Business Management

Eight types of managerial decisions

1. Irreversible
These are type of decisions, which if made once cannot be undone. Whatever is decided would then have its repercussions for a long time to come. It commits one irrevocably when there is no other satisfactory option to the chosen course. A manager should never use it as an all-or-nothing but instant escape from general indecision.

2. Reversible
These are the decisions that can be changed completely, either before, during or after the agreement of taking action. Such types of decisions allows one to acknowledge a mistake early in the process rather than perpetuate it. It can be effectively used for changing circumstances where reversal is necessary.

3. Experimental
These types of decisions are not final until the first results appear and prove themselves to be satisfactory. It requires positive feedback before one can decide on a course of action. It is useful and effective when correct move is unclear but there is a general clarity regarding the direction of action.

4. Trial and Error
In this type of decision making, knowledge is derived out of past mistakes. A certain course of action is selected and is tried out, if the results are positive, the action is carried further, if the results appear negative, another course is adopted. And so on and so forth a trial is made and an error is encountered. Till the right combination takes place, this situation continues. It allows the manager to adopt and adjust plans continuously before the full and final commitment. It uses both, the positive and negative feedback before selecting one particular course of action.

5. Made in stages
Here, the decisions are made in steps until the whole action is completed. It allows close monitoring of risks as one accumulates the evidences from out-comes and obstacles at every stage. It permits feedback and further discussion before the next stage of the decision is made.

6. Cautious
It allows time for contingencies and problems that may crop up later at the time of implementation. The decision-makers hedge their best of efforts to adopt the right course. It helps to limit the risks that are inherent to decision-making. Although this may also limit the final gains, it allows one to scale down those projects which look too risky in the first instance.

7. Conditional
Such type of decisions can be altered if certain foreseen circumstances arise. It is an ‘either / or’ kind of decision with all options kept open. It prepares one to react if the competition makes a new move or if the game plan changes radically. It enables one to react quickly to the ever changing circumstances of competitive markets.

8. Delayed
Such decisions are put on hold till the decision–makers feels that the time is right. A go-ahead is given only when required elements are in place. It prevents one from making a decision at the wrong time or before all the facts are known. It may, at times result into forgoing of opportunities in the market that require prompt action.

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The Nine Tasks of a Professional Manager

Tasks of professional managers:

1. Providing direction to the firm:
Envisioning goal is the first task that should never be delegated.

2. Managing survival and growth.
There are two sets: internal and external.

  • Internal factors are choice of technology, efficiency of labour, competency of managerial staff, company image, financial resources etc.
  • External factors are govt. policy, laws and regulation, changing customer taste, attitude and values, increasing competition etc.

3. Maintaining firm’s efficiency:
A manager has not only to perform and produce results, but to do so in the most efficient manner. The more output a manager can produce with the same input, the greater will be the profit.

4.Meeting the competition challenge:
A manager must anticipate and prepare for the increasing competition. Competition increasing in terms of more producers, products, better quality etc.

To finding new and better way to doing any task

Managers are responsible for fostering the process of has to do with provoding new process and resources.

7. Building human organization:
A good worker is a valuable assets of any company. Every manager must constantly lookout for people with potential and attract them to join the company.

8. Change management:
A manager has to perform the task of change agent.its the managers task to ensure that the change is introduced and incorporated in a smooth manner with the least disturbance and resistance.

Today’s managers are faced with a bewildering array of information technology choices that promise to change the way work gets done.

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The process of training employees to do multiple jobs within an organization

  • Gives firms flexible capacity.
  • Cuts turnover
  • Increase productivity
  • Pares down labor costs
  • Lays the foundation for careers rather than dead-end jobs.

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