THE REALITY OF DECISION MAKING

Decision making is a complex business subject which

combines the most complicated element the decision-making
process is often determined by environmental factors rather
than the steps in some ideal model. Decisions are
frequently influenced more by the environment and structure
of the organiation than by method itself. !he process of
decision making will" therefore" be examined in light of
environmental factors.
#ne of these factors $social and cultural background-
affects the interaction among people involved in the decision
process and provides the cultural framework within which
they comfortably operate. !he best alternative for solving a
problem" for example" might be to replace an employee who
is unsuited for a position. %owever if in the society&s culture
there is a tradition of lifetime employment with one
company" that alternative is not really feasible because of
social and cultural restrictions.
'ith regard to the structure of an organiation" a number of
factors may alter the ideal decision $making process. ()uch a
facilities" technology" or fiscal reserves* are often controlling
factors. !he relatives than can be considered. +nother
organiational factor is the importance of the decision being
made in relation to other problems weighed against the
amount of effort involved in finding a solution and the
benefit the company will receive from its implementation.
!here other factors also influence the following of a
model decision process,
!ime
-reativity" and
.isk
!he amount of time available to make a decision for a given
problem is often determined by the environment" not the
management. !he time factors may affect the creativity of
the solution to a problem. !he risk associated with a
particular course of action may be lessened by use of a group
rather than an individual decision maker. !ime" resources"
and culture may affect the workability of a group process"
although research shows that groups often come up with
better solutions than individuals.
Decision theory and the ideal decision-making model
tend to picture the process as one in which managers
operates by themselves" free of restrictions of time" data and
resources. !he reality of the decision process is much less a
step- by-step procedure than it is a series of practical
considerations directly influenced by the social" cultural" and
organiational environment.
Exercise
Problem, !he employee in a company + has demanded to
increase salary from /012 to /312. %owever" the company&s
management has rejected the demand. 425 of employee has quit
the job very suddenly in a month.
'hat shall the management make decision6
Solution:
)tep in decision making,
COMPREHENSION
A.
7. !he environment and structure of the organiation
0. 8n the light of environmental factor
3. 8t affects the interaction among people involved in the
decision process and provides the cultural framework within
which they may comfortably operate.
9. 8t is weighed against the amount of effort involved in finding
a solution and the benefit the company will receive from its
implementation.
1. 8f a decision maker has a limited amount of time" he or she
may think only of the more obvious" common approaches to a
problem.
:. ;robably< =because more people are contributing ideas and
evaluating alternatives
>. + number of factors might be considered< time and funds
available" relative importance of the decision" the amount
of risk involved

B.
time" social and cultural background" flexibility" resources" data"
importance of decision" creativity" risk
Vocab!ar" Exercise
+. ?????
@.
7. +lter
0. .estrictions
3. !end
9. ;ractical
1. 8mplement
:. .eality
>. @ackground
4. -reativity
-.
7. creativeA creativityA creates
0. alterA alterationsA alterable
3. interactionA interactiveA interact
9. flexibleA flexibilityA flexes
1. influenceA is influencedA influential
Tex# A$a!"sis
7. environmental factors< people involved in the decision
process< replacing an employee who is unsuited for a
position< the reality of the decision process
0. -
D
+
@
3. .esources
9. three other factors influencing the decision process
1. +. amount of flexibility
@. available resources
-. amount of data
D. relative importance of the decision
I$%or&a#io$ Tra$s%er
A.
'. defining the problem and examining the company&s
expectations
(. the need for more copying capacity
). those marked by a square
*. seven
+. a
o
, to take immediate action (not to wait*
,. a
0
, estimated usage per month< because it involves an
estimate of the number of copies per monthB unknown
occurrences are being predicted
-. b
3
, (71"222 copies per month*
.. sie of the machine that is needed
B.
'. medium< because the most likely cost per copy for the
medium and small machines is the same and the medium-sie
machine will give greater flexibility for future company
needs< i
0
(. small< =because the likely cost per copy is >B the others are
C and 77< h
0
). maintenance or service agreements" quality of copies" speed of
reproduction" durability of machine" flexibility