Significance of Effective Decision Making

Question: Discuss about the Significance of Effective Decision Making. Answer: Introduction: The theory has focused on highlighting the significance of effective decision-making for the managers within the organizational structure. The theory has highlighted the fact that managers need to review data, exchange information and alternatives evaluation to perform their organizational responsibilities in an appropriate way. Furthermore, the theory has highlighted the approaches that managers need to utilize at the time of utilizing decision-making process in an appropriate way. Decision-making process involves the process through which particular business entities are looking overcome the obstacles to remain competitive in the market. However, it is also necessary for all the executives to develop skills and knowledge to revolutionize the way of utilizing information for the fulfilment of the business objectives. For that reason, it might also help individuals for the development of effective decision-making strategies. The theory have mentioned the fact that decision-making style of the individuals in two fundamental ways including utilization pattern of the information and option creation pattern. The study has mentioned that few individuals mull over reams of information before taking any kind of decision, they are termed as maximizers. These types of individuals always try to develop best possible decision-making strategies for fulfilling all the business objectives in an appropriate manner. On the other hand, Satisficers represent another type of individuals that focus on utilizing key facts for developing hypothesis in an effective way. Moreover, the theory has also highlighted two dimension of information including single focus and multi-focused that individuals utilized at the time to constructing decision-making strategies. In case of single focus individuals, all the efforts are directed towards one particular believe. On the other hand, multi-focused people try to utilize all possible con cepts for creating maximum impact with the decision-making strategies. Furthermore, the theory has highlighted four types of decision-making styles that individuals can utilize to counter the real life challenges effectively. Firstly, the theory has highlighted decisive decision-making style where people utilize very little information at the time of taking any actions. The study has mentioned that decisive style allows people to enhance consistency and efficiency of the decision-making strategies. Decisive people tend to stick to their plans at the critical time that allows subordinates to understand and perform their roles and responsibilities in an appropriate manner. Thus, decisive style allow people to remain loyal, honest and brave at the time of handling complex situation, which is necessary in the present extremely competitive business environment. Secondly, the theory has highlighted flexible decision-making style that many people utilize to adjust with different types of situations. It has been assessed that business environment of most of the sectors are evolving continuously. As a result, it is necessary for the managers to adapt and make necessary changes in the business environment. Thirdly, the theory has mentioned hierarchic style of decision-making for the fulfilment of the business objectives. In this process, people focuses on including perception of senior and junior employees at the time of initiating any decisions. Finally, the study has mentioned integrative decision-making style where people do not look for any single best option. In fact, they tend to develop very broad framework considering multiple elements to ensure organizations can achieve sustainable growth in the market. Thus, it can be mentioned that the study have covered all aspect of decision-making approach that managers utilize to handle business related challenges appropriately. This study focuses on exploring differences between intuition to approaches and expertise that are generally regarded as conflicting, naturalistic decision-making (NDM) and heuristics and biases (HB). The study has highlighted the fact that professional institution can be exceptional or full of flaws. For that reason, the study has made a conscious effort in analyzing actual intuitive skill from biased impressions and overconfident. The NDM approach primarily focuses on the success rate of expert intuition. The study has mentioned the fact that chess masters are often able to analyze the future moves of the opponent rapidly. For that reason, it allows them to take rapid and consistent decisions. In business sector as well, analyzing the moves of the competitors is critical at the time of initiating any decision-making strategy for the organization successfully. The study has mentioned NDM approach is critical in taking any type of rapid decisions successfully. For instance, commander s of a fire fighting company often will have to develop decisions rapid to counter the emergency crisis effectively. On the other hand, HB approach focuses on the sceptical attitude towards the expert judgement and expertise. The study has highlighted the fact that inconsistency is among the prime weaknesses in judging any particular situation. The study has mentioned the fact that Humans often judge individuals based on their perceptions, beliefs and attitudes. As a result, it creates direct impact on the decision-making perspective of the individuals. Moreover, HB approach has highlighted the fact that psychological experiment is another prime issue that can have