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How Important Is Decision Making in An Organization

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How Important Is Decision

Making In An
Organization?
Decision making is an important process for organizational effectiveness. Decision
making is almost universally defined as choosing between alternatives. It is closely
related to all the traditional management functions. In the manufacturing area,
effective decisions are aimed at achieving zero defects in recent years this focus
has also been applied to the service sector in order to create zero defections.
Decision making is an organizational process because it transcends the individual
and has an effect on organizational goals. First the overall nature of the decision
making is explored.

Then the models of behavioural decision making are described. Next, the
traditional and modern participative techniques are presented as behaviourally
oriented decision techniques. Creativity in decision making can apply to
individuals or groups. Since individual decision making has largely given way to
group decision making in today, organizations, an under standing of group
dynamics become relevant. In fast a no of social decision schemes have emerged.
Decisions can be classified as either programmed or non-programmed.
Programmed decisions are repetitive or routine and can be solved through clear-cut
mechanical procedures, such as applying the rules to find the best solution. Up to
90 percent of management decisions are programmed. Non-programmed decisions
are exceptional or non-recurring, and they are often made under crisis conditions
which involve so much ambiguity that specific procedures or programs are not
available. Therefore, managers who must make non-programmed decisions rely on
judgement and creativity. Anonymous
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We all are decision makers as well as we often had to make choice. Even in our
daily life we have to make selections and choice. One way or the other we are
force for making choices e.g. Ahmad has to select a computer-training centre,
Mashood has to choose an employer, and Hamid has to decide upon the mode of
making investment. These are all choice and hence involve decision making.
In the context of an enterprise decision making pervades all its organizational
activities, process, managements and systems. In a commercial enterprises decision
making is all the more pervasive. It extent from the shop floor level to the
supervisory level through the management level to the highest possible executive
level; It's involved both the bottom personnel and top management in organization.
A worker shutting down the lathe to smoke a cigarette is as much a part of
organizational decision making system as the executive who decides the building
of a new project costing million of rupees.
Decision making is a difficult task. It is indeed a very complicated process. In the
present day complex society it is not possible to specify the most appropriate
courses of action for every situation. However the process of decision making can
be simplified by establishing objectives, policies and procedures. These provide
the guide line for the managers in making decision.

The area of organizational decision making is part of the boarder field of


organization studies and organization theory.Further,the understanding af decision
making as an organizational process is explored in detail,as is relatively neglected
area of implementation.

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