Importance of Decision Making in Management

Decision making is a cognitive process that allows organizations to choose the best alternatives from the available ones. Organizations have to choose the best alternative on the basis of their advantages and disadvantages. Decision making is an essential function of management and connects with every process of organization (directly or indirectly). Be it anything- planning, scheduling, organising or, controlling, not even a single process can be executed accurately without evaluating the pros and cons of alternatives. To achieve sustainable growth in career, business or any area of life, proper decision making is vital.

According to Stephen P. Robbins, “decision making is defined as the selection of a preferred course of action from two or more alternatives.” In the management education students study various courses of operations, such as Operations Research, Business Statistics, Business Research Methodology and Multi-Criteria Decision Making etc. All these courses help them to understand the basics of how to analyze the decisions and its consequences with the help of quantitative and qualitative methods. Some of the important point related to decision making are:

1.Pervasiveness of decision- making

Decision- making takes place in all management activities and in all organizational functions. Thus, every employee should follow a definite pattern to manage their tasks smartly. Any sort of function is not possible without proper selection of a belief or a course of action among several alternative possibilities. It is therefore pervasive.

2.Management performance evaluation

Organizations are highly looking for leaders and managers who are fast in decision making, and thus it is an essential factor to evaluate employee’s managerial performance. Leaders who are efficient and capable of taking decisions on their are own have comparatively brighter future than those who lack in it.

3.Helpful in planning and policies

Formulation of plans and policies is nothing new in an organization every employee has to follow a set of rules to make the workplace a better and productive place. However, decision-making plays an important role in this phase of organization betterment as well. No plans and policies can be executed in the absence of solid decision. Therefore, decision making is an important process that is helpful in planning.

4.Successful operation of business

Be it an individual, department or, organization – everyone requires to take the right decisions to survive in today’s competitive world. Only the right decisions can navigate the path of success for organizations and help them further to achieve smooth operations.

In the nutshell, it is more than important for students to learn all the courses mentioned in the first paragraph to be better decision-makers in the future.