Factors affecting Decision Making Macro and Micro Factors ( Total Environment )

You can take some items from this topic  Especially those underlined as an individual factor  Zidan  😜😜😜😜 We can organise the factors affecting decision making into three major groups: Perception Issues Organisational Issues Environmental Issues

Perception Issues:		Perception can be described as the way in which individuals interpret their environment. An individual's perception can influence how they make decisions and solve problems Perception can be influenced by the following: The perceiver The object The situation The Perceiver The perceiver, the individual perceiving the object, will be heavily influenced by their personal characteristics. The types of personal characteristics that can affect an individual's perception include: Background and experience Personal values Personal expectations Personal interests The Object The object, which refers to any person, item or event can have an impact on the way it is perceived. For example, when a manager receives a number of reports to read he may be more inclined to read the one with the most colourful cover as this one stands out. The Situation Time, location and other situational factors can influence our perception of an object. For example, a Team Leader may notice team members who work late on the same evenings as the Team Leader. However, team members who work late on other evenings may not be noticed by the Team Leader.

Issues  within the Organisation:		A number of organisational issues can impact on the decision making process. These issues include: Policies and procedures Organisational hierarchy Organisational politics Policies and Procedures Many organisations have formalised policies and procedures which have been developed to resolve common problems and to guide managers when making decisions. For example, many organisations have documented disciplinary procedures which guide managers through a process of resolving issues with staff members. Organisational Hierarchy Organisational hierarchy refers to the management structure of the organisation. Most organisations have different levels of management which carry with them different degrees of authority. The degree of authority directly impacts on the nature of the decisions an individual can make. For example, a Customer Contact Centre Team Leader cannot make decisions about the overall goals of the organisation. However, the Team Leader can make decisions about how their team contributes to the achievement of the organisation's goals. Organisational Politics Organisational politics refers to behaviour displayed by individuals and groups which is designed to influence others. Individuals and teams will often use politics to: Advance their careers Advance their interests and ideas Increase their rewards Organisations are made up of individuals with different beliefs, values and interests. These differences are often the driving forces behind organisational politics. For example, two teams believe they require an extra team member. Unfortunately the organisation can only afford one new employee. The two teams may well use politics in an attempt to influence their manager to allocate the new employee to their team.

Issues  within the Environment:
		Environmental issues are the external factors that affect the organisation. The types of external factors that can have an effect on decision making include:  The market in which the organisation operates The economy Government legislation Customers' reaction to the organisation's products and services For example, B&B online™ decided to create a new team, B&B for Busy Bodies™ because they believed that a corporate market existed for the bed and breakfast industry.

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