Methods of making management decisions under conditions of uncertainty
Posted: Sun Dec 22, 2024 6:55 am
What are we talking about? Methods of making management decisions are ways to choose the best alternative to achieve a set goal. Many of them have been developed, so each manager can put together his own "portfolio" based on personal characteristics and business features.
Why are they needed? Sound management decisions are the basis for sustainable development of any company. An incorrectly chosen method leads to the implementation of an ineffective alternative, which inevitably entails financial and reputational losses.
In this article:
What are management decisions and what role do they play in business?
Classification of methods of making management decisions
4 Basic Strategies for Managing Decision Making in Management
Heuristic, collective and quantitative methods of making management decisions
Typology of methods of making vietnam telegram management decisions based on the situational approach
Methods of making management decisions at the stage of problem diagnostics
Methods of making management decisions for formulating an alternative
5 Groups of Management Decision Making Methods for Evaluating Alternatives
Methods of making management decisions when choosing and implementing an alternative
How to choose a management decision making method
How to evaluate the effectiveness of a management decision-making method
Frequently Asked Questions about Management Decision Making Methods
In-Depth Guide: How to Cut Your Ad Costs by 25% with Artificial Intelligence
Download for free
What are management decisions and what role do they play in business?
Management decisions in business are a key tool for influencing a company. It is important to note that not every decision made can be classified as management. Management experts highlight a number of features of such actions:
training subordinates on management tasks;
compliance with the goals and objectives of the enterprise;
qualifications of the person making the decision - the latter must be within the scope of the specialist's authority;
feasibility.
Modern methods of making management decisions represent the choice of a specific course of action to achieve certain goals. The approach to such decision options may differ among managers depending on their individual characteristics.
What are management decisions and what role do they play in business?
Source: shutterstock.com
What are the influences of management decision-making methods:
Sphere What management decisions affect
Planning
defining the philosophy, mission and goals of the organization;
analysis of the external environment and its impact on future steps;
development of strategy, tactics and methods for achieving set goals;
budget management and selection of investment projects;
definition of target market segments, positioning of products and services, pricing strategies;
selection of distribution channels for products and services;
research into the development of new products and services;
planning and selection of advertising methods;
organizing PR campaigns and determining effective methods for their implementation
Organization of activities
methods of communication between departments and employees;
the structure of the company and its transformation;
distribution of rights and responsibilities, reorganization
Motivation
requests and needs of employees;
ways to increase work efficiency;
methods and approaches to stimulation
Control
analysis of staff performance;
assessment of labor productivity;
monitoring and studying activities;
implementing improvements based on analysis
Business requires regular choices, from simple and routine to strategic ones. Most management decision-making methods are universal.
Read also!
"USP examples to help you come up with your own that's even better"
Read more
Classification of methods of making management decisions
Currently, there are many approaches to making management decisions, which can be divided into several main categories.
Category of methods Examples
General scientific methods
systems analysis;
comprehensive analysis;
differentiation and integration;
program-target planning
Basic methods of making management decisions
comparison method;
method of relative and average values;
graphical method;
grouping method;
balance method
Decision-making methods based on the analysis of factors taking into account their certainty
chain substitution method;
index method;
absolute difference method;
relative difference method;
integral method;
proportional division (share participation) method;
differential calculus method;
weighted finite difference method;
method of simple addition of an indecomposable remainder;
logarithmic method;
coefficient method;
method of splitting the increment of factors
Methods of decision making based on stochastic factor analysis
correlation analysis;
analysis of variance;
component analysis;
multivariate factor regression analysis
Methods for selecting the optimal solution taking into account performance indicators
linear programming methods;
dynamic programming methods;
methods of queuing theory;
methods of game theory;
methods of operations research theory;
resource inventory management methods;
pattern recognition methods
Methods that rely on the study of long-term development plans
GAP analysis method (product – market);
BCG (Boston Consulting Group) matrix method;
Thompson and Strickland model;
McKinsey Portfolio Matrix Model DPM;
model "7C";
PIMS Integrated Business Analysis Model;
SWOT situational analysis model
Methods that relate to personnel management
Tannenbaum-Schmidt continuum of leadership behavior;
Fiedler's situational model;
Hersey and Blanchard's model of performer maturity;
path-goal model of Thorens, Mitchell and House;
Stinson-Johnson situational model;
Vroom-Yetton-Jago decision model
Methods based on quality management tools
stratification;
checklist;
histogram;
Pareto chart;
Ishikawa diagram;
scatter plot;
control charts;
affine diagram;
interrelation diagram;
tree diagram;
matrix diagram;
matrix sheet;
network plan;
error tree
Why are they needed? Sound management decisions are the basis for sustainable development of any company. An incorrectly chosen method leads to the implementation of an ineffective alternative, which inevitably entails financial and reputational losses.
