INTRODUCTION – DECISION MAKING

Decision-making is an integral part of every manager’s job. Decision-making hasa wide-range, covering matters from selection of the venue for holding a meeting, tosignificant issues such as, assignment of resources, hiring and firing of personnel, rate ofdividend, merger, etc. In the words of John MacDonald, “The business executive is byprofession a decision-maker. Uncertainty is his opponent, overcoming it is his mission.Whether the outcome is a consequence of luck of wisdom, the moment of decisionmakingis without doubt the most creative event in the life of the executive.”

Decision-making is not the monopoly of top management alone, though it is truethat decisions made at this level are of far-reaching importance for the organization as awhole. In fact, managers at all levels are engaged in decision-making of one kind oranother, the significance of their decisions differing in proportion to the duties assignedand authority delegated to them.

Definitions 

George R. Terry: “Decision-making is the selecting of an alternative, from twoor more alternatives, to determine an opinion or a course of action.”

Andrew Szilagyi: “Decision-making is a process involving information, choiceof alternative actions, implementation, and evaluation that is directed to the achievementof certain stated goals.”

¬∑Henry Sisk and Cliffton Williams: “A decision is the selection of a course ofaction from two or more alternatives; the decision-making process is a sequence of stepsleading to that selection.”