Decision making is an activity which cuts across the four functions of management which are planning, directing, organizing and controlling. The decision making process involves selecting the best solution from the available alternatives for a future course of action. It involves making decisions which are suitable for the organization concerning the resources. This is mostly carried out by managers of a firm and it can be rational or irrationalThe decision which I made involved terminating an employee who had absconded his/her job for a month, though I had had a formal communication, I did not dig into the depth of the matter and a result, I came to learn that the employee did not deserve to be terminated.
I came to understand that I did not understand the problem therefore I did not look at the possible solutions of the problem with the employee. The qualitative and the quantitive effect of the decision was not looked at, the quantitive effect could be in terms of the production of the employee whereas the quantitive effect could be in terms of the effect on the other employees, they could have felt it as unfair decision against their colleague hence lead to strike or demonstrations and this can lead to declining loyalty of the employees in the firm. The action taken did not involve all the parties in the firm because the decision was based on incomplete information.Decision making is very important in a firm, this is because, beside combining the four functions of manage management, reviewing the results of the decision made enables firms’ to prepare better for the same occurrence in future, this is usually the responsibility of the management who are often judges and have the responsibility to ensure that the right decision are taken at the right time to solve the appropriate problem at hand. In this case I failed to make the correct decision and this is likely to affect the firm adversely.
Decision making is believed to be biased; however the level of biasness is sometimes challenged. In this case there was early termination search of evidence which is a commonly debated cognitive bias. Decision makers are leaders who provide a way forward for employees, to interact with them and allow motivation to accomplish objectives of a firm. There three theories of decision making which form a continuum, they are;· Autocrat theory.
This is a case where by the decision maker are leader centered, its also called dictatorship because its where the most powerful person or group makes decision and his thought, ideas and wishes are obeyed entirely without any question. The decision maker doesn’t consult any body. The relationship with the employees isn’t so good since the employees always feel victims of irrational decision in most of the time since they are not consulted in most of the time. This may have been the case in which I terminated the employee without consulting his manager.· Participative theory of decision making.
This is also called parliamentary democracy because everyone participates in making decision but there is a certain level of influence with the leader. This theory favors decision making process to be shared but the leader maintains the ultimate responsibility. The decisions made seek participation of all workers this is where the decision maker uses the management by objective as management style. In my case I applied this level to a certain capacity because the decision was communicated through a formal communication network.· The free rein or the direct democracy theory.
This is where the decision maker allows all the people in the organization to take part in the decision making process and allows them to follow the decision. It passes the responsibility to either the group or individuals and joins the group as an equal member to the group. In the case of the decision I made this theory applied because I came to learn through informal communication where the person worked that the employee did not deserve to be sacked and this made me to be very remorseful of the decision I made.In decision making a thorough research of the problem needs to be carried out so that the best action is applied to reduce further complains from the workers. The decision makers need to be smart so that all the workers are satisfied with the decision madeFrom the decision I made I have come to realize that the decision making process needs to be fully supported by clear evidence and understanding of the real situation at hand and therefore take the appropriate action so that the decision does not tend to reduce the confidence of the workers in the organization. The decision making process needs also to be supported by group decision support systems.
The expected results of the decision making process needs to be evaluated so that the best results are obtainedDecision making process needs to be evaluated so that to build the confidence of all the workers, its process that can affect the relationship within the workers, they should be in such a way that they ensure that justice always prevail in all the situation in the firm