Importance Of Effective Decision Making

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EFFECTIVE DECISION There are three aspects of effective decisions. An effective decision is the one which is action oriented, goal directed and provides efficiency in implementation. 1. Action Orientation. The decision should be able to specify actions which are required to be undertaken to achieve objectives for which the decision has been taken. 2. Goal Orientation: like all other activities of the organization, decision making too should be goal oriented. It should help the organization to achieve the goal. Goals are achieved through both decision as well as its implementation. 3. Efficiency in implementation: the final results of a decision are achieved through implementation. Proper implementation is required for any decision. A decision must be able to get converted into some results through implementation. If it cannot be implemented, it is of no use. STEPS FOR MAKING EFFECTIVE DECISIONS As decision making process is expensive and time consuming, if it is not undertaken effectively, all efforts go waste. Following guidelines are given to help make this…show more content…
It is characterized by behavioral nexus between end and means. If appropriate means are chosen to attain ends, the decision is said to be rational. But in real life, it is very difficult to separate means from end. What seems end today might become means tomorrow. Rationality of humans is not unlimited. It is bounded and this limits our ability to acquire and apply the information. People usually settle for acceptable option rather than exploring maximum options because decisions they comfort normally demand greater information processing abilities than they possess. This is also called satisficing. Satisficing is the tendency for decision makers to accept the first alternative that meets their minimally acceptable requirement than pushing further for an alternative that produces the best
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