Decision making as Management Responsibility
Decision must be made at various level in the workplace. They are also made at various stages in the management process. If certain resources must be used, someone must make a decision authorizing certain person to appropriate such resources.
Decision making is the responsibility of a manager. It is understandable for manager to make wrong decisions a times. The wise manager will correct them as soon as they are identified.
Management must strive to learn how to choose a decision option as correctly as possible. Since managers have the power to decide, they are responsible for whatever outcome their decisions brings.
The higher the management level is, the bigger and more complicated decision making becomes.
DECISION MAKING
Ø It is the process of defining the problem and identifying and choosing alternative courses of action in a manner appropriate to the demands of the situation.
Ø The manager must adapt a certain procedure designed to determine the best option available to solve certain problems.
Ø Decision are made at various management levels (e.g., top, middle, and lower levels) and at various management function (e.g., planning, organizing, directing, and controlling).
Ø It is considered as "the HEART" of all management functions.
DECISION MAKING PROCESS
1. Diagnosing the problem
2. Analyzing the environment
3. Develop viable alternatives
4. Evaluate alternatives
5. Make a choice
6. Implement decision
7. Evaluate and adapt decision results.
DIAGNOSING THE PROBLEM
Ø If the manager wants to make an intelligent decision, his first move must be to identify the problem.
Ø If the manager fails in this aspects, his next moves will be useless.
Ø If the manager is not able to identify the real problem, the solution he will offer will be irrelevant and may even be costly and destructive.
Ø Being able to identify the real problem is tantamount to having the problem half-solved.
o Problem
§ Exist when there is difference between the actual situation and the desired situation.
§ Exist if the standard is not being meet.
§ Exist if you have 2 different alternatives.
ANALYZING THE ENVIRONMENT
Ø The environment where the organization is situated plays very significant role in the success or failure of such an organization.
Ø The objective of environmental analysis is the identification of constraints, which may be internal or external limitations.
o Internal limitations:
§ Limited funds available for the purchase of equipment;
§ Limited training on the part of the employees;
§ Ill designed organization structure;
o External limitations:
§ Product patents are controlled by other organizations;
