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Approaches to Decision Making

Approachesto Decision Making

Approachesto Decision Making

Nearlyall, if not all activities conducted by the organizations requiresthe process of decision making. Decision making in modernorganizations is a rational and coherent process that allows themanagement teams to consider different perspectives and interests inan orderly way until the most optimal option is selected (Shapira,2002). Decision making occurs at all levels of business operationwhere different types of decisions, including programmed decisions,non-programmed decisions, strategic decisions, tactical decisions,and operational decisions) are made. In most cases, significantdecisions made in organizations are not made in isolation, butrequires a network of stakeholder (Krebs, 2008). This paper willprovide a discussion of the decision making in health care facilitythat intends to control the increase in the staffing cost as well asoverheads. The study will focus on approaches of decision making andthe advantages of group decision making.

Strategiesof decision making

Thereare three major decision making strategies, but two of them are morerelevant to the scenario considered in the present study. First,under the rational model, managers of the health care facility areexpected to be rational by making decisions that are logical andobjective (Robbins, DeCenzo &amp Coulter, 2011). This means that thehospital managers should make consistent and logical choices thatwill maximize value for their organization. This strategy assumesthat the managers (decision makers in this case) have all thenecessary techniques and tools to help them make rational choices. Byrational means that the selected alternatives should lead to theachievement of some pre-determined objective, such as a reduction inthe cost of staffing.

Secondly,managers in the health care facility will be expected to useintuitive decision making strategy to help them in reducing the costof staffing and overheads. According to Robbins, DeCenzo &ampCoulter (2011) intuitive decision making refers to the process ofmaking choices on the basis of the feelings, experience as well asthe accumulated judgment of the decision makers. This process shouldinvolve five aspects of decision making, including the subconsciousmental processing, value-based decisions, experience-based choices,affect-initiated decisions, and cognitive-based decisions. Thisstrategy allows the managers to use their past experience and uselimited information to make decisions quickly. This will help themanagement team of the health care facility to control the escalatingcost within a short time.

Groupdecision making

Thehealth care facility will get four advantages by adopting groupdecision making as opposed to individual decision making. First,members of the decision making group will provide completeinformation, which will to a decision that captures diverseperspective and experiences (Robbins, DeCenzo &amp Coulter, 2011).Secondly, the involvement of more people in the decision makingprocess will lead to the generation of more alternatives. Third, theinvolvement of more people in the decision making process willenhance the acceptance of the selected alternative. Fourth, the groupdecision making approach will enhance the legitimacy of the decisionsince the group approach complies with the ideals of democracy.Although the group decision making approach has many advantages, thehealth care organization should aware of potential disadvantages,including time consumption, domination by a minority, pressure toconform, and ambiguous responsibility (Robbins, DeCenzo &ampCoulter, 2011). Despite the presence of these disadvantages, groupdecision making is the most appropriate strategy for the health careorganization.

Inconclusion, decision making is a process that cannot be avoided byorganizations. The rational model and intuitive decision making arethe most appropriate strategy that organizational managers should usein making decisions. The group decision making strategy helpsorganizations in addressing specific challenges more effectively thanindividual decision making.

References

Krebs,V. (2008). Decision making in organizations. Orgnet.com.Retrieved April 16, 2014, from http://www.orgnet.com/decisions.html

Robbins,P., DeCenzo, A. &amp Coulter, M. (2011). Fundamentalsof management: Essential concepts and applications (7 th ed.). UpperSaddle River: Prentice Hall.

Shapira,Z. (2002). Organizationaldecision making.Cambridge: Cambridge University Press.