Decision making serves the purpose of fulfilling organizational objectives. Decisions are affected by socio-economic, political and cultural factors prevailing in this environment. Work sub-division specifies the tasks at each level. Important decisions are taken at the top hierarchy. Those decisions become guiding criteria for junior decision makers who will take divisions of a more detailed and procedural character.
The quality control and scrutiny takes place when the decision made at lower levels are submitted to higher authorities for approval. Socio-economic and political data constitute the raw material for a decision, which is provided by the structured communication system. Training is provided for officers in most organizations so that the decision made by him is sound and effective.
Steps involved in decision making mentioned by Herbert Simon are
- Identify the problem
- Analyze the problem
- Determine possible and available alternatives
- Evaluate the impact of alternatives
- Select the best alternative
The ultimate purpose of decision making in any organization is to ensure rational, feasible, acceptable and practical decisions.