Explain factors influencing managerial decision making what are various important decisions in different functional management?

Answer 1

Ans: Critical managerial decision making is the key to superior performance at work. One has to refer to critical Data, past records and performance metrics and analysis before making decisions. Mc Kinsey study tries to assess the various factors which influence decision making at work. Executives often end up referring to wrong sources, which lacks scientific rigor and credentials in its finding, for arriving critical decisions. Just because one strategy works for a particular organization may not prove to be equally effective for other enterprises. Unfortunately, many of the studies are deeply flawed and based on questionable data that can lead to erroneous conclusions. Worse, they give rise to the especially grievous notion that business success follows predictably from implementing a few key steps. In promoting this idea, authors obscure a more basic truth—namely, that in the business world success is the result of decisions made under conditions of uncertainty and shaped in part by factors outside our control. In the real world, given the flux of competitive dynamics, even seemingly good choices do not always lead to favorable outcomes. This reliance on questionable data, in turn, gives rise to a number of further errors in logic. Two delusions—of absolute performance and of lasting success—have particularly serious repercussions for business strategists. It’s actually a real problem which many strategist face and typically too much of analysis may lead to complicated or erroneous conclusions if the context of the reference is not verified. Sometimes a single factor can be picked up as a major perceived thereat and instead of finding a meaningful and objective solution based on organizations own reality decisions may be unduly influenced by halo impressions. The following are the factors influencing Managerial decision making 1. Preparation of Budget:- Decision-making involves budget allocation i.e., resource allocation to various aspect of decision. Budget may be allocated to various factors of production. 2. Future Development:- Strategic plans are usually expected to have a significance future prosperity of the organization. This is because there is a long-term commitment. In case of absence of long-term commitment the firm cannot achieve future development. 3. Orientation:- Strategic planning should keep in view of the competition existing in the market. Some times firms have to face non-price competition. 4. Factors of Environment:- Plans are always influenced by business environment always influencing factor for decision-making. There may external or internal that influence business. Buyers, Suppliers, government and competitors are likely to react in accordance with changes in environment. Thus business also should act in the same passion. 5. Risk:- Strategic plans mostly face the problem of risk. The plans should able to tackle the risk bearing capacity. Risk and uncertainty are two important aspects, which can not be expected by business man. The following are the various important decisions in different functional management. 1. Planning:- It is a stage of “Strategic Formulation”. Strategic formulation includes forecasting, formulating objectives, policies and goals. 2. Organizing:- It is strategy implementation process. It includes all those managerial activities that result in a structure of task, authority and responsibility relationship. 3. Directing:- It also comes under strategy implementation process. Directing involves efforts directed towards shaping human behavioral. It includes; leadership, communication, motivation, morale, organizational change etc., 4. Staffing:- Recruitment is an important function of Staff. Man power is required to implement strategies. 5. Controlling:- It can be called as Strategy Evaluation. Controlling refer to all those activities directed towards assuring that actual results are consistent with planned targets. Mr. G. Lakshman Rao, M.Com, M.Phil, E.Com, LL.B