The effectiveness of management decisions is organizational and legal. Social efficiency of management decisions

One of the most important characteristics of a management decision is its effectiveness.

Under effectiveness of management decisions understand the relationship between the degree of achievement of set goals and the totality of time, human, monetary and other resources spent on making and implementing management decisions.

The effectiveness of a management decision increases if the degree of achievement of set goals increases and resource costs decrease.

An effective management decision must meet the requirements arising from the situation being solved and the goals of the enterprise. To be effective, i.e. achieve the set goals, the management decision must satisfy the following general requirements:

· be real;

· be resistant to possible errors in the source data;

· be flexible;

· be conflict-free within the enterprise;

· accepted and implemented in real mode time.

In addition to these requirements, there are a number of other parameters, the fulfillment of which is mandatory to characterize a particular management decision as effective.

Among these parameters it is worth highlighting timeliness solutions. We are talking not only about the timeliness of making management decisions, but also achieving the goal. It should be borne in mind that while a specific problem is being solved, events continue to develop. Sometimes it happens that a proposed very correct idea (alternative) can quickly become outdated and lose its meaning in the future.

Another parameter is validity management decision. Those directly executing the decision must be convinced that it is justified. In this regard, one should not confuse the actual validity of the decision and its perception by the performers, their understanding of the arguments that prompted the manager to make just such a decision.

The management decision made must be realistically feasible, i.e. You cannot make an unrealistic, abstract decision. The goals and objectives set in this particular decision must be realistic, correlated with the available resources and their types to perform certain tasks, as well as with the methods, methods, and technologies that are supposed to be used.

You should know that unrealistic management decisions cause frustration and irritation for those directly involved. The vast majority of such solutions are ineffective.

The developed management solution must correspond to the strengths and means of the specific team for which it is intended. The effectiveness of developed and then implemented management decisions is directly related to a clear diagnosis of problems arising at a given enterprise.



There are two ways to identify problems. According to one, a problem is a situation when the set goals are not achieved. In this case, the manager becomes aware of the problem because something that should have happened does not happen. Then, when making appropriate decisions, deviations from the norm are smoothed out. With this formulation of the question, quite often managers consider as problems only situations in which something should have happened, but did not happen.

It is often quite difficult to completely determine the problem, since all parts of the enterprise are interconnected.

In a large enterprise, there may be dozens or even hundreds of such interdependencies. In such cases, it can be quite difficult to correctly and timely determine the true problem.

The first phase in diagnosing a complex problem is recognizing and identifying the symptoms of difficulties or opportunities.

Identifying symptoms helps define the problem in general terms. This also helps reduce the number of facts that must be considered to truly improve efficiency.

However general symptom(such as low profitability) is due to many factors. Therefore, it is generally advisable to avoid taking immediate action to eliminate a symptom, as some managers tend to do. In such cases, the manager should deeply understand the essence of the problem to find out the reasons for the ineffective activity of individual departments or the enterprise as a whole.

To do this, the manager needs to collect and carefully analyze the required internal and external (relative to the enterprise) information.

Such information can be collected on the basis of formal methods, using, for example, external market analysis, and internally, computer analysis of financial statements, interviews with management consultants, or surveys of employees who are familiar with certain aspects of this production activity. In addition, information can also be collected informally by talking about the current situation and making personal observations.

It should be borne in mind that an increase in the amount of information does not always improve the quality of a management decision and its effectiveness. Quite often managers even suffer from an excess of irrelevant information. Therefore, during observations and when starting to analyze the situation, it is important for a manager to see the differences between relevant and unnecessary information and be able to separate one from the other.

Under relevant information refers to data relating only to a specific problem, person, place or period of time.

Since relevant information is the basis for an effective decision, it is necessary to ensure that it is as accurate and relevant to the problem as possible.

To increase the efficiency of decisions made by a manager, the approach to the problem existing at a given enterprise is important. When a manager diagnoses a problem in order to make a decision, he must be aware of what exactly can be done about it. Many possible solutions to enterprise problems will not be realistic because either the manager or the enterprise does not have enough resources to implement the decisions made. In some cases, the cause of the problem may be factors outside the enterprise (laws, regulations that the manager cannot change, etc.).

A significant obstacle to making effective management decisions are various restrictions. When working on a management decision, a manager must impartially determine the essence of existing limitations and only then outline possible alternatives. If this is not done, at least a lot of time will be lost. It's even worse if the wrong course of action is chosen. Such decisions will aggravate, rather than solve, existing problems in the enterprise.

There are general restrictions for making effective management decisions:

· existing laws, regulations, regulations;

· ethical norms and rules;

· intense competition in the market for goods and services;

· inability to purchase resources at reasonable prices;

· the need for new and very expensive technologies;

· insufficient number of employees with the required qualifications and relevant experience.

Some restrictions vary depending on the specific situation and the personal qualities of managers. A significant limitation on many management decisions, although sometimes easily removable, is the narrowing of the powers of all team members determined by the top management. In other words, a manager can make or implement management decisions only if senior management has granted him such rights.

To increase the efficiency of management decisions, compliance with the optimal hierarchy in decision making is essential. In this regard, it is desirable to delegate managerial powers to make management decisions closer to the level at which there is more necessary information and which is directly involved in the implementation of the decision.

In this case, the performers are employees of adjacent levels. Contacts with subordinates located more than one hierarchical level below are not allowed.

When making management decisions, horizontal (direct) connections should be used. In this case (especially initial stage decision making) collection and processing of information is carried out without recourse to higher management.

This approach contributes to making management decisions in a more short time and increases responsibility for the implementation of decisions made. Along with these, it is advisable to centralize management when making management decisions.

The decision-making process should be in the hands of one (overall) leader. IN in this case a hierarchy in decision making is formed, i.e. Each lower manager solves his problems (makes decisions) with his immediate superiors, and not with a superior manager, bypassing his immediate superior.

In achieving the effectiveness of management decisions, a special role is played by methods of communicating decisions made to executors.

Bringing decisions to the executors usually begins with dividing the alternative into group and individual tasks and selecting executors. As a result, each employee receives a specific task of his own, which is directly dependent on his job responsibilities and a number of other objective and subjective factors. It is believed that the ability to delegate tasks to performers is the main condition for the effectiveness of the decision made.

The main reasons for failure to implement management decisions:

1) insufficiently clear formulation of the decision by the manager;

2) incorrect understanding of the essence of the decision by the executor;

3) absence necessary conditions and means for implementing management decisions;

4) lack of agreement of the performer with the decision being made.

