Decision making

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Domeniu: Management
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Publicat de: Luana Emilia Udrea
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Cuprins

  1. Introduction page 3
  2. Decision making process page 4
  3. Technical decision-making auxilliaries Page 6
  4. Factors and principles in decision making conditions page8
  5. Group decision making page12
  6. Bibliography page15

Extras din referat

Decision making is the process of making choices by identifying a decision, gathering information, and assessing alternative resolutions. Using a step-by-step decision-making process can help you make more deliberate, thoughtful decisions by organizing relevant information and denying alternatives. This approach increases the chances that you will choose the most satisfying alternative possible.

In traditional enterprises, decisions are taken at different hierarchical levels and are applicable, if they occur, to lower echelons. The problem of knowing who makes a decision is rarely because the field of competence of each is specified in the definition of functions. Everyone makes his own decisions, as events occur in his life and service, or according to decisions taken at higher echelons. As everything is decoded and people holding key posts are known, the company's responses to a new situation are predictable even if there are assertions of errors already committed in other circumstances. An organization of this type is less and less oriented towards a dynamic evolution in the current context, at least for the following reasons:

- fierce competition that haunts between businesses as fast-paced reactions and an increasingly easy adaptation to market demands as well as environmental variations;

- the different evolution of mentalities and the mistakenness of giving the responsibilities to which he aspires, risks to perceive, confuse his state of mind with the enterprise in general, with its state in particular.

These lead to significant decreases in productivity, quality, and competitiveness in general. It is therefore necessary to set up a new way of organizing, supporting the entire human resources of the enterprise, not only in order to change the structure and functioning of the enterprise but at the same time to redirect the objectives and remodel the "tissue ".

It is simply necessary to give the enterprise more intelligence or, if we take into account Larousse's dictionary, to understand, adapt to a situation, choose according to circumstance, solve problems of all kinds, all of which make motivated decisions and apply them. This definition, however precise it may be, does not make us see how, within a real organization, the various members will be able to practice their intelligence in a consistent manner. It is therefore necessary to enter the detail of the decision making.

II.Decision making process

An integral part of the current life of the individual, as well as of any organization, the decision is a natural act of the people, but especially of the leaders. The mere fact of hiring a new collaborator is a very important decision. So we leave the principle that there are constant decisions to take in any organization with all the repercussions they have on all businesses.

Le Petit Larousse defines the decision as "action to decide after an examination (delaminating)", and deciding is "to determine what to do". It follows from these definitions that deciding is to determine a schedule of actions after reflecting. Why a prior reflection? Because the new actions can not be left to chance if we want them to be effective in relation to the goals we have set ourselves. Hence the need for a short or multi-year program. A program is likely to change at any time due to changing circumstances. It can be summed up that there is a decision whenever a predefined program needs to be modified or an action plan developed or not.

In the quality of each person in charge of an activity, he is driven and even tempted to act by virtue of inertia, convinced that the work is carried out in the best possible conditions, against the criteria related to the purpose of this activity. An activity can run in a repetitive manner, but they can also face unpredictable difficulties. It may be desirable to modify some evaluation criteria and this entails changes in business conduct, a new balance being to be found between the outcome of the activity and the new criteria used. On the other hand, pre-established procedures do not neglect the place of initiative or innovation.

Components of the decision-making system.

a. The dissident is the individual or set of individuals who will choose the most advantageous option from the possible ones. The importance of this decision depends on the calibre, knowledge and skills of the decision-maker.

Bibliografie

1.Burduş, E., Căprănescu G.(1999) - „Fundamentele managementului organizaţiei”, Editura Economică, Bucureşti. (Basis of Organizational Management)

2.Cornescu, V., Mihăilescu, I., Stanciu, S.(2003) - „Managementul organizaţiei”, Editura All Beck, Bucureşti (Organizational Management)

3.Douglas W. Lyon, G. T. Lumpkin, Gregory G. Dess (2000). Enhancing Entrepreneurial Orientation Research: Operationalizing and Measuring a Key Strategic Decision Making Process. Sage Publications vol. 6

4.Forsyth, D. R. (2006). Decision making. In Forsyth, D. R. , Group Dynamics (5th Ed.)

5.G. T. Lumpkin, Gregory G. Dess,(2016) Simplicity as a Strategy-Making Process: The Effects of Stage of Organizational Development and Environment on Performance, ACAD MANAGE J.

6.Haslam, S. A. (2001). Psychology in organisations: The social identity approach. London: Sage Publications.

7.Moscovici, S.; M. Zavalloni (1969). "The group as a polarizer of attitudes". Journal of Personality and Social Psychology.

8.Nicolescu, O. (coord)(1998) - „Sistemul decizional al organizaţiei” , Editura Economică, Bucureşti p.73

9.Lu, L., Yuan, Y. C., & McLeod, P. L. (2012). Twenty-Five Years of Hidden Profiles in Group Decision Making A Meta-Analysis. Personality and Social Psychology Review.

10.Thomas L. Saaty (2008), Decision making with the analytic hierarchy process, International Journal of Services Sciences Vol 1, Issue 1. p65

11.Vassilis M. Papadakis, Spyros Lioukas, David Chambers( 1998). Strategic decision-making processes: the role of management and context. Strategic Management Journal retrieved onlinine in 29.04.2017

12.http://www.umassd.edu/fycm/decisionmaking/process/ retrieved on 25.04.2017

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