2 Literature Review
Decisions are being made in organizations every day, both small everyday decisions and decisions related to the organization's strategy. According to Cleland & King (1983) any decision problem involves several important elements, and a decision may be viewed as the final outcome of a process, or a choice between various options, and the option you choose involves a commitment to an action (Jacobsen & Thorsvik, 2007; Olsen, 2011). According to Olsen (2011): “Decision making can be described as a process where an individual or a cluster of individuals recognizes a choice or judgment to be made” (p. 1).
Within decision-‐making, there are three important points that must be addressed when it comes to information; Information collection; systemizing, analyzing and interpreting the information; and then communicating the information to the right decision-‐making forums (Jacobsen & Thorsvik, 2007). The decision-‐process can be seen as a unity of pre-‐ decision, decision and post-‐decision stages (Zeleny, 1982).
The person that makes the decisions is called the decision maker, and that person is faced with the initial problem (Cleland & King, 1983). “The decision maker’s desires to achieve some state of affairs – objectives -‐ are the reason for the existence of a problem” (Cleland & King, 1983, p. 85). According to Cleland and King (1983) these objectives should have a connection with the organizations overall strategy and goals. The heart of any decision problem is that there are alternative actions to take, and a state of doubt as to which action is the most suitable one (Cleland & King, 1983). Keeney (1994) however, argues that it is values and not alternatives that should be the primary focus of decision-‐ making. Michael Hammer (1990) introduced his principals of reengineering in 1990, and of them was; “Put the decision point where the work is performed and build control into the process” (p. 111). With businesses having a hierarchical structure, the decision-‐ makers are often the managers, and Hammer believed that the persons that actually work on the specific process should have the power to make decisions regarding it, because they have more knowledge. By doing this, Michael Hammer indicated that one would get a flatter organizational structure (Hammer, 1990).
Furthermore, we can also say that there are two basic approaches to decision-‐making, the outcome-‐oriented approach and the process-‐oriented approach (Zeleny, 1982). In ...