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Organizational restraints on decision makers

Discuss some of the ways in which an organization constrains decision makers.

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Managers are strongly influenced in their decision making by the criteria by which they are evaluated. The organization's reward system influences decision makers by suggesting to them what choices are preferable in terms of personal payoff. Rules, policies, procedures, and other formalized regulations standardize behavior of organizational members. By programming decisions, organizations are able to get individuals to achieve high levels of performance without paying for the years of experience that would be necessary in the absence of regulations. Organizations impose deadlines on decisions. These conditions create time pressures on decision makers and often make it difficult, if not impossible, to gather all the information they might like to have before making a final choice. Decisions have a context. Decisions made in the past are ghosts which continually haunt current choices. Choices made today, therefore, are largely a result of choices made over the years.

Performance evaluations can be a major constraint on decision makers due to the amount of influence a performance evaluation can have on a manager (Robins & Judge, 2008, p 64). For example, when ...

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Ultimately, when an organization's decision makers fail to make the proper decision for the business that business could be affected in a negative manner. This could be considered a deviation of the rational model, which has six steps: define the problem, identify the decision criteria, allocate weights to the criteria, develop the alternatives, evaluate the alternatives, and select the best alternative.