Importance of Decision- Making

By:  Aishwarya Soundalgekar on 27-10-2021 10:22 AM
dailygateblog
Decision-making is not a random process. Before taking crucial decisions that can have a long-term impact on the individual as well as organizational goals and performance, it is important to avoid various challenges. Many times, we tend to get influenced by the majority opinion. Even if you feel that the group is not moving towards the right decision, you are scared of voicing your opinion due to the fear of isolation. A systematic decision process ensures such erroneous situations are avoided. IMPACT ANALYSIS: By using the correct approaches and ethical decision-making processes, we can evaluate the impact of different choices. For instance, it is important to know whether a decision is long-term or temporary. We can assess the impact that a decision might have on people in the organization and whether they will feel happy about it or not. FINDING DECISION ALTERNATIVES: The decision-making process brings to fore skills such as probing and creativity. By using probing skills, you can gather more information about the various alternatives and creativity can help you in finding options that were previously not known. FUTURE FORECASTING: The importance of decision-making is amply seen in its ability to allow future forecasting. When we make a decision through a systematic process, we can calculate the likely impact of the decision on a business’s future growth. EVALUATING VARIOUS OPTIONS: One of the characteristics of decision-making is that it is a fact-based process. Before making a decision, we gather all information about the various options and evaluate their feasibility and impact on the company’s present and future scenarios. This gives us the ability to make ethical decisions that are generally also the right decisions. RISK ASSESSMENT: Strong decision-making skills are crucial in the risk assessment of decisions. They give us the ability to not only take the various options into account and weigh their pros and cons but also to assess the risk. By thoroughly evaluating all the options, market scenarios and past data, we can anticipate the chances of success and prepare for worst-case scenarios. Such a risk analysis comes handy for contingency planning as well as during any course corrections. IMPACT ON HUMAN RESOURCES: Good decision-making can reap rich benefits for the organization. It can help foster a collaborative work environment and create clarity of communication among various stakeholders. By adopting group decision-making processes, it is possible to make different team members understand each other’s perspectives, strengths and weaknesses. LEADERSHIP AND EMOTIONAL MANAGEMENT: Strong decision-making helps solve problems promptly and creates a leadership position for the decision-makers. Strong decisions should be impartial and devoid of any emotional influences that might make us overlook shortcomings. Such decision-making should also be transparent and logical. These aspects of decision-making reduce stress and friction and increase cohesiveness as well as mutual understanding among team members and respect for the leaders. Source:https://harappa.education/harappa-diaries/what-is-decision-making/