Decision-Making Challenges

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1.1The Decision maker at senior management is a fundamental part of the past, present and future success of an organization. To maximise their potential and ensure the company can not only keep up with the dynamic Business world but also develop its success, Senior Managers must gather all information possible, use all resources and tools available and execute major strategic decisions with preciseness and confidence of knowledge. 1.2Bounded Rationality causes many problems in the decision making process such as ignorance of certain vital facts, lack of clarity on issues and missed opportunities in fields such as innovation and growth. 1.3Cognitive simplification also holds back decision makers from excelling in difficult situations due to past experiences and information obtained in the past, causing them to shut out promising situations for future prosperity in decision making. 1.4 Systems implementation can be a difficult process, but, with the right attitude, good communication skills and the involvement of all levels of staff, will, prove to be unproblematic and enable users to adapt to the change of systems quickly. It will also enhance staff morale and productivity with their involvement.

The nature of decision making at senior level management can be vital to an organisations success and despite the effects of old fashioned ways of thinking and resolution, modern day systems when implemented properly can play a very positive role in the future success of an organization.

3. The Nature of Decision Making at Senior Level Management
3.1The Changing Nature of Decision Making
The IT developments of the nineties brought with them many new decisions and difficulties for senior management, some of which were quite new. This knowledge gap led to many unanticipated consequences of change, and these could easily become risks. Ulrich Beck (1992), the German sociologist, told us that we were now living in a risk society. A group particularly affected by risk was, of course, senior management itself, who had to protect the firm from the results of what were often earlier errors of judgments. In order to avoid this, Senior Managers had to adopt to the new style of decision making by embracing the impact of significant information systems developed over the years and using them effectively as a source of information to aid the Senior decision makers to make the best strategic choices in order to keep the organization running efficiently. These information systems now provide detailed analysis on current capacity, current unit cost, sales analysis, skills available to the organisation etc. Which allows Senior Management to dissect the business in its present state and allows them the opportunity to develop a roadmap for the future. Business books are rich with insights about the decision process, but Senior Managers have been slow to adopt their recommendations. Therefore, to succeed in business today, your company needs information systems that can support the diverse information and decision-making needs of you and your company and support you in making snap but informed decisions. It’s time to focus on decision making, Davenport says, and he proposes four steps for managers to adhere to in the decision making process: (1) List and prioritize the decisions that must be made; (2) assess the factors that go into each, such as who plays what role, how often the decision must be made, and what information is available to support it; (3) design the roles, processes, systems, and behaviours your organization needs; and (4) institutionalize decision tools and assistance. This, together with the information available to managers helps form a more systematic approach to decision making. 3.2 The Role of the Senior Manager

The overriding rule in decision making is that the decision maker ought to have legitimacy and authority over the people who he or she is deciding upon, this is where the...
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