Decisions – Choices made between two or more alternatives
Problem – A Discrepancy between the current state of affairs and some desired state.
Individuals make decisions, choosing from among two more alternatives. Ideally, decision making would be an objective process, but the way individuals make decisions and the quality of their choices are largely influenced by their perceptions. Individual decisions Making is an important factor of behaviour at all levels of an organization.
Decision making occurs as a reaction to a problem. That is, a discrepancy exists between the current state of affairs and some desired state, requiring us to consider the alternative course of action. If your car breaks down and you rely on to get it work, you have a problem that requires a decision on your part. Unfortunately, most problems don’t come neatly labelled. One person’s problem is another person’s satisfactory state of affairs. One manager may view her divisision’s 2 percent decline in quarterly sales a serious problem requiring immediate action on her part. Her counterpart in another division, who also had a 2 percent decline decrease, might consider it quite acceptable. So awareness that a problem exists and that a decision might or might not be needed is a perceptual issue.
Every decision requires us to interpret and evaluate information. We typically receive data from multiple sources that we need to screen, process and interpret. Again, our perceptual process will affect the outcome.