DEJ 12

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The Principles of Managment article explores the decision-making process, emphasizing its importance in management and identifying different decision-making models used within organizations. Although decision-making is essential to management, studies reveal that about half of managers’ decisions ultimately fail, underscoring the need for improved decision-making strategies (Ireland & Miller, 2004). The article differentiates between programmed and nonprogrammed decisions: Programmed Decisions: Routine decisions that recur frequently, leading to “decision rules” (e.g., giving a free dessert to dissatisfied customers). Nonprogrammed Decisions: Unique, complex decisions that require careful thought and information gathering (e.g., McDonald’s offering healthier menu options). Decision-making is further divided into strategic, tactical, and operational levels. Strategic decisions set the organization’s overall direction, tactical decisions focus on implementing strategies, and operational decisions manage daily functions. The article integrates ethical questions as a crucial part of decision-making. It suggests assessing decisions by asking if they are fair, align with organizational rules, and lead to positive self-reflection (Blanchard & Peale, 1988). The relevance of these frameworks today is evident in complex, high-stakes decisions, such as those involving corporate responsibility, data privacy, and crisis management. This article’s insights on decision-making underscore the importance of balancing efficiency with ethics, a priority for today’s managers in an increasingly complex business environment.