BUENBRAZO, Gerlen Lumbatan

203 H Sun 9:00 – 12:00

Prof. Marecon Viray

DECISION MAKING

Every organization needs to make decisions at one point or other as part of managerial
process. Decisions are made in the best interest of the organization. For that matter, decisions
made by the organization are to lighten the way forward. Be it strategic, business activities or HR
matters, processes of making decisions is complex, involves professionals of different genre.
While small organization involves all levels of managers, complex organizations largely depend
on a team of professionals specially trained to make all sorts of decisions. But remember, such a
body alone cannot come out with final decisions. Here, the point is, decision making process is
cumulative and consultative process. The process, on the whole, bears its pros and cons and
would by and large emanate results and consequences in the organizations’ overall growth and
prospects.

DECISIONS ARE TAKEN TO SUPPORT ORGANIZATIONAL GROWTH

Top notch companies, as evidenced by their functions, effective communication tools are
utilized in addition to normal consultation process to make decisions that would have large scale
implications on the company’s prospects.

Discussions and consultations are two main tools that support and eventually bring out
decisions. For instance to take a decision on how to embark on new business activity suggested
by strategic management team must have developed through series of consultative process,
which is now available with implementation team. Here we see the cumulative effect of decision
taken at one point by a different body of affairs. Decision taken by strategic managers is to push
new and innovative business line or initiative. At this point the decision taken by such team
becomes consultative point for discussion for implementation professionals. There is lot to
debate, research and finalize. Is the new proposal viable? Is it innovative enough? Can there be
growth stimulant in the strategies proposed? Handful of such questions evolved from the
decision taken by strategic group has reflective influence on the next level of managerial
consultations and meetings. Let us accept, at this point of discussion, that proposals submitted by
business development team would largely depend on another set of deliberations in the board
room.

Thus, the final decision to roll out a product or service is through cumulative interim
decisions taken by various internal and external parties. And also the final decision is reflective
and founded on researches and consultations. Whole process is a chain affair where one decision
taken at one point and at one level shall have far reaching implications in the way an
organization moves forward.
 As a matter of fact, capable of taking critical a decision is one of the many attributes that
every manager should have, be it top level or middle or entry level. By nature a human being
during his existence and by virtue of his instinct makes decisions for his survival, as social
psychologists put it. By and large, managers are polished individuals to take decisions to affect
others, ie the organization’s existence and growth thus is annotative with human endeavor to live
and succeed. Success succeeds on the decisions taken, be it by an individual or an organization.

WHAT IS DECISION MAKING?

Decision-making is an integral part of modern management. Essentially, Rational or

sound decision making is taken as primary function of management. Every manager takes
hundreds and hundreds of decisions subconsciously or consciously making it as the key
component in the role of a manager. Decisions play important roles as they determine both
organizational and managerial activities. A decision can be defined as a course of action
purposely chosen from a set of alternatives to achieve organizational or managerial objectives or
goals. Decision making process is continuous and indispensable component of managing any
organization or business activities. Decisions are made to sustain the activities of all business
activities and organizational functioning.

Decisions are made at every level of management to ensure organizational or business

goals are achieved. Further, the decisions make up one of core functional values that every
organization adopts and implements to ensure optimum growth and drivability in terms of
services and or products offered.

As such, decision making process can be further exemplified in the backdrop of the
following definitions.

DEFINITION OF DECISION MAKING

According to the Oxford Advanced Learner’s Dictionary the term decision making means
- the process of deciding about something important, especially in a group of people or in an
organization.

Trewatha & Newport defines decision making process as follows:, “Decision-making

involves the selection of a course of action from among two or more possible alternatives in
order to arrive at a solution for a given problem”.

As evidenced by the foregone definitions, decision making process is a consultative affair

done by a comity of professionals to drive better functioning of any organization. Thereby, it is a
continuous and dynamic activity that pervades all other activities pertaining to the organization.
Since it is an ongoing activity, decision making process plays vital importance in the functioning
of an organization. Since intellectual minds are involved in the process of decision making, it
requires solid scientific knowledge coupled with skills and experience in addition to mental
maturity.

Further, decision making process can be regarded as check and balance system that
keeps the organization growing both in vertical and linear directions. It means that decision
making process seeks a goal. The goals are pre-set business objectives, company missions and its
vision. To achieve these goals, company may face lot of obstacles in administrative, operational,
marketing wings and operational domains. Such problems are sorted out through comprehensive
decision making process. No decision comes as end in itself, since in may evolve new problems
to solve. When one problem is solved another arises and so on, such that decision making
process, as said earlier, is a continuous and dynamic.

GENERAL DECISION-MAKING STYLES (GDMS)

In the general decision-making style (GDMS) test developed by Suzanne Scott and Reginald
Bruce, there are five decision-making styles: rational, intuitive, dependent, avoidant, and
spontaneous. These five different decision-making styles change depending on the context and
situation, and one style is not necessarily better than any other.

