How are decisions in real world organizations actually made? Essay

There are various decision making models in the real world. These decisions are made in different situations which can be stressful or normal business situations. Those who take decisions in an organization are individuals. There are various factors in any organization or group of people that have impact on their development and growths. One of such factors is conflict. This paper discusses various aspects of conflict management and negotiation at workplace. Conflict can be dues to various factors. These factors can be individual factors like attitude, perception, cultural and gender differences and it can be organizational factors like inappropriate allocation of resources, management styles, leadership and type of communication. Figure 2 Decision making processes Bounded Rationality There are various reasons to bounded rationality. These are as follows: common Biases and Errors, anchoring Bias, overconfidence bias, confirmation bias, availability bias, representative bias, escalation of commitment error, randomness error and hindsight bias. Intuition: Intuition can be defined as â€Å"Unconscious decision making process based on experience of the same job or industry. † Individual Differences: Individual differences contribute to individual decision making styles. Organization Constraints: There are various kinds of organizational constraints which are influenced by perception of an individual or group. These are as follows: Performance Evaluation Reward Systems System-imposed Time Constraints Historical Precedents Formal Regulation Cultural Differences This plays very important roles in multi-location or multinational environment. Every place on the earth has some kind of variety and difference attached to it. These differences grow stronger with the distances. These differences can be in appearance, social structure or behavior of an individual. This also contributes to decision making process. How can our perceptions shape ethical or moral decisions? Perceptions shape our ethical and moral decisions. An individual who perceives that dealing unfair with someone is unethical and not right thing to do will take decision in such a way that it benefits its employee. On the other hand a person with self centric approach will think about himself first and will justify it by saying himself a professional. Social capital in an economic sector is determined by the quality and frequency of the relationships between its members, which, some evidence indicates, can vary from region to region according to the socio-cultural evolution of each location. The quality of the relationships, in turn, is affected by the perception of the individuals about their capacity to establish good working relationships with others and perform adequately. Reference: Holloway, R. E. (1977) Perceptions of an innovation: Syracuse University Project Advance. Unpublished PhD Dissertation, Syracuse University. Hutcheson, P. , Pearson, A. W. and Ball, D. F. (1996) Sources of technical innovation in the network of companies providing chemical process plant and equipment. Research Policy 25, No. 1, 25-41. Julie Gatlin, Allen Wysocki, and Karl Kepner2, Understanding Conflict in the Workplace1 retrieved on 21 June 2007 from http://edis. ifas. ufl. edu/HR024 Robbins, Stephen P, 2005 Organizational Behavior, Eleventh Edition, Prentice-Hall