It should always be remembered that the effectiveness of management decisions depends not only on their optimality, but also on the form of communication to the executors (formulation of decisions and personal qualities of managers and executors).

Organizing the execution of decisions made as a specific activity of a manager presupposes that he keeps decisions under review, promptly corrects management decisions, and achieves their high efficiency.

Ministry of Education and Science

State educational institution higher professional education

"Nizhny Novgorod State University of Architecture and Civil Engineering"

Institute of Economics, Management and Law

Department of Management and Marketing

Essay

Discipline: Management decisions

On the topic of: “Assessing the effectiveness of management decisions”

Completed by: student of group MN-13

Skvortsova N.A.

Checked by: Ph.D. Associate Professor Lopatkina T.N.

Introduction

Management decisions are one of the most important processes. The success of the business largely depends on its effectiveness. Only a professional manager has the technology to develop, make, and implement management decisions, without which effective management of an organization in a difficult economic environment is practically impossible. Every manager knows that before starting any business, it is necessary to determine the purpose of his actions: strategic (for the long term) and tactical (for a specific action).

Goals must be specific and measurable, i.e. For each goal there must be a criterion that would allow assessing the degree of its achievement. If there is no such criterion, then the implementation of one of the main management functions - control - is impossible. And in this sense, a goal, the degree of achievement of which can be quantitatively measured, is always better than a goal formulated only verbally.

An equally important professional quality of a manager is the ability to foresee. He who does not know how to foresee cannot govern.

The external and internal environment in which the organization operates is subject to continuous changes, the degree of significance of which varies. In order not to find yourself in the situation of a driver who has not noticed a sharp turn in the road, monitoring the condition of the external and internal environment organization must be carried out continuously.

It is the results of assessing the effectiveness and monitoring of management decisions that are the basis for the organization’s managers to adjust previously made decisions if deviations in the implementation of previously made decisions are significant.

Only by correctly assessing possible losses and gains and developing an action program to prevent possible negative consequences can an effective management decision be made.

1. Solutions as a tool for changes in the functioning and development of enterprises

One of the conditions for the successful functioning and development of enterprises in a market economy is the constant qualitative improvement of their activities. It is associated with changes in the organization of work, the technological process, the equipment used, the incentive system, personnel policies, ethical standards, etc.

Transformations must concern both the object and the subject of management. Management needs to periodically evaluate and adjust the goals set to take into account changes. external environment and the enterprise itself.

Usually, major changes drive decisions to improve organizational structures management. Associated with it are redistribution of powers, responsibilities, changes in coordination and integration processes. The strategy of change also concerns people, suggesting modification of capabilities, attitudes, personnel behavior, motivation, leadership, formation of a work team, and implementation of a certain social policy.

The need for change is dictated by market demands, to which successful business leaders adequately respond. It is typical for individual entrepreneurs (for example, Japanese ones) to provoke changes in the market so as not to be in the rearguard of these changes and not to give in to competition. This allows you to maintain your “niche” and takes enterprises to new organizational, economic, technological, and cultural levels.

Most foreign companies (particularly in the USA) are of the opinion that moderate changes should be carried out annually, and radical changes once every four to five years. It must be remembered that disruption of the usual work schedule for a certain time can negatively affect the results of activities. Therefore, some kind of compensatory measures should be provided aimed at smoothing out the process of reorganization in the company. It should also be borne in mind that an enterprise is (as has been repeatedly noted) an organizational socio-economic system. Changes in some of its elements inevitably entail changes in others.

Readiness for change is a complex process in many respects, including psychological ones. As a rule, the need for them arises under the influence of the external environment, since the internal environment is more conservative and is not burdened by the reached stage of its development. Conventionally, the technology of change can be divided into stages: awareness of the need, formation of a new look at the usual reality among the enterprise team and its management, implementation of changes.

In this regard, there are two types of leaders: transitional and transformative. The first bear the features of reformers, but are burdened by internal and external restrictions. The second ones are focused on creation. They need a clear vision of the future of the company based on the developed concept of change and the ability to captivate the workforce with their ideas. At the same time, it is very important to proceed from the mission of the enterprise, to correctly define goals, to develop strategies for achieving them, taking into account the available material, financial and labor resources.

When implementing changes, as in any work, it is advisable to adhere to certain principles:

1. Changes should be carried out in accordance with the developed strategy for their implementation;

2. The process of transformation should not be a landslide, but gradual to ensure a smooth transition from old to new, in order to have a reserve of time to identify and, if necessary, make the required adjustments;

3. Consider the impact human factor, it is likely that some of the staff will resist the upcoming changes. It is necessary to oppose this group of supporters of change, to carry out appropriate work to reorient the “conservatives”, to attract external consultants if the current circumstances require it;

4. Pursue a policy of partnership with the company’s employees, based on awareness, encouragement of initiative and creativity, the formation of a favorable climate, effective “teams”, healthy mind competition, suppression of manifestations of bureaucracy;

Management specialist Larry Greiner has proposed a model for successfully managing organizational change, which includes a number of stages.

Stage I. Pressure and inducement. Its essence is that pressure external factors(increased competition, changes in the economy, etc.) should encourage managers to make changes.

Stage II. Mediation and reorientation of attention. When an idea for change arises, there is a need to use intermediary services and consultants.

Stage III. Diagnosis and awareness. At this stage, management collects relevant information.

Stage IV. Finding a new solution and committing to its implementation. Once the existence of a problem is recognized, the leader looks for a way to change the situation in a positive direction.

Stage V: Experimentation and Discovery. Management rarely takes on the risk of making major changes all at once. By experimenting and identifying negative consequences, it becomes possible to correct actions in a timely manner and obtain the greatest effectiveness from the changes.

Competent development of solutions for making changes in an enterprise is the key to the effective functioning and development of companies in the present and future.

2. The concept of efficiency and its main indicators

In economics, efficiency is understood as the relationship between the results of financial and economic activities, usually characterized by profit, and the costs that caused the receipt of this profit.

Efficiency is determined on the basis of relevant indicators of financial and economic activity. As such, they can be used, for example, balance sheet profit, profit remaining at the disposal of the enterprise, income from securities, dividends, profit growth due to certain circumstances, the average annual cost of fixed and working capital, costs for updating fixed assets, maintaining and providing management staff, etc.

The choice of specific methods, procedures and mathematical apparatus for assessing effectiveness is determined by the complexity and nature of the object being assessed. Thus, assessing the effectiveness of simple objects, for example, placement Money on a deposit account is determined by the ratio of the amount received in the form of interest on the deposit and the amount of the deposit.

