Kelas : 3EB11
NPM : 20208200
The Reality of Decision – Making
Decision making is a complex business subject which combines the most complicated elements of the operational and theoretical aspects of management. The ability to implement the decision – making process is often determined by environmental factors rather than the steps in some “ideal” model. Decisions are frequently influenced more by the environment and structure of the organization than by the method itself. The process of decision – making will, therefore, be examined in light of environmental factors.
One of these factors – social and cultural background – affects the interaction among people involved in the decision process and provides the cultural framework within which they may comfortably operate. The best alternative for solving a problem, for example, might be to replace an employee who is unsuited for a position. However, if in the society’s culture there is a tradition of lifetime employment with one company, that alternative is not really feasible because of social and cultural restrictions.
With regard to the structure of an organization, there are a number of factors that may alter the “ideal” decision-making process. The amount of flexibility within an organization and the available resources (such as facilities, technology, or fiscal reserves) are often controlling factors. The amount of data available may also limit the range of alternatives that can be considered. Another organizational factor is the importance of the decision being made in relation to other problems and responsibilities of management. The relative importance of one decision is weighed against the amount of effort involved in finding a solution and the benefit the company will receive from it’s implementation.
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