How to Make Management Decisions. Making decisions allows managers to respond to opportunities and threats by analyzing options. Managers then have the knowledge to make decisions about goals and courses of action. Some decisions are routine and may be automatic to the manager. Other decisions are made based on new circumstances that have no rules or procedures to guide the manager in the decision-making process.
Recognize the need for a decision. The first step in any problem solving strategy is identifying the need for change. Understand the problems or opportunities that influence the need for a decision to be made. This guides your choice and makes the decision more appropriate further down the line.
Frame the problem. Gather as much information pertaining to the problem as possible. Have an in-depth understanding of all the factors that contribute to the problem. This helps you choose the best course of action to follow and helps anticipate additional problems that may arise because of the choice.
Generate and assess the alternatives. Develop as many courses of action and alternatives as possible from the information gathered. This gives you many quality options to choose from.
Choose the most effective and efficient alternative after carefully considering all the options and all the possible outcomes. If needed, ask any professionals who have insight into the problem or decision you face.
Learn from feedback given after the fact. Note what did and did not work. Use the information when future decisions need to be made.