The environmental influences on decision making cannot be ignored. Unfortunately, many decisions must be made with imperfect information, and with a large degree of uncertainty, in other words risk is involved. In some cases the best decision may be to make no decision until better information is available. In other cases it may be risky not to make a decision. Failure to act may present a risk in and of itself.
Imperfect resources are the norm for most organizations, rather than the exception.
The internal environment consists of the managers superiors, colleagues, subordinates, and organizational system that may contribute to the decision making consideration in various ways. The external environment such as customers, competitors, government, and society in general will also influence the decision making process. A number of other factors need to be considered as part of the decision making process. A number of models have been developed to assist with the decision making process. Managers who may be ultimately responsible for the outcome of a decision should be aware of the advantages and disadvantages of these group processes.