When assessing the effectiveness of complex objects, they are conditionally differentiated into simpler components. Based on calculated partial assessments of the effectiveness of individual elements of the object, it is possible to develop a general assessment of effectiveness that takes into account various factors. This raises the problem of determining the contribution of each element to overall assessment efficiency. It is resolved by assigning each of the partial assessments of the effectiveness of the corresponding mathematical weight, which can be determined based on the determination of the importance of the corresponding element in the technology of the production process, their ranking according to the results of a survey of specialists, based on the share of this element in the total cost of the object or in the total cost, etc. .P.

Of particular interest is the use of expert methods for assessing effectiveness. They can be used both if there is a certain statistical base for the production and economic activities of the company, and in a newly created enterprise. In the first case, the experts’ task comes down to determining the significance of particular performance assessments; in the second, it is to develop a consensus opinion on possible effectiveness activities of the enterprise in a new area of ​​business.

3. Efficiency of decisions

The practice of financial and economic activity in a market economy shows that enterprises of the same type, which have approximately equal material and financial resources, often have significant differences in the level of profit. Some of them are developing dynamically, others are going bankrupt.

In this regard, leading domestic and foreign economists point out that one of the most important reasons for such discrepancies is differences in the efficiency of enterprise management or, in other words, in the effectiveness of management decisions developed and implemented by managers.

In general terms, the effectiveness of enterprise management is understood as the effectiveness of managing the activities of an enterprise, which is a consequence of the ability of managers to develop effective management decisions and achieve their goals.

Many economists express the opinion that management efficiency is a function of two variables: the costs of developing management decisions and maintaining the management apparatus, on the one hand, and the results management activities, reflected in changes in the values ​​of indicators that evaluate the state of the control object.

Level economic efficiency is the most important characteristic management systems and the quality of management decisions made.

When assessing the effectiveness of management decisions, it is necessary to ensure a synthesis of economic and social aspects of management. In accordance with this, a system of criteria for assessing effectiveness should be developed.

As performance criteria, indicators such as growth in profit, production volumes and sales of products, changes in the payback period of capital investments, increased turnover of working capital, increased economic profitability, reduced costs of maintaining the management apparatus, etc. can be used.

Ultimately, almost all of them lead to an increase in the profit of the enterprise. Quantitative changes resulting from the implementation of a management decision are called the economic effect.

The planned values ​​of indicators of financial and economic activity at an existing enterprise or similar enterprises for newly created firms are taken as the basis for determining the economic effect.

Everyone recognizes that the process of assessing the effectiveness of management decisions is not an end in itself, but acts as a lever for using reserves to increase the efficiency of social production. Assessing the effectiveness of a management decision is a measure of the feasibility of changes in the management system of an enterprise or company and, ultimately, should determine the nature and content of specific changes in the activities of the enterprise or organization.

The economic assessment of the effectiveness of a management decision cannot be considered in isolation from the assessment of production efficiency. But direct use of production performance measurement may be insensitive to changes in management. Therefore, it is necessary to look for more specific, narrow indicators of the effectiveness of management itself.

Qualitative indicators of the effectiveness of developing management decisions may include:

1. Timely submission of the draft decision,

2. The degree of scientific validity of decisions (use of scientific development methods, modern approaches) - multivariate calculations, application technical means,

3. Focus on the study and use of progressive domestic and foreign experience,

4. Costs associated with the development of draft solutions,

5. The number of people involved in the development of solutions (specialists, involved employees of the enterprise), the cost and timing of the project, the number of co-executors at the stage of developing solutions,

6. Use of external consultants during the development of solution options,

7. The degree of risk in the implementation of decisions, etc.

Quantitative assessment of the effectiveness of management decisions is largely difficult due to specific features management work, which consist of:

1. Managerial work, including the development and adoption of decisions, mainly creative, is difficult to standardize and account for;

2. The implementation of the decision is associated with certain socio-psychological results, the quantitative expression of which is even more difficult than economic ones;

3. The results of the implementation of decisions are manifested indirectly through the activities of the enterprise team as a whole, in which it is difficult to identify the share of managerial labor costs. As a result, the results of the work of decision developers and executors on whom management influence is directed are identified;

4. Due to existing difficulties, there is often no ongoing control over the implementation of decisions, as a result, activities are assessed over the past period, an orientation towards the future is established, taking into account factors that influenced the past, although they may not appear in the future;

5. The time factor also makes it difficult to assess the effectiveness of decisions, since their implementation can be both operational (momentary) and deployed over time (over days, weeks, months and even years). The dynamism of economic life can present nuances that together distort the magnitude of the expected effectiveness of decisions;

6. It is also difficult to quantify the characteristics of the quality of decisions as the main prerequisite for their effectiveness, as well as the actions and interactions of individual workers.

4. Principles for assessing the effectiveness of developing a management decision

It is advisable to highlight some principles for assessing management decisions. These include:

1. Comprehensive assessment of the effectiveness of management decisions;

2. Objectivity in assessing management decisions;

3. Mandatory assessment of the effectiveness of management decisions;

4. Compliance of the assessment method with the nature of the management object;

5. Comparability of indicators for assessing various management decisions;

6. Taking into account the individual characteristics of the enterprise and the management situation when constructing a model for assessing the effectiveness of management decisions.

Analysis of the problem of assessing the economic efficiency of management decisions allows us to identify the following elements of the content of effectiveness assessments:

1. criteria (as measures of goals) for economic evaluation of efficiency;

2. effects as descriptions of the consequences obtained as a result of the implementation of management decisions.

5. Methods for assessing effectiveness

Depending on the nature, content and measure of expression of changes in the activities of the enterprise, one or another method for assessing the effectiveness of a management decision is selected.

From the point of view of the role of methods in the assessment process, they are divided into:

1. methods of taking into account the connection of social and political factors with the assessment of economic efficiency;

2. methods for selecting criteria for assessing the effectiveness of management decisions;

3. methods for selecting the effects of implementing management decisions;

4. methods for determining criteria values;

5. methods for calculating effects.

Based on the nature of the work performed, assessment methods can be divided into:

1. methods of selection and identification in the process of developing performance assessment;

2. calculation methods during the assessment process;

3. methods of descriptions in the assessment process.

From the point of view of the role of a person in the assessment process, methods are divided into formal and informal.

Based on the accuracy of the results achieved during the assessment process, a distinction is made between exact and approximate methods.

From a cost point of view, there are methods that require a significant investment of specialist time, complex computer equipment and financial resources, and methods that do not require significant costs.

Depending on the possibility of implementation, methods can be divided into complex and simple.

