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.
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:
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.
The 5Ms are as follows:-
Through a proper decision-making process, these Ms can be utilised optimally.
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.
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.
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.
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.
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.
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.
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.