Individual Differences and Organizational Constraints Influencing Decision Making

Individual Differences and Organizational Constraints Influencing Decision Making:-

Individual Differences and Organizational Constraints Influencing Decision Making:- A.Individual differences:- 1.Physical Differences 2.Gender 3.Mental Ability 4.Personality 5.Cultural Diversity 6.Other differences B. Organizational Constraints:- 1.Time Constraints 2.Reward Systems 3.Performance Appraisal 4.Historical Precedents 5.Formal Regulations 6.Other Constraints C.Frequently Asked Questions D.Conclusion

Individual Differences and Organizational Constraints Influencing Decision Making:-

Decision making is task of choosing best alternative of action among various available alternatives. It is the managerial tasks of selecting particular course of action or plan to solve organizational problems.

It is the vital task of management. It is best logical and scientific method of choosing best course of action. Every organization runs through proper decision making. Current decision making would shape what will be the future of organization. Decision making is influenced by organizational constraints and individual differences.

A.Individual differences:-

Individual differences influence the perception. It means impact of individual differences can be seen in decision making. Individual differences mean people's dissimilarities. Individual differences can be observed according to age, gender, features, races, social class, culture, society and mental abilities.

1. Physical Differences:-

Physical differences also influence the decision making. Physically strong, healthy and capable person can perceive anything faster and they can predict results of actions. So, they can take risk and make quick responses. They make decision faster and try to enforce decisions perfectly.  Physically weaker people take more time to make decisions and understand problems.

2.Gender:-

Women take more to make decision in comparison of male. Women search more reasons and logics. They take more time to evaluate and develop alternative course of action and select best course of action. They take lower risks in comparison of men. Women are more sympathetic and problem oriented in nature. They give more value to past experience while making decisions. Sometimes, more thinking before taking decision would take toward delay in decision making.

3.Mental Ability:-

It is related to power to learn knowledge and retain knowledge. The people with higher mental ability have high memorizing, analyzing, understanding and reasoning power. They perceive problems faster, develops alternative course of actions and select best course of action faster. Their decisions are less defective. Other hand, people having lower metal ability understand problem slowly and they make decision slowly too.

4.Personality:-

The stable distinctive feature of person which makes him different from other is known as personality. Personality shapes how person reacts at certain situation. Personality influences on personal mental ability of evaluating problems, predicting outcomes of alternatives and choosing best course of action. Personality influences on the perception. Perception influences the decision and behavior of person. It also influences social relations. People have two types of personalities. These are faithful and accomplishment oriented. Faithful people are honest, fair, workaholic and equality based in decision making. Accomplishment oriented people are not fair. They take risk and response fast in decision making.

5.Cultural Diversity:-

Cultural diversity influences the decision making. It is because people are different and they have different belief, norms, attitudes, opinions and values. These differences influence perception and decision making. Cultural background influences way of problems finding, developing alternatives, choosing right time, searching logics, problem solving, and valuing collective decision. Korean and Chinese people assume working 16 hours is their great contribution for nation while European people think its labor exploitation.

6. Other differences:-

Differences in intelligence, attitudes, ethnicity, economic status, interests and emotions also influence the perception, behavior and decision making capacity directly or indirectly.

B.Organizational Constraints:-

Organizational constraints are related to high job turnover, higher sentimental tiredness, higher fatigue, lower loyalty and less job satisfactions. Constraints of organizational decision making are such as:-

1.Time Constraints:-

Decisions are to be made within certain time frame in organization. Decisions are to be made within time frame to face rapid competition and fulfill customer's requirements in time. All valuable alternatives are come with certain time limitations. It keeps pressure to decision makers. It would be difficult to recognize problems, collect information about problems, developing alternative course of action, predicting probable results of alternative and selecting best alternative within time frame.

2.Reward Systems:-

Reward systems influence the decision making in organizations. For example:- If organization rewards risk aversion mangers, then mangers would take conservative decisions. If organization rewards innovative mangers, then, managers try to do new thing, challenging thing and creative tasks.

3.Performance Appraisal:-

Performance appraisal influences the decision making. For example, a bank decides to increase profit 20% anyhow each year, then branch managers decide to provide loan aggressively and they conduct recovery program aggressively. They focus more on lending and recovery anyhow than complying other loan and recovery related regulations and guidelines.

Performance appraisal form gives more score weight to performance than other things, employee makes decisions related to making performance better than others.

4.Historical Precedents:-

Decisions are made within certain context. Some references are taken before making decisions which can be said precedents too. Past decisions or examples can be taken as precedents too. These work as evidence and guidelines for making current decisions. So, current decisions can be taken as consequences of past decisions making.

5.Formal Regulations:-

Organizations have developed rules, policies, regulations and circular for shaping the employee behavior. These are supporting employee to get high level performance through predetermined guidelines. This assists employee to perform job without more experience. But these formal regulations restricts decision makers from using available all alternatives, it just provides limited or predetermined few alternatives.

6.Other Constraints:-

Budget constraints, resource constraints, technological constraints, cultural constraints, political constraints etc also influence perception, behavior and decision making of organization.

Frequently Asked Questions

1.Explain Individual Differences and Organizational Constraints Influencing Decision Making. 2.Explain Individual Differences influencing Decision Making. 3.Explain Organizational Constraints Influencing Decision Making. 4.How individual differences and organizational constraints affect decision-making? 5.How do individual differences affect decision-making? 6.How do individual differences and organizational constraints influence decision-making? 7.What are the influences of organizational constraints on decision-making?

Conclusion:-

There is relationship of decision making with individual differences and organizational constraints. These influence directly and indirectly to decision making. Organization which properly understands individual differences and organizational constraints and try to adjust these can run longer and achieve objective properly.