DECISION MAKING PROCESS

Decision making process

Abstract

Strategic decision making has been viewed as an important aspect among managers in an organization. Managers are required to make strategic decisions that have an impact on their organization's performance. This conceptual paper will give an overview of strategic decision making in the context on global organisational environment.

Decision making process

Introduction

Organization's performance has been measured substantially based on their profit achievement. None of any organizations wanted to have losses being marked for their business operations during the given accounting period. Thus managers in the organizations were urged to make profit in the course of business operations, and at the end of their business accounting period. This profit achievement will be the benchmark for the board and top management to recognize their managers' efforts in making profitable business arrangements and deals.

Behind those profits, managers have to make strategic decisions in charting their organization's path in achieving its objectives as directed by the board and top management. Managers needed substantial information in order for them to make a sound business decisions. Although, the managers had substantial information prior to make decisions, they may not come up with the right or perfect strategic decision making for the organizations. Thus, these poor business operations will be reflected in the company's profit and loss account. Nevertheless, managers made decisions affecting the organization daily and communicate those decisions to other organization members (Zaleznik, 1989 and Main & Lambert, 1998 in Certo, 2003).

Task I

Based on Henry Fayol's definition, managerial functions are identified by planning, organizing, commanding, coordinating, and controlling (Robbins and Coulter, 2005). Thus strategic decision makings are involved in mangers during the operations of an organization. Managers have to make thousands of strategic decisions in order to keep their organization in the pace of business.

Due to globalization era, managers have to think and act fast in order to capture all business opportunities. Meanwhile, they also have to eliminate, and if not mitigate, the level of threats toward their organization. Thus, managers' strategic decision makings are crucial to the survival of the organization. Robbins and Coulter (2005) stated that decision is part of managerial functions. Further, decision making is important in a manager's job.

Elements of the Decision-Making Process

There are five elements of consumer behavior that lead to a purchasing decision. The first element is problem recognition; the consumer comprehends a need, difference between a perfect and a genuine situation. The situation can be as simple as seeing there is no bread left. Second information search, the consumer is looking for value. This is where clarification of options is revealed to the consumer and many involve internal and external search. Next is assessment of other possibilities. What standards will be used and what is the perceived value in making the purchasing decision. Fourth is the decision to purchase. This involves when, to buy, who to buy from, or if to buy at all. When to buy will come from influences like store atmosphere, time, is there a sale happening, and the shopping ...