Management decision is a conscious choice, which is based on several factors. It is adopted in the presence of several alternative options, allowing one way or another to reduce as quickly as possible the distance that separates the organization from the goal and the desired result.
At the same time, the basis for a managerial decision should be objective and complete information. Only in this case can it correspond to its main parameters: validity, comprehensiveness, timeliness and legality. The solution may fail if it does not meet these criteria.
Managers are always faced with a choice, so the manager’s experience in these matters is very important. The probability of making an erroneous decision is the less, the more decisions the manager had to make as a whole, however, no one is immune from the “failed” choice.
Management Decision: Definition
There is such an understanding of a managerial decision in which it is defined primarily as a creative act that aims to eliminate problems. However, such a definition is incomplete, since it does not take into account the relationship between the manager and the employee, as well as the temporal and spatial framework.
It is more appropriate to apply a broader definition, which states that SD is a one-time act in which the subject acts on the object, establishing a program of necessary work. These works are aimed at realizing the goal arising from the tasks set for the object and arising from the actual situation at the present time.
Management Optimization
For a manager’s decision to be successful, it needs to be optimized. In this case, the manager analyzes many different factors that could potentially affect the result. The essence of optimization is to select the most effective solution according to one or more criteria.
Optimization is often an expensive process, so it is advisable to apply it only to those decisions that are directly related to strategic tasks.
There are several optimization methods :
- modeling;
- analysis;
- forecasting.
Modeling is to test an idea in a specific life situation. Then carry out the analysis of the data and, based on this, make a forecast.
However, since decision-making depends on the personality and experience of the manager, for optimization it is possible to synthesize some variants of the manager’s behavior in order to find a “middle ground” and accept the best option. Such features are inherent in him:
A management decision is poise. Here, the SD is characterized by the existing initial idea. At the same time, managers are critical of their actions.
Management decision is an impulse. On the other hand, SDs without the impulsive behavior of the manager promise to be unproductive. After all, an impulse allows a more detailed assessment of the features of the situation for which the solution is applied.
Management decision is inertia. Along with balance and momentum, the optimal managerial decision should have the features of inertia, however, if it prevails in the selection process, there is a risk of losing the originality and brilliance of the idea.
A management decision is a risk. A risky decision is inherent in self-confident managers. This feature during the selection of ideas for implementation is very important, because without risk it is impossible to introduce completely new technologies and make an original product. Thus, solutions spared from the share of risk promise to become ordinary and of little interest.
By combining these features and conducting analysis, modeling and forecasting, you can make a successful management decision.