Fundamental Perspectives and Techniques of Decision Making Dissertation

Fundamental Perspectives and Techniques of Decision Making - Dissertation Example In the contemporary uncertain business contexts, making a decision which has certainly long-term implications on business requires thorough understanding of all possible future situations and more importantly the managerial ability to balance both controllable and uncontrollable parameters (Bhushan and Rai, 2004, p. 3). Managerial decisions are key factors to influence a firm’s success and failure. Managers need to ensure that their firms are able to continually innovate and get accustomed with changing business environments so that it can maintain a reasonable stance and pace in competitive edge. If managers want their firms to survive in the dynamic and uncertain business conditions, they need to carry out effective decision making processes. ... Creative thinking aims at bringing newer ideas whereas problem solving is directed to find a solution, an answer or a conclusion (Adair, 2010, p. 1). An individual or organizational decision is the end result of much more dynamic processes and a series of activities labeled as ‘decision making’. McGrew, Wilson & Wilson (1982, p. 5) stated that the decision maker, in his decision making process, identifies the problem, clarifies particular goals that are desired, examines various possibilities for achieving the desired goal and finally completes the process by taking a definitive choice of action. Decision is therefore an answer to a specific question or some problems or a choice between two more courses of actions. Ahmad, Hasnain and Venkatesan (2012, p.21) described a five-stage process for decision making. It comprises of identifying all alternatives, valuing these different choices according to preferences and potential outcomes, assembling the information, choosing a mong the preferences and outcomes and finally selecting the most favourable and appropriate choice. Decision that has been taken after careful coordination of information, evaluation of potential outcomes and analyzing of various preferences based on advices, suggestions and help of people involved as members in a group-decision making has been found to be very effective in terms of its appropriateness and positive outcomes. Decision making is a cognitive process that involves logical reasoning and creative thinking about choosing a specific course of action that is supposed to bring the decision maker to a certain result. One of the key challenges in decision making is reducing or eliminating the uncertainty. A better way to avoid uncertainty is to collect relevant information before