The art of making decision is connected with the process of choising the right performance’s course and is an essential function of management. Everyday people meet with lots of problems which should be sorted out, usually not being sure about result. While relying on impulse could have adverse consequence on decision making, it is suggested that opinion that could influence decision making should be thoroughly considered before being offered. It often demands to make the best choice from many capabilities but the most important is the way how to gain the most effective decision.Decision making is the cognitive processes leading to the selection of a course of action among several alternatives to produce a final choice (J.
Adair:1997:2) . This essay describes two main types of decisions in organizations and the most important for managers analytical skills in decision making or problem solving, like: functions of thinking - analysing, holistic thinking, optioning and creativity in management actions. Making many great decision is the main point of organizations and requiring decision let an organization function, adapt, progress and take advantage of opportunities and overcome crises.Some of decisions could be made just once in the life of the plant, business etc. , whereas other may take place a weekly of daily basic or even many times within a day.
During a working day, many decision are repeated (D. Jennings, S. Wattam:1998:3). Usually decisions are repetitive and routine or a definite procedure has been established for making the decisions which means the decisions are programmed. Simon (1965) has claimed that non – programmed decisions are like novel, unstructured and consequential (D.
Jennings, S. Wattam:1998:3).Mainly, this classification is applying to the example of the manufacturing enterprise. Ways of dealing with problems are developed by all managers, some of which can apply to novel situations but Mintzberg (1976) reported that even non – programmed decision, like strategic decision, may have some familiar elements in its structure(M.
Hicks:2004:2 ). The most important decision facing organization are described as being closer to non-programmed than programmed (D. Jennings, S. Wattam:1998:4).A normative model (programmed decision) describes how decisions should be made, rather than how they are made(D. Jennings, S.
Wattam:1998:5). This process is based upon the organization having a set of goals and objectives of the organization which can be developed to provide criteria, clear definitions of how the objectives are to be measured. The organization can assess its progress in achieving the objectives it has set itself. There are many criteria to measure profitability, a company needs explicitly to recognize the shareholders’ interests.Defining a problem in the normative model of decision making is similar in nature to medical diagnosis. The performance gap is a symptom resulting which may be explored in a logical fashion by structuring an enquiry and gaining evidence that supports or rejects competing explanations for the failure in performance.
The problem is identified by following a search for alternative solutions to the problem. A number of means may be found by solutions. To seek the best solution to the problem in the decision-making process may entail identifying a number of feasible solutions.The alternatives in decision making must have the potential to correct the problem at hand and promote the organization ’s goals and objectives which are relevant and help to guide the search for appropriate solutions. Choising a suitable solution is in part made in terms of the solution’s ability to the organization ’s objectives. Then testing to evaluate the selected alternative to remains the best choice under the range of possible circumstances, might face the organization in the future (D.
Jennings, S. Wattam:1998:7).A study of 25 strategic decision processes provided by Mintzberg, Duru, Raisinghani and Theoret (Mintzberg, 1976), drawn from organizations, including manufacturing, service etc. , identified decision making process as an unstructured decisions (non-programmed decisions) (M. Hicks:2004:10).
There are three decision-making phases: identification, development and selection. The first thinking way for describing problem is usually assumed as the best way but to make effort (J. Adair:1985:87). Situations require a decision-making response come to be identified and diagnosed.
Mintzberg’s (1976) study found that one or more solutions should be development to meet the problem or crisis(D. Jennings, S. Wattam:1998:12). The development contains search and design routine.
The search routine locates ready-made solutions while the design routine modifies those solutions that have been found or developing custom-made solutions. Scanning to provide useful information is one from the search activity which begins from local and immediately accessible sources but if these are insufficient then the search extends to other sources.The organization designs an original solution to meet the problem by failure to find a suitable solution. There is made a selection as a single and final step in the design process(D. Jennings, S. Wattam:1998:12).
In practice, the non-programmed model of decision making is in many respects different from normative process. ‘An organization’s objectives and goals don’t form basis of decision –making process, not do they provide an obvious guiding influence for the conduct of search and choice’ (M. Hicks:2004:13). Firstly, the most important skill in decision making is analyzing.
A good analytical mind is essential in managing and plays a central part in problem solving and then make a decision (J. Adair:1997:29,34). A problem has to be correctly identified in order to develop an inappropriate alternatives and make the best choice ( M. Hicks 2004:34). The rational model of decision making, reviewed above, includes problem diagnosis. This is achieved through the apply of pre-set objectives and performance criteria that are used to show areas where there is a performance gap, where actual performance has abased short of that which is required by the organization’s objectives.
