Decision-making According to Peter Drucker

Decision-making and Valuation


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Donato ochan Hakim
CEO, South Sudan

Decision-making According to Peter Drucker

Definition of a Decision
A decision is a choice whereby a person performs a conclusion about a situation. This represents a course of behavior about what must or what must not be done. It is the point at which plans, policies and objectives are translated into concrete actions. Planning leads to decisions guided by company policy and objectives and implies the selection from alternative objectives, policies, procedures and programmes.
Peter Drucker
The purpose of decision-making
With decision-making we try to direct human behavior towards a future goal. If there were no alternatives, there would be no need for a decision.

Types of Decision-making
Drucker distinguishes between:
- Tactical decisions and strategic decisions. Strategy can be defined as the behavior of management in trying to achieve success for company goals in an environment of competition. It is based upon the action, or possible action of others. Strategies are solely calculated to implement plans and objectives, bearing in mind all manner of uncertainties, so that an advantageous position is attained over an opponent.
‘Tactical’ decisions are made by management and involve ‘either finding out what the resources are, or what they should be’. These include decisions upon basic objectives and may affect the productivity, organization or operation of the business.
- Organizational decisions and personal decisions. Organizational decisions are those made in the role on an official of the company and reflect company policy.
Personal decisions refer to those made by a manager as an individual and cannot be delegated.
- Basic decisions and routine decisions. Basic decisions are long-range in scope e.g. the location of a factory in development area, or deciding what product to make. Wrong decisions on these matters can be costly. Routine decisions are those which are made repetitively and need little thought.

The process of decision making.
For a proper decision to be reached the following steps must be followed:
• Define the problem to solved
• Find alternative solutions
• Analyse and compare these alternatives
• Select the plan to be followed noting relevant factors
• Make the decision effective – by taking action to put the decision into effect

Influences on Decision-making
It should be noted that, whatever decision criteria are chosen, decisions are affected by:
• The importance of the decision;
• Characteristics of the organization;
• The personality of the decision maker
• His/her state of mind when making the decision


Accountant, Australia

Decision Making is also Impacted by Emotions

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Consultant, India

Factors Influencing Decision Making

Consciousness plays an important part in decision making. According to my experience decision making... Sign up

Management Consultant, India

Decision Making According to Peter Drucker

The decision making is impacted by emotions when we do not take the decision support tools into acco... Sign up

Malik Iqbal Kabir

The Significance of Proper Problem Definition

I agree with Drucker that we need to be assured that before any decision making we should know what'... Sign up

Anand H

Organizational Decision Making Processes

Organizational decision making is a process... But it's a challenge when there are multiple outcom... Sign up

vp unnikrishnan Menon
HR Consultant, India

Emotion as a Factor in Decision Making

There is an emotional dimension in decision-making, no doubt. The decision maker can intelligently u... Sign up

Rev. Matthias A. Idyu
Student (University)

Decision-making According to Peter Drucker

Decision-making in any organization is paramount and necessary. Decision-making is very critical a... Sign up

Consultant, Malaysia

Fact-based Decision Making Reduces Risk

Emotion does play a part in the decisions that we make. But if facts and data are used (for example ... Sign up

Ivan Kohlinsky
Management Consultant, United Kingdom

Problem Defining Stage in Decision Making

@Malik Iqbal Kabir : as regards to 'defining the problem', systems thinkers would say that one shoul... Sign up

eugenio bastianon
Professor, Italy

Selecting the proper Amount of Information in Organizational Decision Making

The search of Shannon (The Mathematical Theory of Communication, 1949) on measuring the amount of in... Sign up

Bernhard Schleidt
Student (MBA)

The Importance of Timing when Making a Decision

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Julius Nyangaga
Consultant, Kenya

Short Term Decisions are More Prone to Errors

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DD Chhaya
Coach, India

Objective Decision Making is a Product of the Subjective Mind

@Dr Sajal Sen: objective is a product of the subjective mind! In order to have objectivity, the subj... Sign up

Deepti Choudhary
HR Consultant, India

Decision Making Must be Rational

Decision makers should base their decisions basis relevant facts and logical evaluation of alternati... Sign up

Consultant, India

Decision Making According to Peter Drucker

Decision making is a choice of one alternative amongst a set of choices available. The pros and co... Sign up

WALTER Pascal, France

Decision Making According to Peter Drucker

Even if there are no alternatives, there is a need for a decision: to solve the problem or to let it... Sign up

Abel Ogundeji

Decision Making According to Peter Drucker is Useful for African Leaders

African leaders should learn from Drucker's decision making process. You will note that the right al... Sign up

Tambe Larry
Student (MBA), Brazil

Decision Making Across Cultures

Decision-making varies across cultures and locations. A more paternalistic society like Africa and t... Sign up

Jagdish Mehta
Entrepreneur, India

Decision Making Process Redefined

It is not always possible to take decisions strictly as a management process. There are times when ... Sign up

Lee Lai Seng
Entrepreneur, Malaysia

The Purpose of Decision Making

@Walter Pascal : Decision making process arises when a person has more than one options, whether org... Sign up

TIENON CELESTIN, Cote Divoire (Ivory Coast)

Feedback Effects in Decision Making

Some decisions when taken have a feedback loops (feedback effects) that can cause them to be more o... Sign up

Per Wickman
Analyst, Sweden

What Influences Decision-making?

