0601

Problem

Commenting on the decision-making process of his organization, a senior executive noted: “Sometimes the process is bloody, ugly, just like sausage meat being made. It’s not pretty to watch but the end results are not too bad.” Why do various functional interest groups often embrace conflicting positions during the strategic decision process? How are decisions ever made?

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Every organization needs to make the right decisions to be successful. Decision making process takes place at every level. Managers take decisions time to time and see that the decisions are communicated to the right people.

The strategic decisions need to take into consideration, the issues that matter to the organizations long term objectives. The resources of business units and other products need to be allocated in the right manner. Decisions regarding corporate strategies, the possible alliance partner and also the technology to be applied in the organizations are taken by managers.

Strategic decision process involves the different functional groups and ensures active participation from these groups. There are different steps in decision making. Initially the problem needs to be understood first. The next step is to gather information. The information should be obtained from the right sources and necessary tools need be used to attain information. The different alternatives need to be evaluated and then the correct alternative must be chosen. The right decision taken must be executed and the last step is to evaluate the results based on the decision made.

Therefore it can be concluded that decision making is a continuous process in an organization. Decisions are made at all levels in an organization to attain success and to achieve the goals of the company.