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Organizational Context of Decisions

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In this article we will discuss about Organisational context of Decisions: Meaning, Definitions and its importance.


Organizational Context of Decisions

Decision making is an important part in business life. It starts beginning of the business what to do, how to do, and for whom it has been done. It helps business to complete its tasks within given circumstances. It means to choose a best way of doing work which consume less time and work has been done with efficient and effective manner.

Decision making is the process of choosing an alternative or best way under given circumstances.

According to Harold Koontz, “Decision making is a process of selection of a course of action from among alternatives; it is the core of planning”.

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According to Richard B. Robinson, “It is a process of choosing a course of action from two or more alternatives”.

Importance of decision making

  1. Better utilization of resources: Resources are the main source of production and those resources are limited. So, organizational decisions helps to use resources for better use and fulfill requirements.
  2. Business growth: Best decisions in organization helps in growth of an organization which helps organization to achieve their common goals with effective use of resources.It helps business to complete its tasks within given circumstances.
  3. Increase efficiency: Decision making is an important part in business life. It starts beginning of the business what to do, how to do, and for whom it has been done and it increases business efficiency.It means to choose a best way of doing work which consume less time and work has been done with efficient and effective manner.
  4. Achieving objectives: Best decisions helps organization to achieve its goals easily and quickly. It helps in selection of suitable course which helps in achieving goal of an organization.Decision-making plays a vital role in management. Decision-making is perhaps the most important component of a manager’s activities which also helps in decision of organisation.
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