DECISION MAKING IN ORGANIZATIONS 1
DecisionMaking in Organizations
Decisionmaking is a mechanism that is used in organizations to make choiceswhich normally have particular consequences. Decision makingsignifies a step forward towards solving problems in question. Inmaking a decision, one has to ensure that the decision needs to bemade, making the decision is the right choice and ensure it is timely(Jacksonet al, 2009). Additionally, one needs to determine the right peopleto be involved in making the decision as well as determine the factsto base their decision on.
Inmaking organizational decisions, there are three models to considerthe collaborative model which believes in group efforts. This modelinvolves the key players in the organization who bargain among thecompeting priorities and different interests. Additionally this modeldoes not focus on one rational choice but rather focuses on thecomplex issues of the organizations (Barabba, 2011).
Theother model of decision making is the organizational process modelwhich is characterized by use of many units whereby each unit makesits own decision choice. This model usually explains the logic of theaction whereby one leader cannot control everyone but rather all thepersons in units must be coordinated to accommodate each member’sinterests and objectives.
Thelast decision making method is the rational model this modelinvolves an individual’s thoughts, assumptions and behaviors inmaking the decision choice. The decision maker’s rationality is theone that is relied on in coming up with a solution. This means thatthe decision maker maximizes the value in the situation then takes anaction and makes their choices. This model is the most common and itexamines the logic of consequences.
Inthe scenario, the manager should use the collaborative model ofdecision making this is because the problem involved is complex asit involves many issues to be resolved. All the players in theproject have different interests, agendas and priorities. The managerthen has to involve and consider each and every member’s needs.Additionally, the issues at stake are different which means each mustbe handled differently which requires the players to compromise whileothers negotiate and bargain, Barabba in her book found thecollaborative method to be very effective in coming up with problemsolutions in an organization (Barabba, 2011)
Decisiontechniques help in making decisions, for instance the cost benefitand cost effectiveness analysis is a technique that is focused on thefinancial value thus an organization uses this technique to plan forprograms, allocate resources and evaluate the results. This techniqueis definitely crucial to any organizational processes to ensure theyare efficient (Davis and Davis, 2011). In the scenario, thistechnique would be helpful since the organization has monetary issuesand they must be considered, for instance, whether to purchase the 50litres of toxic chemical at the current market price which was 12pounds per litre.
Anothertechnique is that of brainstorming whereby many ideas are generatedwithin a short period of time. Brainstorming provides alternatives toa solution because it’s used to create solutions. It helps in groupparticipation however, brainstorming must follow the set ground rulesotherwise it may be misused. Brainstorming is effective especiallywhere an urgent decision relating to several issues has to be made.In our scenario, the manager could use this technique to generateideas on how to navigate the issues in question. Brainstorming mostlygoes hand in hand with the focus groups technique whereby individualsare grouped and discuss a certain issue and come up with a solution.
Theother technique is that of evidence based management. In thistechnique, the previous experiences of the organization areconsidered in coming up with a decision. This technique may not beapplicable in our scenario, this is because every situation is uniqueand thus each needs a different approach (Secchi, 2011).The market prices and technologies as well keep changing thus theorganizations previous experience may be similar but the approachesto dealing with the situations ought to be different.
Anorganization is a place of work for different individuals who aretasked with different roles in a bid to reach the objectivestargeted, thus, every individual is required to make decisions at onepoint or another. The manager particularly has a major role instrategizing and making the different role players work together asone in coming up with creative solutions. In our scenario, themanager has a big role to play especially because the issues involvedare complex and involve different departments of the organization.
Inconclusion, the manager has to clearly define the problem as soon aspossible because it is an urgent issue that needs to be tackled withimmediate effect. He then should use the problems to come up with asolution to the problems. The manager should not be rigid and quickto make the decision he should make sure that all the alternativeshave been exhausted. This means that the manager must utilize eitherthe brainstorming technique or focus groups to generate creativesolutions to the problem (Secchi, 2011). Additionally, the manager should give each and every player a chanceto give their opinion then come together as a whole and choose thebest choice solution with the best probable outcome which must becost efficient to the organization.
Jackson,S., Sawyers, R., & Jenkins, J. G. (2009). Managerialaccounting: A focus on ethical decision making.Mason, OH: South-Western.
Davis,C. E., & Davis, E. (2011). Managerialaccounting.Hoboken, N.J.] : John Wiley & Sons.
Barabba,V. P. (2011). Adesign for interactive decision-making in organizations.Axminster: Triarchy.
Secchi,D. (2011). Extendablerationality: Understanding decision making in organizations.New York: Springer.