Decisions lead to eitherupliftment or degradation of a business. The process of decision-making isconsidered to be one of the key aspects of management. At every level ofmanagement, proper decision-making ensures realisation of goals, coordinationamong departments and development of the organisation from all directions. Forevery business activity, decision-making is a continuous and indispensableprocess.
In order to make a well-informeddecision, the managers must gather all relevant information and analyse thedata. Then, he/she must explore diverse alternatives and choose the best amongthem to implement the plan. The sound decision-making process has severaladvantages:
1.Optimum Utilisation of Resources
An organisation can aimfor success only if there is optimum utilisation of the available resources.Successful decision-making and proper integration of human efforts help organisationsto get the work done in a proper way. In general, there are 5Ms of management andoptimisation of these can garner success for an organisation.
The 5Ms are as follows:-
- Money
- Material
- Manpower
- Machinery
- Method
Through a properdecision-making process, these Ms can be utilised optimally.
2.Organisation tackle risks and challenges in a better way
While looking for growthand prosperity, an organisation is expected to face serious challenges such asrecession, crises or trade cycle. In such situations, management must be ableto make effectual decisions to face such challenges easily and assertively.
3.Accomplishment of end goals
The primary aim of anyorganisation is to accomplish departmental objectives and maximize profits. Forthis, the workforce should be motivated to work in mutual cooperation andcoordination to realise the goal. Effective decision-making and coordination inthe management build team spirit and leadership virtues among team members.
4. Employees’ involvement in decision making motivates them
Management is an art toget the work done by directing the efforts of employees in the right direction.Thus, organisation must seek to inspire its employees regularly to get the bestfrom them. Furthermore, employees must be given an opportunity to take an activepart in the decision-making process and suggest any improvement. This leads tobetter decisions and it even keeps the employees motivated.
5. Better implementation of managerial functions
The five functions ofmanagement- planning, staffing, organising, directing and controlling areincomplete without the decision-making process. Every step of these functionsis successful only on the basis of effective decision-making. Thus, the elementof decision-making is vital for management.
6. Sustains business
Every organisation has tostrive hard to sustain in the long-run. Sound decision-making gives an edge tothe organisation to successfully operate its operations and achieve success foryears.
So, these were some ofthe points that accentuate the importance of decision making in management. Amanager, as well as an entrepreneur, has to be a sound decision-maker in orderto garner success for the organisation. So, if you wish to enter the field ofmanagement, then along with knowledge & industry-specific skills, you needto possess decision-making skills.
At MIT School of DistanceEducation (MIT-SDE), we equip the future managers with all the necessary traitsfor their succession in the field. We train our students in such a way thatthey acquire sound decision-making skills along with industry knowledge. So,pursue our job-centric management courses and establish yourself strongly inthe industry.
