Managerial Decision Making

The decisions are very important factors that determine business growth. Commitment is a quality that distinguishes a manager of managers very poor. A person who is not good at decision making is not appropriate as a manager, but an administrator. Investment decisions of firms are often large sums of money. Many investment decisions also make it difficult to reverse, and the company may affect the business in the future. ( "Corporate Finance", 2009). There are several theories on management decisions. These are effective is Vroom and Yetton normative model of decision making. According to Vroom and Yetton (1973), the decision is made by two key factors: quality decision marked and acceptance. But in most cases, management decisions are generally three phases, each listed below:

First, the manager of the problem or define the challenges calls for decision. In never done any work or labor, it is best to start early. To implement this very important step is a good context of the problem. This means they get a good understanding of the problem.

First, managers have collected data, lists and ranks the alternatives before him. It gathers all the facts and figures relevant to that it identifies all the alternatives of choice. This is necessary to facilitate and support decision making. Collection of information is that can be done through research, reflection and experimentation. It is important during the phase of gathering information that even "people who know" and "people who visit that count."

Finally, after considering all alternatives, he chooses and is the best alternative. In this step, he thinks the problems by peaceful means and without distractions, and then decides on the best choice or best practices.

In conclusion, management decisions are only a "yes" or "no decision". In this case, the solution is simple. But in cases where problems are severe that even a "yes" or "no decision" can take various measures listed above.