Topics: Decision making Pages: 2 (618 words) Published: November 3, 2013

Managers are constantly facing situations where they must take a decision in short period of time, a correct decision that is best for the organization. They have to analyze the importance of this decision and the responsibility involved in making this decision. It's important that before making a decision to perform an analysis of the external and internal variables that can affect the normal development of the activities of a company or business. Peter F. Drucker in his book The Effective Decision states that an effective decision making process must follow these basic steps. 1. The classification of the problem: Drucker states that the decisions falls into 2 categories: generic and unique. He states that generic problems can be handling with policies and rules, but the unique problems have to be handling with special consideration and be treated individually. He said if the problem is incorrect classified at this step the decision will be inevitable wrong. 2. The definition of the problem – In this step you have to identify the content of the problem, in order to know what kind of a problem you are dealing with. Ducker states that the only way to avoid falling into a reasonable but incomplete definition of a problem is that we repeatedly revise, verifying all the elements related to it. 3. The specifications (“boundary conditions”) - You have to define the boundary conditions; the purpose, goals and conditions which must satisfy the decision. If on the other hand the boundary conditions are not well established, it is likely that the decision reached is not effective. The more clearly you defined the boundary conditions, they are more likely to arrive at a effective decision, if on the other hand the boundary conditions are not well established, it is likely the decision reached is ineffective. 3. The decision: what is right – We have to confirm that the decision made is correct before placing in practice. We need to understand that the...

References: Retrieved from:
Retrieved from:
Luchelli,V. La secuencia de la toma de decisiones.
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Peter Drucker Essay
  • Peter Drucker Essay
  • Short Bio on Peter Drucker Essay
  • Peter F. Drucker Essay
  • Book Review: The Practice of Management by Peter F. Drucker Essay
  • Management by Objective's Drucker Essay
  • “the Most Important Thing in Communication Is to Hear What Isn't Being Said.” ― Peter Drucker Research Paper
  • Classic Drucker Book Report Research Paper

Become a StudyMode Member

Sign Up - It's Free