DECISION-MAKING
In carrying out management functions, such as planning, organizing, motivating and controlling a manager will be continually making decisions. Decision-making is a key management responsibility. Some decisions are of the routine kind. They are decisions which are made very quickly, and are based on judgement. Other decisions are often intuitive ones.
Many decisions are more difficult to make since they involve problem-solving. Very often they are strategic decisions involving major courses of action which will affect the future direction of the company. In practice, decisions are usually made in circumstances which are not ideal. They must be made quickly, with insufficient information. It is hardly possible that a manager can make an entirely rational decision.
When a complex problem arises, the manager has to collect facts and weight up courses of action. A useful approach to decision-making is as follows: defining the problem, analyzing and collecting information, working out options, deciding on the best solution. Before making decision, the manager will carefully consider all the advantages and disadvantages. Then he will have to take a decision. Perhaps he will have to compromise, using more than one option.