Management decision is the choice of one possible alternative. The selection is made based on the analysis of the causes subject to resolution of the situation. Responsibility for them is a major function of management. Methods of development and management decisions are diverse and not like each other. The task of the Manager is to choose the right method and properly apply it.
The Manager, before which arises a particular problem, should not rush headlong to solve it and not have to grab for one, for another. The process and methods of managerial decision-making are linked, however, selecting any way of the theory of management recommends to follow several stages of preparation and implementation of choice. They can be divided into pre-and post.
The decision Algorithm:
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At this point, the system selects one of the alternatives, and the Manager or a collective body taking responsibility for this choice. It must be documented, with indication of deadlines, responsibilities and resources. Sometimes as a backup option (so-called “Plan B”) is one of the ones included in the short list of options. This is done in difficult and emergency situations to ensure that in case of failure of the preferred option not to repeat the entire procedure of choice and go directly to the solution.
At this stage is concretized and detailed General action plan formulated in the document. The plan is executed, the results report to the Manager or collegial body.
It also requires a systematic approach. Methods of the theory of management decisions can be classified:
Any classification is conditional, the same in fact the method can belong to multiple classes. The Manager's job is not to delve into the classification, and to select appropriate methods for managerial decision-making. And in the end pick the best.
The Group methods of managerial decision-making refers to the use of the synergy of multiple intelligences on the one hand and responsibility on the other. Used collegial management bodies. Can also be applied to the sole exercise of choice by the Manager and used in this case as supplementary information.
The Main expert methods of managerial decision-making the following:
It Should be remembered that the allocation of responsibilities should be agreed in advance.
They are as follows:
There are other, less common approaches.
Another classification of methods – the applied approach:
Related to rational quantitative methods. Based on some mathematical model of a situation in which there is organization and where you want to make a choice. Mathematical models and methods for managerial decision-making are many and varied:
The Manager generally does not perform calculations and analytical calculations personally. Its role is to correctly set the task of subordinate analysts and host analysis.
Many of the management errors arise from the wrong choice. If an error is detected in the early stages of implementation, the chances of fixing it are high, and the cost of corrective actions is small. If the same error is detected after the last time, the ability to fix it are greatly reduced, and the costs, respectively, repeatedly grow.
Incorrect choice of alternatives is influenced by two groups of factors internal and external to the head, exercising the choice.
Are Determined by the properties of the individual who made the choice:
As example is:
To minimize such negative impact, a leader needs to develop the appropriate personal qualities, and above all the ability to make independent decisions. For this we need to develop critical thinking, to focus only on those source data that are crucial in a particular situation.
Defines the negative influence of the environment:
A Good Manager is able to abstract from the negative effects of the environment, focusing entirely on the situation and the upcoming selection.
Sometimes, the solution itself might be correct, but to fulfill it and to achieve the desired results is not possible. Execution control is an essential function of management.
An Error could be:
The Most dangerous error is an incorrect setting goals performers. The correct goal should be measurable, achievable, time-related and relevant to the situation (the so-called criterion of goal-setting S. M. A. R. T.).
To minimize the risk of errors in the course of making and implementing decisions, the leader should:
To Avoid mistakes will also help a compulsory stage of the analysis after execution. Methods of analysis of managerial decision making is simple. You need to determine how well it is implemented, what was successful and what could be done better. This analysis will be useful to the future.
With all the variety of methods of analysis of the situation and choices the responsibility for it lies on the head. In the area of responsibility of the Manager include the selection of management decisions, management techniques. Management decisions - this is the most unique product produced by the head. That is why he is paid a higher salary than his subordinates.
What are the methods of managerial decision-making to choose how to select information that is relevant to the situation, how to determine criteria for achieving the result? To do this, the Manager must have theoretical knowledge and practical experience of many selections. Cannot be discounted and it is difficult to formalize, but an important factor that distinguishes successful managers of all - luck. Historians of entrepreneurship referred to as long chain consistently correct decisions, leading a business or organization to success.
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