What Is Decision Making? Essay

2623 words - 10 pages

Decision-making may be defined as the act of choosing among two or more alternatives, the outcome of which is not perfectly known, for the purpose of solving a problem. The success or failure of most business concerns has to do with the quality of decisions made or not made.Decision makers are often faced with various opportunities or problems that require that a decision must be made. Decision-making is often a great test of the managerial capabilities of managers and how effective they have been in their managerial positions.Decision-making today places a premium on speed to a degree unprecedented in world history. The need to act in e-time is testing the limits of the command-and-control model that has dominated commercial and military leadership for generations. To maintain a bias for action and stay centered on the appropriate goals both realms are coalescing around and emerging leadership model that rebalances traditional attitudes toward two crucial decision factors: risk and control. In the corporate world today, decision makers need to have a higher tolerance for, and comfort level with risk. Multi month task forces are the buggy whips of leadership. Today, failure to decide and act quickly can pre-empt options altogether.However, business decisions are frequently made on input information that are either biased or manipulated. Input bias is defined as the systematic misuse of input information in judgments of outcome quality. While researchers note that the quality of a decision is often "positively related" to the quantity of the inputs used to make that decision, the relationship between input quantity and output quality is not automatic. In many cases, inputs are misused, misrepresented or even negatively related to outcome quality.Other common flaws noticeable in decision making include:a) Poor Framing: This involves allowing a decision to be "framed" by the language or context in which it is presented. Often times, in making a decision, the whole system or situation surrounding the problem or opportunity needs to be carefully analyzed. For example an opportunity that arose from a visit to one's village should not necessarily translate to the decision being centered only in that village. It may even be that the decision to provide a service in that village is transferred somewhere else since the success guarantee in higher in another location.b) Recent Effects: Making decisions based on recently seen information. It may also be known as availability bias. A careful analysis of that information may have eventually proven not very useful for the type of decision to be made.c) Primacy Effects: once people develop an opinion about something of a frame of reference for analyzing an issue, it is often difficult for them to move out from that position. The effect is that wrong judgements may trail certain decision-making situations they come up.d) Overconfidence: Both experts and the general public tend to be overconfident about the...

Find Another Essay On What is Decision Making?

It has been claimed that "decision making is important to every aspect of a manager's job."

3073 words - 12 pages in work follow mainly from the intrinsic content of the job"(Cooper, 1974,p.12) The team approach has the ability to fulfill these criteria. "Teamwork is described as a co-operative process that allows ordinary people to achieve extraordinary results" (Scarnati, 2001, p.5). "By sharing a common goal or vision, the team can accomplish what individuals cannot do alone" (Scarnati, 2001, p.6). As teams attempt to accomplish a number of tasks and

Dynamic decision-making amongst employees through involvement programs is indefinitely crucial for the overall improvement of organisation perform

1190 words - 5 pages In this paper, I will look to discuss how employee involvement programs improve organisational performance focusing on the role of decision-making in the process. Decision-making is an area of interest that gives you the opportunity to study a variety of different facets concerning EI. EI is an area that has been of interest to several hundreds of people on a regular basis for many years. It is a philosophy put in place to sculpt management and

Critical Thinking and Decision Making Critical Thinking is defined as the systematic evaluation of arguments based on explicit rational criteria

626 words - 3 pages and analyzed then an intelligent decision can be made. If they do not have the time they need to rely on their personal information to make the best informed decision possible at the time.The relationship between critical thinking and decision making is very important. Critical thinking is about analyzing an argument to find the deductions and conclusions for a subject. Once this is completed then every person's decision can be correctly based on

Ombudsman's Contribution to the Task of Ensuring that Government Decision-Making is Conducted in a Defensible Way

973 words - 4 pages Ombudsman's Contribution to the Task of Ensuring that Government Decision-Making is Conducted in a Defensible Way The Parliamentary Commissioner for Adminstration (PCA) was set up under the Parliamentary Commissioner Act 1967 as a result of the Crichel Down affair in 1954. It was thought that pre-existing judicial and parliamentary remedies did not provide adequate redress for members of the public who suffered as a result

“According to legal positivism there is no scope for interpretation in judicial decision-making and the judge is strictly rule-bound.” Discuss critic

2692 words - 11 pages argued for the closure of the legal system. This implies that no interpretation is necessary during legal decision-making as the legal system itself is capable of facing its own questions and challenges. One example of another figure that seems to support this argument is Teubner (1997) and the notion of reflexive law. The legal epistemology of Teubner is a system-specific one that believes the legal system makes sense of the external world through

Obesity: What Exactly Is Making People Fat?