The variety of methods requires the inclusion of various specialists in the assessment team and coordination of methods used at different stages of the assessment.

The specialists included in the assessment team must be professionals in their field, have appropriate education and experience in this field. At permanent job As part of a group, specialists not only hone their existing knowledge and skills, expand their practical experience, but also master new methods for assessing effectiveness. By functional nature stages of the performance assessment process and based on the content of the methods used at these stages, it can be concluded that the group of assessment specialists must be comprehensive. This is consistent with the complex nature of the subject matter being assessed.

It seems appropriate to have the following composition of the assessment team:

1. economists familiar with economic and mathematical methods,

2. lawyers,

3. psychologists,

4. sociologists,

5. specialists general theory organization and production management,

6. specialists in systems analysis methodology,

7. mathematicians,

8. programmers.

Obviously, not every enterprise or association can provide such a composition. In this case, it is advisable to entrust the assessment of management effectiveness on a contractual basis to specialized research institutes, design institutes or consulting firms specializing in this area of ​​business.

Determining the procedure and organization for assessing the economic efficiency of management decisions requires answering the following questions:

1. where the assessment is made;

2. when the assessment is made, what is its process;

3. with the help of what technical and software tools the effectiveness is assessed.

6. Methods for assessing the effectiveness of enterprise management

Along with direct assessment of the effectiveness of management decisions, it is necessary to use methods for assessing the effectiveness of enterprise management as a whole.

Methodology for assessing management effectiveness based on diagnostic examination the entire enterprise management system. Based on a sequential analysis of enterprise management problems grouped into blocks, this methodology leads to an assessment of the economic efficiency of measures to automate and rationalize the management process. The originality of this approach lies, first of all, in the fact that it proposes to consider as an effect the amount of production losses that can be avoided by improving the management system. This approach was used at a car plant that found itself in a crisis situation. The crisis was successfully overcome.

The functional approach to assessing the effectiveness of enterprise management is based on the development of partial assessments of the effectiveness of individual management functions: marketing, planning, organization and control. This approach is most suitable for assessing the effectiveness of intra-company management. It allows you to identify specific violations in the functioning of the enterprise management system.

The resource approach to assessing the effectiveness of enterprise management is to determine the effectiveness of using the resources available at the enterprise involved in achieving the intended goals. All resources can be grouped as follows: capital, material resources, labor resources and information. Having calculated the partial values ​​of the efficiency of managing these resources, we can, using the appropriate economic and mathematical apparatus, give a general assessment of the efficiency of enterprise management.

The target approach to assessing the effectiveness of enterprise management is based on an analysis of the degree of fulfillment of the goals set for the enterprise. It is important here to clearly define the hierarchy of goals and their relationships.

The most comprehensive assessment is the effectiveness of enterprise management from the point of view of the economic management mechanism, which includes intra-company management, production management and personnel management. This assessment allows us to take into account many factors influencing the management system and activities to improve it, including the level of incentives, socio-psychological, communication, etc.

Another non-traditional approach to assessing management effectiveness may be an approach from the standpoint of management technology. Its essence lies in assessing the effectiveness of the technological stages of management: developing goals and strategies for the development of the company, the process of making and implementing management decisions and information support for management.

In this case, the final assessment of management efficiency can be presented in the form of a weighted arithmetic average of partial assessments of the effectiveness of individual technological stages of enterprise management.

This approach allows us to take into account the characteristics inherent in a particular enterprise. This is achieved by establishing purely individual values ​​of mathematical weights for each particular assessment of the effectiveness of technological stages and strictly individual values ​​of the indicators used to calculate the particular assessments.

Thus, the task of assessing the effectiveness of enterprise management comes down to calculating partial estimates of the effectiveness of technological stages of management and developing their mathematical weights.

The main problem in calculating partial efficiency assessments is the development of adequate criteria. The most acceptable form of presenting partial estimates is the coefficient method of presentation.

Based on this, as the most comprehensive criterion for assessing the effectiveness of the stage of developing goals and strategy, it makes sense to choose the degree of compliance of the goals and strategy of the company with its economic policy. To calculate this particular assessment, it is advisable to use expert assessment methods, in particular the nominal group method.

For the stage of decision-making and implementation, such a criterion can be the rate of achievement of set goals based on the adopted and implemented decision. For the purpose of a more accurate assessment, various amendments can be introduced taking into account, for example, the number of corrective actions in the process of implementing the initial decision.

It is advisable to calculate the effectiveness of information support for management activities based on two indicators: the economic effect of information and the cost of its acquisition.

It should be noted that partial assessments of the efficiency of technological stages can also be calculated on the basis of a weighted average, since The stages themselves, in turn, are complex objects. Mathematical weights of private efficiency assessments must be developed for each specific enterprise. This is due to the different significance of certain private assessments in various fields of activity: for financial and trust companies, it is of particular importance Information Support, for manufacturing companies with a long process of implementing decisions made, the assessment of the effectiveness of this particular technological stage, etc. comes to the fore. It is more appropriate to involve experts in determining the significance of private assessments.

Conclusion

A management decision is the result of specific management activities of management. Decision making is the basis of management. Making and making decisions is creative process in the activities of managers at any level, including:

1. development and goal setting;

2. studying the problem based on the information received;

3. selection and justification of efficiency criteria (effectiveness) and possible consequences the decision being made;

4. discussion with specialists various options solving a problem (task);

5. selection and formulation of the optimal solution; decision-making;

6. specification of the solution for its implementers.

Management technology considers a management decision as a process consisting of three stages: preparation of a decision: decision making; implementation of the solution.

Management decisions can be justified, made on the basis economic analysis and multivariate calculations, and intuitive ones, which, although they save time, contain the possibility of errors and uncertainty.

Decisions made must be based on reliable, current and predictable information, analysis of all factors influencing decisions, taking into account the anticipation of its possible consequences.

Managers are obliged to constantly and comprehensively study incoming information in order to prepare and make management decisions based on it, which must be coordinated at all levels of the intra-company hierarchical management pyramid.


List of used literature

1. Zakharchenko V.I. Planning at an enterprise. – Odessa, 1999. – 70 p.

2. Litvak B.G. Development of management decisions: Textbook. – 2nd ed. – M.: Business, - 392 p.

3. Litvak B.G. Expert assessments and decision making. M.: Patent, 1996.

4. Litvak B.V. Management decisions. – M.: Association of Authors and Publishers “Tandem”, EKMOS Publishing House, 1998.–248 p.

