For any business to be successful, any business organization or corporation has to depend on decision making by the leadership in the organization. The leadership has the responsibility of steering the organization to its destination. A business will make profits by making the best from any window of opportunity that arises in the environment that it is working in. in an organization time is of the essence for a business, therefore it is important for one to make quick decisions by the organization or business leadership so that they can exploit any opportunity that arises. In organizations it is decisions that are made by business managers who make various decisions on the execution of the outlined strategy, and are able to overcome various obstacles, that have an effect on the loss or profit for a business. Decisions that are made with precision and with an effective strategy are crucial for a work place.
The process of effective decision making will make it possible for an organization to employ the most suitable path to follow when it is implementing various tasks it has adopted. If an organization is faced by the presence of a number of are different ways of performing a task, it becomes necessary to find out the best way and that is what decision-making is all about (Jensen and Mooney, 1990). The course of action finally selected should produce the best results.
By choosing the best method of doing any work, decision-making ensures optimum use of the enterprise resources, namely, men, machines, materials and money. Resources are always scarce and therefore, it is necessary to make a proper use of the same.
Decision-making helps to find a solution to any problem in a work place. For example, if an organization faces the problem of low productivity, such a problem cannot be ignored and it becomes necessary to find a remedy. To find a remedy, the actual cause of the problem must be identified after which corrective action may be taken. If negative employee attitude is found to be the root cause of low productivity, the management may have to decide on the right course of action to be adopted to change such a negative attitude (Cummings and Worley, 2008).
Decision-making helps to identify the best course of action in each given situation and thereby promotes efficiency. The course of action finally selected should be acceptable to both the workers and the management. Satisfied workers put in their best efforts and this result in higher output. Higher output satisfies the management and it may come forward to share the gain with the workers. Thus, there is improvement in the overall efficiency of the organization.
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The conflicts in an organization are resolved through decisions. For example, the workers may want better pay and improved working conditions and put forth their views to the management. If the management avoids taking a decision on the matter, the workers are not going to give up. A decision, therefore, becomes necessary. Such a decision need not be one-sided decision. The management may evolve a formula that is acceptable to the workers as well.