19-10-2016, 12:42 PM
1459847631-Successfuldecisionmakingdependsonourabilitytounderstandtheintentions.docx (Size: 14.21 KB / Downloads: 4)
Abstract: Successful decision making depends on our ability to understand the intentions, emotions and beliefs of others.Some experts believe that decision making is the most basic and fundamental of all managerial activities.
Key Words: SWOT analysis, strengths, weaknesses, opportunities, threats, Organizing, Leading and Controlling.
Introduction: Decision making is most closely linked with the Planning function. However, it is also part of Organizing, Leading and Controlling. The SWOT analysis can be a valuable tool for making a decision. SWOT analysis is a planning method used to evaluate the strengths, weaknesses; opportunities and threats. Conditions of decision-making are main factors influencing managers during decision process. There are three general conditions: certainty, risk and uncertainty. Certainty: A condition under which taking a decision involves reasonable degree of certainty about its result, what are the opportunities and what conditions accompany this decision. Risk: A condition in which the availability of the various opportunities and associated with each of them the potential benefits and costs are known with some estimated probability. Uncertainty: A condition in which decision maker does not know all the choices, as well as risks associated with each of them and possible consequences. In real-life business situations, decisions can often fail because the best alternatives are not clear at the outset, or key factors are not considered as part of the process. To stop this happening, problem-solving and decision-making strategies have to be brought together to clarify our understanding. A logical and ordered process can help to do this by making sure that all of the critical elements needed to be addressed for a successful outcome. Working through this process systematically will reduce the likelihood of overlooking important factors. There is a three step approach takes this into account: Recognizing the nature of a decision situation, identifying alternatives, choosing the most effective alternative and putting it into practice.