Organizational Decision-Making Act

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An Organizational Decision-Making Act is a group decision-making act that is an organizational task (that instantiates organizational decisioning).



    • QUOTE: Generally there are two levels of decisions in an organization. The first are strategic decisions. These decisions are broad in scope and long-term in nature. As a result they set the direction for the entire company. The second are tactical decisions, which are narrow in scope and short-term in nature. These two sets of decisions are intertwined with strategic decisions being made first and determining the direction of tactical decisions, which are made more frequently and routinely.


    • QUOTE: Before making any decision, the organization has to identify exactly what the problem is. Not identifying the problem could lead to an erroneous decision. The leader of an organization should evaluate the issue with all employees so everyone knows about it, and then make a decision that taps into what's worked before if that decision process is right for solving the issue. This form of decision-making can be made into a computer program with a set pattern of rules to follow in amending a problem.


    • QUOTE: An army’s success depends at least as much on the quality of the decisions its officers and soldiers make and execute on the ground as it does on actual fighting power. A corporation’s structure, similarly, will produce better performance if and only if it improves the organization’s ability to make and execute key decisions better and faster than competitors. It may be that the strategic priority for your company is to become more innovative. In that case, the reorganization challenge is to structure the company so that its leaders can make decisions that produce more and better innovation over time. …

      … In this article we set out the basic principles for reorganizing around decisions. Let’s begin by taking a closer look at the link between decisions and performance. …

      … We used the responses to assess decision quality (whether decisions proved to be right more often than not), speed (whether decisions were made faster or slower than competitors), yield (how well decisions were translated into action), and effort (the time, trouble, and expense required for each key decision). Then we calculated a composite score for each company and compared that score with each firm’s financial performance. (See the exhibit “Rate Your Decision Effectiveness” to learn how your company compares with our sample.)