Summary
The basic role of every manager is the decision-making, this process is innate in each and every person, but managers should be aware of the steps that it requires in order for the goal of the organization to be accomplished in the desired way.
Basically this process begins with the recognition of the need to make a change or solve a problem, after that the manager must identify the objective that the organization must reach, gather all the data available for this and evaluate it I order to diagnose the situation, then list the evaluation alternatives, select the best course of action to implement the decision, after the decision is operating the manager must gather feed back and make a follow up of it in order to see if the descicion or the operation is being well developed and if it need changes.
Here are some models that helps on the procees of desicon making
1.Effective Decision model
A model that expresses the desire objective and its acceptable to those individuals affected by it.
2. Rational Model
This model gives a description in how the behavior of the individuals of the organization must behave in order to optimize the outcome of the procees.
3.Bounded Rationality model
Explain that not all the decisions are made ratonally, and that there are some limits to towards that rationality, some decisions must be made following ones instincts.
4. Garbage Can model
Its when the decisions are made randomly and without any order at all, its an unsystematic model, which generally leads to failure.
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In order to make a decision in an organization, the manager or individuals who are in charge of making that decision must be aware of the risks of making that decision; some people tend to be risk averted which means that they don’t like to take big risks and specially don’t like to live in uncertainty; by the other hand there are some people that are risk takers who tolerate greater potential for losses and tolerate a greater amount of uncertainty.
A manager must direct their employees in order for them to take risky decision if needed, without the fear of being punished, because if the risk taking behavior is suppressed the creativity and innovative ideas of the individuals will be compromised and lost.
Group thinking is the most common way of gathering ideas to reach a goal in an organization, but it has some setbacks because it deteriorates the mental efficiency and the moral judgment which leads to pressures within the group.
But as group decision making is so important in organizations, some techniques has been developed in order for it to be more useful for the organization itself and the goals it has.
· -Brainstorming (proposing many ideas from each individual of the group and then evaluate which is the best one)
· -Nominal Group Technique (generation of different alternatives)
· -Delhpi Technique (gathering the knowledge of experts in order to make the proper decision)
· -Devil’s Advocate (giving an individual the role of critic in the decision making process in order to prevent group thinking)
· -Dialectical Inquiry (an intellectual debate between two parties whith different ideas or opinions)
Its always important for the manager to act and instruct his employees to act according the ethical values of the organization.
Topic Question
How can organizations effectively manage both risk taking behavior and escalation of commitment in the decision making behavior of employees?
-Organizations should reward its employees and encourage them to make decisions without fear, but instructing them in the proper way of making that decision so the outcome doesn’t result on failure and the consequences of that failure affect directly the organization.
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