Text 5. 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.