Decsion Making Unit 2

INTRODUCTION

Decision making is an activity which cuts across the four functions of management which are planning , directing , organizing and controlling The decision making process involves selecting the best solution from the available alternatives for a future course of action . It involves making decisions which are suitable for the organization concerning the resources . This is mostly carried out by managers of a firm and it can be rational or irrational

ANALYZING THE POOR DECISION MADE

The decision which I made involved terminating an employee who had absconded his /her job

for a month , though I had had a formal communication , I did not dig into the depth of the matter and a result I came to learn that the employee did not deserve to be terminated

I came to understand that I did not understand the problem therefore I did not look at the possible solutions of the problem with the employee The qualitative and the quantitive effect of the decision was not looked at , the quantitive effect could be in terms of the production of the employee whereas the quantitive effect could be in terms of the effect on the other employees , they could have felt it as unfair decision against their colleague hence lead to strike or demonstrations and this can lead to declining loyalty of the employees in the firm . The action taken did not involve all the parties in the firm because the decision was based on incomplete information

THE IMPORTANCE OF DECISION MAKING

decision making is very important in a firm , this is because , beside combining the four functions of manage management , reviewing the results of the decision made enables firms ' to prepare better for the same occurrence in future , this is usually the responsibility of the management who are often judges and have the responsibility to ensure that the right decision are taken at the right time to solve the appropriate problem at hand . In this case I failed to make the correct decision and this is likely to affect the firm adversely

THE THEORIES OF DECISION MAKING

Decision making is believed to be biased however the level of biasness is sometimes challenged . In this case there was early termination search of evidence which is a commonly debated cognitive bias . Decision makers are leaders who provide a way forward for employees , to interact with them and allow motivation to accomplish objectives of a firm . There three theories of decision making which form a continuum , they are

Autocrat theory . This is a case where by the decision maker are leader centered , its also called dictatorship because its where the most powerful person or group makes decision and his thought , ideas and wishes are obeyed entirely without any question . The decision maker doesn 't consult any body . The relationship with the employees isn 't so good since the employees always feel victims of irrational decision in most of the time since they are not consulted in most of the time . This may have been the case...