Decision Making
Decision-making is the critical key to the survival of an organisation, more so in this present time where we see economic boundaries between countries crumble and businesses become more complex, global and knowledge-driven. Managers need to ensure that their organisations are continuously innovated and improved in order to achieve and maintain a sustainable competitive edge. In fact, Potter (1985) highlighted that it is this competitive ability which is considered to be at the core of the success or failure of a firm. Managers realise that if their organisations are to survive in this dynamic and uncertain environment, they have to make decisions concerning new business opportunities, products, customers, suppliers, markets and technical developments. This clearly indicates that the most important managerial attribute is the ability to make the right decision. The outcomes of the decisions will be used as the benchmark to evaluate whether managers are successful or not. Therefore, the question that arises is how managers make decisions and whether they are rational or irrational.Stoner and Freeman (1989, p.165) defined decision making as “a process of identifying and selecting a course of act
It is quite evident in the studies conducted by conventional management gurus, the rational model concept was applied in their decision making process. The model was applied in the scientific management in the late nineteenth century. Scientific management, also known as Taylorism after its pioneer, Frederick Taylor, involved the breaking down of jobs into a series of steps, which could be performed by a number of different operatives doing repetitive tasks. This de-skilled and dehumanised (turning human into robots) the work and it was known as the rationalisation of works: the organisation of work without regard for the people who did it. People were deemed as another resources in the production process like raw materials and machinery.
Some topics in this essay:
Stoner Freeman,
Gray Stark,
According Robbins,
Tversky Kahneman,
INTRODUCTION Decision-making,
RATIONAL MODEL,
Frederick Taylor,
decision process,
bounded rationality,
rational model,
optimal result,
rational decision,
decision model,
stoner freeman 1989,
freeman 1989,
multiple objectives,
stoner freeman,
course action,
influence decision process,
rational decision model,
minimal set requirements,
organisation progression development,
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Approximate Word count = 3004
Approximate Pages = 12 (250 words per page double spaced)
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