1. Individuals in organizations make decisions; they make choices from among two or more
Top managers determine their organization’s goals, what products or services to offer, how best to finance operations, or where to locate a new manufacturing plant.
Middle- and lower-level managers determine production schedules, select new employees, and decide how pay raises are to be allocated.
Non-managerial employees also make decisions including whether or not to come to work on any given day, how much effort to put forward once at work, and whether or not to comply with a request made by the boss.
A number of organizations in recent years have been empowering their non-managerial employees with job-related decision-making authority that historically was reserved for managers.
2. Decision-making occurs as a reaction to a problem.
There is a discrepancy between some current state of affairs and some desired state, requiring consideration of alternative courses of action.
On person’s problem is another’s satisfactory state of affairs.
3. Every decision requires interpretation and evaluation of information. The perceptions of the
decision maker will address these two issues.
Data are typically received from multiple sources.
Which data are relevant to the decision and which are not?
Alternatives will be developed, and the strengths and weaknesses of each will need to be evaluated.