Organizational Decision-Making and Information: Angel Investments by Venture Capital Partners Abstract: We study information aggregation in organizational decision-making for the nancing of entrepreneurial ventures. As such, decision making process can be further exemplified in the backdrop of the following definitions. The present paper will address decision making, in the context of types of decisions people make, factors that influence decision making, several heuristics commonly researched and utilized in the process of decision making. As a result they set the direction for the entire company. Decisions making in organization occurs at all levels. The messiness comes, in part, because speed and buy-in are competing factors. The Oxford Handbook of Organizational Decision Making comprehensively surveys theory and research on organizational decision-making, broadly conceived. In all organizations, managers make decisions using both rational and intuitive processes, but organization-level decisions are not usually made by a single manager. Generally there are two levels of decisions in an organization. These multiple perspectives may further our understanding of organizational decision making.
While it can be argued that management is decision making, half of the decisions made by managers within organizations ultimately fail (Ireland & Miller, 2004; Nutt, 2002; Nutt, 1999). In addition to the rational decision making, bounded rationality, and intuitive decision-making models, creative decision making is a vital part of being an effective decision maker. Decision trees tend to be helpful in guiding the decision maker to a predetermined alternative and ensuring consistency of decision making—that is, every time certain conditions are present, the decision maker will follow one course of action as opposed to others if the decision is made using a decision tree. We have found that many leaders tend to confuse decision rights with organizational structure, process, and workflow, mistakenly assuming that the design of roles or work processes will also adequately define the organization’s decision-making practices. Decision making refers to making choices among alternative courses of action—which may also include inaction. Creativity is the generation of new, imaginative ideas. Organizational decision making is about more than the processes and data (as important as they are), it is also about the speed with which the decision must be made and how important it is that people are ready to comply, act and implement that decision. It draws from the tradition of Herbert Simon, who studied organizational decision making's pervasive use of bounded rationality and heuristics of reasoning. Decision making in organizations is often pictured as a coherent and rational process in which alternative interests and perspectives are considered in an orderly manner until the best choice is selected. In general, the decision making process helps managers and other business professionals solve problems by examining alternative choices and deciding on the best route to take. Using a step-by-step approach is an efficient way to make thoughtful, informed decisions that have a positive impact on your organization’s short- and long-term goals.