Factors Affecting Decision Making

Factors Affecting Decision Making

There are some factors which affect decision making negatively. They are also called as problems in decision making.

1.   The decision taken by management should be sound one. The soundness of the decision refers to its quality and reliability. If the decisions taken are not sound then it will mean waste of efforts and funds. The soundness of decision depends upon the sophistication of the decision maker, the information available to him and the techniques that he can make use of.

2.   Another problem is timing of decision. If not properly timed, there is no use in taking a useful decision.

3.   The physical and psychological environments have their influence on decision making. If the environment is satisfactory then there will be co-operation, proper understanding among the members of the organisation. It will provide better scope for research and analysis.

4.        Effective communication of the decision is another important administrative problem of the management. Decisions taken should be clear, simple and unambiguous. Decisions made should be communicated to the concerned persons in the language understandable by the receiver.

5.   All members of an organisation should be encouraged to give their opinion on various aspects while arriving at important decisions. In most cases the top executive will not get opinion from the low rank executive because they think it is below their dignity. But this is not a good practice.

6.   Some decisions taken by the top management is not accepted by the subordinates, hence democratic style of leadership is required to deal with such kind of employees and making them participative in the decision making process.

7.        Just making correct decision will not solve the problem. Implementation of the decision and periodical review alone can produce the expected results.