Decision-making in organisations
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Decision-making in organisations book
Strategic decision-making is concerned with external adaptation. Social situations that can affect organisations constitute the contextual environment. Organisational decision-making is concerned with the structuring of organisations. The conditions necessary for a rational decision-making process are seldom present in organisations. Nonetheless, many organisations seem to function relatively stably. This is because decision-making is embedded in the structure and the culture of the organisation. Strategic decision-making focuses on the organisation’s course of action. Strategic options can be developed properly only if sufficient information is available about the opportunities and threats resulting from the changes in the organisation’s environment. By setting up a project group the hierarchical route is broken and this makes direct and rapid exchange of information possible between the different parts of the organisation. Once current strategy has been established, it must be ascertained whether this strategy contributes in the existing or anticipated circumstances towards good production or service provision and to the survival of the organisation.