What is the business decision making?

Posted by AxelPrice on June 2nd, 2014

The decision making process is crucial to every good business. However, the business decision making is not easy, simple, or quick, and it takes a lot of mental work and time. A good decision is taken when the manager, team or person in charge has experience in interpretation the information available to him/it. However, this along is not enough, because, in the business decision making process, there are more factors involved. A good decision maker will consult with other people, seeking other views than its own, and also admit when he is wrong and change the path. Plus, in the decision making process, there are various techniques which will help the manager make the received information clearer and analyzed better, and also add objectivity to the result.

In the business decision making process there are several types of decisions. The programmed decisions are the basic types of choices which will always follow the same pattern. These decisions are usually written down into a series of steps, and anyone can follow them easily. However, they can be written on the computer, as it is easier nowadays. The second type of decisions is the non-programmed one. These choices are non-standard and also non-routine, and each choice differs from the previous one. The third decision type is the strategic one. These kinds of decisions will affect the business on long term. The fourth type of decision is the tactical one, being medium-term and about normal company concerns. The last type of decision is the operational one, which is short term and can be also called administrative.

The business decision making is, therefore, not a simple process, and it also meets constraints when adopted in a company. The internal constraints are about the employee`s abilities, feelings, emotions, about the availability of the finance, and about the existing policy in the firm. The external constraint usually come from an environment outside the actual business, and they are about the EU and National legislation, the lack of technology, the economic climate, the behavior of the competitors. Therefore, there are a large number of factors which influences decision making in business, and these must be taken carefully into consideration for a high quality of the process.

In order to achieve quality in the business decision making process, a good manager should make better decisions than other employees, of course. In order to achieve the wisdom and experience of making great choices, a good manager should have a series of qualities. The first quality is the attitude toward risking, and to be able to risk only when it is necessary. The second quality is the management skills in handling shortcoming of information and analyzing it. Other qualities are the natural ability in leadership and decision-making, and also the experience in his work. However, these qualities should be well-trained for a successful decision making process.

Therefore, business decision making relies on a series of factors, which are co-dependent and cannot be separated from one another. In order to achieve success in any company, either big or small, one must dedicate time and patience to the decision making process.

Adopt the business decision making right now, and increase the success rate at your firm! The business decision making process will change the face of your company!