1787 words - 8 pages America so we can better understand what happens when we define good diets, talk about eating right, or try to improve other people’s eating habits. What are we really talking about when we talk about dietary health? Why is the question of what to eat so morally fraught?” (Biltekoff 15). So one can assume by this statement, poor diets cause poor decisions to be made, and good diets will cause good decisions to be made. If this is truly believed, then

Entrpreneurship - What is an Entrepeneur? Starbucks CEO in the making

923 words - 4 pages What is an entrepreneur? An entrepreneur is an individual who creates new business activity in the economy. They can create this new business by introducing a new product or by creating a new market for an existing product. But there is a big difference in being just an entrepreneur, and being a highly successful entrepreneur. There are certain characteristics that an entrepreneur possesses and employs, which makes him successful. Self

Explain what is implied by the assumption that decision-makers are

1273 words - 5 pages Explain what is implied by the assumption that decision-makers are rational? How is the assumption of rationality used in the economic analysis of individual behaviour? In many academic disciplines much is spoken about rationality and rational choices. Economists generally refer to 'rational' choices and that individuals in economic theory are rational. By rational we mean people choose options which they perceive to be the best

Legalization of Marijuana: 125 Years in the making - To legalize or not to legalize, what is it going to be?

1635 words - 7 pages medicineHistory of MarijuanaIt's important to realize that there is no legitimate reason why marijuana is illegal. There has never been a single, true, compelling government interest for making marijuana illegal. Most of marijuana's criminalization history has been based on lies. The actual reasons why marijuana is illegal are as follows.RacismFearProtection of Corporate ProfitsYellow JournalismIgnorant, Incompetent, and/or Corrupt

What is Moonshine? Tennessee and Kentucky are very famous for making moonshine, moonshine is just simply alcohol brewed in your own home. It is

775 words - 4 pages What is Moonshine? Tennessee and Kentucky are very famous for making moonshine, moonshine is just simply alcohol brewed in your own home. It is illegal to make, because its easy to make, and its impossible for the government to collect taxes off of it. People can make it in all different strengths and flavors that they want. Moonshine can be toxic if you make it the wrong way and if your not careful. If you buy moonshine, be sure to take a


1658 words - 7 pages and what they did hear at the scene. Writing down a description of the cause of the problem by using what, when, how, where, and why is the next step of discovering the potential causes. The management team will need to meet with a group of employees to obtain input.The third step in decision-making is to identify alternatives for approaches to resolve the problem. Managers and employees can brainstorm solutions. The fourth step is to select an

Similar Essays

Buy Grid Model? Why Is It Important In Decision Making? What Is The Indication?

1129 words - 5 pages Q3) Buy-Grid model? Why is it important in decision making? What is the indication?Supplier EvaluationAn important job of the purchasing agent is to evaluate potential suppliers and their offerings. The effects of purchasing on a firm's competitive ability are great, so companies pay close attention to how they evaluate suppliers. Marketers must also understand the process, for them the ones being evaluated. Understand the process is like

Innovation Is The Key To Product Progress. How Does A Consumer Make His Or Her Decision? Model Of Consumer Decision Making? What Is Innovation? What Is Product Progres?

1312 words - 5 pages "Innovation is the key to product progress."As marketers we must understand that the success of any product lies in the consumers that use it. If the consumer is not satisfied then the product will eventually disappear. Consumer behaviour is an essential tool in developing tactics. It helps the marketer understand what the consumer wants and how he makes his decisions.Forming of consumer behaviourThe consumer:THINKS SPEAKS ACTS BELIEVES

This Is A Comparison Between Critcal Thinking And Decision Making

885 words - 4 pages past professional experiences, when working in teams, the department head or supervisor, has been able to pass down their authority, if they wish to do so, to finalize a decision, as long it is a sound decision agreed upon by all in that specific 'team'.Critical thinking and decision-making, in essence, make the world go round. Without people thinking critically about decisions they are about to make, what would this world be? Not to say that the

Evidence Is Always The Primary Basis For Making A Decision

3006 words - 12 pages "Evidence is Always the Primary Basis for Making a Decision"- Discus with reference to specific examples and different disciplinary constructions of decision-making.Decision-making is the heart of our day-to-day lives and whether we realise it or not, we make thousands of individual decisions a day. Everything from what food to eat, to what way to tie your shoelaces is constituted as a decision and on this basis, it should be evident why so much