What is the problems in Decision making?

1. Ascertaining the Problems: According to Peter Drucker Point of View "The most common source of mistakes in the management decisions is the emphasis on finding the right answers rather than the right question's." The main task is to define the actual problem very clearly. The management may find out the problem as the "Quality of the product is Poor". But actually Quality of the product is too Better as compare with competitors product. the real problem is maybe somewhere else. For Example: - The Problem may be the Poor quality of the product and you thinking to improving the quality of the advertising.


2. Insufficient Knowledge: For relevant decision, Decision maker need total information about problem and its alternative solution for the decision making, if complete knowledge is not study by the decision maker. Decision maker fail to make a rational decision so, An important function of a manager/decision maker is to determine the dividing line is reached between insufficient knowledge and the enough information to make a decision.


3. Not Enough Time to be Rational: In Any business organisation a decision maker in under pressure to make decision, If time is limited, He/she may make hasty decision. Which may not satisfy the test of rationality of decision. 


4. The Environment may not cooperate: Sometimes, the timing of the decision is such that one is forced to make decision but the environment is not conductive for it. The decision may fail to test of rationality as the environmental factors considered in the decision-making turn out to be untrue. For Example:- In the Product Pricing, the factors of oil and petroleum product price is considered as stable. but the post-decision environment proves the consideration to be wrong.  


5. Other Limitations: Other Limitation are the need for a compromise among the different positions, Misjudging the monitor and values of people, Poor communications, Misappraisal of uncertainties and risks, and inability to handle the available knowledge and human behavior. 

Problems in Decision Making from Management Study online

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