Effective Decision Making Process and its Impact on Strategic Planning Process: A Case Study of Nigerian Oil Industry

Stanley Chiedozie Nwosu

 DOI : https://dx.doi.org/10.18535/ijmei/v4i1.01

 

INTRODUCTION

One of the most critical activities of any manager is making strategic decisions. Decision making process of management is the process whereby a manager is placed in a position where it is necessary to choose between two or more alternative courses of actions in a bid to accomplishing organization’s objectives (Rutherfold-Silvers, 2008). Managers are often charged with the responsibility of making programmed routine decisions that are usually outlined in the organization’s policy. They as well make unscheduled strategic decisions, emanating from the organization’s strategies which are interrelated to their business environment.

Dragamir (2012), states that most of the decisions that are made by management of organizations are usually taken under the influence of certain environmental constraints that may be external or internal. Pimentel, Kuntz and Elenkov (2010) are of the opinion that as the environment is relatively dynamic with relative shortage of information; the decision of management can be made under certain, uncertain and risky conditions. Decisions that are usually made under conditions of uncertainty and unprecedented risks are characterized by complex, unstructured and unplanned challenges or problems which directly affect the strategic planning process of the organization.

Petrescu (2012), was of the opinion that in making informed decisions, managers must always consider three rudiments of morality in the decision-making process, which include; moral recognition, moral evaluation and moral intention / action. These principles of morality refer to a behavioural pattern which encourages adherence to the manager’s own control and transparency; as well as his vigilance against those who may violate these principles as itrelates to ethics in the business environment. The successful application of management decision making process in business organizations has resulted in new dimensions of management theory and philosophy.

 

Although it is well known that the small and medium scale enterprises (SME’s) usually employ a sizeable portion of the total employees of the Nigerian economy, the management of these SME’s are often starved of the required business related skills and knowledge to make informed decisions that can aid in the strategic management process and that is required to help these categories of organization meet their general operational objectives (Brinkmann, 2002). Considering the vital role which strategic planning plays in the larger organization, and also bringing to the fore, the believe that effective decision making should take the front position in business organizations, it is thus eminent to recognize the instrumental role which an effective decision making process should play in the active process of strategic planning in the small and medium scale enterprises as such will set a pace for the attainment of set goals of these SME’s and consequently their growth and development in the highly competitive business environment.