Importance of Decision-Making in Management - MIT School of Distance Education

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MIT School of Distance Education

• Importance of Decision-Making in Management

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• Decisions lead to either upliftment or
  degradation of a business. The process of
  decision-making is considered to be one of the
  key aspects of management. At every level of
  management, proper decision-making ensures
  realisation of goals, coordination among
  departments and development of the organisation
  from all directions. For every business activity,
  decision-making is a continuous and indispensable
  process.

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• In order to make a well-informed decision, the
  managers must gather all relevant information and
  analyse the data. Then, he/she must explore
  diverse alternatives and choose the best among
  them to implement the plan. The sound
  decision-making process has several advantages 

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• 1. Optimum Utilisation of Resources
• An organisation can aim for success only if there
  is optimum utilisation of the available
  resources. Successful decision-making and proper
  integration of human efforts help organisations
  to get the work done in a proper way. In general,
  there are 5Ms of management and optimisation of
  these can garner success for an organisation.

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• The 5Ms are as follows-
• Money
• Material
• Manpower
• Machinery
• Method
• Through a proper decision-making process, these
  Ms can be utilised optimally.

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• 2. Organisation tackle risks and challenges in a
  better way
• While looking for growth and prosperity, an
  organisation is expected to face serious
  challenges such as recession, crises or trade
  cycle. In such situations, management must be
  able to make effectual decisions to face such
  challenges easily and assertively.

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• 3. Accomplishment of end goals
• The primary aim of any organisation is to
  accomplish departmental objectives and maximize
  profits. For this, the workforce should be
  motivated to work in mutual cooperation and
  coordination to realise the goal. Effective
  decision-making and coordination in the
  management build team spirit and leadership
  virtues among team members.

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• 4. Employees involvement in decision making
  motivates them
• Management is an art to get 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 best
  from them. Furthermore, employees must be given
  an opportunity to take an active part in the
  decision-making process and suggest any
  improvement. This leads to better decisions and
  it even keeps the employees motivated.

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• 5. Better implementation of managerial functions
• The five functions of management- planning,
  staffing, organising, directing and controlling
  are incomplete without the decision-making
  process. Every step of these functions is
  successful only on the basis of effective
  decision-making. Thus, the element of
  decision-making is vital for management.

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• 6. Sustains business
• Every organisation has to strive hard to sustain
  in the long-run. Sound decision-making gives an
  edge to the organisation to successfully operate
  its operations and achieve success for years.

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• So, these were some of the points that
  accentuate the importance of decision making in
  management. A manager, as well as an
  entrepreneur, has to be a sound decision-maker in
  order to garner success for the organisation. So,
  if you wish to enter the field of management,
  then along with knowledge industry-specific
  skills, you need to possess decision-making
  skills.

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• At MIT School of Distance Education (MIT-SDE),
  we equip the future managers with all the
  necessary traits for their succession in the
  field. We train our students in such a way that
  they acquire sound decision-making skills along
  with industry knowledge. So, pursue our
  job-centric management courses and establish
  yourself strongly in the industry.   

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• THANK YOU