Decision Making

Abstract

Decisions are choices. Decision making is the essence of management. Managers make decisions every day and the practical implications of such decisions are key to the success of the company. After reading this chapter, managers, or those who are preparing to be managers, should be better able to do the following: (1) understand the extent to which such organizational characteristics as structure or technology affect decision making, (2) see why the complexity of task environments determines the decisions being made by managers, (3) define and manage certain strategic organizational capabilities such as learning or absorptive capacity, (4) think about cognitive and non-cognitive human capital characteristics that play a role in decision making, and (5) be aware of the impact of culture on decision-making processes. Understanding these aspects will help you develop a deeper understanding of the role and importance of decision making, not only in the domestic market but also internationally.