Management decision (SD) is a product and the result of the management system, which consists in the analysis, economic feasibility and the choice of options from many alternatives. Existing problems need to be formalized, that is, to determine the quantitative characteristics of the difference between the planned and achieved conditions of the economic object, as well as structure them using the “goal tree”.
Since resources for solving problems are always limited, it is necessary to rank them according to their importance, scope, urgency.
Classification of management decisions is possible for the following reasons:
- area of management system;
- scope;
- the goal of SD;
- management level ;
- degree of scale;
- a method for preparing a solution;
- validity periods;
- direction of action;
- methods of formalization;
- types of presentation;
- level of difficulty;
- form of transfer of SD.
The main factors that influence the adopted SD: scientific approach, modeling, computerization of management, etc.
It should be noted that the classification of managerial decisions is possible on other grounds. So, for example, it is possible to classify or draw up a typology of SD depending on the personality characteristics of the leader.
The types of managerial decisions largely depend on the personality of the manager, and therefore distinguish between balanced, heuristic-spontaneous, risky, intuitive, reasoned, and optimal rational. The manager can be quick-tempered by nature or, on the contrary, calm, restrained, and this will leave an imprint on his decisions. This is also a kind of classification of managerial decisions, depending on the personality characteristics of the manager.
Weighted SDs are usually accepted by managers who are responsible for their activities, working hypotheses, and testing them. Heuristic-spontaneous decisions are made by authors who easily produce a wide variety of ideas, but are not able to test and evaluate them. As a result, they turn out to be unreasonable and unreliable; they are accepted impulsively, spontaneously. Risky SDs are characterized by the fact that their authors do not want to carefully think through and substantiate their hypotheses. Intuitive ones are accepted in a situation of choice made only on the basis of the feeling that it is correct. SDs that are based on reasoning can sometimes seem intuitive, since their logic is not quite obvious, they are accepted in a situation of choice, due to knowledge or personal experience. Rational SD are based on economic analysis, justification and optimization methods.
The classification of managerial decisions can be very diverse, much will depend on what will be taken as its basis. And the field of activity where the SD is adopted, the method of its development, and much more can serve as the basis or criterion.
Analysis of management decisions involves the use of scientific principles, which include:
- analysis and synthesis, assuming the differentiation of phenomena, objects, phenomena and their further integration into a single whole in interconnections and interdependencies;
- isolating the main link, which involves setting goals, objectives and determining methods for achieving them;
- Comparison of objects of analysis by their volume and conditions of use;
- timely and relevant analysis, which is aimed at reducing the time of work due to the implementation of methods of rational organization of labor, coding and decoding, computerization of information, improving its quality;
- formalization of data, assuming: a quantitative description of factors ensuring the optimization of managerial alternatives; determination of the relationships and dependencies between the various parts of the control system quantitative expression of the level of uncertainty in making management decisions.