 The rational style is an in-depth search for, and a strong consideration of, other options
and/or information prior to making a decision.
 The intuitive style is confidence in one's initial feelings and gut reactions.
 The dependent style is asking for other people's input and instructions on what decision
should be made.
 The avoidant style is averting the responsibility of making a decision.
 The spontaneous style is a need to make a decision as soon as possible rather than waiting to
make a decision.

THE DECISION-MAKING PROCESS IN AN ORGANIZATION

Decision making is the process of making choices by identifying a decision, gathering

information, and assessing alternative resolutions.
Using a step-by-step decision-making process can help you make more deliberate,
thoughtful decisions by organizing relevant information and defining alternatives. This approach
increases the chances that you will choose the most satisfying alternative possible.

Step 1: Identify the decision

You realize that you need to make a decision. Try to clearly define the nature of the decision you
must make. This first step is very important.
Step 2: Gather relevant information
Collect some pertinent information before you make your decision: what information is needed,
the best sources of information, and how to get it. This step involves both internal and external
“work.” Some information is internal: you’ll seek it through a process of self-assessment. Other
information is external: you’ll find it online, in books, from other people, and from other sources.

Step 3: Identify the alternatives

As you collect information, you will probably identify several possible paths of action, or
alternatives. You can also use your imagination and additional information to construct new
alternatives. In this step, you will list all possible and desirable alternatives.

Step 4: Weigh the evidence

Draw on your information and emotions to imagine what it would be like if you carried out each
of the alternatives to the end. Evaluate whether the need identified in Step 1 would be met or
resolved through the use of each alternative. As you go through this difficult internal process,
you’ll begin to favor certain alternatives: those that seem to have a higher potential for reaching
your goal. Finally, place the alternatives in a priority order, based upon your own value system.

Step 5: Choose among alternatives

Once you have weighed all the evidence, you are ready to select the alternative that seems to be
the best one for you. You may even choose a combination of alternatives. Your choice in Step 5
may very likely be the same or similar to the alternative you placed at the top of your list at the
end of Step 4.

Step 6: Take action (Implementation of Plan)

You’re now ready to take some positive action by beginning to implement the alternative you
chose in Step 5.

Step 7: Review your decision & its consequences (Evaluate outcomes)

In this final step, consider the results of your decision and evaluate whether or not it has resolved
the need you identified in Step 1. If the decision has not met the identified need, you may want to
repeat certain steps of the process to make a new decision. For example, you might want to
gather more detailed or somewhat different information or explore additional alternatives.

Decision Making in an Organizational Context

Decision making is part of everyone’s life and all of us have to make decisions every
moment. Right from choosing what to wear to what to eat to where we live and work and
extending to whom we marry, decisions are an integral part of our lives. In an organizational
context, it is worthwhile to note that decision making needs the right kind of information,
the complete information and the ability to synthesize and make sense of the information.
While the first two attributes depend on external sources, the ability to make informed decisions
is a personality trait. Hence, successful CEO’s are those who can take into account the different
viewpoints and divergent perspectives and arrive at the right decision.
 The other aspect that relates to decision making in an organizational context is that there
must be complete and accurate information made available to the decision maker. In Economics,
there is a term called “asymmetries of information” that indicates how incomplete and
insufficient information leads to poor decisions and wrong choices. What this concept means is
that having partial information or faulty information often leads to “analysis paralysis” which is
another term for poor decision making abilities. Finally, even with reliable and accurate
information, the decision maker ought to have good problem solving skills and astute decision
making abilities to arrive at sound judgments regarding the everyday problems and issues.

The overriding rule in decision making is that the decision maker ought to have
legitimacy and authority over the people who he or she is deciding upon. In other words,
decision makers succeed only when their decisions are honored and followed by the people or
groups that the decision impacts. The reason for mentioning this towards the end is that in many
cases, the fragmented nature of the organizations with different interests represented by factions
often undermines the decision making capabilities of the decision maker. Hence, it is worth
mentioning that such authority must be vested with the decision maker.

DIFFERENT DECISION –MAKING METHODS

There are several decision-making methods you can choose. When selecting your
approach, you should consider your familiarity with the issue, the number of people impacted by
the decision and the time frame available for this choice. Some situations benefit from analytical
decision-making that takes everyone’s opinions into consideration, while other circumstances
require a quick approach that doesn’t allow for negotiation.

The following decision-making methods take several diverse approaches, so you can select the
most appropriate option for each situation.

 COMMAND DECISION-MAKING

With command decision-making, you make a decisive choice without input from others.
Command decision-making is often the quickest and most direct route to an outcome. Use this
approach when you’re responding to a time-sensitive issue or working in a fast-paced
environment where daily decisions must happen on the spot.

Those who use command decision-making rely solely on their own knowledge when
making a choice. This directive approach leaves team members with clear orders but no room for
negotiation.

