by Planning and decision-making are the most important managerial functions, and there are many relations between them. Planning is thinking of doing. Decision-making is a part of planning. Planning is the process of selecting a future course of action, where Decision-making means selecting a course of action.
Decision-making is defined as the process by which different possible solutions or alternatives are identified and the most feasible solution or course of action is finalized. It is an integral part of planning. Decision-making results in selecting the right action among different available options.
It is also one of the important management functions and effective decision-making leads to fulfilling expected goals by sorting out different problems related to such decisions. Decision-making is also a time-bound process and eliminates confusions to reach a conclusion. It has a minimum of two or more alternatives or solutions to a problem so that the best can be decided. If only one alternative is available, then there is no requirement of decision-making.
Relation Between Planning and Decision-Making
Both planning and decision-making are connected to each other. These are the most important aspects of management functions. Planning requires a series of decisions to be incorporated in advance. The foundation of planning is decision-making. The role of a planner demands good decision-making abilities also as the planner has to take a lot of decisions simultaneously. So, decision-making is an important task in planning. Simultaneous and a number of decisions make a plan. In the absence of decision-making, it’s not possible to answer what, how, when, and who is planning. To execute planned activities, decision-making is compulsory.
Different characteristics of decision-making:
- Process-oriented
Decision-making consists of a process to choose the best solution to a problem among available alternatives. The process includes identifying and analyzing problems, collecting different facts and figures, finding different solutions, and, finally, narrowing down and implementing the best one to meet organizational goals.
- Demands creativity and Intellectual mind
Decision-making process requires creativity and logical thinking. It demands a lot of mental exercise and other components, i.e. education, experience level, intelligence, etc.
- Demonstrates commitment
Decision-making process ensures better results based on the decisions made. So, it indicates the commitment of desired results. It requires joint efforts of the team.
- Ensures the best solution
Decision-making also provides the best solution to any problem as the best solution is decided after evaluating different available alternatives.
- Impacts of decision-making
Decision-making can be either positive or negative. A positive or right decision can bring positive results and negative or wrong decisions can bring negative results.
- Decision-making is a final process
After disbursing different activities and tasks, decision-making takes place to get the results of the work done. It is the end result of discussions, comparisons, etc.
- An ongoing and changing process
Organizations take decisions on a regular basis; so, decision-making is a continuous process. Every decision consists of separate situations that make decision-making a changing process.
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