major impact on the decision-making ability of an individual. For that reason, the study has shown two contrasting style of individuals in analyzing a particular situation for the decision-making perspective. It has been assessed that many people have impressive skills but their analyzing capability of other professional skills is extremely low. As a result, it creates direct impact on the decision-making perspective. Now, HB community f ocuses analyzing the flaws in human cognitive performance. However, the study also has mentioned the fact that HB community are primarily based theoretical perspective. Conversely, NDM community is applicable for the real world organization. NDM community focuses on cognitive task analysis and observation fields to analyze decision-making and judgement under complex conditions. For that reason, it can perform effectively in the real world as well. This study focuses on highlighting the contributions and origins of the naturalistic decision making (NDM) approach. The study has mentioned the fact that NDM community has helped to elaborate the process through which people actually develop their decisions in the real world. Thus, it primarily focuses on identifying optimal way of formulating any decisions. For that reason, the study has evaluated all possible alternatives in a well-structured setting that can be controlled carefully. At the initial stage, NDM researchers have tried to utilize different techniques and approach instead of utilizing conventional models of decision-making. The NDM approach has focused on understanding the kind of strategies people utilize at time of formulating decision-making strategies. The NDM researchers have made it very clear that it is necessary for the people understand the suboptimal factors that instigate people to make tough decisions under different circumstances. The NDM approach has high lighted the factors like uncertainty, limited time, high stakes, unstable conditions and vague goals that can have major impact on the overall decision-making perspective of the individuals. Furthermore, amount of information that are available at the time of determining decisions can also have major impact on the overall decision-making perspective. For that reason, NDM researchers have analyzed people from fields like nuclear power operators, navy commanders, army leaders, pilots, nurses and high-risk engineers to assess the kind of impact the mentioned factors can have on the decision-making perspective. For that reason, the study has mentioned the fact that the concept of NDM has shifted human decision-making concept from domain dependent general approach to knowledge based approach. In fact, the NDM approach has expanded the decision-making process by including factors like recognition of situation and prior stage perception. The increasing demand of NDM research has encouraged the formulation of cognitive task analysis method and cognitive field research. The study has mentioned the fact that these methods have helped to the field of ergonomics and human factors by allowing people to assess cognitive underpinnings of several types of work. The NDM field has also established the fact that proper guidance and training is required for utilizing cognitive skills in an appropriate way. Furthermore, it has emphasized on the effective utilization of tactical decision making under stress (TADMUS) for handling the stress level at the critical situation in an appropriate way. The study has mentioned that cognitive research field has established itself as an effective tool for understanding the insights of the decision-making. For that reason, NDM researchers have emphasizes on the further analysis on the field of macro cognitive functions. The study has mentioned the fact that effective utilization of macro cognit ion can help to evaluate complexity and adaption perspective in an appropriate way, which will take the NDM approach to the next level. In fact, the increasing interest in the macro cognition perspective highlighted the fact that NDM is enhancing the applications on the decision-making perspective that cover all the aspects in an appropriate way. The study has highlighted the fact that organizations and their leadership styles are changing continuously for the past few decades. It has mentioned the fact that before the emergence of telegraph or railroad, there has been no need for the professionals managers. However, with the introduction of advanced technologies and huge size businesses, it has become necessary to utilize all leadership or managerial skills of professional managers. Specifically, as the businesses are looking to overcome the challenges of geographical boundaries, organizational reforming has become extremely popular. As a result, different types of managerial upgradation has been done by the managers to develop such business structure that can able to counter all possible challenges in an appropriate way. For that reason, framing or development of mental maps has become crucial for the organizations. The study has highlighted four frames that organizations can utilize to handle the challenges of changing bus iness environment. The four frames include factories, families, jungle and temple carnival, which can have major impact on the business enhancement perspective. Moreover, the study also has included multi-frame thinking perspectives that modern time managers will have to utilize to formulate strategies for countering any challenges in an appropriate way. The four-frame model highlighted the fact that managers need to handle political, structural, human resource