How to Hone Decision-making Skills in the Organization
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How to Hone Decision-making Skills in the Organization

By CIOReview | Wednesday, October 26, 2016

Individuals and organizations as a whole, tend to make business decisions that are aligned to the goals of the organization. However, few decisions stand out to be more sophisticated depending upon the ability of the decision makers to qualify the available choices. Likewise, every decision also includes a set of judgments that further reflects the values and preferences of the decision maker influenced by corporate rules, compliance needs, and best practices in the organization.

Active steps involved in decision-making:

The foremost process involved in decision-making is to identify the problem. The decision maker should analyze the problem and further identify the purpose of the decision. Some of the questions that should be included in the decision-making process are: the nature of the problem, the need for solving the problem, the affected parties, and the time-frame within which the problem should be addressed.

Secondly, the decision maker should gather relevant information before making the right decision. The collective information should focus on the type of information needed, the best suited sources of information, and the ways to get it. Furthermore, both internal and external sources of information need to be explored to have the comprehensive understanding of the problem at hand.

Moreover, as the information is gathered, the decision maker should possibly identify alternatives by considering organizational goals. Through robust identification approach, the decision maker should select the appropriate alternative that best suites the decision.

Group Decision-making and its Benefits

A decision-making model can reduce the chance of errors, uncertainties, assumptions, subjectivity, and distortions. Group decision-making is a collaborative process where individuals act collectively to analyze problems and further evaluate alternative course of action. Group members involved in decision-making can enhance their knowledge which may result in better decision making. Since the decisions are taken in a group, the implementation of the decision is likely to be more effective. Moreover, the general acceptance of the decision by all in a group is more effective than individual decisions that may lack wide acceptance. Additionally, inputs from large number of people can eliminate the bias caused while making individual decisions. With a participative approach, Group decision-making acts as a training ground for subordinates to develop objective analysis of information and derive conclusions.

Reasons for Poor Decision-making

Experts cite a number of factors that influence flawed decision-making, some of those include: limited organizational capacity, limited information, time constraints, low levels of decision making skill, and conflict over business goals; additional factors involve the cost of analysis and the openness in the system to be analyzed.

The second category of common pitfalls that fall into the picture is the concept of “decision avoidance psychosis”. Decision avoidance psychosis is the term used for stretching the decisions to be made till the last minute. In spite of the restricted time-frame, organizations may not complete the task on time, or might even keep decisions pending until the very last minute. Another major problem is decision randomness, where organizations combine all the decisions at random. Organization has four main roles instilled in them; first – being the problem knowers; second – the solution providers; third – rescue controllers; and finally – a group of decision makers. For effective decision-making, these roles should work in tandem to gain desired results.

Organizations not only deal with certain type of delays in decision making but also face situations such as ‘decision drift’, which refers to group of actions that are considered as the will of majority and in reality – a decision that never existed. In addition, decision coercion adds up to the list of potential decision problem. This type of decision making process is commonly seen in businesses where decisions are favored for the sake of owners and/or top executives.


Decision-making helps organizations to restructure their overall business process and workflow. Making decisions within the set of people or as a group brings more options and alternatives on the table that aids in taking swift actions in the right direction resulting in reaping sustainable business model. The idea must be to allow the group members to bring out their thoughts in an unreserved manner.