THE IMPACT OF DECISION MAKING ON ORGANIZATION PERFORMANCE

THE IMPACT OF DECISION MAKING ON ORGANIZATION PERFORMANCE

CHAPTER ONE

INTRODUCTION

1. BACKGROUND OF THE STUDY

It is common for most managers in Nigeria to stay away from making decision. This could be due to their fear of unknown in organization, fear of losing their Job, should they take or make the wrong decision, or it is Just against the grain of their being.

It must however, be realized that no matter the programmes or activities of the organization, decision must be taken between two or more alternative whose potential outcome are not known and must be subjective.

Nigeria, which is gradually industrializing, is undergoing a recession period occasionally by fluctuation in the world control of Nigeria managers.

This period of uncertainty, which calls for production of result viability and stability on the part of Nigeria organizations can be conceptualized. They utilize their available well – planned resources, which serve as inputs and capitalized on these opportunities to increase services.

To do this effectively, they need constant forecasting and feedback mechanism inbuilt into their systems. The environment in which manager operate are constantly affected by internal factors, for the organization to perform effectively, it has to meet its set target and objective manager or policy maker in that organization should be conscious in making decision that will see to the growth and survival of the organization concerned.

1. STATEMENT OF THE PROBLEM

In developing countries like Nigeria, the problems that stir private firms are numerous. The problem ranged from inadequacy of disposable income in the hands of Nigeria and also inability to make decision.

Another problem here is making wrong decision during economic recession affects the organization. This is common problem in Nigeria organization where most appointment are made compensation and not incompetence.

Finally, the researcher would like to say that many decision makes do make wrong decision due to their incompetence.

1. OBJECTIVE OF THE STUDY

In the world, particular a country like ours beset by economic problem, the need arises for individuals, organization to contribute positively to faster economic growth. It is in this regard organization make decisions to enable them embark on investments that are uncreative or viable. This project is directed towards understanding the important of decision making. My study will give you a time light on how organizations make decision to avoid liquidation or corporate death. How manager master how to make decision and harness them for higher productivity and profitability. The main aim of this research is for organization to learn how to make decisions.

1.4     SIGNIFICANCE OF THE STUDY

It is a fact that must organization take decision making to be vital. The significance of this research work is to ascertain the areas of decision an organization can make and take. This type of decision and how to minimize or reduce making wrong decision because no organization can function without making decision since it is inherent in the commitment or present resources of future expectation.

1. RESEARCH QUESTIONS
2. How does decision making helps organization embark of investment?
3. What is the importance of decision making?
4. How does organization make decision to avoid liquidation?
5. How can manager master how to make decision and harness them for higher productivity and profitability?
6. How can organization learn how to make decision?

1.6     RESEARCH HYPOTHESIS

Statement of hypothesis in research work is essential as it enables the researcher to have prediction about the statement of the problem he is investigating. As not all statement may be accepted, they stand the chances of being either accepted or rejected.

The hypothesis for this work are stated this.

H_i:     Good decision making enhances organization performance.

H_o:    Decision making does not enhance organization performance

H_i:     During economic recession good decision have great impacts on organization performance.

H_o:    Good decision making during economic recession do not help the organization achieve its objectives.

1.7    SCOPE OF STUDY

This study is limited to and will be conduct in Nasarawa , the study will be carried out in Eco Bank Plc, Nasarawa, Nasarawa State.

1. LIMITATION OF THE STUDY

This research work will cover or looks at the types of decision, how to analyze it. It is use in strategic planning. The project is confined to Eco Bank Plc Nasarawa. It is by no means exhaustive but rather “a bird’s eye view” of importance of decision making, because collection of data from the case study was not easy. To conduct a research work on decision making particular with Eco Bank Plc as the case study, is an odious task and needs a lot of finance to enable me cover a wider range of data collection. During my Data collection, I encountered a lot of problem such as poor response from the respondents because I was using personal liter view and questionnaire methods. The employees mostly, the middle level management (line managers) felt reluctant in disclosing some vital information which would have been very useful and make the research for me. This was also the problem of time constraint because the time given for the project was limited and coupled with my other academic works. However, it is my wish to carry on with this research work satisfactory despite the initial constraints within the dictates of the project topic.

1. DEFINITION OF TERMS

As a result of the various sources from which information were derived for the success of this project work, the following terms will be defined in order to ease the better understanding of this project work by the reader.

1. Decision: this has to do with a force, choice or judgment that you make after thinking and talking about what is the best thing to do.
2. Hierarchy: this is a system in an organization in which people are organized into different levels of importance from highest to lowest.
3. Planning: this has to do with act or process of making plans in an organization.
4. Organization: this is an avenue where people come together to achieve their goals.

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