Improve the effectiveness of management decisions



The basic content of management activities is decision making, because running an organization from simple daily tasks to large, long-term strategies is also based on appropriate decisions.Premises for a rational decision

  • No conflict of goals
  • Possible options
  • The alternatives must be evaluated in order of priority.
  • The priority criteria must be fixed.
  • The final choice must be optimal.

Personal Qualities Needed for Effective Decision Making

  • Experience
  • Judge
  • creative mind
  • Quantitative Ability

Collective decision

- Advantage:

  • More complete knowledge and information
  • More acceptable solution
  • Strengthening legitimacy

– Disadvantages;

  • Takes more time
  • There are group pressures for uniformity of views.
  • Unclear responsibilities

Nominal group decision making technique

  • Members meet and write down their opinions on paper.
  • Each person presents his own opinion.
  • The group discussed ideas and made general assessments.
  • Each member independently scores the opinions. The final decision is the opinion with the highest score.

Delphi technique

(1) Members are asked to score the solutions, through a series of carefully prepared questions.

(2) Each member completed the questionnaires independently and anonymously.

(3) The initial results are compiled and printed, and a copy is sent to each member.

(4) Members were again asked to suggest solutions.

(5) Repeat steps (3) and (4) as many times as necessary until everyone agrees.