5. Meskon M.H., Albert M., Khedouri F. Fundamentals of Management. – M: Delo LTD, 1994. – 720 p.

6. Planning of enterprise activities. Ed. Doctor of Economic Sciences prof. Taburchak P.P. – St. Petersburg: Chemistry. – 1997. – 363 p.

7. Fatkhutdinov R.A. Development of a management solution: Textbook for universities. – JSC “Business School “Intel-Sintez”, 1998. – 272 p.

8. Economic efficiency of management and business decisions. Directory.-M.: Knowledge, 1984.-240 p.

NON-GOVERNMENTAL EDUCATIONAL PRIVATE INSTITUTION

HIGHER PROFESSIONAL EDUCATION

ROSTOV INSTITUTE OF ECONOMIC TRANSFORMATIONS

Ponko Nikolay Vladimirovich

group no. 16

"Efficiency of management decisions"

TEST

by discipline: Development of a management solution

specialty 080504 – “State and municipal management”

Checked(s)_______________

__________________________

Introduction

The process of developing management decisions is one of the most important management processes. The success of everything undertaken by the manager largely depends on ensuring its effectiveness.

When making many management decisions, you may encounter unpredictability, the probabilistic nature of the result, which is influenced by many various factors: both internal and external. The lower the level of professionalism of the manager, the higher the unpredictability of results (insufficient knowledge in the field of organizational management, personnel management, insufficient skills in using methods of socio-psychological influence, technologies for developing and making management decisions).

Only a manager who masters the technologies for developing, adopting and implementing management decisions is able to effectively manage an organization in a complex, constantly changing economic environment.

1. Management decision, essence and objectives

In management, a decision connects all aspects of a manager’s activity: from formulating a goal, describing a situation, characterizing a problem, to developing ways to overcome a problem and achieve a goal. A management decision, including an assessment of the situation, identification of alternatives, selection of the best one, formulation of the task and organizational and practical work for its implementation, ultimately determines the effectiveness of the entire system and management processes.

A management decision is the result of analysis, forecasting, optimization, economic justification and choosing an alternative from a variety of options for achieving a specific management system goal.

The impulse of a management decision is the need to eliminate, reduce the relevance or solve a problem, that is, to bring the actual parameters of an object (phenomenon) closer to the desired, forecast ones in the future.

To solve the problem, you need to answer the following questions:

What to do (what new consumer needs need to be satisfied, or at what quality level old needs need to be satisfied);

How to do it (using what technology);

What production costs to do with;

In what quantity?

In what timeframe;

Where (place, production room, staff);

To whom to supply and at what price;

What will this give to the investor and society as a whole?

Complex problems should be formalized, that is, the difference between the actual and desired state of an object should be quantified according to its parameters, as well as the problem should be structured by constructing a tree of goals to solve it.

Since the resources for solving the problem are limited, it is necessary to rank (determine the importance, weight, rank) of the problem according to its relevance, scale and degree of risk.

Stage of the product life cycle (marketing, R&D, industrial development, etc.);

Subsystem of the management system (target, functional, etc.);

Scope of action (technical, economic and other solutions);

Purpose (commercial and non-commercial solutions);

Management rank (upper, middle, low);

Scale (complex and private solutions);

Organization of development (collective and personal decisions);

Duration of action (strategic, tactical, operational decisions);

Object of influence (external and internal);

Methods of formalization (text, graphic, mathematical);

Forms of reflection (plan, program, order, instruction, instruction, request);

Complexity (standard and non-standard);

Method of transmission (verbal, written, electronic).

The main factors influencing the quality of a management decision are: the application of scientific approaches and principles to the management system, modeling methods, management automation, motivation for a quality decision, etc.

2. Classification of management decisions.

Typically, in making any decision, three elements are present to varying degrees: intuition, judgment and rationality.

When making a purely intuitive decision, people base it on their own feeling that their choice is correct. There is a “sixth sense” here, a kind of insight, usually visited by representatives of the highest echelon of power. Middle managers rely more on computer information and assistance. Despite the fact that intuition becomes sharper along with the acquisition of experience, the continuation of which is precisely high post, a manager who focuses only on it becomes a hostage to chance, and from a statistical point of view, his chances of right choice not very high.

Decisions based on judgment are in many ways similar to intuitive ones, probably because at first glance their logic is poorly visible. But still, they are based on knowledge and meaningful, unlike the previous case, experience of the past. Using them and relying on common sense, as adjusted for today, the option that brought the greatest success in a similar situation in the past is selected. However, common sense is rare among people, so this method of decision-making is also not very reliable, although it is captivating with its speed and cheapness.

Another weakness is that the judgment cannot be related to a situation that has not previously occurred, and therefore there is simply no experience in solving it. In addition, with this approach, the manager strives to act primarily in those directions that are familiar to him, as a result of which he risks missing out on good results in another area, consciously or unconsciously refusing to invade it.

Since decisions are made by people, their character largely bears the imprint of the personality of the manager involved in their birth. In this regard, it is customary to distinguish between balanced, impulsive, inert, risky and cautious decisions.

Balanced decisions are made by managers who are attentive and critical to their actions, put forward hypotheses and their testing. They usually have an initial idea formulated before making a decision.

Impulsive decisions, the authors of which easily generate a wide variety of ideas in unlimited quantities, but are not able to properly test, clarify, or evaluate them. Therefore, decisions turn out to be insufficiently substantiated and reliable; they are made “at once”, “in jerks”.

Inert solutions become the result of careful search. In them, on the contrary, control and clarifying actions prevail over the generation of ideas, so it is difficult to detect originality, brilliance, and innovation in such decisions.

Risky decisions differ from impulsive ones in that their authors do not need to carefully substantiate their hypotheses and, if they are confident in themselves, may not be afraid of any dangers.

Cautious decisions are characterized by the manager's thorough assessment of all options and a hypercritical approach to business. They are even less distinguished by novelty and originality than inert ones.

For strategic and tactical management of any subsystem of the management system, rational decisions are made based on methods of economic analysis, justification and optimization.

3. Stages of management decision

Management technology considers a management decision as a process consisting of three stages: preparation of a decision, decision-making, implementation of a decision.

At the stage of preparing a management decision, an economic analysis of the situation on the micro- and macrostructure is carried out, including search, collection and processing of information, and problems requiring solutions are identified and formulated.

At the decision-making stage, the development and evaluation of alternative solutions and courses of action are carried out on the basis of multivariate calculations, selection of criteria for choosing the optimal solution; choosing and making the best decision.

