It is very important that the management of the organization always takes the correct decisions. The reason is that if a wrong decision has been taken at any level, it can create problems for the whole organization. However it is also true that despite the best efforts of the management, there are certain problems that may arise during the process of decision-making. These problems related with decision making can be described as follows:-
1. The Timing of Decision: A difficulty that is generally faced by the management while taking a decision is related with the timing of the decision. The reason is that it is very important that the decision should be made at the most opportune time. Therefore, deciding the most appropriate time for taking the decision is a problem in itself. The decision will not be effective if it is not taken at the appropriate time.
2. Need for Correct Decisions: The managers are required to decide if the decision taken by them is correct or not. In case the decision is not correct, a lot of time and money will be wasted. It needs to be mentioned that the correctness of the decision depends on the capabilities of the person making the decision as well as on the information available regarding the problem and the analysis of such information. For example if correct facts are not available with the managers, the decision may be based on incorrect premises. Therefore, the premises should be based on the correct problem and they should also be properly analyzed so that a correct decision can be made.
3. Effective Communication: After a decision has been taken by the management of the organization, it is also required that the decision should be properly communicated to all the persons for whom the decision has been taken. For this purpose, the decision needs to be communicated in such a way that it can be easily understood by these persons. On the other hand, if the decision taken by the management has not been properly communicated to all the persons who have the responsibility to implement the decision, the decision will not be implemented effectively and as a result, it will remain on paper only. Therefore, the management has to deal with various communication barriers and communicate the decision properly.
4. Participating in Decision Making: It is considered that the best way to take an important decision is to hear the views of all the persons that are concerned with the decision before making the final decision. By receiving the views of different persons concerned with the decision, a wider viewpoint regarding the problem can be achieved. However, it has been seen that the top level management of the organization takes all the important decisions at its own level and other persons are not allowed to take part in this process. In this way, the authority of taking significant decisions is confined to a few persons only. However, such a situation can create problems in the effective implementation of the decision. While taking a decision, the views of the persons who are going to be directly impacted by the decision should also be considered. Therefore, in order to avoid such a situation, the management should allow all the concerned persons to participate in the decision-making.
5. Decision Environment: The physical and organizational environment also has an impact on the process of decision-making in an organization. In case favorable environment exists for decision-making, mutual understanding and cooperation are also present. The result is that all the decisions are accepted by others in good spirit and in the same way, these decisions are also implemented effectively. At the same time, such atmosphere also allows the scope for creative thinking and research.
6. Implementing Decisions: Sometimes, the management of the organization may also face problems in implementing a particular decision. Therefore, after a decision has been made by the management, it is also equally important that sincere efforts should be made to implement the decision. The managers and their subordinates play an important role in the implementation of the decisions. Therefore, the managers can consult their subordinates or they may also take advice from specialists but the final decision has to be made by the managers themselves. At the same time, it is also the responsibility of the manager to ensure that the decision is being implemented properly. On the other hand, if a decision proves to be unsuccessful, the manager has to face criticism. In this way, the implementation of a decision may also create problems that have to be handled by the managers.