Sub-Problems in Decision Making of Business Management Literature review

Sub-Problems in Decision Making of Business Management - Literature review Example Researchers emphasize on the fact that decision making is simply a rational process or ideology that takes place within any organization. Many studies however, fail to emphasize on the fact that taking a decision involves various stages where formulating a particular decision can take time and effort, and can have multiple variables involved as well. Theorists have developed mathematical models based on averages and probabilities through which alternatives can be evaluated before taking a final decision. These models have been utilized in several industries and in various areas in order to evaluate various alternatives at hand in order to make a decision. In this context, it must be noted that even though these models allow for rational decision making in a scenario where all other variables are constant, environment plays a critical role in how businesses take their decisions. For instance, organizations where dynamism is lacking and munificence is low, it may be noted that decision s may not be as rational as dictated by the mathematical models. ... In this context, this research will particularly emphasize on some problems that are related to decision making within organizations, and evaluate why organizations face these particular problems at hand. In addition to that, the research will aim to identify various ways through which organizations can improve their decision making ability based on the answers ascertained through this research for the hypotheses formulated below. Sub-Problems in Decision Making of Business Management 1. The time and place to use programmed or non-programmed decision making is always a problem in business management. 2. Lack of dynamism affects the decision making and becomes a major problem in business management. 3. Lack of munificence negatively affects the ability of the managers to take risk. Thus affects the decision making in business management. Hypothesis Based on the fact that each organization requires a certain level of decision making at each layer within the hierarchy, following problem s have been identified in general, pertaining to decision making: 1. Mathematical models for decision making are only useful when undertaking rational decision making. 2. Decision making will not be rational if dynamism within an organization is not present. 3. Risk taking within organizations is reduced when munificence is not present within organizations. This leads to lack of rational decision making at each step within the organization. These hypotheses will be tested within the research, after conducting a detailed primary and secondary research, including review of literature and conducting quantitative research as well. Literature Review Decision