Managerial Decision Making Essay

653 Words3 Pages
Running Head: MANAGERIAL DECISION MAKING MANAGERIAL DECISION MAKING WESLEY TESE AHURA SEPTEMBER 11, 2009 The degree of success an organization is likely to enjoy is greatly dependent on the decisions of the managers. The method by which a course of action is selected and employed to deal with a particular setback is called decision-making. Decisiveness plays a key role in effective decision making. In other to make good decisions a good managerial skills are required and the more decisive a manager is the more effective his decisions. According to Vroom and Yetton (1973) “each decision is influenced by two major factors: decision quality and acceptance”. Before making any decisions goals are usually set and the decisions are channeled towards achieving these goals. To enhance a better understanding of the concept of managerial decision making a good understanding of the major types of models used by managers for managerial decisions is needed and the seven basic steps of the decision making process and the most common forms of group decision making. “Corporate investment decisions often involve substantial amounts of money. Many investment decisions are also difficult to reverse and can affect the company's business far into the future” (Corporate Finance, 2009). Decisions are important in moving any organization forward. There are two major types of models used in decision-making by managers. These are rational and non-rational models. In the rational model, decisions made by managers are based on reason or logic. Managers tend to think sensibly or logically in the rational model. Decisions are made spontaneously through deductions via reasoning and conclusions derived. However,

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