Introduction

A decision is a judgement or choice between two or more alternatives and arises in an infinite number of situations; from the resolution of a problem to the implementation of a course of action.

Individuals in organisations make decisions. That is, they make choices from among two or more alternatives. Top managers, for instance, determine their organisation’s goals, what products or services to offer, how best to organise corporate headquarters, or where to locate a new manufacturing plant. Middle- and lower-level managers determine production schedules, select new employees and decide how pay raises are to be allocated. Of course, making decisions is not the sole province of managers. Non-managerial employees also make decisions that affect their jobs and the organisations they work for. The more obvious of these decisions might include whether to come to work or not on any given day, how much effort to put forward once at work, and whether to comply with a request made by the boss. Individual decision-making, therefore, is an important part of organisational behaviour. But, choices are largely influenced by their perceptions.

Decision-making occurs as a reaction to a problem. There is a discrepancy between some current and some desired state, requiring consideration of alternative courses of action.

Every decision requires interpretation and evaluation of information. Data is typically received from multiple sources and it needs to be screened, processed and interpreted. What data, for instance, is relevant to the decision and what data isn’t? The perception of the decision maker will answer this question. Alternatives will be developed and the strengths and weaknesses of each will need to be evaluated. Again, because alternatives don’t come with “red flags” identifying themselves as such, or with their strengths and weaknesses clearly marked, the individual decision-maker’s perceptual process will have a large bearing on the outcome.

Click here to listen to an explanation on the steps in the decision making process.

Click here to view a video on the seven steps to improving the decision-making process.