Effective Decision Making for Organizations' Success

Effective Decision Making
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Effective Decision Making
Most often, organizations are persistently involved in decision-making at various levels to maximize their productivity. It is a multifaceted process comprising operational, managerial, and strategic decision-making procedures. In any establishment, decision-making involves deliberating on crucial compromises or choices to meet set objectives. Nonetheless, decision-making does not entirely translate to merely selecting the right compromises or choices. According to Drucker, for a decision to be effective, it must degenerate into work. Otherwise, it would be considered an ordinary good intention (1967). Therefore, effective decision-making is selecting alternatives and implementing them to realize an organization`s objectives. Moreover, it is a practice stemming from a systematic process, with distinctly distinguished elements, managed in a definite succession of steps (Drucker, 1967). Hence, effective decision-making is a continuous learning culture that every employee needs to embrace.
Effective decision-making is vital to any organization`s success. It is, therefore, appropriate to overcome the following obstacles to achieve its full potential. Cognitive bias is a significant obstacle to effective decision-making. Undoubtedly, making a decision is an innate cognitive activity, either thinking rationally or irrationally. When an individual depends on assumptions rather than evidence in decision-making, the result is a cognitive bias. Human characteristics, like experience or personality, impact their decision-making capabilities. As such, we should always strive to be cognitively impartial as one`s predispositions can be an enabler or an obstacle to effective decision-making.
Additionally, time pressure and constraints is another obstacle to effective decision making. When limited by time, people are forced to detour from ideal (logical processes) to sub-ideal (intuitive processes). Acute time constraints can make an individual`s judgment and the decision-making process less objective and overly driven by intuition since more rigorous and formal methods are overlooked. Additional obstacles com...