At the stage of implementation of the decision, measures are taken to concretize the decision and bring it to the attention of the executors; the progress of its implementation is monitored, the necessary adjustments are made and an assessment is given of the result obtained from the implementation of the decision. Each management decision has its own specific result, therefore the goal of management activity is to find such forms, methods, means and tools that could help achieve the optimal result in specific conditions and circumstances.

Management decisions can be justified, made on the basis of economic analysis and multivariate calculation, and intuitive, which, although they save time, contain the possibility of errors and uncertainty.

Decisions made must be based on reliable, current and predictable information, analysis of all factors influencing decisions, taking into account the anticipation of its possible consequences.

Managers are obliged to constantly and comprehensively study incoming information in order to prepare and make management decisions based on it, which must be coordinated at all levels of the intra-company hierarchical management pyramid.

The amount of information that needs to be processed to develop effective management decisions is so great that it has long exceeded human capabilities. It is the difficulties of managing modern large-scale production that have led to the widespread use of electronic computer technology and the development of automated control systems, which required the creation of a new mathematical apparatus and economic and mathematical methods.

Decision-making methods aimed at achieving the intended goals can be different:

a method based on the manager’s intuition, which is determined by his previously accumulated experience and amount of knowledge in a specific field of activity, which helps to choose and make the right decision;

method based on the concept " common sense", when the manager, making decisions, substantiates them with consistent evidence, the content of which is based on the practical experience he has accumulated;

a method based on a scientific-critical approach, involving the selection of optimal solutions based on the processing of large amounts of information, which helps to justify the decisions made. This method requires the use of modern technical means and, above all, electronic computer technology. The problem of a manager choosing a solution is one of the most important in modern management science. It presupposes the need for a comprehensive assessment by the leader himself of the specific situation and his independence in making one of several possible decisions.

Since the manager has the opportunity to choose decisions, he is responsible for their implementation. The decisions made are sent to executive bodies and are subject to control over their implementation. Therefore, management must be purposeful, the purpose of management must be known. In a management system, the principle of selecting a decision to be made from a specific set of decisions must be observed. The more choice, the more effective management. When choosing a management decision, the following requirements are imposed on it: validity of the decision; optimal choice; legality of the decision; brevity and clarity; specificity in time; targeting to performers; efficiency of execution.

4. Conditions for the effectiveness of management decisions.

The problem of a manager choosing an alternative is one of the most important in modern management science, but it is no less important to make an effective decision. For a management decision to be effective, a number of factors must be taken into account.

Hierarchy in decision making - delegation of decision-making authority closer to the level at which there is more necessary information and which is directly involved in the implementation of the decision made. In this case, the executors of the decision are employees of adjacent levels. Contacts with subordinates located more than one hierarchical level lower (higher) are not allowed.

Using targeted inter functional groups, in which the members who comprise them are selected from various divisions and levels of the organization.

The use of immediate (direct) horizontal connections when making decisions. In this case (especially at the initial stage of the decision-making process), the collection and processing of information is carried out without recourse to higher management. This approach facilitates decision-making in a shorter time frame and increases responsibility for the implementation of decisions made.

Centralization of leadership when making decisions. The decision-making process should be in the hands of one (overall) leader. In this case, a hierarchy in decision making is formed, i.e. each lower manager solves his problems (makes decisions) with his immediate management, and not with higher management, bypassing his immediate superior.

As already noted, the choice of the best solution is carried out by sequentially evaluating each of the proposed alternatives. It is determined to what extent each solution option ensures the achievement of the organization’s ultimate goal, and this determines its effectiveness. Those. a solution is considered effective if it meets the requirements arising from the situation being solved and the goals of the organization.

Firstly, the solution must be effective, i.e. should most fully ensure the achievement of the organization's goals.

Secondly, the solution must be economical, i.e. ensure achievement of the set goal at the lowest cost.

Thirdly, the timeliness of the decision. This is not only about the timeliness of decision making, but also the timeliness of achieving goals. After all, when a problem is solved, events develop. It may happen that a great idea (alternative) will become outdated and lose its meaning in the future. She was good in the past.

Fourthly, the validity of the decision. Performers must be convinced that the decision is justified. In this regard, one should not confuse the factual validity and its perception by the performers, their understanding of the arguments prompting the manager to make just such a decision.

Fifthly, the solution must be realistically feasible, i.e. You cannot make unrealistic, abstract decisions. Such solutions cause frustration and division among performers and are fundamentally ineffective. Decision must be effective and correspond to the strengths and means of the team performing it.

CONCLUSION

A decision is a choice of an alternative. The need for decision making is explained by the conscious and purposeful nature of human activity, arises at all stages of the management process and forms part of any management function.

Decision-making (managerial) in organizations has a number of differences from the choice of an individual, since it is not an individual, but a group process.

The effectiveness and quality of a management decision is determined, first of all, by the validity of the problem-solving methodology, i.e. approaches, principles, methods. Without good theory, practice is blind. However, currently only some scientific approaches and principles are applied to management. This can be explained by the “narrowness” of the concept of “management”, the absence in it of the goal of the management subsystem (teams, individuals) - ensuring the competitiveness of the object in a specific market. If we are guided by the “broad” concept of “management,” then complex, functional, dynamic, and integration approaches that are currently used in managing the quality and efficiency of products are automatically added.

Used Books

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2. Aniskin Yu. P. General management: Textbook on the general theory of management. M.: RMAT, 1997. 658 p.

3. Arskaya L.P. Japanese secrets of management / Assoc. scientific-practical initiatives of Moscow State University. Lomonosov, universities, enterprises, org. Zap. region Ukraine. M.: Universum, 1991. 117 p.

4. Vesnin V.R. Fundamentals of Management: Textbook. M.: Publishing house Triada.Ltd, 1996.

5. Vinokurov V. Organization strategic management at the enterprise. M., Center for Economics and Marketing, 1996.

6. Vikhansky O.S. Strategic management. M., 2005.

7. Vikhansky O.S., Naumov A.I. Management: person, strategy, organization, process: 2nd ed.: Textbook. M.: Gardarika Firm, 1996.

8. Gerchikova R.N. Management. M.: "Banks and Exchanges", 1997.

9. Goldshtein G.Ya. Fundamentals of management. M., 2002.

10. Gudzhoyan O.L. and others. Methods for making management decisions. Tutorial. - M.: 2007.

11. Seiwert L. Your time is in your hands: Advice for business people on how to use it effectively work time: Per. with him. M.: JSC "Interexpert": INFRA-M, 1995. 266 p.

12. Smirnov E.A. Development of management solutions. M.: UNITY-DANA, 2000.

13. Theory of organization: Textbook for universities / Ministry of Education of the Russian Federation; under general ed. V.G. Aliyeva. 2nd ed., revised. and additional M.: ZAO Publishing House Ekonomika, 2003. 431 p.

