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One of the most important skills of a manager is making the right decision. The process of decision making is fundamental to all management process. The most demanding form of decision-making involves strategic choices: deciding on aims and objectives, and converting them into specific plans, or sub-decision. Operational decision, especially those concerned with “people problems” require particular sensitive handling. Managers need to consider all the possible outcomes when making a decision. Be it logical or creative style of making decision, the method need to be rational and straightforward. While making a decision, managers need to think systematically before jumping into a conclusion. Decision making can be hard. Almost any decision involves some conflicts or dissatisfaction. The difficult part is to pick one solution where the positive outcome can outweigh possible losses.

There are various factors need to be taken before making a decision.

Managers make many different kinds of decisions, such as hours of work, which employees to hire, what products to introduce, and what price to charge for a product. Decision making is important in all management functions and levels, whether the decisions are on strategic, tactical, or operational level.
Questions yourself

  • What are your short and long term goals?
  • Is there a balance between the disadvantage and advantages of the solution?
  • Do the alternatives fit the criteria?
  • What are the Consequences of each solution?