Cataloging Information
Decisionmaking & Sensemaking
According to Nutt, decisions that fail in organizations can be traced to managers who impose decisions, limit the search for alternatives, and use power to implement plans. Nutt finds that managers who make the need for action clear, set objectives, search for multiple alternatives, and encourage participation from others are more likely to succeed in their decision making. This decision making process first includes noticing signals that question an organization’s effectiveness. Information is then gathered and an assessment is made as to whether or not action is necessary. If action is needed, organizational members must establish direction, identify options, develop a plan, evaluate plans against other alternatives, implement a plan, and assess whether new action needs to be taken. Understanding how the decision making process works can help managers make more reliable decisions and give them the tools they need to evaluate past decisions and target specific areas for future improvement.
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