The effectiveness of management decisions and its components

Effect (lat. effectus - execution, action) is a result, a consequence of any causes or actions. The effect of the control system in general case is the total expected value of the annual growth of the organization’s welfare, which is achieved through the efforts of its managers.

Management effectiveness is the cooperation of people in a consistent movement towards a common goal, the value of which exceeds the expenditure of resources, energy or effort. Goals were previously defined as states of affairs that the organization would like to achieve in the future. “Efficiency” is not characteristic of all interactions, but only of targeted ones; therefore, this category is of a managerial nature and reflects, first of all, the degree of achievement of the set goals. Unlike the effect, efficiency is always a certain ratio (of the result with the goals or the result with the costs of obtaining it), i.e. relative value.

Management effectiveness in foreign literature is usually expressed by two key terms: Effectiveness and Efficiency. Effectiveness (English) refers to the degree to which an organization's goals, strategic or operational, are achieved; success of activities, relationships with the external environment, etc. Efficiency is understood as efficiency, which is an internal parameter of the functioning of the organization. For example, the relationship between the volume of output and the resources required for this output. The lower the resource consumption per unit of output, the more economical the organization.

The target aspect of efficiency is very difficult to separate from economy, because the formation of two aspects of management effectiveness is equally determined in organizations by the following circumstances: the quality of goal setting; the adequacy of the adopted strategies to the goals set; level of staff motivation to achieve goals; efficiency of the resources used; processes of interaction between personnel on different levels hierarchy; creativity and competencies of top managers, their ability to learn and manage knowledge, etc. Thus, the main goal of effective management is to ensure the formation and functioning of such a state of the managed system (organization), which, to the maximum extent possible, meets the requirements of the external environment organization and the most efficient use of resources and capabilities of the organization’s internal environment.

Management decisions as a result of the management activities of managers can be assessed by simple and complex indicators. The first includes results, time, and resource costs. Complex indicators are built for a more detailed assessment, these include efficiency, intensity, productivity.

TO results management decisions include: decision quality, timeliness, degree of compliance with goals, criteria as indicators of success, customer requirements, as well as stability, accuracy, internal consistency (coherence), possibility of development, degree of improvement of the decision-making procedure, etc.

TO costs management decisions include: information costs, time costs, technical costs, labor resources, and other costs.

Efficiency represents the comparison of resources (costs) to achieve results. The main factors for the effectiveness of decisions are three groups of factors: resource use, time factor and management focus.

The first factor characterizes the structure, quality of resources, their economy in management processes and the possibility of replenishment and accumulation.

The second factor reflects the timeliness of decisions, time savings, the use of new technologies and the potential of personnel capable of solving problems quickly and professionally.

The third factor reflects the reality and significance of the goal, in accordance with which the result of the manager’s activities, his strategy, and taking into account market processes are considered economic development. The goals and needs of the management system determine: the solution’s focus on the user, the visibility of the solution for the user, the possibility of repeated reuse. Intensity is a comparison of effort and time, and productivity is a comparison of result and time.

The effectiveness of an organization is its property associated with the organization’s ability, within the framework of a normative system of social values, to formulate and achieve goals in accordance with the requirements in the form of results correlated with costs, through the use of appropriate means and taking into account the factors-conditions of its functioning.

Comparing the actual impact of an implemented decision with the expected one suggests the effectiveness or efficiency of the decision. The need for such a comparison is determined by the fact that assessing the effectiveness of a given solution is one of the methods for determining the degree of stability of the internal and external environment when developing a solution, manifested as a response of the environment to its changes when developing a solution. This allows you not only to ensure that the decision has been implemented, but also in the event of significant discrepancies between the actual return and the expected return. necessary actions to adjust and clarify the decision process.

When choosing alternatives, it is necessary to ensure that the final formulation of the decision reflects the mechanism for measuring its effectiveness. If it is impossible to define and measure the effectiveness of a solution, it is recommended to avoid approving it, because in this case, its variables, apparently, were incorrectly defined in the process of analyzing the problem. A decision is effective if it helps you get closer to your goal. In the case of multi-purpose activity, a solution can be considered effective if it achieves positive result and it takes precedence over some secondary goals. Thus, effectiveness of management decisions– this is the resource effectiveness obtained as a result of the preparation or implementation of a management decision in the organization. Resources may include finances, materials, personnel health, labor organization, etc.

There are organizational, economic, psychological, legal, ethical, technological and social effectiveness of management decisions.

Under organizational The effectiveness of a management decision is understood as the fact of achieving organizational goals through fewer employees or less time. Organizational goals are related to the implementation of the following human needs: the need for organization of life and security, management, stability, order. Organizational effectiveness and the quality of management decisions are inextricably linked.



Economic The effectiveness of a management decision is the ratio of the value of the surplus product obtained through the implementation of a specific management decision and the costs of its preparation and implementation.

Social the effectiveness of a management decision is obtaining a favorable social effect and (or) avoiding an unfavorable social effect for a larger number of people and society for more a short time, fewer employees or fewer financial costs. Social effects realize the following human needs: needs for information, knowledge, creative work, self-expression, communication, and recreation.

Technological The effectiveness of a management decision is the fact of achieving an industry, national or world technological level of production or performing technological management operations due to a shorter time or lower financial costs.

Psychological The effectiveness of a management decision is the achievement of the least internal resistance of people (employees) to the implemented decision, the achievement of other psychological goals. Psychological goals realize the following human needs: needs for love, family, free time.

Legal The effectiveness of a management decision is the achievement of maximum compliance of the features and consequences of the implemented management decision with established legal norms, rules, acts, or the reduction of costs associated with possible non-compliance of the decision with legal acts.

Ecological the effectiveness of a management decision is determined by the degree to which the adverse impact on environment features and consequences of the implemented management decision. Environmental responsibility fulfills a person’s need for safety, health, organization of sustainable development of life, and his physiological needs.

Ethical the effectiveness of management decisions is formed in the field of business ethics, as well as generally accepted morality and ethics. Making decisions taking into account ethical efficiency means the desire of the decision maker to comply as much as possible with the accepted standards of morality and morality, and the rules of business ethics for doing business.

Political the effectiveness of a management decision lies in the fact that the decision maker, when making and implementing a management decision, successfully coordinates interests various groups influence (elites, authorities). Political effectiveness takes into account the individual's needs for faith, patriotism, self-empowerment, and self-expression of governance.

