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4.2 The nature of decision making as part of management

An aside: The obstacle in our path

In ancient times, a king had a boulder placed on a roadway. Then he hid himself and watched to see if anyone would remove the huge rock. Some of the kingdom's wealthiest merchants and courtiers came by and simply walked around it. Many loudly blamed the King for not keeping the roads clear, but none did anything about getting the big stone out of the way. Then a peasant came along, carrying a load of vegetables. On approaching the boulder, he laid done his burden and tried to move the stone to the side of the road. After much pushing and straining, he finally succeeded. He noticed a purse.where the boulder had been. The purse contained many gold coins and a note from the King indicating that the gold was for the person who removed the boulder from the roadway.

The peasant learned what many never understand: every obstacle presents an opportunity to improve one's condition.

By Brian Cavanaugh: A Cup of Chicken Soup for the Soul: Home Delivery (online)

Pause now and think

Do you make average, usual, predictable decisions? Alternatively, do you believe that a problem found is an opportunity discovered? Can you describe innovations that arose from problems - your own company's problems and your customers' problems? Do your customers consider you as a provider of solutions?

In Chapter 1 we considered the job of the manager and the four functions of management. These were: planning, organising, leading and controlling . The importance of decision making in every area of a manager's job is demonstrated in Table 4.1 which outlines examples of decisions made in the four management functions:

Table 4.1 Examples of decisions in the management functions

Planning

What are the organisation's long-term objectives?
What strategies will best achieve these objectives?
What should the organisation's short-term objectives be?
How difficult should individual goals be?

Organising

How many subordinates should I have report directly to me?
How much centralisation should there be in the organisation?
How should jobs be designed?
When should the organisation implement a different structure?

Leading

How do I handle employees who appear to be low in motivation?
What is the most effective leadership style in a given situation?
How will a specific change affect worker productivity?
When is the right time to stimulate conflict?

Controlling

What activities in the organisation need to be controlled?
How should these activities be controlled?
When is a performance deviation significant?
When should I discipline a problem employee?

Taken from Robbins, S P; Bergman, R and Stagg, I (1997). Management. Sydney : Prentice Hall of Australia, page 181.

The fact that everything a manager does involves decision making does not mean that decisions are always long and involved. Much of a manager's decision making activity is of a routine nature.

Before considering the major models of decision making we will first examine the types of decisions a manager may make. The following textbook reading covers the main areas.

In your text

Bartol, K M; Martin, D C; Tein, M H and Matthews, G W (1998),
pages 125-129.

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