Generally decision-making is considered as a problem for many decades. Due to the technology innovation, so many types of business and entrepreneurs have emerged . Nowadays the number of decisions are increasing and the percentage of good decisions is at an unacceptably low level. It is apparent that the approach we use for decision-making is not updated and in today’s world it is totally unacceptable.
The Tera data Report decision making shows that 70% of the respondents consider the poor decision-making as a serious problem for business. The poor decision making affects the organizations profit, company reputation, long-term growth, employee morale, productivity and revenue. But 75% of the senior executives of the top companies accept that, the number of daily decisions is keep on increasing.
The History shows that, the direct labor is used to dominate both the number of workers employed and the percentage of payroll. However today, the white collar employees dominate the payroll cost. If the number of decisions being made is increasing with the number of people making the decisions then, they are referred as the successful and good decision making organization.
It is obvious that, if the decision made by the organization fails at most of the time then the organizations should pay a very close attention to the quality of their decisions. If the decision is wrong, then the entire organization gets affected. Thus the decision-making has become a very hot topic for the leaders across the country and throughout the world.
The decision-making, is even more challenging today and there are many factors to be considered before making the decision. They are,
1. The TMI or Information Overload: A survey by Reuters found that 43 percent of the important decisions were delayed and their ability to make decisions are affected as a result.
2. Change: The rate of change in our world is always increasing, so we are forced to make decisions about moving targets.
3. Rising Uncertainty: There are many Discontinuities and uncertainties before making a decision.
4. Few historical precedents: The Virtual organizations and the digital revolution are so new to the historical methods.
5. More frequent decisions: The Decisions used are to be handled by the standard operating procedures and have to be customized for each relationship.
6. Conflicting goals: The battle between short term and long term goals grows more stronger.
7. Miscommunication: The Instant access with the Internet and continuous access with cell phones makes communication constantly available but the cross functional and international endeavors provide more opportunities for misunderstanding.
8. Fewer opportunities to correct mistakes: Today’s technical environment provides only less time to correct the mistakes and reestablish credibility.
Most of the books and reports have done an excellent job of defining the problem and increasing awareness of this growing dilemma. The time has come to recognize that our traditional method of decision-making is not adequate in today’s world and we have to begin the process of establishing a new approach that will produce better results which calm down the growing crisis.