In this article:
What are management decisions and what role do they play in business?
Classification of methods of making management decisions
4 Basic Strategies for Managing Decision Making in Management
Heuristic, collective and quantitative methods of making management decisions
Typology of methods of making vietnam telegram management decisions based on the situational approach
Methods of making management decisions at the stage of problem diagnostics
Methods of making management decisions for formulating an alternative
5 Groups of Management Decision Making Methods for Evaluating Alternatives
Methods of making management decisions when choosing and implementing an alternative
How to choose a management decision making method
How to evaluate the effectiveness of a management decision-making method
Frequently Asked Questions about Management Decision Making Methods
In-Depth Guide: How to Cut Your Ad Costs by 25% with Artificial Intelligence
Download for free
What are management decisions and what role do they play in business?
Management decisions in business are a key tool for influencing a company. It is important to note that not every decision made can be classified as management. Management experts highlight a number of features of such actions:
training subordinates on management tasks;
compliance with the goals and objectives of the enterprise;
qualifications of the person making the decision - the latter must be within the scope of the specialist's authority;
feasibility.
Modern methods of making management decisions represent the choice of a specific course of action to achieve certain goals. The approach to such decision options may differ among managers depending on their individual characteristics.
What are management decisions and what role do they play in business?
Source: shutterstock.com
What are the influences of management decision-making methods:
Sphere What management decisions affect
Planning
defining the philosophy, mission and goals of the organization;
analysis of the external environment and its impact on future steps;
development of strategy, tactics and methods for achieving set goals;
budget management and selection of investment projects;
definition of target market segments, positioning of products and services, pricing strategies;
selection of distribution channels for products and services;
research into the development of new products and services;
planning and selection of advertising methods;
organizing PR campaigns and determining effective methods for their implementation
Organization of activities
methods of communication between departments and employees;
the structure of the company and its transformation;
distribution of rights and responsibilities, reorganization
Motivation
requests and needs of employees;
ways to increase work efficiency;
methods and approaches to stimulation
Control
analysis of staff performance;
assessment of labor productivity;
monitoring and studying activities;
implementing improvements based on analysis
Business requires regular choices, from simple and routine to strategic ones. Most management decision-making methods are universal.
Read also!
"USP examples to help you come up with your own that's even better"
Read more
Classification of methods of making management decisions
Currently, there are many approaches to making management decisions, which can be divided into several main categories.
Category of methods Examples
General scientific methods
systems analysis;
comprehensive analysis;
differentiation and integration;
program-target planning
Basic methods of making management decisions
comparison method;
method of relative and average values;
graphical method;
grouping method;
balance method
Decision-making methods based on the analysis of factors taking into account their certainty
chain substitution method;
index method;
absolute difference method;
relative difference method;
integral method;
proportional division (share participation) method;
differential calculus method;
weighted finite difference method;
method of simple addition of an indecomposable remainder;
logarithmic method;
coefficient method;
method of splitting the increment of factors
Methods of decision making based on stochastic factor analysis
correlation analysis;
analysis of variance;
component analysis;
multivariate factor regression analysis
Methods for selecting the optimal solution taking into account performance indicators
linear programming methods;
dynamic programming methods;
methods of queuing theory;
methods of game theory;
methods of operations research theory;
resource inventory management methods;
pattern recognition methods
Methods that rely on the study of long-term development plans
GAP analysis method (product – market);
BCG (Boston Consulting Group) matrix method;
Thompson and Strickland model;
McKinsey Portfolio Matrix Model DPM;
model "7C";
PIMS Integrated Business Analysis Model;
SWOT situational analysis model
Methods that relate to personnel management
Tannenbaum-Schmidt continuum of leadership behavior;
Fiedler's situational model;
Hersey and Blanchard's model of performer maturity;
path-goal model of Thorens, Mitchell and House;
Stinson-Johnson situational model;
Vroom-Yetton-Jago decision model
Methods based on quality management tools
stratification;
checklist;
histogram;
Pareto chart;
Ishikawa diagram;
scatter plot;
control charts;
affine diagram;
interrelation diagram;
tree diagram;
matrix diagram;
matrix sheet;
network plan;
error tree