significance of strategic decision making

ii. Strategic Management is all about identification and description of the strategies that managers can carry so as to achieve better performance and a competitive advantage for their organization. Finally, it is helpful in achieving organizational goals. ii. The people involved in a group decision understand the rationale behind it, are more likely to accept it and are capable of communicating the decision to their work groups or departments. f. People who are aggressive may not allow others to participate or to express their views fully. It is a way in which strategists set the objectives and proceed about attaining them. d. Testing the questionnaire to sec that there are no ambiguities or vagueness in the terms used. This process can be used to elaborate upon the data obtained from surveys or-existing documents. If the nominal group process is well-organized, a definite conclusion can be arrived at from a heterogeneous group. When a manager makes a decision, he has to take into account the thinking and attitudes of others within the enterprise, as they are also a part of the system. It is not advisable to make the decision process unnecessarily democratic. The nature of Strategic Management is dissimilar form other facets of management as it demands awareness to the “, Establishing the hierarchy of strategic intent. Sometimes the quality of group action is reduced when the group gives in to those who talk the loudest and longest. Rational decision-making aims at deciding the best solution by selecting the alternative that most effectively facilitates goal achievement. h. Allows participants to express their ideas in a clear manner. by Sarah Schmidt, on May 29, 2018. d. Inadequate discussion may cause ambiguity and overlapping of ideas. Despite its advantages, group decision-making also has several potential disadvantages compared with individual decision-­making. Hence, the pervasive influence of change may be underestimated. The establishment of plans and policies is the initial part of decision making. Unwillingness to “rock the boat” and pressure to conform may combine to stifle the creativity of individual contributors. Strategy evaluation is the last stage in strategic management. One of the major role of strategic management is to incorporate various functional areas of the organization completely, as well as, to ensure these functional areas harmonize and get together well. h. Transmission of the second questionnaire to the panelists. The following points describes the significance of decision making in the organization. 1. Those who play an active role in group decision-making and problem solving tend to view the outcome as “ours” rather than “theirs”. Keeping in mind the long-term benefits to organizations, strategic planning drives them to focus on the internal environment, through encouraging and setting challenges for employees, helping them achieve personal as well as organizational objectives. Therefore, the ideas generated in a nominal group process may not portray the concerns of the entire community. Thus, the final decision to roll out a product or service is through cumulative interim decisions taken by various internal and external parties. Strategic Management in an organization ensures that goals are set, primary issues are outlined, time and resources are pivoted, functioning is consolidated, internal environment is set towards achieving the objectives, consequences and results are concurred upon, and the organization remains flexible towards any external changes. Even in a closed-system model, a manager has to make several assumptions regarding the environmental forces that influence the organization. e. Individuals who are selected to participate in the process may not represent all the subgroups of the community. While small organization involves all levels of managers, complex organizations largely depend on a team of professionals specially trained to make all sorts of decisions. Selection of panelists (who are experts in their domain) to participate in this exercise. The process, on the whole, bears its pros and cons and would by and large emanate results and consequences in the organizations’ overall growth and prospects. Strategy formulation comprises of developing a vision and mission, identifying an organization’s external opportunities and threats, determining internal strengths and weaknesses, establishing long-term objectives, creating alternative strategies, and choosing particular strategies to follow. The Delphi method is a powerful technique which can give useful answers to specific and appropriate questions. Strategic decision-making process is so strategic that each firm has its own approaches to these strategic decision-making. c. The facilitator or group leader must be flexible and should respect the views expressed by others. Planning or designing a strategy involves a great deal of risk and resource assessment, ways to counter the risks, and effective utilization of resources all while trying to achieve a significant purpose. As more and more organizations have started to realize that strategic planning is the fundamental aspect in successfully assisting them through any sudden contingencies, either internally or externally, they have started to absorb strategy management starting from the most basic administration levels. Account Disable 12. iii. Nevertheless, the Delphi method has a number of weaknesses too. What’s the best strategy to engage remote working employees. The group members are asked to list out the possible solutions to the problem. It is a decision-making group in which the members openly discuss, argue about and agree on the best alternative. Decision making is one of the important tools for the successful operation of the business. Nominal group processes are used in the field of health services, social services and education. The selection of the best course of action is significant to bring smoothness in operation and achieve organizational goals. Even alternates are planned during strategic decisions. Group Decision-Making. This technique is generally used when creative or innovative ideas are required. Managers make decisions dealing with both problems and opportunities. Less experienced participants in group action learn how to cope with group dynamics by actually being involved. Individuals with varied experience and interests help the group see decision situations and problems from different angles. Rational decision-making becomes almost an impossible task when one has to explore areas which have never been ventured into before. Plagiarism Prevention 5. Deciding upon a … Significance of Decision-Making: i. When all the responses are recorded on the master list, the group members discuss and evaluate the ideas openly. Uploader Agreement. a. This makes way for the firms to analyze, examine and execute administration in a manner that is most likely to achieve the set aims. Many studies have shown that groups make better decisions than individuals. So, even if the main plan goes off the track, the alternates could be bought in.

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