Business Decision Making Essay Example | Topics and Well Written Essays - 1000 words

Business Decision Making - Essay Example It has done extensive market analysis and has been able to put measures of probability on the happening of each of the outcomes. However, these are subjective estimates as there is no past data to rely on. What decision the management of MPL finally takes depends a lot on whether they are risk-averse, risk-neutral or risk-loving. That would decide whether they opt for Maximax, Maximin or Minimax course of action (Jones 2004). Effectiveness of Decision Making Structure Decision making by a business organization is largely dependent on the structure of the decision making body. In a sole proprietorship organization, all decisions are taken by a single person. Hence, the entire decision making process is fast without any time consuming meetings and exchange of opinions. But, such decisions could also be incorrect at times as there are usually no inputs from other people. However, in organizations that have more than one owner, decision making is done through interactions between managin g partners and quite obviously decision making takes a far longer time than it takes in single owner scenarios. But, one must realize that though it is more time consuming, any decision making process that involves more than one person is better than a single person taking decisions. This is simply because while such decisions are taken, several, often differing, perspectives are considered and this aids in arriving at a more balanced decision (Cyert and March 1992). In case of MPL the decision making process is fairly inclusive and democratic in nature. Other than Lee Corbusier and Frank Lloyd, managers of three separate divisions meet once every month to discuss company strategy, market trends and receive departmental reports. This allows managers to micromanage their individual... The author begins with the description of the decision-making model of the company. The author thinks that decision-making by a business organization is largely dependent on the structure of the decision-making body. In a sole proprietorship organization, all decisions are taken by a single person. Hence, the entire decision-making process is fast without any time-consuming meetings and exchange of opinions. But, such decisions could also be incorrect at times as there are usually no inputs from other people. However, in organizations that have more than one owner, decision making is done through interactions between managing partners and quite obviously decision making takes a far longer time than it takes in single owner scenarios. But, one must realize that though it is more time consuming, any decision-making process that involves more than one person is better than a single person taking decisions. This is simply because while such decisions are taken, several, often differing, perspectives are considered and this aids in arriving at a more balanced decision (Cyert and March 1992). In the case of MPL, the decision-making process is fairly inclusive and democratic in nature. Other than Lee Corbusier and Frank Lloyd, managers of three separate divisions meet once every month to discuss company strategy, market trends and receive departmental reports. This allows managers to micromanage their individual departments while corporate decisions are taken by the management team.