THE ROLE OF DECISION MAKING IN MANAGEMENT AND WHY MANAGERS FIND IT DIFFICULT TO MAKE GOOD DECISIONS
THE ROLE OF DECISION MAKING IN MANAGEMENT AND WHY MANAGERS FIND IT DIFFICULT TO MAKE GOOD DECISIONS
PART 1: FUNDAMENTALS OF DECISION MAKING
INTRODUCTION
Management is always a decision-making process. Decision-making permeates through all managerial functions and covers every part of the organisations. It is a key element in the process of management. All matters relating to the process of management such as planning, organising, leading and controlling are settled through decisions made by managers. (Schermerhorn 2002 p. 20) Every manager at all levels of managerial hierarchy is engaged in decision making for what to be done, who will do it, how it is to be done, why it is to be done and where it is to be done. Harold S. Geneen ,CEO of ITT once said “Management manages by making decisions and by seeing that those decisions are implemented.” (decision making quotes) Thus decision making is an important role that managers undertake on a daily basis employing various methodologies to deliver the most effective results.
Management make decisions about strategy, organisation structure, human resources, product/service quality, productivity improvement, performance appraisal, responses to environmental turbulence etc. According to Peter Drucker, it is the top management which is responsible for all strategic decisions such as the objectives of the business, capital expenditure decisions as well as such operating decisions as training of manpower and so on. Without such decisions, no action can take place and naturally the resources would remain idle and unproductive. Some decisions are simple and some are complex. Under any circumstances, decisions made cannot and must not be wrong because decisions are the mechanisms by which decision-makers try to accomplish the goals of the organisation. “Every organisations grows, prospers, or fails as a result of decisions made by its managers. (Richard L. Daft, 2012 p.231). The outcomes of the decisions will be used
PART 1: FUNDAMENTALS OF DECISION MAKING
INTRODUCTION
Management is always a decision-making process. Decision-making permeates through all managerial functions and covers every part of the organisations. It is a key element in the process of management. All matters relating to the process of management such as planning, organising, leading and controlling are settled through decisions made by managers. (Schermerhorn 2002 p. 20) Every manager at all levels of managerial hierarchy is engaged in decision making for what to be done, who will do it, how it is to be done, why it is to be done and where it is to be done. Harold S. Geneen ,CEO of ITT once said “Management manages by making decisions and by seeing that those decisions are implemented.” (decision making quotes) Thus decision making is an important role that managers undertake on a daily basis employing various methodologies to deliver the most effective results.
Management make decisions about strategy, organisation structure, human resources, product/service quality, productivity improvement, performance appraisal, responses to environmental turbulence etc. According to Peter Drucker, it is the top management which is responsible for all strategic decisions such as the objectives of the business, capital expenditure decisions as well as such operating decisions as training of manpower and so on. Without such decisions, no action can take place and naturally the resources would remain idle and unproductive. Some decisions are simple and some are complex. Under any circumstances, decisions made cannot and must not be wrong because decisions are the mechanisms by which decision-makers try to accomplish the goals of the organisation. “Every organisations grows, prospers, or fails as a result of decisions made by its managers. (Richard L. Daft, 2012 p.231). The outcomes of the decisions will be used