Among the functions of management decision making is the most important one. A marketer has to select a certain choice among the alternative courses of action to achieve a specific goal. Thus, the goal oriented decision making process is an indispensible process which leads to the success. In fact decision making is a continuous process. The managers of a business enterprise have to take decisions throughout the running of the business activities since there are always two or more alternatives present in the market. It is to be noted that the most effective decision is taken by the managers in case of a business problem.
Decision making as the backbone of business management connects the different sectors of economy for fruitful purposes. The right decisions at the right time can only encourage the proper resources utilization. The resources like men, money, materials, machines, methods and markets have to appropriately use for reducing the cost of production. The manager should be trained and equipped to select the best alternative which can increase the profitability. The one who makes the decision have to evaluate the advantages and disadvantages of the decision. The managerial performance also is evaluated by the decision making.
The quality of the manager reflects the quality of decisions. A correct decision is the proof for the fact that the manager is qualifies and able for the performance of his or her duties. A wrong decision by a manager affects all the sectors of the business enterprise. The decisions taken must be sufficient to motivate the employees. How it works is based on the profitability of the firm. If rational decisions are taken by the management it results in the high profitability which in turn gives the employees both financial and non financial benefits. The innovative ideas and products are also introduced by such rational decision making power of the management.
