Essence and types of management decisions

In the process of accomplishing the activities of any organization, there are daily situations when the leader needs to choose one option from several possible actions, in other words, to make a decision. Since there is always a high percentage of uncertainty in the behavior of market subjects , forward analysis methods are at the forefront, thanks to which the manager analyzes possible variants of events and chooses the most optimal solution from several.

The essence and types of managerial decisions can not be considered without defining aspects that together influence the development of an effective management decision. Such aspects include: information, economic, psychological, mathematical, technical, organizational, logical, legal aspects and many others. In short, the decision-making process assumes the direct impact of the subject on the object or the control system on the control subsystem.

The standard classification provides for the following types of management decisions: traditional and non-traditional. Traditional solutions are made on the basis of a choice from the solutions that have been earlier. Non-traditional types of managerial decisions are a creative and non-standard approach to decision making, the search for new options.

Proceeding from the above, it can be concluded that the traditional types of managerial decisions are very formalized and can be adopted according to a certain previously developed algorithm. The activity of the manager becomes more efficient, since the probability of error in making a decision is reduced many times, and the time spent for adoption is saved by lack of search for the optimal option. Naturally, for standard situations such managerial decisions take the form of instructions, rules and regulations.

But not all situations are played out according to a certain scenario, there are also those to which formalized approaches are inapplicable. It is these types of managerial decisions that reveal the potential of a real leader. More often than not, the manager balances between these two species, resolving emerging problems through a variety of methods and principles.

The content and types of management decisions are based on the application of such approaches as systemic, integration, integrated, dynamic, reproductive, process, administrative, mathematical, marketing, situational, behavioral.

A systemic approach involves the interconnection of components within a system or object. The integration approach studies these relationships within subsystems, between levels and subjects. An integrated approach implies the complexity and versatility of directions of management, their interrelations. The dynamic approach of management considers the object of management in its dialectical development and cause-effect relations. Reproductive approach is the permanent resumption of production of a certain type of products. The process approach is based on the interrelation of managerial functions. The administrative approach is the regulation and strict observance of rules, functions and responsibilities. The marketing approach focuses the management system on the consumer. The functional approach considers any need as a set of functions that require satisfaction. The situational approach determines the degree of suitability of a particular method of managing a particular situation. The essence of the mathematical approach is in the transition to quantitative management assessments, using for this purpose mathematical methods and expert estimates, scores and calculations. The behavioral approach is distinguished by an increase in the efficiency of the organization's operations due to the improvement of the quality of the use of the labor resources of the enterprise.