The whole institution of management entails the process of decision making, controlling, guiding, directing and leading the organization. Indeed, managerial function is one of the toughest or perhaps most difficult role in an organization. The success or failure of an organization lies with the nature and character of managerial system in place. It ought to be appreciated that management typically play a fundamental role in day to day running of organizations.
Of all managerial duties and functionalities, decision making stands out as the most essential and strategic. Decision making entails electing on what to pursue, how to pursue it and related decisions. Ordinarily, the manager is faced with a number of choices to make. The main responsibility in decision making entails the rational election of the best alternative in which business and organizational interests are protected without necessarily overlooking the larger societal interests. The basic management decision model refers to the process in which management make a decision or a set of decisions for the organization following a definite and outlined criteria. Basic decision making model can be divided into five main stages. These stages succeed each other so that the failure of one stage automatically dispenses with the next stages. The stages in decision making include: identification of problem, generation of alternatives, evaluation of alternatives, implementation and monitoring of alternative pursued and finally feedback analysis. Let us briefly examine the stages step by step.
Management usually have to identify the problem. Problem identification involves the process through which the need is brought out. The missing item or the gap in the system ought to be brought out. This stage is significant in that it is the mother of all stages. An organization cannot solve its problems without the knowledge of an existing problem. The identification stage also enables management chat a different course for the organization. It should be noted, however, that this stage is not purely managerial in nature. In flat structured organizations, even mere employees are allowed the opportunity to identify a problem in the organization. In fact, under managerial models such as management by agreement and management by objective, employees play a pivotal role in problem identification. The rationale for the latter approach to management is that it is the employee who has got touch and contact with at the grassroots. This places them at a strategic position to identify a problem in the organization.
The next stage after problem identification under the basic management decision making model is the generation of alternatives. Once management acknowledge the existence of a problem, it is expected of them to attempt a solution. Ordinarily, organizations usually have a number of solution alternatives. The second process entails a consultative process in which various solutions are examined. The process is equally open to other employees. Some organizations use unofficial mechanisms such as brainstorming sessions in which employees sit down to suggest a litany of options. In this stage, the gap between employees and management is temporarily overlooked. The process of alternative identification ought to be as open as possible. The informal approach pursued by a section of managers enables the collection of a diverse set of ideas and models.
Upon identification of alternatives, the process shifts to the next stage which is the evaluation and choosing of one alternative or a set of alternatives. It is in this stage that exclusive management begins. The role of employees reduces to the minimal at this stage. Identification of the right alternative usually necessitates the use of comprehensive analysis and evaluation. Management compute data and simulate scenarios that attempt to reflect the likely effects of pursuing any of the decision alternatives. At this point, management motivation is usually informed by organizational objectives and missions. The alternative of choice ought to seek to achieve organizational objectives. Another typical determiner in this stage is the need to maximize on profits while minimizing costs. In that vein, alternative would be perceived in terms of how costly they would be and to what extent they maximize organizational profits. Ordinarily, management would settle for an alternative or a set of alternatives that best suits organizational objectives.
Upon the election of an alternative, the decision making process proceeds to the implementation stage. One needs to recognise that decision making does not necessarily stop at the election of alternative. The process of implementation still falls under decision making. In implementation, the entire strategy and process plan is outlined. It is only this stage that one hundred percent input of the employees is required. Management guide the implementation process usually monitoring the progress and generating reports on the output. At this stage, direct decision making can be seen in the mitigation orders issued by management in the event of implementation obstacles. In addition, management can adjust the process during implementation process so as to adjust to any supervening events that prior processes had not envisioned. The input and guidance by the management during implementation process remains essential for the success of the realization of organizational objectives.
The last stage in a basic decision making model is feedback analysis. However, it should be appreciated that this stage serves the future interests of organizations. In this stage, outcomes of each process are evaluated and management ponders on its successes and failures. Possible gaps and limitations are mentioned and recorded for consumption in the next decision making process.
Barriers to effective managerial decision making
Managerial decision making is often faced with a litany of challenges. In some extremes certain barriers necessarily frustrate the realization of organizational objectives. The rule of the thumb in successful decision making is that managers must be focused towards the achievement of success. A few barriers to effective decision making ought to be briefly examined. The most pressing barrier often is the lack of information. In this case, mere information is not just sufficient. The information has to be current and the right one for the organization. In this information age, the possession of information determines the success of decision making. Organizations have become competitive because of their possession of valuable information in the industry. Another barrier is the hierarchical structuring of organizations that has become responsible for organizational bureaucracy. The need to knock several doors before reaching organizational decision makers frustrates employees from communicating their ideas and suggestions. Ultimately, the organization remains without the all important pieces of ideas.
Poor communication vertically and horizontally can also be a barrier to effective decision making. In organizations where managers and employees alike, do not enjoy cordial and flawless relationships, the communication breakdown remains poor and inadequate. The lack of communication prevents flow of ideas and meeting of minds for purposes of effective decision making. Lastly, effective decision making could also be barred by a rigid culture that does not appreciate the institution of employees. Some traditional organizations do not allow employee contribution in decision making. What happens in such set ups is that management settle for decisions that are out of context and which employees do not own. The problem arises during implementation processes for employees who ordinarily would be expected to participate substantially do not contribute effectively.
Perhaps one could consider the American Apparel Company. The organization is trades in garments at an international level. The practice entails the collective input of employees ideas and services in the decision making process. The rationale in this approach lies in the fact that it is only employees who interact with customers on a day to day basis. Since the customer is king, the objective of the company often is the identification and satisfaction of customers’ needs. Employees play an essential role in availing information that in most cases would be applied in the decision making model. In addition, the company regularly conducts market surveys to obtain information concerning customer needs and desires. The trick behind the surveys is for decision making to be informed and strategic. An informed decision making approach ensures organizational objectives are realistic and achievable.
The mode of operations in the American Apparel Company has been skewed towards embracing the open door policy. In this approach both employees and customers have access to management. This accessibility facilitates collection and reception of information essential in decision making processes.
Conclusion
It should be appreciated that decision making as a managerial function is difficult and ought to be cautiously approached. The success or failures of companies depend on the nature of decisions made.
References
Daft, R. L., 2011. Management. New York: Cengage Learning.
Griffin, R. W., 2012. Management. New York: Cengage Learning.
Mitchellette, R. J., 2008. Entrepreneurial Decision Making. New York: Xlibris Corporation.
Williams, C., 2010. Management. New York: Cengage Learning.
