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.
Concept and characteristics 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.
Management decisions have the following characteristics:
- Management decisions are directed at organizations; only managers make decisions.
- Administrative decisions can either hinder the normal operation or enhance the operation of the administered system.
- Management decisions involve the use of information about the problem to be solved.
- Management decisions are based on an understanding of the objectivity of the movement and development of the managed system.
- Functions of management decisions
- The function of directing the organization's goals.
- Function to secure resources.
- The function of cooperation and coordination between departments in the organization.
- Classification of management decisions
- Classification by nature of decisions: Strategic decisions, Tactical decisions, Operational decisions.
- Classification by implementation time: Long-term decisions, Medium-term decisions, Short-term decisions.
- Classification by scope of implementation: Global decision, Partial decision, Specialized decision.
- Classification according to different aspects of organizational activities: Technical decisions, Organizational decisions, Economic decisions, Social decisions.
Requirements for management decisions
- Must have scientific basis
- Must be consistent, comply with common regulations and institutions
- Must be authorized
- Must have direction
- Be specific about time
- Must have direction
- Must satisfy requirements promptly.
Decision making process
- Step 1: Make sure you have a decision to make.
- Step 2: Identify the decision criteria
- Step 3: Quantify the standards
- Step 4: Explore options
- Step 5: Evaluate the Possibilities
- Step 6: Choose the best option
