![]() Researchers at Carnegie Mellon found that the first group would consistently buy twice as many lottery tickets as the group that was given the same amount of money but only one chance to buy lottery tickets. You’d think both groups would buy the same number of tickets - after all, they got the same amount of money. Then offer $5 all at once to a second group, and ask the people how many lottery tickets they would like to buy. Do this five times, each time asking if the individual wants to buy a $1 lottery ticket. If you’re not convinced, go to a group of people and offer each person a dollar. ![]() These unconscious processes can lead us to make decisions that, in fact, don’t really make much sense at all. And we’re clueless about how they influence our judgments. In the face of stress or time pressure, or even seemingly unrelated cues, our assessment of situations and the choices we ultimately make can be colored by innate biases, flawed assumptions and prejudices born of personal experience. Though the whole process is time consuming, the result of such process in a professional organization is magnanimous.When we’re presented with a choice, we carefully weigh the alternatives and choose the option that makes the most sense - or do we? Only recently has science begun to unravel how we really make decisions. This is the case with every decision taken to solve management and administrative problems in a business setting. Since decision making process follows the above sequential steps, a lot of time is spent in this process. Gathering information and collecting data.In a management setting, decision cannot be taken abruptly. When one problem is solved another arises and so on, such that decision making process, as said earlier, is a continuous and dynamic.Ī lot of time is consumed while decisions are taken. No decision comes as end in itself, since it may evolve new problems to solve. Such problems are sorted out through comprehensive decision making process. To achieve these goals, company may face lot of obstacles in administrative, operational, marketing wings and operational domains. The goals are pre-set business objectives, company missions and its vision. It means that decision making process seeks a goal. ![]() Since intellectual minds are involved in the process of decision making, it requires solid scientific knowledge coupled with skills and experience in addition to mental maturity.įurther, decision making process can be regarded as check and balance system that keeps the organisation growing both in vertical and linear directions. Since it is an ongoing activity, decision making process plays vital importance in the functioning of an organization. Thereby, it is a continuous and dynamic activity that pervades all other activities pertaining to the organization. Trewatha & Newport defines decision making process as follows:, Decision-making involves the selection of a course of action from among two or more possible alternatives in order to arrive at a solution for a given problem .Īs evidenced by the foregone definitions, decision making process is a consultative affair done by a comity of professionals to drive better functioning of any organization. Definition of Decision MakingĪccording to the Oxford Advanced Learners Dictionary the term decision making means - the process of deciding about something important, especially in a group of people or in an organization. Further, the decisions make up one of core functional values that every organization adopts and implements to ensure optimum growth and drivability in terms of services and or products offered.Īs such, decision making process can be further exemplified in the backdrop of the following definitions. Decisions are made to sustain the activities of all business activities and organizational functioning.ĭecisions are made at every level of management to ensure organizational or business goals are achieved. Decision making process is continuous and indispensable component of managing any organization or business activities. Every manager takes hundreds and hundreds of decisions subconsciously or consciously making it as the key component in the role of a manager.ĭecisions play important roles as they determine both organizational and managerial activities.Ī decision can be defined as a course of action purposely chosen from a set of alternatives to achieve organizational or managerial objectives or goals. Essentially, Rational or sound decision making is taken as primary function of management. Decision-making is an integral part of modern management.
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