and symbolic challenges in an appropriate way. To counter the political challenges, managers need to formulate strategies to handle different external pressure as well as will have to formulate strategies for handling the internal conflicts and politics of the organization in an appropriate way. The study has mentioned that effective utilization of multi frame technique can help management to formulate proper short-term and long-term plan effectively. It has mentioned that multi-frame approach requires more than just mechanical approach to conduct all the activities related to business. In fact, it is extremely helpful for the managers to counter the business dilemmas in an appropriate way. It emphasizes the fact that managers need to be flexible, artistic, creative and interpretive to formulate decisions in an effective manner. It has also mentioned that the job of the manage rs will become more difficult continuously due to the nature of the businesses. As a result, it will be very difficult for the managers to utilize oversimplified approach for conducting all the requirements in an appropriate way. For that reason, the study has emphasizes on the fact that managers need to have intuitive capacity to utilize their skills and knowledge in an effective manner. The study has also mentioned the fact that effective utilization of multi-frame approach can help managers to increase the level of quality in the decision-making approach. As a result, it will create direct impact on the performance level of the employees, as they do not have to face challenges associated with their roles and responsibilities in the organization. The study has mentioned that effective utilization of the mentioned framework can actually help to become the most successful managers or not. However, it has mentioned that effective utilization of all the frameworks will help to increas e the level of knowledge and skills in an appropriate way. The study has highlighted the fact that typology of leadership can be divided into six metaphoric. Now, the types of metaphors are divided on the basis of the process through which people tend to develop beliefs, values and feelings about a leader. For that reason, the study analyzed different academic theories discussed in media reports and business publications based on the interview of any successful leaders. The study has mentioned that leadership is an increasingly fuzzy or ambiguous concept, which is even more complicated by profusion of theories and definition. The study has mentioned the metaphors that have emerged are not limited to prescriptive or positivist theories. In fact, metaphor allows a more careful stance emerge as descriptive form of leadership. The study has focused on evaluating different style of leadership including leaders as saints, leaders as gardeners, leaders as buddies, leaders as cyborgs and leaders as bullies to analyze all the metaphors in an appropri ate manner. Asymmetric leader follower association exposed dependency based on relationship. The situations and possesses that influence leadership dynamics are discussed in an in-depth way. The study has focuses on highlighting the mismatch of expectations and interpretations associated within the domain of leadership. Moreover, the study also highlighted the fact that leadership represents a complex social construction, which is highly contextual based on the academic literatures. The perceptions and imagery of the leadership metaphor will change based on the goals of the individuals. In fact, the leadership in present business context will have to be utilized in such a way so that it can able to meet the expectations of the organizations in a major way. It highlighted the fact that based on the performances of the management the workplace environment is determined. In fact, the study has highlighted the fact that manager4s or leaders play a great role in maintaining stability of the workplace . For that reason, the study has emphasized on the process through which metaphors may be understood and communicated by the leaders to handle all the business challenges in an appropriate manner. The study has helped to capture in-depth information about the leadership perspective. It mentioned the fact that different roles that leaders have to play within the organizational structure are dependent on context. For instance, crisis situation may influence leader metaphor to emerge from chaos. It has also mentioned that gardener leadership theory perfectly represents the day-to-day leadership approach. However, it has also highlighted the fact certain situations can actually influence a gardener leader to utilize attributes of the bully leader. On the other hand, the study has also mentioned that cyborg leadership are very common in the present business situations, as it look for improved productivity, performance excellence, increased profit, etc. Thus, the study has transcends all the barriers associated with the management perspective and social science in the real world. References: Alvesson, M., Spicer, A. (Eds.). (2010). Metaphors we lead by: Understanding leadership in the real world. Routledge. Bolman, L. G., Deal, T. E. (2003). Reframing organizations: Artistry, choice, and leadership. John Wiley Sons. Brousseau, K. R., Driver, M. J., Hourihan, G., Larsson, R. (2006). The seasoned executive's decision-making style. Harvard business review, 84(2), 110. Klein, G.A., 2003. Intuition at work: Why developing your gut instincts will make you better at what you do. Currency Doubleday. Zsambok, C. E., Klein, G. (2014). Naturalistic decision making. Psychology Press.