Daily Archives: April 15, 2017

Decisions in the Management Functions

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A company like GWC Valve needs to understand the decisions in the management functions which include planning, leading, organizing and controlling in a business atmosphere. As a manager of a large or small company, they need to have intuition meaning they needs to make decisions based on their previous experiences, make cognitive based decisions, affect initiated decisions, use their values or ethics based decisions, and have subconscious mental processing. When it comes to decision-making conditions, certainty involves making accurate decisions which are possible since the outcome of every alternative is known. Certainty is hardly a characteristic for most of the decisions that managers make and that’s why it is important for them to have great intuition and have former experience. Risk is the most common situation since the manager can estimate the likelihood of the outcomes and there is an ability to weight outcomes which are based on personal experiences or secondary information.

Group decision making is very important and this includes the communication patterns used by members to exchange information, group decisions processes, leader behaviour, power dynamics that conflict interactions and other actions. There are many advantages which involve increases acceptance of a solution, increases legitimacy of decision, more diverse alternatives and the more complete information and knowledge. The disadvantages include that is it time consuming, there is an ambiguous responsibility, pressures to conform, and there is an opportunity for minority domination. There are many common decision making biases and errors which include being overconfident, selective perception, confirmation, sunk costs, escalation of commitment, self-serving and hindsight.

When managers are making large decisions in the organization, they need to constantly be thinking of improving their ethical behaviour. They need to be sure to conduct independent audits, provide ethics training to employees, provide support to individuals facing ethical dilemmas, lead by example, hire individuals whom have high ethical standards, establish codes of ethics and decision rules and to delineate job goals and performance appraisal mechanisms.