Decision-Making and Control in Management
Decision Making
The process by which a choice is made among alternatives to solve different life situations. These situations can occur in various contexts: work, family, relationships, business, etc. Decisions are made constantly, the difference lies in the process used to reach them.
Stages of Decision Making
First Stage: Recognizing the Need
The decision-making process begins when a person faces a new situation involving threats (e.g., surgery) or opportunities (e.g., relocating). A decision-making situation requires at least two alternatives.
A desirable attitude at this stage is to consider the importance of the potential threat or opportunity.
Second Stage: Listing Alternatives
Once the need for a decision is recognized, analyze the associated goals and list available options to achieve them.
Third Stage: Evaluating Alternatives
Carefully study the list of alternatives. Consider the feelings and thoughts associated with each option, analyze and evaluate them, and establish a relationship between personal choices and priorities. Consider the advantages and limitations of each alternative.
Fourth Stage: Provisional Decision
After evaluating each alternative, select a preferred option. Focus on this option and discard the others. Consider how to implement it and communicate the decision to others. Before announcing the decision, especially if controversial, develop strategies to ensure its success and address potential disapproval. Review the information on practical difficulties and plan how to overcome them.
Fifth Stage: Commitment and Adjustment
Implement the provisional decision. Invest time and energy in the chosen alternative and reject the other options. Maintain optimism and commitment to the choice. If minor issues arise, persevere. If significant challenges or dissatisfaction occur, revisit previous stages to find a better alternative, leveraging the experience gained.
Programmed Decisions
These are repetitive, routine decisions with established solutions. The decision-maker follows a known procedure. Programmed decisions are made according to policies, procedures, or rules, which simplify decision-making by limiting alternatives.
For example, managers rarely have to worry about a new employee’s salary due to established salary scales.
Non-Programmed Decisions
These decisions address infrequent or unique problems requiring specific solutions. For example, launching a new product requires a specific decision-making model. Non-programmed decisions address unusual or exceptional problems. If a problem isn’t frequent enough to be covered by a policy or is important enough to deserve special treatment, it should be handled as a non-programmed decision.
Management Control
Control is vital in management. Even with great plans, an appropriate organizational structure, and efficient management, executives need a mechanism to check the organization’s real situation and ensure actions align with objectives. Control ensures that events align with plans.
Control Requirements
- Correcting Faults and Errors: Control must detect and indicate errors in planning, organization, and direction.
- Anticipating Future Failures: Besides detecting current errors, control should prevent future errors in planning, organization, and direction.
Stages of Control
Establish Standards and Measurement Methods
Define clear, measurable goals and objectives with specific deadlines, established during the planning process.
Measure Results
Compare measured results with established goals or criteria. If results align with the standards, managers can assume that everything is under control.
Corrective Action
If results don’t meet established levels, take corrective measures. This may involve changing organizational activities or adjusting the original standards.
Feedback
Feedback is fundamental to the control process. Information obtained through feedback is integrated into the administrative system over time.