular course of action may be lessened by use of a group rather than an individual decision maker. Time, resources , and culture may affect the workability of a group process, although research shows that groups often come up with better solutions than individuals.
Decision theory and the ideal decision-making model tend to picture the process as one in which managers operate by themselves, free of restrictions of time, data, and resources. The reality of the decision process Is much less a step-by-step procedure than it is a series of practical considerations directly influenced by the social, cultural, and organizational enviroment.
Thank You For Reading The Rality Of Decison Making
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