Question

In: Operations Management

why is decision making important in firms? - organizational psychology

why is decision making important in firms? - organizational psychology

Solutions

Expert Solution

Decision making is one of the most important functions, it is the process of selecting one option among many present alternatives based on several factors.

In other words it is the process of identifying and choosing amongst alternatives based on beliefs, thoughts, values and preferences of decision maker.

Decision making helps in solving problems which arise in organizations on day to day basis, it is done by everyone in the management.

Decision making is important in firms because:

  • Helps in smooth functioning of the firm.
  • Helps in planning.
  • Helps in removing bottlenecks which firms faces on daily basis.
  • It leads to good morale.
  • Leads to success of the firm.
  • It helps in selecting the best alternatives.
  • Helps in optimum utilization of resources.
  • Increases efficiency.

Decision making is a never ending and continuous process which is exercised in organizations, without prompt and rational decision making it is tough for organizations to achieve success.


Related Solutions

Organizational structure is important in determining decision making. In 500 words or more, address the following:...
Organizational structure is important in determining decision making. In 500 words or more, address the following: Compare and contrast the benefits and disadvantages of companies with a standard hierarchy and those without. Some example companies without hierarchies are Swedish software consultancy Crisp and DPR Construction. How does hierarchy affect business processes? How do ERP systems streamline business processes? Can you foresee any problems that integrating systems such as ERPs can cause?
Why are taxes and the tax code important for managerial decision making?
Why are taxes and the tax code important for managerial decision making?
1. Explain the Carnegie model of organizational decision making
1. Explain the Carnegie model of organizational decision making
Why are ressources important in decision-making? (NO PLAGIARISM, MINIMUM 300 WORDS)
Why are ressources important in decision-making? (NO PLAGIARISM, MINIMUM 300 WORDS)
Why is LIFESPAN psychology important?
Why is LIFESPAN psychology important?
Why is organizational structure important?
Why is organizational structure important?
Why is the consumer decision making process important to retailing? How does this process differ in...
Why is the consumer decision making process important to retailing? How does this process differ in comparison to other industries?
Why is ethical decision-making important in the business environment? Give an example. When working in a...
Why is ethical decision-making important in the business environment? Give an example. When working in a multicultural environment, explain the difference between a low context culture and a high context culture? Describe your use of the four management functions in the management of your daily life.
Regulation is important in the study of corporate decision-making. Explain how and why. In addition, what...
Regulation is important in the study of corporate decision-making. Explain how and why. In addition, what do firms do in order to respond to actual or potential regulatory decisions?
Why is encouraging participation in the planning, decision-making and operational aspects of the team’s work important...
Why is encouraging participation in the planning, decision-making and operational aspects of the team’s work important for developing team cohesion and what role does feedback play in doing this? Teams can actually work against each other if they are not managed well. List at least four tactics that will help the teams within an organisation work cohesively
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT