Apa 250 words or more and ref
Respond now 101
Employees in an organization make decisions every day that have internal and external impacts to the organization. Impact are short and long term; impacts are economic in nature and cultural in nature. Decision making does not just lie with managers, but managers are looked at to make economic and policy decisions for the company.
As a manager I was hired and relied on to make choices on current events and events that may occur in the future, known as states of nature (Taylor, 2013).
Historical data is used to plan and forecast what may happen in the future as the results of managerial decisions, but realistically, managers are unsure what events may happen after a decision is made (Taylor, 2013). As a result, managers use linear and nonlinear programming to make decisions based on percentage of probability and statistics.
Ultimately, decisions are made with intent to make the company profits. Managerial decisions are made based on return on investment (ROI). Return on investment analysis relies on the use of payoff tables. Different projects and ventures are analyzed and considered based on profits each project may generate; better known as maximus criterion (Taylor, 2013). Managers need to be equipped with the tools and resources that provide the highest percentage of achieving goals and objectives
Respond now 102
The essence of management is making decisions. Managers are constantly required to evaluate alternatives and make decisions regarding a wide range of matters.
Just as there are different managerial styles, there are different decision-making styles. Decision making involves uncertainty and risk, and decision makers have varying degrees of risk aversion. Decision making also involves qualitative and quantitative analyses, and some decision makers prefer one form of analysis over the other. Decision making can be affected not only by rational judgment, but also by non-rational factors such as the personality of the decision maker, peer pressure, the organizational situation, and others.
Many decisions must be made in the absence of complete information. Decision makers often have to act without knowing for certain all of the consequences of their decisions. Uncertainty simply increases the number of possible outcomes, and the consequences of these outcomes should be considered.
That is, it is important for the decision maker to identify what the uncertainties are, what the possible outcomes are, and what the consequences would be. Decision makers can sometimes clarify the problem they are working on by listing what could happen and assigning probabilities to each possible outcome
Organizational culture and leadership style together determine the process for decision-making in any given company. Some may use a consensus-based approach, while others depend on a manager or management group to make all major decisions for the company. Many organizations use a mixture of centralized and consensus-based styles.
How an individual employee participates in the decision-making process depends on his or her position within the overall structure of the company.