Decision Making in Organizations

Decision making in organizations is the fundamental management process of identifying problems or opportunities, evaluating alternative solutions, and selecting a course of action to achieve specific organizational goals. This critical function spans all hierarchical levels, from high-stakes strategic choices made by top executives that shape the company's future, to the operational decisions made by frontline managers that guide daily activities. The process is influenced by a range of factors including the quality of available information, cognitive biases, ethical considerations, and group dynamics, requiring managers to utilize various models and approaches—from rational analysis to intuitive judgment—to navigate uncertainty and drive effective outcomes.

  1. Foundations of Organizational Decision Making
    1. Nature of Decision Making
      1. Definition and Scope
        1. Decision Making vs Problem Solving
          1. Elements of Decision Situations
          2. Problem Identification and Opportunity Recognition
            1. Problem Diagnosis Techniques
              1. Root Cause Analysis Methods
                1. Opportunity Identification Processes
                  1. Distinguishing Problems from Symptoms
                  2. Role of Judgment in Decision Making
                    1. Intuitive Judgment
                      1. Analytical Judgment
                        1. Experience-Based Judgment
                          1. Emotional Influences on Judgment
                          2. Decision-Making Process Framework
                            1. Problem Definition and Framing
                              1. Criteria Establishment and Weighting
                                1. Alternative Generation
                                  1. Alternative Evaluation
                                    1. Selection and Choice
                                      1. Implementation Planning
                                        1. Monitoring and Evaluation
                                        2. Types of Organizational Decisions
                                          1. Programmed Decisions
                                            1. Non-Programmed Decisions
                                              1. Strategic Decisions
                                                1. Tactical Decisions
                                                  1. Operational Decisions
                                                  2. Decision-Making Conditions
                                                    1. Certainty Conditions
                                                      1. Risk Conditions
                                                        1. Uncertainty Conditions
                                                          1. Ambiguity Conditions