The Globalization Effect and the Fast Technological Advancements

&nbsp.Salaman (2002) argues that the importance of decision making is underlined by the fact that decisions eventually direct organizational activities. Moreover, Heracleous (1994) adds that decision making, as a core task of all management levels, is critical in determining a firm’s competitiveness and thus, must be approached in the most effective way in order to avoid any harmful effects on the organization.
With regards to the business environment, the ultimate goal of decision making is the selection of the most appropriate and effective alternative – amongst various options – that systematically and pointedly addresses the problem(s) emerging and generates positive outcomes that favor the organizational performance (Johansson, 2006). Therefore, it is only natural to assume that the decision-making process involves steps and procedures that are oriented towards achieving effective results and providing the fundamental basis for success. Nooraie (2008) suggests that the entire process needs to be viewed within the overall context of the organization mainly due to the fact that the decisions made by managers or other actors do not stand alone. in more details, decisions have a profound impact not only in terms of a particular subject being resolved but on the organization as a whole. Papadakis et al. (1998) further comment that decision making also affects the nature of the process deployed in the future. For this very reason, the decision making procedure is more than just a simple confrontation of rising issues. rather it is associated with organizational thinking (Salaman, 2002).
The rational decision-making theory stresses the importance of logic and the systematic approach to problem-solving. It is largely based on the economic-man theory, which suggests that the decisions are made under the&nbsp.rational evaluation of alternatives and the choice of the most prominent one that will maximize the potential for success.&nbsp.