I believe the most important influences on decision-making are: • Culture and how we think… • Know... Sign up

Manager, India

Decision Making is also Determined by a Person's Intelligence

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Bornface Chinyuku
Student (University)

Decision-making in the Public Sector

In the public sector many decisions are made basing on their "political correctness". If the decisio... Sign up

Christian Buzane
Lecturer, Mexico

Decision Making Involves us

I agree with most of all the comments presents here... However I believe there is always an opportun... Sign up

Paramathmuni srinivas Kumar

Decision Making Process Redefined

Is decision making an evolutionary process, where we unlearn some of the things of past, and where w... Sign up

TIENON CELESTIN, Cote Divoire (Ivory Coast)

Looping Decision Making Process...

@Srinivas: you're right I'm wondering if there is a conceptual framework dealing with this looping d... Sign up

David Guild
Consultant, Australia

Influences on Decision-making : Stress and Tunnel Vision

Stress plays a huge role in decision making too. When people are stressed, whether it is immediate s... Sign up

tan liong choon
Management Consultant, Singapore

Definition of a Decision: The Role of Delegation and Empowerment

Decision-making is closely tied to empowerment. Everybody makes decisions on a daily basis, i.e. dec... Sign up

Ann Wallace
Business School Marketer, Barbados

Centralized Decision-making in Organisations

@Rev. Matthias A. Idyu: you have made an excellent point. The problem with decision-making in far to... Sign up

Leena Bissoonauth
Student (University), Mauritius

Using Emotions to Improve Decision-making

@McCallum: Indeed decisions are based upong (strong) emotions. And when emotions are not dealt with ... Sign up

Management Consultant, India

Decision Making in Organisations

Decisions are the end result of a complex process of problem solving based on information availabili... Sign up

K R Sethuraman
Professor, Malaysia

Problem-knowledge Coupling for More Appropriate Decisions

Problemistics is a science of problem-dealing and helps in a thorough understanding of the problem t... Sign up

CEO, India

Influences on Decision Making: Biases

It's important you realize that cognitive biases and similar errors can also affect decisions. For e... Sign up

Helmer Pardun, Germany

The Role of the Situation in Decision Making

I think, that by relating "decision making" to "a conclusion about a situation" one shifts the probl... Sign up

Karel V
CEO, South Africa

About the Top Decision Maker in an Organization

I believe it's important to have an agile, intuitive, experienced and intelligent thinker in a final... Sign up

Nick Snowden, United Kingdom

The Problem with Decisions for Wicked Problems

@Malik Iqbal Kabir: I'm sure Drucker was right regarding the need of understanding the problem befor... Sign up

A. Flippo
Business Consultant, Netherlands

Components for Effective Decision Making according to Peter Drucker

As a past student of Drucker's classes, I remember the following as components to "the effective dec... Sign up

Mrs c usha rani
Professor, India

Bottom-up Approach in Decision Making

Decision making is a key function in any organization. At every level, decision making authority is ... Sign up

Belay Gezahegn
Director, Ethiopia

Additional Factors That Affect Decision Making

@Per Wickman: Decision making also depends on the environment we are working in. Participatory leade... Sign up

Teacher, Kenya

Information Sources for Making a Decision

Decision making process is key and inevitable at the workplace. But to make an informed decision you... Sign up

Les Hirst
Project Manager, United States

Emotion and Reason - the Siamese Twins of Decision Making

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jorge anibal hoyos hoyos
Manager, Colombia

Comprehensive Coverage but Long Term, Strategic Effects of Decisions are Missing

I think it`s missing to include the long term effects of the decisions, the strategical map to be co... Sign up

Julius Nyangaga
Consultant, Kenya

Research Decisions, but not Forever

@Nick Snowden: yes, this is a typical problem with those with a strong research background. You inve... Sign up

Mrs c usha rani
Professor, India

Decision Making versus Policies

Decisions at different levels may be flexible and fixed on certain issues. As Drucker said, to make ... Sign up

Ashok Panda
Professor, India

Decision-making is the Prime Aspect of All Human Activities

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Martin Parry
Management Consultant, South Africa

Views by Peter Drucker on Decision-making still Useful

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Management Consultant, South Africa

Decision Making Must be a Group Process

Bureaucratic mindsets must be removed from our minds. In an establishment, decision making must be c... Sign up

Bonginkosi Dlamini
Student (University), South Africa

Decision Making by Peter Drucker

I agree the decision making is a reaction to an event and can be more effective if it is more collab... Sign up

Mohd Norfaizin Bin Hj. Md Salleh AFA (UK)
Director, Malaysia

A Foolproof Art of Decision Making...

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mario ianniello

Rational Decision Making?

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Paramathmuni srinivas Kumar

Decision Making: The Power-issue

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prince henry morrison, Ghana

Additional Factor Influencing Decision Making

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Ivan Kohlinsky
Management Consultant, United Kingdom

Decision Making Has Several Human Elements

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Consultant, India

Decision Making Requires Data of Good Quality

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Bornface Chinyuku
Student (University)

Decision Making Involvement and Participation

@A. Flippo: I agree that situational analysis is key before embarking in the decision making process... Sign up

Alkhaly Mohamed Tahey Conde
Lecturer, Guinea

Problem Definition Before Decision-making

@Malik Iqbal Kabir: You are right to state this clear position. It is crucial to define the issue w... Sign up


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Decision-making and Valuation

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