The nature and types of managerial decisions

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2020-07-03 03:52:08

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In the process of making any organization every day there are situations when the Manager needs to choose one option from several possible, in other words make the decision. Since the behavior of the market participants always have a high percentage of uncertainty to the fore the methods of prospective analysis, thanks to which managing  analyzes potential future scenarios and selects the best solution among several.

The Nature and types of managerial decisions cannot be considered without defining the aspects that affect the development of effective management decisions. These aspects include: informational, economic, psychological, mathematical, technical, organizational, logical, legal aspects and many others. In short, the decision-making process involves direct exposure of the subject to the object or the control system to the control subsystem.

The Standard classification includes the following types of managerial decisions: traditional and non-traditional. Traditional decisions are taken on the basis of selection of the solution that occurred earlier. Non-traditional types of managerial decisions – creative and innovative approach to decision-making, the search for new options.

Based on the foregoing, we can conclude that traditional management  solutions are very formalized and can be taken on a particular, previously developed algorithm.  the Manager becomes more effective because the probability of error when deciding repeatedly reduced, and the time spent making saves due to the lack of searching optimal variant. Of course, that for standard situations such managerial decisions take the form of instructions, rules, and regulations.

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But not all situations are played out in a specific scenario, there are those to which formal approaches are not applicable. These types of management solutions reveal the potential of a real leader. Most often, the head balances between these two types, solving problems using different methods and principles.

The Contents and types of managerial decisions based on approaches such as system, integration, integrated, dynamic, reproduction, process, administrative, mathematical, marketing, situational, behavioral.

The System approach involves the relationship of the components within the system or object. Integrative approach studying these interactions within the subsystems, between levels and actors. The integrated approach involves the complexity and the diversity of directions of management of their relationship. The dynamic management approach considers the object in its dialectical development, and cause-effect relationships. The reproduction approach is the permanent resumption of production of certain commodities. Process approach is based on the relationship management functions. Administrative approach – regulation and strict adherence to the rules, roles and responsibilities. Marketing approach directs the control system to the consumer. The functional approach considers any need as a set of functions that require satisfaction. The situational approach determines the suitability of a particular method control the specific situation. The essence of the mathematical approach – in the transition to quantitative estimates of the management, using mathematical methods and expert estimation, points and calculations. Behavioral approach increasing the effectiveness of the organization by improving the quality of use of labor resources of the enterprise.


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Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."

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