The Essentials of Decision Making for Executives and Managers
Decision Making in Business
Decision-making is the essence of management. Managers and executives are required to constantly evaluate situations and seek alternative options while taking decisions. The decision-making style depends on the leadership style and the individual decision making preference of the manager. Decision making for a business is challenging due to the excessive risks associated with different decisions.
Effective Decision-Making Practices
Risk-averse decision makers prefer to take steps that reduce risk, this trait is evident in their decision-making style. Business experts and consultants highlight six important decision-making practices that majority of prosperous managers and senior executives follow.
A manager with excellent decision-making skills will determine what needs to be done
Before making a decision the manager or a senior executive will determine the best option for the firm.
Come up with feasible action plans
Take full responsibility for every decision and its after effects
Conduct regular but productive meetings
Emphasis on opportunity rather than the problem
The Essential Role of Information
Managers and executives are capable of making decisions when they have an abundance of information for a decision. For example, front-line managers are provided with cost information about every production activity. This information allows the front line manager to maintain their margins, expenses, and revenues. Information collected can make difference between an excellent and a disastrous decision.
Decision Support System
The importance of information for effective decision-making is undeniable. Business managers and executives today have internet-based databases with easy to use query tools that can help them make a necessary decision by turning to decision support system or DSS. A DSS system thoroughly analyzes company databases and provide relevant information for a business decision. These systems are equipped with report writing features that help managers in translating raw data into a useful tool for decision-making for executives.
Decision making and Business Strategy
Developing, evaluating and implementation of an organizational strategy is depended on excellent decision-making skills of the manager. Some of the major fields that require constant decisions are developing a new product, acquiring access to new markets, mergers and acquisition deals, joint ventures, strategic alliances and other business issues like choosing a new supplier. Such decisions require excellent communication skills for efficient information gathering. Strategic decision-making process is dependent on high-quality decision-making skills that help the firm move forward.