Decision making is essential for the performance of every organization. Decision making involves making a choice among various alternatives availed to an individual or an institution. This is a process that has much influence on the performance and failure of an organization. It is the toughest and riskiest process since a decision made can make or destroy the entire organization. Analyzing of various alternatives at hand is critical in the process of coming up with a viable decision. A fault in the decision made can be attributable to a poor decision making process. However, under certain circumstances, a fault in the decision made can be attributable to the mind of the decision maker. Every organization is supposed to adopt better mechanism and strategies in developing the process of decision making. The concept of decision making is used in various aspects and roles within a society. These aspects are political, social, and economic. These fields require an efficient decision making process to ensure proper performance. This paper seeks to analyze the concept of decision making and its effectiveness in improvement of processes as well as its importance in operations of an organization.

Effectiveness of Decision-Making

The effectiveness of decision-making process depends on various attributes ranging from the process to a decision maker. The critical resource in the process of decision making is a decision maker. Various attributes are required of a decision maker in order for the decision making process to be effective. The decision maker should be knowledgeable and initiative. A decision maker who is well informed has knowledge of various alternatives that exist in the process. This enables the person to analyze all the alternatives at hand and come up with the best solution. The initiative aspect of the decision maker helps the person to initiate and assume the responsibility of beginning the process of decision making. An effective decision maker has a wide knowledge on various concepts and, thus, possesses an open mind in analyzing the various aspects that affect performance of an organization. This enables him/her to be flexible in the process and not rigid in trying out different approaches for achievement of the organization’s goals. Understanding of several factors is an essential aspect in making and implementing sound decisions in the process (Institute for the Future, 2005).

All these attributes are essential in the process of problem solving. The effectiveness of any decision making process is measured by how well it is in a position to address the problems at hand. The decision making process is always purposed to solve a given process with the objective of improving the performance of any given process. In this aspect, decision making is fundamental in problem solving regardless of the arena or situation. Management is the top organ in operations of organizations. The top organ in any organization is mandated with the role of making decisions on behalf of the organization. The process should be clearly set out so that the decisions made do not negatively affect performance of an organization.

Factors Influencing Decision Making

Several factors affect the process of decision-making. These factors may act as barriers, thus hindering effective decision making process. There are several decisions that need to be made in operations of an organization. At any given stage in the process of decision making, certain factors such as biases and misperceptions affect the choice made in the process. Important decisions and those that are highly complex can suffer distortion because they involve a wide range of assumptions and a lot of people are involved in the process. These bring varied ideas in finding a solution to a given process, which helps to widen up the thinking of decision makers. This may also serve as a challenge to the process of effective decision making due to the existence of varied ideas and disagreements. Precautions need to be taken in the process of decision making to avoid a decision that will affect the proper performance of a given organization. Most of the decisions made involve the future performance of that organization. In this regard, a lot of estimates and probabilities are used in forecasting the future trends in the performance of the organization (Roberto, 2005).

Cognitive bias is another challenge that exists in the process of decision making. There is a tendency of human beings to make mistakes in their decisions. These biases affect both experts and novices in various fields. The cognitive bias arises from the difference in rationality among human beings. Every individual is fundamentally bounded by personal liability. The failure of human beings to analyze all information available in the process of making a decision brings a flaw in the decision made. It is expected that before any decision is made, all alternatives available must be analyzed to determine the best alternative that will better solve the problem identified. The decision making body in every organization should indulge perfect rationality in the process of decision making. Rationality implies applying criticality in the process of decision making in analyzing the various alternatives available. The persons making a decision must have the ability to evaluate and analyze all the alternatives, of which they have the relevant information (Pettigrew, 1973).

Importance of Decision Making

The process of decision-making is critical in performance of an organization. The set out procedure should be effective and should be implemented to ensure effective performance of an organization. The key importance of the decision making is the role it serves in operations of an organization. How the operations of an organization are run depends on the decisions made in developing strategies and policies.

Effective decision making is critical in the accomplishment of organization’s objectives. The objectives will be achieved if the decisions made favor effective execution of the various roles required in the accomplishments of those objectives. Information should be available to enable making of timely decisions. The staff should have in place a process that is understandable so that they effectively execute the duties bestowed on them. The decision making body should work in collaboration with implementers of the decisions made to achieve effective operations of an organization (Koontz & Weihrich, 2006).

The process of decision making involves different personalities, and, therefore, a lot of ideas are brought on board. The process of brainstorming helps in bringing on board the various points of view towards approaching a given problem. The presence of varied ideas helps the decision making body to come up with the best alternative that better addresses the problem at hand. In situations where the decision making process is bestowed on one individual, the process of brainstorming brings on board various alternatives that should be analyzed. The process is, therefore, seen as a good approach towards execution of any given responsibility (Jones & Beck, 1996).


Decision-making is an aspect critical to performance of an organization. Proper mechanisms should be set in place to make the process effective. A decision made determines the performance of any given organization. Better decisions are, thus, an essential aspect in avoiding the failure of an organization. A decision can either be made by an individual or a group. Whichever the approach, different alternatives must be analyzed to ensure the best is chosen. This will result into better performance.