All Individuals are forced to make choices, such as selecting a collage to attend, choosing an occupation, or deciding upon a specific employer. Unfortunately, it is not obvious which decision in each situation will provide the greatest pleasure, avoid the most pain, or lead to a better world in the future. Goals to be achieved, environmental factors, and personal values must all be considered before a final choice can be made. For many decisions facing managers, therefore, specific solutions are not well defined.
Decision making is also a continuous process that pervades all organizational activity. To this extent, understanding what makes an organization successful defends upon our knowledge of how people make effective decisions. Within any organization, virtually every person is a decision maker. The worker who shuts down the lathe to smoke a cigarette is as much a part of an organization's decision making system as the CEO who decides to build a new plant costing millions of dollars. The consequences of these decisions vary in their influence on the achievement of objectives, and the perceived risks of decision making cause many people to view it as a difficult and unrewarding task.
Some of the difficulties associated with decision making stem from the biological makeup of decision makers. People are usually dependent on others for the education and experience required in making meaningful choices. For example, members of primitive social groups (cultures) received advice on possible actions to take in a variety of situations from their leaders. To some degree this led to programmed decisions since the same choice could be used in basically similar situations. In our complex society, however, it is impossible to specify the most appropriate course of action for every problem. In fact, the critical issue may not be the particular choice selected, but how the manager goes about identifying the true problem requiring decision.
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