Issues in the strategic decision making

1) Criteria for decision making:- The process of decision making requires objectivesetting . These
objectives serve as yardsticks to measure the efficiency and effectiveness of the decision making
process. Objectives serve as the criteria for decision making. There are three major viewpoints
regarding setting criteria for decision making.
*concept of maximization
*Concept of incrementalism
*Concept of satisfying
2) Rationality in decision making:- in the context of strategic decision making, rationality means
exercising a choice from among various alternative course of action in such a way that it may lead to the
achievement of the objectives in the best possible manner
3) Creativity in decision making:- A creative strategic decision making process may considerably
affect the search for alternatives where novel and untried means may be looked for and adopted to
achieve objectives in an exceptional manner.
4) Variability in decision making:- It is a common observation that given an identical set of
conditions two decision makers may reach totally different conclusion.
5) Person related factors in decision making:- There are a host of person related factors that play a
role in decision. Some of these are age, education, intelligence, personal values, risk taking ability, and
creativity.
6) Individual verses group decision making:- individuals such as chief executives or entrepreneurs
play the most important role as strategic decision makers. But as organizations become bigger and more
complex, an face increasingly turbulent environment, individuals come together in groups for the
purpose of strategic decision making.