Decision Making in Management financial decision making

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Good decision making is a vital part of good management because decisions determine how the organization solves problems, allocates resources, and accomplishes its goals. A decision is a choice made from available alternatives.Decision making is the process of identifying problems and opportunities and then resolving them. Management decisions typically fall into one of two categories: programmed and nonprogrammed.

Programmed decisions made in response to a situation that has occurred often enough to enable managers to develop decision rules that can be applied in the future. Programmed decisions are made in response to recurring organizational problems. Nonprogrammed decisions are a choice made in response to a situation that is unique, is poorly defined and largely unstructured, and has important consequences for the organization. Many nonprogrammed decisions, are related to strategic planning because uncertainty is great and decisions are complex.

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Every decision situation can be organized on a scale according to the availability of information and the possibility of failure. The four positions on the scale are certainty, risk, uncertainty, and ambiguity. Good decision making is a vital part of good management, but decision making is not easy.

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A problem occurs when organizational accomplishment is less than established goals. Some aspect of performance is unsatisfactory. An opportunity exists when managers see potential accomplishment that exceeds specified current goals. Managers see the possibility of enhancing performance beyond current levels.

The decision-making process typically involves six steps: recognizing the need for a decision, diagnosing causes, developing alternatives, selecting an alternative, implementing the alternative, and evaluating decision effectiveness. .

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Decision Making in Management

Decision Making in Management

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9 comments

Jason Wood 26/09/2021 - 1:33 AM

Just what i needed

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Bek Zhak 26/09/2021 - 1:33 AM

Үлкен рахмет!

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Janhavi Parab 26/09/2021 - 1:33 AM

Should decision making be collaborative or authoritarian? Read more as Jesse Lyn Stoner, founder of Seapoint Center helps leaders create a powerful and positive impact on the world through decision making! https://youtu.be/Rfvijk9kPQg

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Edukator Milenial 26/09/2021 - 1:33 AM

I made a video ‘bout decision making too.. strategic, tactical, and operational decisions. Much obliged for sharing.

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Noël Paul 26/09/2021 - 1:33 AM

Sir am blessed to have this leason it is very useful.

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CharukajayangaCJ 19991201 26/09/2021 - 1:33 AM

I love this channel❤ your videos are so useful to me

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Abdalla Ahmed 26/09/2021 - 1:33 AM

why is your voide annoying to listen to for too long? ahahaha good video nevertheless thank you!

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Kennedy Tay 26/09/2021 - 1:33 AM

six steps of decision making process:
1. recognise decision requirement
2. diagnosis and analysis the causes
3. development of alternatives
4. selection of desired alternative
5. implementation of alternative
6. evaluation and feedback

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Mohd Zulhelmi 26/09/2021 - 1:33 AM

it such a good channel

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