There are several types of organizational decision making approaches, but the two common approaches are management science approach and the rational approach. The rationale approach allows management to make decision-based on various steps. The rational approach is based on various steps. These steps include monitoring of decision, identification of problems, specifying objectives, diagnosis of the problem, alternative development, evaluation, selecting alternative and implementation of the decision.The rational approach allows management to focus on contingency planning so that they can reduce the risk and its effects. On the other hand, management scientific approach allows management to focus on decision making based on various facts and figures. In British petroleum, the management used the rational and scientific approach in order to make the organizational decision. Based on these two approaches the effectiveness is gained in order all decision-making process.
UNCERTAINTY AND RISK MANAGEMENT
The risk and uncertainty are the most common aspects while conducting any business in a diverse environment. The risk and uncertainty are linked with the technical risk, financial risk, invest risk etc. For running the business smoothly it is essential to reduce the risk and uncertainty in the business and enhance the organizational image through operational excellence. Those organizations that are able it reduces risk are able to gain high return on the environment. The contingency planning done by the management allows them to make a decision in smarter manager and identifying the uncertainty. British petroleum follows standardize practices in order to focus on enterprise risk management. The company analysis risk through the systematic procedure and they used to follow all the information that is linked to uncertainty.
RISK MANAGEMENT EFFECTIVENESS
The decision making in British petroleum is based on the centralized decision-making approach. The company used to integrate and collaborate all the members of the organization so that they can have control over the risk and uncertainty. Furthermore, the core concern of the company is toward the aspects of customer satisfaction, innovation, talent acquisition, and internationalization. The company used to minimize the chances of failure through increasing the job creation and knowledge sharing. The knowledge sharing allows management to collaborate and enhance the effectiveness level into the business. Therefore, based on this the company used to enhance the team performance and business performance so that they can gain long-term sustainability in the international market.