Analysing of a performance gap is followed by a series of logical questions to identify the reason of the shortfall, the problem. Essential in analysing is the skill of asking yourself questions (J. Adair:1997:36),it means: thinking involves, asking question and endeavouring to find answers to these questions. In order to get into questioning frame of mind, which means thinking hard about something, is necessary to be puzzled about something. Puzzling may be f. e.
about how to make a million pounds by a certain date, how best to learn Japanese, or who to promote.The original question should then lead to a host of analytical questions. Analysing as a basic part of people mental equipment that is tend to take it for granted. Analytical thinking is closely related to logical and power of deduction is one of the skills used in tackling that particular problem. Deduction and induction are two main parts of logic. Deduction is a process of conclusion from what is known and assumed or it is a question of inferring from the general to the particular.
Otherwise, induction means inferring or verifying a general law or principle from the observation of particular instances (J. Adair:1997:11).Important in analysing is organize the facts because a problem is often a jumble of information which should be: “separated into its component parts” and re-arranged or restructured” (J. Adair:1997:42). John Adair (1997) said that a problem is often a solution in disguise (J.
Adair:1997:42). Sorting out the given information in a systematic way, making a chart to spell out every option, look for clues with which to eliminate the options one at a time, re-reading the problem to find less obvious clues and implications support decision making process. (J. Adair:1997:42).Secondly, system thinking and using systems concepts to examine situations, improve the way to decision making through, define problems and the effectiveness of decisions(M. Hicks:2004:34) One of different ways of thinking things through is holistic thinking.
The world was carried by Field Marshal Jan Smuts in 1927 to describe the tendency in nature to produce wholes by ordering or grouping various units together (J. Adair:1997:49). Meaning that separation of these wholes into different part make them to loose their natural essence. Applying this principle to decision making by managers means that holistic thinking is invaluable.Otherwise, holistic visioning merges together the role of mental attitudes and faculties as system.
A holistic mind is analytic in perception of the environment and the people living in it. Art of holistic visioning in management is important in merging things together instead of dismembering them. Managers without holistic minds interpret problems in single disciplinary or functional ways. Thinking holistically about problems, in decision making, imbibe the principle of holistic thinking shift managers to being relatively objective, leading to conclusion and is considered.However, it is being suggested to have a balanced poles of thinking between analytic and holistic (J. Adair:1997:54) Thirdly important aspect of decision making or problem solving called options.
This is a position to generate and choose the solution between possible courses of action or solutions. Hardly is made a decision if there is genuinely only one course of action open, otherwise, the options considered should be feasible. The process of elimination should run until there are achieved the two alternatives (J. Adair:1997:121).
As more relevant information can be gather before and during this process as the easier it will be. Checking the loyalty of alternatives is the first way to do after eliminating and the most likely possibilities are achieved. Knowing about a source of information will save time There are four suggested key areas to establish the real limits in a given situation: time, information, resources and knowledge. Real choice is implied in decision, and as more feasible options within the broad constraints of time and space to choose from, as better decision is likely to be.The experienced manager always checks if there is not another option, even if there appears to be one course open once the truth has been established.
Closing thoughts down too early may cause that the good option can be the enemy of the best option. Assessing options by weighing outcomes is the rational way to make decisions (J. Adair:1997:121). The last point in decision making is creativity – a holistic combination of mental abilities and qualities of personality, temperament and character (J. Adair:1997:140). Creative thinker is the person which have many new ideas with a high rate of excellent ones among them.
The creative thinking process consists of: preparation, incubation, insight and validation. Preparation process bases on collecting and sorting the relevant information, analysing the problem and exploring possible solutions. Incubation is the mental work through analysing, synthesizing and valuing problems and storing in memory. The moment when the new idea suddenly emerges in the time when the mind is relaxed is called insight. Then, the above idea needs to be thoroughly tested and this is validation process (D. Jennings, S.
Wattam:1998:82).“The most original person is he who adapts from the most sources” (J. Adair:1997:144)so bringing together things which are widely separated in time and space is stated as a creative thinking (J. Adair:1997:145).
Coming up with the new ideas is the function of creative thinking in decision making. Learning to think creatively - “think outside the box”( D. Jennings, S. Wattam:1998:86) is the one of the most valuable principles for improving approach to work and life.
Thinking productively and constructively, as well as analytically and logically gives a third dimension in decision making process and problem solving (D. Jennings, S. Wattam:1998:85).Decisiveness does not always mean quick decisions for an creative and effective thinker which is talented in analysing, synthesizing and valuing skills, knows when and how to use depth mind and his creative solutions come as a result of careful preliminary work. Important for decision makers is developing creativity and thinking skills by learning on the job, experiences and observing and reflective others (J. Adair:1997:160).
In conclusion, explicitly or implicitly, this cognitive process leading to produce the result - right made decision, is successful for individual decision maker or for organizations.Therefore, anyone who wants to succeed as a manager needs to make sure that the best decision are taken, that problems are solved in the optimum way and that creative ideas flow freely. Important in finding effective solutions is connected analysing, thinking, optioning etc. skills together which are widely separated in time and space. Moreover, sharpen analytical management skills, learning decision making or problem solving strategies, generate ideas through brainstorming, be more creative and think outside the box, is the way to make a right decision.
