Define decision making in Business

Over 1M Answers AvailableCategory: BusinessDefine decision making in Business
Mark Moon asked 9 months ago
1 Answers
Mark Moon answered 9 months ago

Definition and meaning of decision making
Decision making represents a process of choosing the best alternative from among many possible options available to the manager of the business unit. A manager at any given moment of making a decision concerning the business would first of all assess all the different alternative decisions which the business can take. Each of these alternative decisions will be looked at in terms of their advantages and disadvantages which are known to the managers of the business. From this evaluation, a final decision may be arrived at. Weighing the merits and demerits of each choice or option helps the managers of the company to make the best decisions.
One must bear in mind that decision making is an important function of management. Without this managerial function of decision making, other functions of management such as planning, directing, organizing and staffing cannot be performed because each of these function involve making decisions. In the words of Stephen Robins, “decision making is the selection of a preferred course of action from two or more alternatives.”