Answer: The three "occasions for decision" are:
1. From authoritative communications from superiors
2. From cases referred for decision by subordinates
3. From cases originating in the initiative of the executive command
Explanation: Examples of the three "occasions for decision" are:
1. From authoritative communications from superiors: an increase in the annual target of a sales force, passed on from the director to the sales manager.
This type of decision making is usually about the application of an instruction.
2. From cases referred for decision by subordinates: decision to employ branch level staff, whose engagement is within the right of the branch manager
This occasion for decision shows a lack of authority in subordinates or an inability to be decisive in the subordinate.
3. From cases originating in the initiative of the executive command: the CEO deciding to take his brick and mortar business completely online.
This is a decision that that is totally the product of the executive head's thoughts, it is usually a strategic level decision and opens his authority to criticism.
Chester Barnard believed that this is the most important occasion for decision because the executive head is best placed to make these decisions in the organization. He has the authority as well as resources to ensure that the decision is followed through.
I also agree that this is the most important occasion for decision. While they are difficult decisions, they can determine the direction of an organization. There is no one better qualified than the executive command to make or initiate these decisions. Also, it is part of their responsibility to make these decisions.
