Importance Of Decision Making

Submitted By simpliciocuba
Words: 458
Pages: 2

There is a lot controversy with regards to management decision making. It has come to the attention of many business men the importance of this topic and how to classify it. How to understand and improve this process includes various kinds of approaches. It is understood that two kinds of approaches exist, one being the economic and logic and the other the people’s psychology on applying decisions and judgments.
One of the definitions given to this process is that managers respond to threats and opportunities by analyzing options that allow them to meet their goals. The managers always will try to optimize performance and will react to adverse actions occur during the work time frame. At the same time a decision making is based on procedures and guidelines that the organization puts in place. Many times managers will assume and react to information they have available. According to research managers will assume consequences and display alternatives for the best future course of the organization. Nevertheless, in some cases challenges that occur are not handled appropriate and managers do not consider all alternatives possible and are not able to come up with the right decision. It is obvious that personality and psychology affects the way you make a decision. What are the influences and factors? Hesitation, incomplete information, and time are key factors in a decision making process. For example, there is a need to recognize what decision to be made, frame the problem, find alternatives, generate and evaluate alternatives, choose best alternatives, and implement them. There is often a situation where a decision has been made and has not been carrying out. At the end, manager should find out if a decision was made right or wrong and learn from their mistakes from the future, that way the will not make the same mistake.