Decision- Making

Decision-making means selecting a course of action out of alternative courses to solve a problem. Unless there’s a problem, there is no decision-making. Decision-making and problem-solving are inter-related. It is the process through which managers identify organizational problems and solve them.

Decisions may be major or minor, strategic or operational, ling-term or short-term. They are made for each functional area at each level. The importance of decisions, however, varies at each level. Long-term, major and strategic decisions are taken at the top-level and retentively short-tem, minor and operational decisions ate taken at lower levels. Decision-making precedes every managerial function. What goals an what ways to achieve them (decisions before planning), design of the organization structure and span of management (decisions before organizing), best match between hob description and job specification (decisions before staffing), incentive system, leadership styles and communication channel (decisions before directing) and techniques of control (decisions before controlling) are the decisions that managers take for smooth running and growth of business operation. Decision-making is not easy. All decision are not based on past behavior and practices (objective decisions making). Most of the decisions in today’s complex environment are subjective in nature. They are based on managers’ knowledge, value judgment, creativity and innovative abilities. Managers do not make same decisions in same situations. It is situational in nature and depends upon manager’ psychology and perception of the situation. Decision-making is a modest attempt to match environmental opportunities with organization’s strengths. It is based o forecasts and assumptions about environment opportunities with organization’s strengths. It is based on forecasts and assumptions about environmental factors.

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