Management Decisions are one of the top components of a manager’s day to day activities.
Management’s main responsibility is for the effective and economical planning and regulation of the operations of an enterprise. Their top responsibility, quotes by Drucker, Brech and Stewart, is judgement and management decisions in determining plans, and in using data to control performance and progress against plans.
Managers spend time deciding what should be done (problem definition), and then getting other people to do it, either by delegation to lower level management, or by means of groups. The manager may use a nominal group technique as a way of blending individual and group decision making to help out. Organizational Decision Making is a key skill to the manager.
Their first tasks involves setting objectives, planning including the decision making, and then setting up formal organization. One of their key sub-systems in their management technique and style, is their Decision Making Process and Management Decisions.
Mintzberg, in 1973, proposed that managers had three general roles: the interpersonal, the informational, and the decisional. He further subdivided the roles, and later developed his own decision making model, the Mintzberg Model, or the Iterative Decision Making Model.
Decision making activities of the manager include the formal authority for decision making, and determining strategy based on the information. The roles were that of entrepreneur, disturbance handler, resource handler and negotiator. Tasks involved are discussions with decision makers, interviews with experts, secondary data analysis, and review of results from Decision Making Tools and the qualitative research.
Management’s role in decision making is often acknowledgement or search for the problem, and that of problem definition. He or she may delegate the latter to another manager or Group Decision Making and their consensus decisions
The manager sets the environmental context of the problem during problem definition state and passes on knowledge and objectives for decisions to be made. The manager makes several types of decisions, two of which are regular annual decisions such as budgeting, market planning, business planning and process improvement decisions.
The manager may respond to lots of decision requests, particular on projects which are based upon Iterative Decisions. Finally, a good majority of their time is spent on risk management.