The Importance Of Effective Decision Making - 868 Words

The Importance of Effective Decision-Making Inadequate information, data, and knowledge. For rational decision-making to be accurate, reliable, and complete, information about various aspects of the problem under investigation is necessary. Possible future trends can be estimated with the help of such information. This facilitates rational decision-making. However, adequate and reliable information may not be available at the time of decision-making. As a result, the decisions may become defective or irrational or may prove faulty in the course of time. This is how decisions become irrational. Leader’s choices and actions are the result of the leader’s experiences (Bennis Goldsmith, 1997). Leadership in organizations is driven by uncertainty. How leaders make decisions based on that uncertainty determines the performance of an organization (Hatch, 1997). Decisions are made on the basis of information available about various environmental variables. However, the variables are many and complex in nature. They may be related to political, economic, social, or other unknown variables. It is not possible to study all such variables in depth because of inadequate information or data. This leads to inaccuracy in decision-making. Two variables that drive uncertainty are complexity and speed of change. Both contribute to the state of current and future business environments (Nonaka Takeuchi, 1995). When practitioners apply academic decision-making theories and styles inShow MoreRelatedThe Ethics Of Leadership And How Ethics Produce Effective Leadership1224 Words   |  5 PagesI will examine the importance of personal ethics in leadership and how ethics produce effective leaders in organizations today. The importance of understanding ethics, motivation to act as a role model and developing a plan of action for an organization are discussed because of their importance regarding development of good leadership. 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Thus, the specific findings of the Lewin, Leppit, and White study were not as important as general awareness and sensitivity to the importance of leadership style that they encouraged. Since 1939, several studies on leadership styles have supported the importance of style on group behaviorRead MoreEssay Leading Quietly1678 Words   |  7 Pagesleader should have that I often feel overwhelmed and cannot imagine how achieve these skills. There are many ingredients of effective leadership styles. I have read several books and articles on leadership and management. I have also participated in a few leadership training/education modules offered through my employers. There are many theories on what makes an effective or quiet leader. In the book, leading quietly, quiet leaders see the world as a kaleidoscope rather than a fixed target orRead MoreOrganizational Leadership : An Organization Leader819 Words   |  4 Pageswell-informed, judicious decisions that usually generate favorable outcomes. However, though it is humanly impossible for an organizational leader to be able to make the correct decisions all the time. An effective organizational leader usually makes what is described as a high percentage of successful judgment calls, at the moment when it matters the most (Tichy Bennis, 2007). Tichy and Bennis (2007) also stated that, in the case of an organizational leader, the importance and the outcome of a particularRead MoreA Research Study On Research Methodology1179 Words   |  5 Pagesleadership has disadvantages. The transactional leadership with the attention with the supervision and the reinforcement behaviours of the safety of the workers were shown to be effective in the level of supervision. They provide chance to their employees for give their opinions encouraged them to participate in Decision Making. The transformational leadership functions especially well in the close relations of supervision, compared with more distant relations, and a closer supervision is often more