Managerial decision making from "summary" of Managerial Economics: Principles and Worldwide Application by Dominick Salvatore,Ravikesh Srivastava
Managerial decision making is the process of analyzing and evaluating available options to make optimal decisions in an organization. It is based on the identification and assessment of risks and benefits in order to determine the best course of action.- Making significant managerial decisions is an important responsibility of all managers. It involves gathering and analyzing relevant data, envisioning alternative courses of action, making cost-benefit analysis and evaluating the risks associated with each option.
- A manager's decisions should be driven by objectives such as business growth, strengthening customer relationships or reducing costs. Goals should be communicated clearly throughout organization as well as appropriate standards set which everyone should striving towards.
- Decision makers must use their best judgment while taking into account input from various sources such as trade associations, unions, etc. They must also consider revision of original decisions under certain circumstances such as economic recession or new regulations issued by government.
- It is important to assign clear responsibilities for implementation of every decision taken. The selected plan should involve continuous feedback and assessment which allows measure progress and make corrections.
