MEANING AND NATURE OF DECISION-MAKING

Managers at all levels of organizations make decisions. A decision may be defined as a choice made from available alternatives. It represents a course of action about what must or must not be done. A decision is the product of decision making process. A decision occurs in response to problems or opportunities. It means to come to a conclusion of a problem.

Decision making is the act of making a choice. It can be defined as the process of selecting a course of action from among alternatives to achieve a desired goal or to solve a problem. Everyday a manager has to take hundreds of decisions consciously or unconsciously in the organizations. Managers must reach decisions about objectives and plans for their organizational units. They must decide how to direct, how to organize and how to control. The success of organization depends upon the ability to make good decisions and implement their decisions.

From the above description, the following nature and features of decision making emerge.

(1) It is a selective process in which only the best possible alternative out of available alternatives is chosen.
(2) It is a human and rational process involving the application of intellectual abilities to a great extent.
(3) Decision making is a dynamic process. It involves time dimensional and time lag.
(4) It is a goal-oriented process to achieve certain desired goals or objectives.
(5) Decision making implies freedom to the decision maker regarding the final choice.
(6) It is a continuous process. From the start of the day to the close, a manager has to take a number of decisions.
(7) Decisions may be positive for doing a thing or may be negative for not doing a thing.