Why is Decision Making So Important?

No human activity can evade decision-making. It is very crucial to the functioning of an organisation or any life for that matter. The possibilities of attainment of organisational goals and objectives hinge on the sole act of decision making. It is the pathway to the future. Decisions vary in complexity. The leader of an organisation must be prepared to deal with all kinds.

Listed below are some of the reasons why decision-making skills are essential.

Leadership Skills

It is the primary skill one should possess to become a leader. An organisation stands on the foundation built by the leader's decisions. A wrong step can cause it to fall like a house of cards. Besides, an indecisive leader cannot hold the fort for long. A leader should be able to inspire and direct the subordinates to follow the path. The authority of the position she/he is in lets her/him do that. However, if the decisions or the decision-making skills are weak, employees become dissatisfied. Sooner or later, employee turnover becomes a reality. The company will go through tough times and some good times. The team has to have confidence in the decision-making skills of their leader to deal with any situation with poise.

To Deal with Problems

When faced with any challenges or issues, as one will, decision-making skills come in handy. When in adverse circumstances, fate hangs on the decisions one makes. This applies to an individual as well as an organisational level. As far as an organisation is concerned, when challenges due to globalisation surface, the survival of the business counts on the leadership and the decision-making skills of its manager. Even if not for survival, the smooth running of a company is only possible if sound decisions are made at the right time, without delay.

To Achieve The Goals and Objectives

The process of attaining the pre-set goals is bound to be laden with difficulties and impediments. It is also one where an individual will face a dilemma of some kind, especially when ethical concerns are involved. Decision making is crucial in those circumstances. Acute decision-making skills must be employed to take decisions where moral values and organisational goal are in conflict with each other.

For Growth and Diversification

Managers have to take ‘non-programmed' decisions from time to time. These are decisions that have not been programmed before. She/he has to take them if the business environment calls for it. Such choices are not easy to make. The manager or the decision-maker must have sufficient experience to adopt an arrangement such as that. With experience, one builds strong intuitive skills. So, experience, intuition, and in-depth knowledge of the present scenario are some of the qualities that will save the day. These are the decisions that are made when mergers and acquisitions and similar propositions are to be considered. Needless to add, these are some of the changes that will significantly impact the organisation and hence, these decisions are the kind that will change the tone of the business.

A Motivation for Workers

Impressive decision-making skills of leaders inspire confidence in the members of the workforce. It is always welcoming to have a strong front for a company. It instils in the subordinates a greater sense of faith. With this motivating force, they strive harder towards the attainment of goals. Also, when in a crisis, the decision taken by the manager will have far-reaching effects on the lower level of management. When faced with ethical choices, the decision maker, by making the right and perhaps, the harder option will have motivated all the employees to work harder.