Essay Paper on Management Decision Making

Management decision making is literally vital for any organization because on a decision made depends the operation, profitability and existence of a company. This paper is supposed to contemplate decision making in the context information availability commenting on the management and decision making theory.

Generally, decision making is considered to be a fundamental aspect of management and a key management role, as Currie, et al state. Beside other roles management is supposed to perform is informational role. This role consists in monitoring, filtering and distributing information. And this part of managerial work is the same important as other parts of it. And while the manager has the possibility to access information she also has the authority to make decisions according to what is known. And these decisions will be organizational strategic resolutions. And managers have to be aware of the ways they can use the available information. In general, as Alwis, et al believe, managers have to ask the right questions about the information to make necessary correct decisions. Not only ask what they have to do, what changes they are supposed to introduce, what information they need for this, and who can offer this data. Managers have to be able to realize what information they owe, to whom they owe it and in what form. Being able to answer these questions they will be able to make right decisions. Decision making can be divided into individual and group decision making. Individual decision making consists in a manager making decisions on one’s own and taking all responsibility for what has been decided. But, on the other hand, even if a decision is made individually, it still exists in the context of a situation and circumstances and is influenced by the environment and colleagues in such particular cases. When group decision making s viewed, it is important to assert that at times it is even better and more rational than individual decision making. Even studies conducted by scientists prove that interaction in a group allows for better and more productive work and consequently improved decision making.

The question under discussion in our paper is connected with information introduced to a manager by an accountant (financial data). It is necessary to define whether the decision making process is restricted by the constraints the offered information implies. Here, when information from the accountant is considered, it is understandable that constraints are connected with budget. The accountant offers data on the financial condition of the company and means that, for instance, certain cuts of budget are to be done, or some changes have to be implemented to improve this financial condition. Decision making can be restricted if the company has certain strategies and plans to be brought to life but there is no available budget for the realization of these plans. The example can be simple and illustrative. For instance, some company has planned the PR or advertising campaign in order to drive public attention to the company and attract customers to its goods. But the accountant informs the management that there are no costs available for the campaign. Thus, the management is supposed to make a decision as for the solution. It can either decide to conduct the low-cost campaign or not to conduct the campaign at all or to conduct the campaign to the full extent as it has been planned. But in this case the management has to take into consideration all the constraints for the firm and to weigh all advantages and disadvantages of each decision and to assume the outcomes for the company whatever the decision. This requires great responsibility and professionalism to make the decision right and not to place the reputation and welfare of the company in jeopardy…

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