The primary goal of the chapter is to identify the importance of decision making for managers. And, to differentiate the different decision making techniques based on the values of the organization of the manager. This chapter is essential in developing reasonable concepts for future and current managers to formulate different ways of resolving problems. The same goes in quantifying multitudes of solutions and answers to problems and questions that seems inevitable for a manager.
Crating decision is the primary task of every manger. When faced with this, every manager has his/her own way of capitalizing several factors to arrive at a conclusion. It may not be the most effective one, but it could be the most viable given his priorities and experience. The chapter discusses effectiveness of this the decision making by creating a structure of the process of decision making to categorize each step. From the first step of identifying the problem, as a structured or unstructured problem to the implementation of the solution, the most effective decision also needs to be evaluated for its effectiveness. With this proper structured process of decision making, every decision is corrected and checked. Managers would be able to evaluate each decision and learn from its effect and eventual consequences.
It can be noted that the decision cannot be fully rationalized into structured external factors. Managers often use their experiences in order to resolve company upheavals and complicated decisions. Seeking conclusion of problems may also resort to intuition. But as managers, intuitions are honed in wise judgment over a more positive outcome.
Clearly, decision-making comprises different factors to achieve the final solution. It may include internal and external factors. Internal factors include the preference, emotions and experiences, whereas external factors may involve data-gathering and numerical figures. However, it must be concluded that an effective decision involves an inter-play of these factors. It is through several combinations that each decision is made not purely on one factor.
