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Donato ochan Hakim
CEO, South Sudan
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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.
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
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McCallum
Accountant, Australia
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Decision Making is also Impacted by Emotions
Decision making is impacted by emotions and the personality of the decision maker. For example many people admit that un...
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V SHRIDHAR
Consultant, India
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Factors Influencing Decision Making
Consciousness plays an important part in decision making. According to my experience decision making is affected by expe...
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DR SAJAL SEN
Management Consultant, India
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Decision Making According to Peter Drucker
The decision making is impacted by emotions when we do not take the decision support tools into account. I feel a decisi...
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Malik Iqbal Kabir
Bangladesh
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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's the real problem i...
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Anand H
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Organizational Decision Making Processes
Organizational decision making is a process...
But it's a challenge when there are multiple outcomes and dynamic varia...
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vp unnikrishnan Menon
HR Consultant, India
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Emotion as a Factor in Decision Making
There is an emotional dimension in decision-making, no doubt. The decision maker can intelligently utilize his emotions ...
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Rev. Matthias A. Idyu
Student (University)
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Decision-making According to Peter Drucker
Decision-making in any organization is paramount and necessary.
Decision-making is very critical at all levels of orga...
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Anthony
Consultant, Malaysia
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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 using business intel...
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Ivan Kohlinsky
Management Consultant, United Kingdom
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Problem Defining Stage in Decision Making
@Malik Iqbal Kabir : as regards to 'defining the problem', systems thinkers would say that one should look at the proble...
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eugenio bastianon
Professor, Italy
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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 information is essenti...
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Bernhard Schleidt
Student (MBA)
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The Importance of Timing when Making a Decision
One aspect of decision making has been neglected so far: WHEN is the decision required to be effective? (Editor: compare...
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Julius Nyangaga
Consultant, Kenya
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Short Term Decisions are More Prone to Errors
- Long term decisions can be taken through a structural process, where it is easy to demonstrate the options there were ...
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DD Chhaya
Coach, India
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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 subjective mind of the d...
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Deepti Choudhary
HR Consultant, India
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Decision Making Must be Rational
Decision makers should base their decisions basis relevant facts and logical evaluation of alternatives. We need rationa...
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kvssiyer
Consultant, India
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Decision Making According to Peter Drucker
Decision making is a choice of one alternative amongst a set of choices available.
The pros and cons of or consequence...
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WALTER Pascal, France
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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 and make no decisio...
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Abel Ogundeji
Consultant
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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 alternative may not be...
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Tambe Larry
Student (MBA), Brazil
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Decision Making Across Cultures
Decision-making varies across cultures and locations. A more paternalistic society like Africa and the Latin Americas re...
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Jagdish Mehta
Entrepreneur, India
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Decision Making Process Redefined
It is not always possible to take decisions strictly as a management process.
There are times when we bypass all the le...
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Lee Lai Seng
Entrepreneur, Malaysia
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The Purpose of Decision Making
@Walter Pascal : Decision making process arises when a person has more than one options, whether organisational or perso...
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TIENON CELESTIN, Cote Divoire (Ivory Coast)
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Feedback Effects in Decision Making
Some decisions when taken have a feedback loops (feedback effects) that can cause them to be more or less effective. I'...
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Per Wickman
Analyst, Sweden
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What Influences Decision-making?
I believe the most important influences on decision-making are:
• Culture and how we think…
• Knowledge
• Methods
...
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KISHOR KUMAR
Manager, India
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Decision Making is also Determined by a Person's Intelligence
It is the intelligence of a person that allows her/him to make an decision (that fits ) to the situation....
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Bornface Chinyuku
Student (University)
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Decision-making in the Public Sector
In the public sector many decisions are made basing on their "political correctness". If the decision choice is not in s...
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Christian Buzane
Lecturer, Mexico
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Decision Making Involves us
I agree with most of all the comments presents here... However I believe there is always an opportunity to choose, wethe...
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Paramathmuni srinivas Kumar
India
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Decision Making Process Redefined
Is decision making an evolutionary process, where we unlearn some of the things of past, and where we relearn and adapt ...
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TIENON CELESTIN, Cote Divoire (Ivory Coast)
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Looping Decision Making Process...
@Srinivas: you're right I'm wondering if there is a conceptual framework dealing with this looping decision making proce...
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David Guild
Consultant, Australia
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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 stress or prolonged s...
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tan liong choon
Management Consultant, Singapore
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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. decision-making is seen...
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Ann Wallace
Business School Marketer, Barbados
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Centralized Decision-making in Organisations
@Rev. Matthias A. Idyu: you have made an excellent point. The problem with decision-making in far too many organisations...
