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A manager needs to make effective decision which is made by him by carefully following the  Steps of Effective Decision-Making Process , but during that process he may face barriers / obstacles / difficulties which prevent him in making effective decisions. These are explained below: 1. Psychological Biases 2. Time Pressure 3. Social Realities 1. Psychological Biases This occurs due to emotional biasness of a manager in making decisions. The manager focuses on subjective facts, which are based on personal’s emotional biases, rather than objective facts, which are based on rationality and reality. Psychological biases may include the following: (i) Illusion of Control It is occurred when there is a belief that a person can influence and control the happening of an event, but in reality, he has no control over it. For example, if the manager is taking the high risks (e.g., made heavy investments) and believes that he can control their results, the he is making a bias ...

Answer of MCQ | 6 Steps In Decision-Making Process (DMP) The correct option of this multiple choice question is (a) , as in decision-making process, the first step or phase is to identify and diagnose the problem and not to solve it initially i.e., not just after its identification because the manager needs a deep analysis of root causes of a problem. He needs to follow thorough steps to solve a problem and if he is in hurry, then he may fail to get the desired results or he may be completely failed as may be there are alternative solutions and from these alternatives, one solution is the best to choose and implement to get desired end goals. You May Also Be Interested In  Barriers To Effective Decision Making By A Manager In An Organization Actually, there are 6 steps in decision-making process which are explained below: 1. Identify And Diagnose The Problem This is the first step which is arguably the most important as it sets a base for the manager to work on. If he identifies wr...

Answer of MCQ | What Is Nonprogrammed Decision? The correct options of this multiple choice question is B, as Nonprogrammed Decisions (NPD) are very difficult to take because the possible or desired outcomes are not known. There are lots of choices to choose from them, the one of the best decisions to solve the problem. For example, reorganization, rebuilding process of team management and restructuring of organization are challenges in which difficult decisions are needed to be taken to get the possible results by choosing the best choice from alternatives. The top-management take such decisions as the situations require more analytical skills, knowledge, abilities to make strategic decisions to cope with difficult situations. Characteristics of NPD (i) There is no clear structure to start from. (ii) There is not so much information available to take the right decisions (iii) These are risky and uncertain. Advantages of Nonprogrammed Decisions (i)   Innovation And Crea...

Answer of MCQ | What Is Programmed Decisions (PD) In Management? The correct option of this multiple choice question (mcq) is C, as in Programmed Decisions, there are clear and simple rules, policies, procedures and calculations to be followed for getting desired results / end goals of an organization. Characteristics of PD (a) These are related with daily repetitive routine tasks. (b) There is enough information to make decisions. (c) These are made by middle and front-line managers in daily routine tasks. (d) These are set by top-management for conducting business operations. (e) The decisions to take is simple or complex but the procedure to implement the decisions is very clear or estimated with high accuracy. For example, the decision to give salary to employees on pay scales basis is a programmed decision which is simple to take as there a pay scales system but it may be not be hundred percent accurate. Ordering raw material for manufacturing a product may be complex and critical...

In managerial decisions, there are lots of challenges or difficulties faced by a manager which he can ignore for time being due to uncertainty, risk, conflict and complexity or lack of structure involved in it but major, important and preferable challenges should be addressed, otherwise, the manager is not taking his responsibilities and not following an organization’s mission, goals and objectives, which ultimately leads towards the failure and survival of the organization. Challenges Ignored By Managers are shown below: 1. Time-Consuming Problems If the challenge is very uncertain to solve, it takes lots of time, energy, efforts, money, etc., to solve it. So, he avoids to deal with this particular issue. Once the problem becomes certain, it can be solved easily. For example, during natural disaster such earthquake, the manager faces crisis and has limited or no time to solve all the issues, so he focuses on the most important ones to survive the organization and slowly solve the time...

The understanding of organization’s environment is necessary and very important for top management as an organization can’t work or survive without its environment, both external and internal environment. Importance of Organization’s Environment 1. Provide Resources To run the organization, it needs resources, such as human, raw material, assets, intellectual, etc., from environment which are used to convert inputs (raw material) into outputs (goods / products). For example, a company needs skillful and trained workers and employees to complete the job tasks efficiently and effectively to get desired results such as some employees’ work is to increase sales by marketing campaign, give answers to the questions asked by customers to solve their problems. 2. Increase In Productivity By using efficiently and effectively use of resources, the production of the company increases as professional and trained workers and office staff are hired, advance technology is used, money is used to purch...

The internal environment (IE) of an organization includes organizational culture, values and climate. An organization can directly control, manage and influence its internal environment. 1. Organizational Culture Organizational culture is the set of shared values, beliefs, assumptions, practices, etc., that shapes organizational behavior which influences people’s behaviors working in the organization. It provides guidance to members in following mission, vision, objectives & goals of organization and adopt strategies to achieve goals based on the organization beliefs. For example, if the organization belief is to provide quality service, then based on this belief, strategies are implemented, i.e., professional and skillful workers and employees are hired to provide quality service to customers. It also provides guidance to members during business hour on how to behave with members, customers, stakeholders, etc. For example, how to communicate with customers in order to addres...

The correct option of this multiple choice question (mcq) is A, as in Demographic factor (which is uncontrollable) of organization’s macroenvironmental, people working in organization are divided into groups based on demographic characteristics such as age, gender, education, income, race / ethnicity, region, occupation, Religion, etc. 1. Ages of Workforce If most of the employees are young and energetic i.e., their ages ranges from 15 to 40, then they ca n perform well than the old one because of age factor, the old employees’ health problems arise which is very natural. So, the more the population in country’s economy, the more the younger workforce will be available to do many tasks for the organization. For examples, if most of the labor force consists of young and healthy people in an organization, the more work will be done efficiently and as a result, the more productivity will be. Mere technological equipment is not enough as to run these equipment, young and energetic workforc...