Sample Scenario
Ellen manages the production floor and makes daily decisions regarding which
employees are assigned to each part of the production line. She evaluates the daily
 production schedule independently each morning and posts employee assignments on a
bulletin board. Employees receive their directions and carry out the orders as specified
without negotiation. Using command-style decision-making, Ellen maintains a steady,
productive workflow in the production line. Her directive use of the bulletin board
postings is clear and does not invite debate on the issue.

 COLLABORATIVE DECISION-MAKING

Collaborative decision-making uses groups or teams to discuss an issue and a possible

solution. This type of decision-making works best when you have a diverse group of employees
who can present multiple perspectives of a decision to take a balanced approach to problems.
While it’s most common to collaborate with coworkers, you might also seek ideas and feedback
from other sources, such as industry experts or customers. A collaborative decision-making
approach allows you to gather suggestions, evaluate options and reach informed conclusions you
may not have come to on your own.

Sample Scenario
Samson’s marketing team needs to come up with a new approach to their social
media campaign. He posts a poll to gather feedback from the company’s followers and
schedules a meeting with his marketing associates to evaluate the results. Using
customer feedback as a guide, Samson asks each associate to develop a social media
campaign to present at their next meeting.
Each member of the team presents a different campaign approach. Following
the presentations, the associates discuss their impressions of each option and
collaborate to identify the top three campaign options. As the leader, Samson uses the
ideas and makes the final decision after taking his team’s opinions, ideas and
information into account. This collaborative approach gave every member of Samson’s
team an active role in the decision-making process while providing a fast path to a
choice, leaving the ultimate decision in the hands of the team leader.

 CONSENSUS-BASED DECISION MAKING

Consensus-based decision-making requires that all participants agree on a single option

before moving forward. Using this approach, you gather your team and discuss the issue and all
of your options. You might choose to present specific options or accept suggestions from your
team. The key to this approach is that you only settle on a choice everyone agrees on.

Consensus-based decision-making is effective in building strong teams as it promotes a sense

of unity. However, this is often a slower approach, so it’s best when you have more time to
decide. Consider reserving this strategy for complex issues or those that require total support
from everyone in the organization.
 Sample Scenario

Lee is changing the script for the company’s sales employees so it reflects the
company’s recent rebranding and presents the right voice. It’s essential that all five
salespeople in the company feel comfortable with the new verbiage. Though Lee is an
experienced copywriter in the marketing department, it’s important for him to get input
from the sales department who will use the script daily.

Lee has a flexible deadline for completing the project, so he gathers the sales
team and works together with them until everyone agrees on a script they believe is
most effective. By waiting until each vital party signs off on the final product, Lee
ensures this project has the best chance of success.

 VOTE DECISION-MAKING

Vote decision-making allows you to gather input from a large number of people without
investing a significant amount of time in discussion or debate. As the employee in charge of the
decision-making process, you’re still responsible for providing the options that individuals can
vote between, so you can control the scope of the issue.

Provide your voters with detailed information on their options so you can gather informed
opinions. Vote decision-making works best when your team commits to supporting the outcome
no matter how the votes turn out.

Sample Scenario

Sue is rebranding the business and has narrowed the options down to three new
logos. She wants to get everyone in the company involved in the final phase of the
process, so she posts all three logos throughout the office with information on how the
colors and typography relate to the new branding.

After giving the staff a few days to evaluate their options, Sue takes a vote and
commits to use whichever logo wins. One logo wins by a significant majority, and the
employees are satisfied with the outcome knowing that everyone in the business had a
say in this result. Sue successfully uses the vote approach to include the employees
invested in the future image of the organization.
  DELEGATION OF DECISION-MAKING

Delegation is the task of assigning responsibility to others, such as giving decision-making

responsibilities to someone else. You might delegate the decision-making to an expert, a
consultant or someone on your management team if you have other responsibilities or if another
person is better suited or more affected by the decision. This decision-making method is best
used for everyday issues that don’t require a lot of evaluation and debate. Delegate decisions
when you simply need someone well-informed to select from a few pre-determined options.

Delegation can empower your team members or build confidence in your managers. When
you delegate to someone new, you’re likely to see a fresh approach to the issue, which is often
beneficial to the business.

Sample Scenario

Jamal is routing outgoing shipments through one of three warehouses. All are
comparable, but someone must balance the volume of orders flowing through each
location. Rather than micromanage this task, Jamal delegates the decision to Alice, an
experienced warehouse manager. Alice builds her own decision-making skills through
this project and is better positioned for a promotion as a result. Jamal lightens his
workload so he has more time to dedicate to other higher-level projects.
REFERENCES:

https://www.indeed.com/career-advice/career-development/decision-making-methods-for-the-
workplace

https://www.managementstudyguide.com/decision-making.htm
https://www.careercliff.com/effective-decision-making-examples-scenarios/

https://online.csp.edu/blog/business/decision-making-process

https://smallbusiness.chron.com/decisionmaking-process-organization-21532.html