DECISION MAKING PROCESS

Some authors use the term decision maker as if it were synonymous with manager.
Although managers are decision makers, the converse is not necessarily true. Not all
decision makers are managers. For example, a person sorting fruits or vegetables is
required to make decisions, but he is not a manager. However, all managers
regardless of their position in the organization must make decisions in the pursuit of
organizational objectives. ln fact, decision making pervades all of the basic
management functions: planning, organizing, motivating, and controlling. Although
different types of decisions are required in performing the respective management
functions, they all require decisions.

Herbert Simon has described the manager’s decision process in three stages:

(1) intelligence, (2) design, and (3) choice. The intelligence stage involves searching

the environment for conditions requiring a decision. The design stage entails

inventing, developing, and analyzing possible courses of action. The final stage,

choice, refers to the actual selection of a particular course of action. Analyzing the

decision process by stages emphasizes the difference between management and

non-management decisions. Non-management decisions are concentrated in the

last (choice) stage. The fruit or vegetable sorter has only to make a choice as to

the size or quality of the goods. Management decisions place greater emphasis on

the intelligence and design stages. If the decision-making process is viewed as

being composed only of the choice stage, then managers spend very little time

making decisions. If, however, decision making is viewed as encompassing not

only the actual choice but also the intelligence and design work necessary for

making the choice, then managers spend most of their time making decisions.
GLOSSARY
regardless (adj) : tanpa memperhatikan

converse (n) : kebalikannya

entails (v) : memerlukan

sorter (n) : tukang sortir/pilih

encompassing (adv) : meliputi, mencakup

A. COMPREHENSION QUESTIONS
Give short answers to the following questions!
1. What is decision maker similar to?

2. What is the difference between decision maker and a manager?

3. What basic managements are involved in decision making?

4. Mention the three stages in decision process!

5. What do you know about the design stage?

6. What does the actual selection of a particular course of action refer to?

7. Tell the difference between management decision and nonmanagement decision.

8. When the managers need very little time in making decision?

9. When the managers should spend most of their time in making decision?

10. Which of the following is not stated in the text?

a. Manager is decision maker

b. There are 2 stages in the process of manager’s decision.

c. Non-management decision is concentrated in the design stage

d. Management decision places on the intelligence and design stage.

11. What is the main idea of the first paragraph?

12. What does the second paragraph mainly discuss?

Say whether these statements are true (T) or false (F), and if they are false
say why.
1. Manager is the same as the decision maker.

2. lt is not a must for a manager to make decisions.

3. Planning, organizing, motivating and controlling are the basic management functions.

4. The intelligence stage involves inventing and analyzing the possible course of action.

5. Management and non-management process are differentiated from the stages of the

decision process.

6. Nonmanagement decision places on the actual selection of a particular course of action.

7. The fruit or vegetable sorter is also a manager.

8. There are more than three stages in decision process.

9. There are three types of decision process.

10. Management decision emphasizes on the intelligent and design stages.

B. VOCABULARY BUILDING
1. ‘Synonymous’ (paragraph 1 line 1) means:

a. different b. similar c. same d. distinguish

2. ’necessarily’ (paragraph 1 line 3) means:

a. need b. important c. always d. crucial

3. ‘performing' (paragraph 1 line 9) means: .

a. showing b. implementing c. seeing d. landing

4. ‘stages’ (paragraph 2 line1) means:

a. chronological b. steps c. ways d. lines

5. ‘concentrated’ (paragraph 2 line 8) means:

a. based b. focused c. placed d. set

C. STRUCTURAL REVIEW: Part of Speech (Part 2)
Identify the subject, verb, object or adverb (if any) of the following
sentences.
1. Although different types of decisions are required in performing the respective
management functions, they all require decisions.

2. The intelligence stage involves searching the environment for conditions

requiring a decision.

3. The fruit or vegetable sorter has only to make a choice as to the size or quality of the
goods.

4. Not all decision makers are managers.

5. Herbert Simon has described the manager’s decision process in three stages.

6. ln 1888, when the company was near bankruptcy, Fayol took over as Managing Director
and rapidly transformed the company into a financially sound organization.

7. The book was not readily available in English until 1949.

8. He used them as broad and general guidelines for effective management.

9. The works of Taylor and Fayol are essentially complementary

10. The major difference in their approaches centered around their orientations.