Management and Decision Making

Decision Making

• Definition: The process of selecting a course of action from multiple options to achieve a goal or solve a problem.
• Types of decision making:
  • Programmed decisions: Routine, repetitive, and well-structured decisions.
  • Non-programmed decisions: Unique, complex, and unstructured decisions.
• Decision-making models:
  • Rational model: A systematic and objective approach to decision making.
  • Behavioral model: A more realistic and subjective approach to decision making, considering personal biases and emotions.
  • Vroom-Yetton model: A decision-making model that considers the level of participation and involvement of team members.

Strategic Planning

• Definition: The process of defining an organization's mission, vision, and objectives, and developing a plan to achieve them.
• Components of strategic planning:
  • Situation analysis: Analyzing the organization's internal and external environment.
  • SWOT analysis: Identifying strengths, weaknesses, opportunities, and threats.
  • Goal setting: Establishing specific, measurable, achievable, relevant, and time-bound (SMART) objectives.
  • Strategy formulation: Developing a plan to achieve the objectives.
  • Implementation and evaluation: Putting the plan into action and monitoring its progress.

Differences between Leaders and Managers

• Leaders:
  • Focus on vision, inspiration, and motivation.
  • Set direction, build trust, and empower others.
  • Encourage innovation, creativity, and calculated risk-taking.
  • Focus on the "what" and "why".
• Managers:
  • Focus on planning, organizing, and controlling.
  • Oversee day-to-day operations, allocate resources, and solve problems.
  • Emphasize efficiency, productivity, and stability.
  • Focus on the "how" and "when".

Levels of Management

• Top-level management:
  • Responsible for setting the overall direction and strategy of the organization.
  • Focus on long-term planning, decision making, and external relations.
  • Typically includes CEO, CFO, and other executive-level positions.
• Middle-level management:
  • Responsible for implementing the plans and strategies set by top-level management.
  • Focus on tactical planning, departmental management, and coordination.
  • Typically includes department heads, branch managers, and other mid-level positions.
• Lower-level management:
  • Responsible for supervising and coordinating the day-to-day activities of employees.
  • Focus on operational management, task assignment, and performance monitoring.
  • Typically includes supervisors, team leaders, and other frontline managers.

Test your knowledge of management and decision making concepts, including types of decision making, strategic planning, leadership versus management, and levels of management.