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Leena Bissoonauth
Student (University), Mauritius
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Using Emotions to Improve Decision-making
@McCallum: Indeed decisions are based upong (strong) emotions. And when emotions are not dealt with in a constructive wa...
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PratapachandranK
Management Consultant, India
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Decision Making in Organisations
Decisions are the end result of a complex process of problem solving based on information availability, urgency, experti...
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K R Sethuraman
Professor, Malaysia
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Problem-knowledge Coupling for More Appropriate Decisions
Problemistics is a science of problem-dealing and helps in a thorough understanding of the problem to be solved. It has ...
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Handa
CEO, India
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Influences on Decision Making: Biases
It's important you realize that cognitive biases and similar errors can also affect decisions. For example when:
a) The...
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Helmer Pardun, Germany
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The Role of the Situation in Decision Making
I think, that by relating "decision making" to "a conclusion about a situation" one shifts the problems to the "definiti...
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Karel V
CEO, South Africa
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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 decision-making pos...
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Nick Snowden, United Kingdom
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The Problem with Decisions for Wicked Problems
@Malik Iqbal Kabir: I'm sure Drucker was right regarding the need of understanding the problem before deciding on a solu...
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A. Flippo
Business Consultant, Netherlands
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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 decision":
1. What hap...
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Mrs c usha rani
Professor, India
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Bottom-up Approach in Decision Making
Decision making is a key function in any organization. At every level, decision making authority is vested to certain ma...
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Belay Gezahegn
Director, Ethiopia
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Additional Factors That Affect Decision Making
@Per Wickman: Decision making also depends on the environment we are working in. Participatory leadership, for instance,...
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JEREMIAH MUNENE
Teacher, Kenya
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Information Sources for Making a Decision
Decision making process is key and inevitable at the workplace. But to make an informed decision you must have relevant ...
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Les Hirst
Project Manager, United States
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Emotion and Reason - the Siamese Twins of Decision Making
Western dichotomous thinking asks us to decide which is most valuable in good decision-making. Wise men in any culture k...
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jorge anibal hoyos hoyos
Manager, Colombia
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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 considered in beforeha...
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Julius Nyangaga
Consultant, Kenya
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Research Decisions, but not Forever
@Nick Snowden: yes, this is a typical problem with those with a strong research background. You investigate the problem ...
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Mrs c usha rani
Professor, India
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Decision Making versus Policies
Decisions at different levels may be flexible and fixed on certain issues. As Drucker said, to make decision effective, ...
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Ashok Panda
Professor, India
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Decision-making is the Prime Aspect of All Human Activities
A human being is a lovely outcome of a spiritual imagination. We take help of knowledge by books and experience. What ha...
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Martin Parry
Management Consultant, South Africa
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Views by Peter Drucker on Decision-making still Useful
I still think Peter Drucker's views are valid and insightful. Decision-making remains one of the key skills in any organ...
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Lesele
Management Consultant, South Africa
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Decision Making Must be a Group Process
Bureaucratic mindsets must be removed from our minds. In an establishment, decision making must be conducted by a group ...
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Bonginkosi Dlamini
Student (University), South Africa
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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 collaborative and particip...
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Mohd Norfaizin Bin Hj. Md Salleh AFA (UK)
Director, Malaysia
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A Foolproof Art of Decision Making...
Decisions are basically the essence of our daily life:
- Those who strongly believe in fate will say that things are al...
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mario ianniello
Italy
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Rational Decision Making?
Beware of "rationalists" approaches. There is plenty of literature on how muddy and non-linear decision making processes...
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Paramathmuni srinivas Kumar
India
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Decision Making: The Power-issue
I agree that the "power-issue" cannot be ignored. The person weilding power and making decisions needs to have attained ...
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prince henry morrison, Ghana
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Additional Factor Influencing Decision Making
@V SHRIDHAR : I agree with your submission. I believe that the availability of resources (such as time, capital and the ...
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Ivan Kohlinsky
Management Consultant, United Kingdom
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Decision Making Has Several Human Elements
I agree that emotions, culture and, rightly or wrongly, sometimes acceptability overlay any rational scientific process....
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kvssiyer
Consultant, India
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Decision Making Requires Data of Good Quality
Decisions are made at every moment and every situation demands a decision of one sort or the other. Sometimes decisions ...
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Bornface Chinyuku
Student (University)
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Decision Making Involvement and Participation
@A. Flippo: I agree that situational analysis is key before embarking in the decision making process.
Besides that, ess...
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Alkhaly Mohamed Tahey Conde
Lecturer, Guinea
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Problem Definition Before Decision-making
@Malik Iqbal Kabir: You are right to state this clear position. It is crucial to define the issue well before jumping i...
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