How Important 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.

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.

Impacts of decision making in an organization

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.

Briefly explain the types of decisions