These are the important characteristics of decision-making:
- Goal-Oriented Decision-making is a process that is focused on achieving specific goals. They are frequently made with a specific purpose or objective in mind. The goal is to progress “toward an ideal set of circumstances.”
- Alternatives A decision should be thought of as a “point in a stream of activity.” Search and selection are two actions that define it. The manager seeks for possibilities, makes judgements, and weight options in order to take action. Choices lead to choices, which lead to decisions. It is the process of deciding on a course of action to solve an issue. When you don’t have a choice what to do, you can’t make a decision.
- Analytical-Intellectual Decision-making isn’t solely a mental exercise. It encompasses both conscious and unconscious parts, as well as intuitive and deductive logic. Part of it can be learned, but the decision-maker’s characteristics determine part of it. Decision-making isn’t entirely quantifiable, yet it’s also not solely dependent on logic or intuition. Emotions or instincts play a big role in a lot of decisions. The decision means that the decision-maker has complete flexibility in making the ultimate decision; it is uniquely human and results from deliberation, appraisal, and thought.
- Dynamic Process Rather than being viewed as a single static entity, decision-making is viewed as a process. It is a process of efficiently utilizing inputs to solve specific issues and create useful outputs. Furthermore, it is a procedure for “finding worthwhile things to do in a dynamic environment.” A manager, for example, may consistently hire employees based on merit and, on occasion, select applicants recommended by a powerful party. Managers use discretion and judgment to make appropriate decisions based on the circumstances.
- Pervasive Function Decision-making pervades all levels of management and touches every aspect of a business. A manager does what he does solely through decision-making. The end products of a manager’s job are decisions and actions. The essence of a manager’s work is decision-making.
- Continuous Activity The life of a manager is one of constant decision-making. They make decisions on a regular and consistent basis. It’s not a one-time thing.
- Commitment of Time, Effort, and Money Making a decision entails devoting time, effort, and money. Depending on the decision, the commitment could be brief or long-term. Following a decision, the organization advances in a defined direction in order to fulfill the objectives.
- Human and Social Process Decision-making is a human and social process that involves reasoning, intuition, and judgment. When selecting a variety of options, the human and societal aspects of the decision are frequently considered. Managers in a labor surplus, a capital-hungry country like India, for example, can’t just shut down plants, slash divisions, and extend the golden handshake to everyone.
- Integral Part of Planning According to Koontz, decision-making is at the heart of planning. Both are mental activities that necessitate deliberation and judgment. Both are working for the same goal. Both are congruent on the situation. Both need you to choose amongst various possibilities. Both are based on forecasts and assumptions about future risk and uncertainty.
Characteristics of a Good Decision
As a decision-maker, it is your job to make decisions that improve the situation for everyone involved. Good decisions will have the following characteristics:
- Positively impact others
- Foster opportunity
- Include others
- Involve self-awareness