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Firstly, fact-based decision-making can be challenging. This is mainly evident when it comes to choosing the facts to be followed and the ones to be dismissed. Note that, data to be used in decision-making should be relevant and logical, and determination of this is quite difficult. Secondly, evidence-based management does not adequately address the value of judgement and intuition. This is mainly in situations of high uncertainty and risk which is a common phenomenon facing the management team while making strategic decisions. However, for the management to avoid these limitations, it should foster a culture of observation, experimentation and inquiry while coming up with ideas (Daft, 2010). Also, the organization should encourage diversity in terms of age, gender, expertise and experience to facilitate diverse ideas and opinions during the decision-making process.
Decision-making is a crucial part of managing an organization. There are various methods of decision-making that an organization can use. 1). Command: this is a method whereby, employee involvement is not necessary in decision-making. This is in a situation whereby, outside forces demand a decision to be made promptly. 2). Consult: this method applies where the manager asks for input from the employees and expertise. This allows availability of diverse ideas and opinions to choose. 3). Vote: voting normally is in a situation whereby there are various options from which to choose and efficiency is the highest value. Therefore, the decision-making team members choose the best option. 4). Consensus: is a method that requires every team member's support. It is mainly in complex issues and situations of high stakes.
Decision-making is a process of the following stages. 1). Identify the problem that needs to be solved. 2). Gather information, that is relevant to the problem. 3). Carry out an analysis of the situation, that is what alternative actions are available. 4). Develop possible options. Be creative and positive and utilize what if questions. 5). Evaluate the alternatives. This enables one to identify the best option to achieve the objectives. 6) (Hodgkinson & Starbuck, 2007). Select the preferred alternative. 7). Implement the decision, made. 8). Evaluate and report. This stage clears that the decision has been effective. In case, it has not been effective, go back to step five and follow the process again from there.
However, decision-making faces a few blocks. These include; 1). Lack of adequate finances by the organization to finance the decision. 2). The existing business policy may not accommodate the decision. 3). Peoples's abilities and feelings, which may lead to poor implementation of the decision. 4). Lack of technology to support the implementation of the decision (Schulte-Mecklenbeck, Kuhberger & Ranyard, 2011).
It is a pattern of interactions and coordination that links the technology, tasks and labor of the organization to enable the organization to accomplish its purpose ( Taylor & Francis, 2011). There are various factors that affect the organizational design. These are mainly environmental and strategic factors. Environmental factors include; suppliers- these are people who supply the organization with high quality raw materials and at affordable prices; distributors- deal with delivery of organizational products to consumers (Daft, 2010). Distributors should be effective and be able to beat deadlines; competitors- are other organizations in the industry that drive the organization to be more productive and lastly, customers- are the consumers of the organizational products and services.
Strategic factors mainly comprise of; low-cost strategy- this is a factor that forces the organization to provide products and services cheaper than its competitors (Hodgkinson & Starbuck, 2007). This leads to a functional organization design; differentiation strategy- here, the organization provides products and services distinctive from its rivals. This leads to a product organization design; corporate strategy- are situations whereby the organization strives to create a reputation that gives it a brand name with which to identify with.
In conclusion, the organization structures into various organizational designs depending with the factor affecting it. These organizations mainly apply evidence-based management in their decision making mostly when choosing negotiation strategies to apply in conflict resolution. And by so doing the organization in question ensures that all of its employees are kept happy.
Daft, R.L. (2010). Organization theory and design. Mason, Ohio: South-Western Cengage Learning.
Hodgkinson, G.P., & Starbuck, W.H. (2007). The Oxford handbook of organizational decision making. Oxford: Oxford University Press.
Schulte-Mecklenbeck, M., Kuhberger, A., & Ranyard, R. (2011). The role of process data in the development and testing of…[continue]
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