However, according to this model, what can be termed as the best way is defined by how the decision made marries with the content and context of the matter at hand. The contingency model establishes that a decision that is made for a particular context may not be applicable in another, even though the contexts may be similar. It also establishes that a unified role is played by the managers who have the decision making capacity. When faced with a particular issue, the managers must find the best way to deal with the situation and they have to create an effective decision process which minimizes conflict. Whatever the situation, the management has the obligation to analyze it and evaluate the assumption that need to be drawn to align the organization with the changed environment. The conclusion must be evaluated on the basis of the effectiveness, efficiency and the solution it provides for the situation.
The contingency model is based on the organization's theory contingency approach. This approach assumes that there is no one way which is uniquely useful in organizing. The theory states that there is no perfect fit which is contingent upon the performance of the organization. What might be feasible in one organization or condition may backfire terribly in another. According to the model, each decision should be unique and circumstantial.
Dimensions of strategic decision making
There are three dimensions which affect or characterize the decisions to be made. These are the customer's needs, access to the customer and service or program variants. All decisions made must take into consideration the customer's needs and give access to the customer. The customer is the reason why the organizations and companies are there in the first place. Without the customer, there would be no need for the organizations or companies. Therefore, the customer's needs must be considered first. On this front, the customer needs is to receive quality goods and services. Therefore, in this, the decisions made should always have the motive of improving the provision of products and services to the customer. The second dimension is that of access to the customer. The customer has a right to information. This is a fundamental right that needs to be established by all organizations. Therefore, the customer should be well informed about any product or service being delivered, its side effects, advantages, disadvantages and any other pertinent information. Lastly is the dimension of the product or service variant. Since strategic decisions must be connected to the situation, the product or service in question must be considered. In this case, the strategic decision formulated should be feasible for the particular product or service
Strategic, operational and tactical decision making
Strategic decisions are said to be so when their implementation is foreseen to create an enormous impact to the future of the institution or organization. Therefore, it is safe to attach an assumption that these factors also affect the process of making strategic decisions. The only significant difference is that strategic decisions are situational
Tactical decisions, on the other hand, are derived from strategic decisions. Once a strategic decision is made, these are broken down into tactical decisions. For whatever strategic decision, the tactical decision will need to be aligned to the previous strategic decision. In essence, tactical decisions are the answer to or the means to achieving the strategic decisions. In the process of tactical decision making, first the areas of interest need to be outlined. It is from these areas of interest that the solutions are assessed and implemented
Operational decisions are the outcome of the process of tactical decision making. They are the ultimate hands on operations that the organization performs to achieve the strategic decisions. When implementing the operational decisions, the activities should favorably relate to the strategic decision, the foundation of the operational decision making process
Conflict resolution is a process that the management and especially human resource managers need to understand. This is because this helps to resolve conflict before it makes the employees feel that the workplace environment is not conducive for them and thus result in low productivity of the employees. By having in depth knowledge on how conflicts arise and the modes of conflict resolution and their applicability, the resolvers can be able to know which mode can be applied to best resolve the conflict.
The organization needs to design a decision making process that comes up with strategic decisions that must be tailored for a particular situation. They should be made to