business administration

Running Head : Decision Making

Decision Making In an Organization

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TABLE OF CONTENTS

INTRODUCTION 3

MISCONCEPTIONS ABOUT DECISION MAKING 4

DECISION MAKING STYLES 5

THE DECISION MAKING PROCESS 8

ROLE OF MANAGEMENT AND MANAGERS IN THE DECISION MAKING PROCESS 16

LEADERSHIP AND DECISION MAKING 18

DECISION MAKING AND COMMUNICATION PROCESS 20

TEAMWORK AND DECISION MAKING 22

DECISION MAKING MODELS 24

CONCLUSION 26

REFERENCES 27

Decision Making In an Organization

INTRODUCTION

Business administration is the management or supervision of

business operations . The term administration comes from the Latin word `administratio ' which means to give service . Business administrations consists of various functions which eventually leads to the decision making process in an organization (Farmingdale State University , 2 Edmonstone and Chisnell , 1 2

The decision making process is the selection of any alternative which is based on the requirement and the preference of the decision maker . It is an ongoing cognitive process which is usually dependent on the environment . In business and management terms this decision maker can be the administrator of the business , i .e . the CEO or any other strategic manager . In the decision making process , many alternatives are first identified and then one of these alternatives is chosen , depending on the goal of that decision making process . There are very few decisions in which the decision maker gets fully satisfied . The uncertainty of the decision always remains . However , with effective and efficient decision making process the manager can reduce this uncertainty to the minimum level (Harris , n .p

The outcomes of the decision making process are dependent on the preferences of the decision maker i .e . the business administrator Usually when the management hires such a person , who will be responsible for major decision making process of the organization , certain tests are taken in to determine the person 's preferences . These tests are developed keeping in mind the needs and demands of the business (Kahneman ,Tversky , n .p

MISCONCEPTIONS ABOUT DECISION MAKING

There are certain misconceptions about the decision making process . Some believe that this is a mere alternative choosing process . Even though this is true to some extent but is a very narrow perspective of this process . The main aim of decision making is derived from our values This process is carried out not because we have alternatives but because we need a solution to a problem . Hence calling it a mere alternative choosing process does not do justice to this wide . The best way of decision making process is to first find and define the values associated with problem and the decision maker . These values along with the decision maker 's preferences help create a set of alternatives . In the end these alternatives are evaluated and the best one is chosen (Keeny , n .p

Another misconception about decision making is that it always produces good results . For example : The purchased goods were being brought to the production department of our organization . Looking at the past experience we selected route A which had...