Saturday, September 20, 2008

Week 4: Have to be careful while taking DECISIONS

Decisions

Gosh can you imagine how often we make decisions. We don’t realize how frequent in our day to day life decisions are taken. Similarly in an organization decisions are taken at different levels such as top level, middle level and lower level. The employees at lower level would be foremen, labors etc, at this level decisions are taken most frequently but their decisions do not have major impact on the organizations growth or economy. Where as the decisions made at top level have a very strong impact on the whole organization and every individual involved with it. The top level would be the upper management such as CEO’s, managing directors etc the frequency of decisions taken at this level is not very frequent While taking decisions at this level one has to consider all the constraints because any mistake in taking decision here would lead to major damage to the whole organization.

Information Flow

Correct information flow is important in any institute or organization. It will help the organization run smoothly and function well if there is effective information flow. I would take an example of concurrent engineering which is a concept of Design for Manufacturability. In concurrent engineering it is required that all the various functions involved in product making work together. For example the manufacturers, design team, quality and testing team, production team, human factor, marketing team etc should all work together and provide information concurrently. The main reason for the introduction of this concept was lack of information flow and the fact that there was no proper communication between the various functions of an organization during the product development. As a result of which there was product failure, increased cost, company not being able to deliver product in time etc. Concurrent engineering helps in effective communication and information flow right from the beginning till the end which helps the company function better achieve deliverables.

2 comments:

Mansoor said...

Decisions form a major part of our daily life, be it at work or otherwise. We have to take some decisions in a micro second while other can be taken over different periods of time. At work the hierarchy means that different employees have to take different decisions. As the level goes up so does the intensity of the decision. The more powerful your position, the more the magnitude of your decision. However, in an organization taking a decision means your problem has been processed at different levels and each decision changes the direction of it. Most probably the decision taken by you will lead to another decision at a higher level. So, for taking the right decision the information processing should be reliable as one wrong step can set a chain reaction.

charlemagne said...

I think that most buseiness-minded individuals would concur that the most influential or prominent day to day decisions do occur in the upper corporate structure; certainly above the regional or divisional wings, etc.... Still, a neglect of the decisions that occur below those levels will be significant, even detrimental depending on the spread of the problem.
But, as was noted, a free and continuous flow of communication between levels and divisions, positions and heirarchy, will help to reduce the fracture between low and high level employees.