Decision-making is inevitable for a person enjoying a certain degree of authority. A good leader is able to take firm decisions on the spur of the moment. What makes it so tricky is that there is not a single standardised way to make a decision. One has to develop an insight into the problem and weigh the options while considering the situation at present. Also, it is not solely the responsibility of a leader. Everyone has to make a decision one day or another in life. The occupants of positions of power, however, have a lot more at stake. It affects and influences the lives of others. This calls for carefully thought out decisions from their side. Managers or leaders of organisations, therefore, commonly find themselves in such predicaments.
What is Decision Making?
Decision making, according to the principles of management, is the process of selecting the best of all possible alternatives. The managers usually have a long list of viable options regarding a course of action. By evaluating each of these alternatives, they choose what they believe is best for the company and its workforce.
Decision making requires the person vested with the responsibility to possess particular skills, of which intelligence is the most important. Experience, on the other hand, throws more light into the situation and aids in decision making. Read on to find out more.
What are Some of The Decision-Making Skills?
As is already stated, decisions are arrived at after evaluating all the viable alternatives. The skill set required to study and analyse each of the options by collecting information or gathering data is a prerequisite.
It is, similarly, another thing to identify the different alternatives. Only with intelligence and careful observation can one do that. For the result to be innovative, it is also required for the decision maker to be creative. Creative ideas give birth to innovation.
One must be able to visualise the future state of the company. This also requires some amount of imagination. Only with the said skills, one can assume the consequences of each of the decisions and just if you do that will you be able to compare the different alternatives and choose one adequately.
The evaluation and analysis of alternatives, determination of risks etc., are done with different techniques and tools with which the decision makers should familiarise themselves. Therefore, the knowledge or the ability to analyse is yet another skill the decision maker should possess. But first and foremost, the person who is taking the decision should develop an insight into the existing problem. The first step towards decision making involves identifying the problem.
Last but not the least, the qualities that inspire the rest of the workforce to abide by the decision would be remarkable in the person who is taking the decision. The person in the position of power who made the decision should themselves be able to stick to the decision once made no matter what. Merely deciding is far from enough. She/he has to see through its implementation. In short, the individual should have leadership skills.
Why is Decision Making So Important?
No human activity can evade decision making. It is very crucial to the functioning of an organisation or any life for that matter. The possibilities of attainment of organisational goals and objectives hinge on the sole act of decision making. It is the pathway to the future. Decisions vary in complexity. The leader of an organisation must be prepared to deal with all kinds. Listed below are some of the reasons why decision-making skills are essential.
It is the primary skill one should possess to become a leader. An organisation stands on the foundation built by the leader's decisions. A wrong step can cause it to fall like a house of cards. Besides, an indecisive leader cannot hold the fort for long. A leader should be able to inspire and direct the subordinates to follow the path. The authority of the position she/he is in lets her/him do that. However, if the decisions or the decision-making skills are weak, employees become dissatisfied. Sooner or later, employee turnover becomes a reality. The company will go through tough times and some good times. The team has to have confidence in the decision-making skills of their leader to deal with any situation with poise.
To Deal with Problems:
When faced with any challenges or issues, as one will, decision-making skills come in handy. When in adverse circumstances, fate hangs on the decisions one makes. This applies to an individual as well as an organisational level. As far as an organisation is concerned, when challenges due to globalisation surface, the survival of the business counts on the leadership and the decision-making skills of its manager. Even if not for survival, the smooth running of a company is only possible if sound decisions are made at the right time, without delay.
To Achieve The Goals and Objectives:
The process of attaining the pre-set goals is bound to be laden with difficulties and impediments. It is also one where an individual will face a dilemma of some kind, especially when ethical concerns are involved. Decision making is crucial in those circumstances. Acute decision-making skills must be employed to take decisions where moral values and organisational goal are in conflict with each other.
For Growth and Diversification:
Managers have to take what they call as ‘non-programmed' decisions from time to time. These are decisions that have not been programmed before. She/he has to take them if the business environment calls for it. Such choices are not easy to make. The manager or the decision maker must have sufficient experience to adopt an arrangement such as that. With experience, one builds strong intuitive skills. So experience, intuition and in-depth knowledge of the present scenario are some of the qualities that will save the day. These are the decisions that are made when mergers and acquisitions and similar propositions are to be considered. Needless to add, these are some of the changes that will significantly impact the organisation and hence, these decisions are the kind that will change the tone of the business.
A Motivation for Workers:
Impressive decision-making skills of leaders inspire confidence in the members of the workforce. It is always welcoming to have a strong front for a company. It instils in the subordinates a greater sense of faith. With this motivating force, they strive harder towards the attainment of goals. Also, when in a crisis, the decision taken by the manager will have far-reaching effects on the lower level of management. When faced with ethical choices, the decision maker, by making the right and perhaps, the harder option will have motivated all the employees to work harder.
Decision making is usually done under uncertain conditions. It so rarely happens that the decision maker is fully aware and is entirely sure of the eventualities of each alternative. In such a scenario, one has to fall back on experience and intuition to make the judgement call. The option which is most likely to have favourable consequences emerges the winner.
The decision maker in a company has to make logical and rational choices for the sake of the organisation. As it brings in higher revenues, more people are likely to get motivated by the higher profits. By embracing the new ideas and methods, the decision maker can help prosper innovation in the company environment after he/she shows the way out for the old, redundant ideas.
Be it a company or an individual; success is a reflection of the decisions they make. The more prudent and rational the choice, higher is its possibility to succeed. It also pays off to take a risk at times. Besides, all the decisions made under uncertainty carry some amount of chances. The risks associated with an option can be big or small but is one factor that cannot be evaded entirely as far as decision making is concerned. These are the areas where decision-making skills rise in prominence.
If you are already aware of how vital decision making is in management, and would like to hone whatever skills you have for decision making, read on to find out what Hughes Global Education has in store for you.
What are the best executive programme in leadership and management offered by Hughes Global Education in India?
eMode Post Graduate Programme in Management from IIM Ahmedabad
eMode Post Graduate Programme (ePGP) in Management is a 2 years’ post-graduate diploma programme (with added flexibility of completion in 3 years) from IIM Ahmedabad offered on Interactive Onsite Learning (IOL) platform of Hughes Global Education. The objective of the programme is to provide management education to junior, middle, and senior level working executivess and entrepreneurs, who are seeking more skills and strategies to take their organizations to the next level.
For Enrollment Visit: ePGP from IIM Ahmedabad
Senior Management Programme from IIM Ahmedabad
It is a course that benefits the people in the upper echelons of a company like senior executives and managers. From identifying the problem to analysing the solutions, this course is a one-stop-for-all for the potential managers. Finding the optimal solution is the unenviable task of a manager. One has to develop the perspective to understand a problem first. This requires some training. Also, the advanced tools and techniques used to analyse the alternatives before making a decision should be useful for a manager. The working men and women now have a course that will help them become better managers.
For Enrollment Visit: SMP from IIM Ahmedabad