In addition, the effectiveness of management decisions can be determined at the hierarchical levels of the organization by the number of personnel and organizations affected; in accordance with this, the effectiveness of management decisions is distinguished at the level of production and management of an organization, group of companies, industry, region, country.

In the process of economic and financial activities of organizations, situations constantly arise when there is a need to choose one of several possible options for action. As a result of such a choice, a certain solution appears.

In order to correctly determine the effectiveness of management decisions, it is necessary to carry out separate accounting of income and expenses of a trading organization in the context of individual product groups. However, in practice, maintaining such records is very difficult. As a result, it is advisable to use the so-called specific quality indicators in the analysis, namely profit per 1 million rubles of turnover, as well as distribution costs per 1 million rubles of inventory.

The effectiveness of management decisions in a trade organization is manifested in a generalized way in quantitative form as an increase in the volume of trade turnover, acceleration of the turnover of goods, and a decrease in the amount of inventory.

The final financial and economic result of the execution of management decisions is manifested in an increase in the income of a trading organization and in a reduction in its expenses.

Economic efficiency

Determining the economic efficiency of management decisions, as a result of which the execution increased, and, therefore, increased, can be carried out using the following formula:

Eph = P*T = P * (Tf - Tpl),

  • Eph— economic efficiency (in thousand rubles);
  • P— profit per 1 million rubles of trade turnover (in thousand rubles);
  • T— increase in trade turnover (in million rubles);
  • Tf- actual trade turnover that takes place after the implementation of this management decision;
  • Tpl— planned turnover (or turnover for a comparable period before the implementation of this management decision).

In the example under consideration, the economic efficiency of making and executing a management decision is expressed in a reduction in the amount (selling expenses, or commercial expenses) attributable to the balance of goods. This leads to an increase in the amount of profit received. This efficiency can be determined by the following formula:

Ef =IO*Z = IO*(Z 2 - Z 1),

  • Eph— economic efficiency of this management activity (in thousand rubles);
  • AND ABOUT— the amount of distribution costs per 1 million rubles of inventory (in thousand rubles);
  • 3 — amount of change (decrease) in inventory (millions, rubles);
  • 3 1 — the amount of inventory before the implementation of a management decision (event) (million rubles);
  • 3 2 — the amount of inventory of goods after the implementation of this management decision.

In addition, the economic efficiency of the implemented management decision affected the acceleration of commodity turnover. This influence can be determined by the following formula:

Eph = Io*Ob = Io (Ob f - Ob pl),

  • Eph— economic efficiency of management decisions (thousand rubles);
  • And about— simultaneous value of distribution costs (thousand rubles);
  • About— acceleration of goods turnover (in days);
  • About pl— turnover of goods before the implementation of a management decision (in days).
  • About f— turnover of goods after the implementation of a management decision (in days).

Methods for analyzing management decisions

Let's consider the procedure for applying the basic methods and techniques of analysis when assessing the effectiveness of making and executing management decisions.

Comparison method makes it possible to evaluate the activities of the organization, identify deviations of the actual values ​​of indicators from the basic values, establish the reasons for these deviations and find reserves for further improvement of the organization’s activities.

Index method used in the analysis of complex phenomena, the individual elements of which cannot be measured. As relative indicators, they are necessary to assess the degree of fulfillment of planned tasks, as well as to determine various phenomena and processes.

This method makes it possible to decompose the general indicator into deviation factors.

Balance sheet method is to compare interrelated indicators of an organization’s performance to identify the impact individual factors, as well as to search for reserves for improving the organization’s activities. In this case, the relationship between individual indicators is expressed in the form of equality of results obtained as a result of certain comparisons.

Elimination method, which is a generalization of the methods of index, balance sheet and chain substitutions, makes it possible to isolate the influence of a single factor on a general indicator of an organization’s performance, based on the assumption that the remaining factors acted under other equal conditions, i.e. just as planned.

Graphical method is a way to visually illustrate the activities of an organization, as well as a way to determine a number of indicators and a way to present the results of the analysis.

Functional cost analysis(FSA) is a systematic research method used in accordance with the purpose of the object being studied (processes, products) in order to improve beneficial effect, that is, returns per unit of total costs for life cycle object.

The most important feature of functional cost analysis is to establish the feasibility of a list of functions that the designed object must perform under certain specific conditions, or to check the necessity of the functions of an existing object.

Economic and mathematical methods of analysis are used to select optimal options that determine management decisions in existing or planned economic conditions.

Using economic and mathematical methods of analysis, the following problems can be solved:
  • assessment of the production plan developed using economic and mathematical methods;
  • optimization of the production program, its distribution between workshops and certain types equipment;
  • optimization of the distribution of available production resources, cutting of materials, as well as optimization of norms and standards for reserves and consumption of these resources;
  • optimization of the level of unification of individual component parts of the product, as well as technological equipment;
  • determining the optimal size of the organization as a whole, as well as individual workshops and production areas;
  • establishing the optimal range of products;
  • determination of the most rational routes for in-plant transport;
  • determination of the most rational periods for the operation of equipment and its repairs;
  • comparative analysis of the economic efficiency of using a unit of a type of resource from the point of view optimal option management decision;
  • determination of possible intra-production losses in connection with the adoption and implementation of the optimal decision.

Let's summarize this chapter. The effectiveness of an organization's functioning depends to a very large extent on the quality of management decisions. This makes it important for all responsible employees of the management apparatus, and above all heads of organizations, to acquire theoretical knowledge and practical skills in the development and implementation of optimal management decisions.

Development and adoption of management decisions- this is usually a choice of one of several alternative options. The need to make management decisions is determined by the conscious and purposeful nature of human activity. This need arises at all stages of the management process and forms part of any management function.

The nature of management decisions made is greatly influenced by the completeness and reliability of information available on a given situation. Based on this, management decisions can be made both under conditions of certainty (deterministic decisions) and under conditions of risk or uncertainty (probabilistic decisions).

Management decision making process is a cyclic sequence of actions of a management subject aimed at resolving the problems of a given organization and consisting in analyzing the situation, generating alternative options and selecting the best option from them, and then implementing the selected management decision.

The practice of preparing and executing management decisions provides numerous examples of errors at all levels of economic management. This is a consequence of many reasons, since economic development consists of large quantity various situations requiring your permission.

The most important place among the reasons for the adoption and implementation of ineffective management decisions is ignorance or non-compliance with the technology for their development and organization of their implementation.

An important role is played by the cybernetic approach to the development of management decisions, which has become known as a theory of decision making. It is based on the widespread use of mathematical apparatus and modern computer technology.

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