1.

1 Definition of Decision-Making

Making decisions is an essential part of everyday life. Countless decisions are made by people
every single day. Most are relatively inconsequential like deciding whether what to wear, what to
eat and drink and where to travel. Some are more complex to decide, like choosing what job to
apply for, what course to take, and what to do in a particular situation. These decisions can have
a great impact in one's life and thus, it is important to know how to choose the best action. But
before anything else, let's define decision-making.

Decision-making is a compound term for decision and making. The word decision originally
comes from the Latin word decidere ("determine") which literally means "to cut off". It is the act
of eliminating the possibilities and other options, and by doing the action quickly without
hesitation. Making, on the other hand, refers to the act of creating and producing something. To
put these words together, decision-making is the process of making choices through the
identification of a decision, the gathering of information, and the evaluation of alternative
resolutions. Decision-making is a series of steps taken by an individual to determine the best
option or course of action to meet their needs. It involves critical thinking, analysis of situations,
and consideration of the possible outcomes and consequences.

Some are the other key definitions of decision-making:

"Decision-making is the selection based on some criteria from two or more possible
alternatives." -—George R.Terry

"A decision can be defined as a course of action consciously chosen from available
alternatives for the purpose of desired result" —J.L. Massie

"A decision is an act of choice, wherein an executive forms a conclusion about what
must be done in a given situation. A decision represents a course of behavior chosen
from a number of possible alternatives." -—D.E. Mc. Farland

“Decision making is the blend of thinking, deciding and acting.” —- Franklin G. Moore

"Decision making takes place in adopting objectives and choosing the means, and again when a
change in the situation creates a necessity for adjustments." —-Mary Cushing Nites

From these definitions, it is clear that decision-making is concerned with choosing a course of
action from among alternatives in order to achieve a predetermined goal. In business, decisions
are made at all stages of a venture step. Decisions govern all managerial functions, including
planning, organizing, staffing, directing, co-ordinating, and controlling. Thus, decision-making is
at the heart of managerial activities in an organization.

1.2 Characteristics of Decision-Making

1. Rational Thinking

It is always based on logic. Since the human brain has the ability to learn, the ability to
remember and relate many complex factors allows for rationality.

2. Process

It is the procedure that is followed by deliberations and reasoning.

3. Selective

It is selective in the sense that it selects the best course of action from among alternatives. To
put it another way, the decision process entails selecting the best course of action from among
the available options. The courses chosen by the decision-maker.

4. Purposive

It is usually purposeful, referring to the end goal. A problem solution provides an answer. The
most efficient path to the desired goal or end.

5. Positive

Although most decisions are positive, certain decisions may be negative, and it could simply be
a decision not to decide. Chester I. Bernard-Smith, one of the pioneers in Management
Thought-who observed, emphasized the importance of a negative decision, "The fine art of
executive
decision consists in not deciding questions that are not now pertinent, in not deciding
prematurely, in not making decisions that cannot be made effective, and in not making
decisions that others should make."

6. Commitment

Every decision is based on the concept of commitment. In other words, management is

committed to every decision it makes for two reasons: (I) it promotes the stability of the
company, and (II) every decision made becomes part of the expectations of the people who
work for it.

Decisions are usually so intertwined with an enterprise's organizational life that any change in
one area of activity may also affect the others. As a result, the Manager is committed to
decisions not only from the time they are made but also until they are successfully implemented.

7. Evaluation

Decision-making involves evaluation of the alternatives.

1.3 Barriers in Decision-Making

1. Bounded Rationality is the belief that confronting complex issues that leaders do not fully
comprehend makes them unable to be rational about the situation and, as a result,
incapable of understanding an alternative.

2. Escalation of Commitment is the idea that leaders and managers remain committed to a
poor decision or find it difficult to rationally remove themselves from a poor decision[5]. It
is hard for a leader to accept "being wrong," but it is part of the learning process.
Mistakes, critiquing, and revising are all part of a divergent learning process in modern
learning organizations. As a result, it is acceptable to make a poor decision, but there
are tools in place to assist a learner in developing new skills to overcome previous
mistakes, eventually removing the challenge of escalation.

3. Time Constraints is when there is little time to gather information rationally and make an
effective decision.

For example, a university wishes to launch a new web tool for students that other
organizations have completed, time is of the essence, so the tool is launched without
fully comprehending all of the information required. The web tool eventually releases
with numerous bugs that must be fixed right away. Although some situations are beyond
the control of leaders, effective planning, forecasting, and time management can help to
alleviate time constraints.

4. Uncertainty is the state of not knowing an outcome until it occurs and is linked to the
belief that an outcome can be imagined but not seen. It is unclear how to manifest
learning in prospective students within a learning organization. Leaders can only use a
methodology that allows the learner to absorb the most information. A desired outcome
can be imagined, but the uncertainty prevents seeing it until after the decision has been
made.

5. Biases in decision-making adhere to the idea that the choice is closely linked to
ingrained beliefs and worldviews. Also, it strengthens ideas that are comparable to our
own beliefs. Usually, we make and follow our own decisions. The notion that we give
views that don't align with our worldview less attention and instead focus more on our
initial ideas is known as confirmation bias.

Leaders' own confirmation can influence how they work within organizations and have a
negative impact on those who do not share their exact worldviews. Being knowledgeable
and sympathetic about a contrary idea is one way to avoid bias. Leaders may make
decisions based on personal worldviews, but if they recognize that they are biased and
can work with incorporating opposing viewpoints for a more collaborative
decision-making process, such influences can be avoided.
6. Conflict within an organization can be classified into two types:

Process conflict - disagreement about the best way to find a solution, while others seek
alternative solutions.

Relationship Conflict - a more personal conflict between individuals, involving attacks on

character rather than ideas.

Regardless of the nature of the conflict, it is best to resolve it as soon as possible.