Limitations of Decision Making in Management - Shortcomings

Limitations of Decision Making

Shortcomings / limitations of a decision making process in management :-

Image Credits © cole007.

1. Time Consuming

A lot of precious time is consumed for decision making. Individual decisions take a lot of time because the manager has to study the merits and demerits of all the alternatives. He also has to take advice from many people before making a decision. All this consumes a lot of time. Group decisions are also time consuming. This is because it involves many meetings and each member has to give his opinion. This results in delayed decisions or no decisions.

2. Compromised Decisions

In group decisions, there is a difference of opinion. This results in a compromised decision. A compromised decision is made to please all the members. It may not be a correct and bold decision. The quality of this decision is inferior. So it will not give good results on implementation.

3. Subjective Decisions

Individual decisions are not objective. They are subjective. This is because the decisions depend on the knowledge, education, experience, perception, beliefs, moral, attitude, etc., of the manager. Subjective decisions are not good decisions.

4. Biased Decisions

Sometimes decisions are biased. That is, the manager makes decisions, which only benefit himself and his group. These decisions have a bad effect on the workers, consumer or the society.

5. Limited Analysis

Before making a decision the manager must analyse all the alternatives. He must study the merit and demerits of each alternative. Then only he must select the best alternative. However, most managers do not do this because they do not get an accurate date, and they have limited time. Inexperienced researchers and wrong sampling also result in a limited analysis. This limited analysis results in bad decisions.

6. Uncontrollable Environmental Factors

Environmental factors include political, social, technological and other factors. These factors are dynamic in nature and keeps on changing everyday. The manager has no control over environmental factors. If these factors change in the wrong direction, his decisions will also divert and go wrong.

7. Uncertain Future

Decisions are made for the future. However, the future is very uncertain. Therefore, it is very difficult to take decisions for the future.

8. Responsibility is Diluted

In an individual decision, only one manager is responsible for the decision. However, in a group decision, all managers are responsible for the decision. That is, everybody's responsibility is nobody's responsibility. So, the responsibility is diluted.