Some of the psychological traps which are particularly likely to undermine the decision making process are given below. For maintaining of the credibility and efficacy, quick reversal of bad decisions is essential before it is too late. I mention this because in my 28 years of, I have seen “decision makers” (oxymoron) skip one or more of these steps. High quality and speedy decision making enhance the performance of the organization. These things all impact the decision making process and the decisions made. Some of the major decisions the decision makers make on daily basis include (i) programmed and non-programmed decisions, (ii) major and minor decisions, and (iii) individual and group decisions. 1.2 OBJECTIVE OF THE STUDY. The first relates to the quality of the decision making, while the second relates to the implementation of the decision made. Anchoring trap – Anchoring is a mental phenomenon which leads the mind to give disproportionate weight or consideration to the first information it received. Experienced decision makers assess the situation confronting them. the recommendation to this is that if decision could be made in the right way, carryout and executed in the right manner, organization could achieve 7 feffectiveness in its operation, quick … Delegation of power for decision making – Only inexperienced organizational management makes all the decisions itself no matter how small they are. The company completed Step #1 (Identify the Decision) and that’s about it! Therefore decision-making is the most germane activities of management of multifarious organization ranging from small-scale organization to multinational corporations. Decision-making is the act of making a choice among available alternatives. Problems are well structured and alternatives are well defined. Status-quo trap – Generally it is believed that people make decisions rationally and objectively. The idea of bringing-in many specialists from different fields to make a decision is also not liked many a times since too many cooks can spoil the broth. People are to be supported unless proven clearly wrong – Management is required to support the decisions of the people who have been delegated with the authority of the decision making. The way the human brain works can sabotage the decisions. Multiple criteria – Typically, a decision is required to satisfy a number of criteria. Management needs to make only strategical decisions which have got significant impact on the organization. Bet-the-company decisions—from major acquisitions to game-changing capital investments—are inherently the most risky. Or they get stuck on number 4 – weighing the evidence – and never move to step 5, which is making a choice. The organizational success depends as much on the quality of the decisions its management and employees make and execute on the ground as it does on the operational facilities. In decision making, cognitive biases influence people by causing them to over rely or lend more credence to expected observations and previous knowledge, while dismissing information or observations that are perceived as uncertain, without looking at the bigger picture. Poor choices can prove costly. A decision that violates ethical standards can lead to significant backlash from the public and from the law. See below for 2 case study examples. Ethical investment is a useful aspect for considering ethical busin… Long-term implications – Major decisions generally have ripple effect, with one decision taken today and then creating the need for subsequent decisions in future. These compounds and complicates intricate are the problem of the organisation vis-à-vis effective planning and decision making processes. There was no monster nor was there a person trying to screw him out of taxes. It can either propel it forward and into success. While choosing between product A and product B might seem like a simple office decision and a reason for your regular Wednesday meeting to run late, it is actually so much more. Strategic decisions are needed to be re-examined through the regular review of key metrics and overall performance. The Impact of Organizational Culture on Decision Making Organizational culture is an established pattern that essentially predetermines the existing communication structure, kinds of individual actions, group perceptions, and individual/group actions. Like most routines, it is a legit threat to Apple, ” the Hustle March. Effect on the functioning of the credibility and efficacy, quick reversal of bad decisions are back. Making involves a choice classification of decision making, skipping necessary steps or simply a lack of decision making for! 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