Management Decision Making

Introduction

People at all levels of the enterprise must constantly make decisions and solve problems. Decision making and problem solving are important parts of a managers job. Decisions may be of nature:

    • How profits should be invested
    • Which employee should be assigned a particular task

Whether the problem is large or small, it is usually the manager who has to confront it, and decide what action to take.Decision making describes the process through which a course of action is selected as the solution to a specific problem. Problem solving refers to the broad set of activities involved in finding and implementing a course of action to correct an unsatisfactory situation.

Before problems can be solved they must be found i.e. individuals must determine which situations represent problems and which of these problems should be solved.