Each person makes dozens, and throughout his life, thousands of decisions. Some of them are quite personal: where to have lunch? what to do? and so on. Other decisions are more complex and require careful thought. Whether we like it or not, we all make decisions.

However, for a manager, decision making is a constant and very responsible job. The need to make decisions permeates everything that a leader at any level does, formulating goals and achieving them. Since the decisions made affect not only the manager, but also other people and in many cases the entire organization, understanding the nature and essence of decision making is extremely important for anyone who wants to succeed in the field of management.

One of the indicators of a manager’s performance is his ability to make the right decisions. Since managers perform four management functions, they actually deal with a constant flow of decisions for each of them, i.e. planning, organizing, motivating and controlling. Making and making decisions is a creative process in the activities of managers. It usually includes a number of stages:

• development and goal setting;
• studying the problem;
• selection and justification of performance criteria and possible consequences of decisions made;
• consideration of solution options;
• selection and final formulation of the decision;
• decision-making;
• communicating decisions to executors;
• control over the implementation of decisions.

A management decision is understood as the choice of an alternative; an act aimed at resolving a problem situation.

Ultimately, a management decision is presented as the result of management activity. In a broader sense, management decision is considered as the main type of management work, a set of interrelated, purposeful and logically consistent management actions that ensure the implementation of management tasks.

Types of management decisions.

They can be classified according to numerous criteria. However, the determining factor is the conditions in which the decision is made. Usually decisions are made in an environment of certainty and risk (uncertainty). (Some authors consider decisions made under conditions of risk and uncertainty separately.)

Under conditions of certainty, the manager is relatively confident in the results of each of the alternatives

In an environment of risk (uncertainty), the most a manager can do is determine the probability of success for each alternative.

In this case, the organization’s own culture, values ​​and traditions are important. Employees are exposed to the culture of the organization and therefore do not consider options outside of it.

There are other criteria for classifying management decisions:

according to the duration of the consequences of the decision: long-, medium- and short-term solutions;

by frequency of adoption: one-time (random) and recurring;

by breadth of coverage: general (applicable to all employees) and highly specialized;

according to the form of preparation: individual, group and collective decisions;

by difficulty: simple and complex;

according to the rigidity of regulation: contour, structured and algorithmic.

Contour decisions only approximately indicate the scheme of action of subordinates and give them wide scope for choosing techniques and methods for their implementation.

Structured ones involve strict regulation of the actions of subordinates. Initiative on their part can only manifest itself in resolving secondary issues.

Algorithmic - they extremely strictly regulate the activities of subordinates and practically exclude their initiative.

Of particular interest is the classification of management decisions given by M. Mescon, M. Albert and F. Khedouri, who distinguish organizational, intuitive and rational decisions.

Organizational decision is a choice that a manager must make in order to fulfill the responsibilities of his position. The purpose of an organizational decision is to ensure movement towards the goals set for the organization.

Organizational decisions can be divided into two groups: 1) programmed; 2) programmed.

In a programmed decision, the number of possible alternatives is limited and choices must be made within the directions given by the organization.

Unprogrammed decisions are decisions that require new situations to a certain extent; they are not internally structured or are associated with unknown factors. Programmed decisions include decisions on the following questions: what should be the goals of organizations? how to improve products? how to improve the structure? and so on.

In practice, few management decisions turn out to be programmed or programmed in their pure form. In fact, the process of making organizational decisions is very closely related to the process of managing the organization as a whole.

Approaches to decision making.

In management practice, two main approaches to decision making have developed: individual and group.

Within the framework of an individual approach, centralization of decision-making acquires the greatest importance. This means that most decisions in an organization are made at the top level of management and, as a rule, by one or a small group of managers. Those. with a centralized approach, the emphasis is on ensuring that decisions are made by the highest level of management.

In a group approach to decision making, a manager at any management level involves employees. In this case, the top-level manager responsible for making this decision delegates authority (transfers responsibility for decision-making) to the lowest management level. This approach protects senior managers from getting bogged down in small, day-to-day issues. The main advantage of this approach is that responsibility and power are transferred to employees at lower levels of management, which increases the effectiveness of the decision made, since it directly affects their interests.

There are two things to consider when considering decision-making processes:

1. making decisions is usually relatively easy, but making good decisions is difficult;
2. Decision making is a psychological process, so it is not surprising that the methods used by a leader to make decisions range from spontaneous to highly scientific. Hence, it can be argued that the decision-making process is intuitive, judgment-based, and rational in nature.

Intuitive decisions are choices made solely based on a feeling that they are the right ones. Judgmental decisions are choices driven by knowledge or experience.

A rational decision differs from others in that it does not depend on past experience. It is justified through an objective analytical process.

DEFINITION

Management decision is the result of analysis, forecast, optimization, economic basis and selection of alternatives from several options for achieving specific goals of the management system.

The concept of management decision often used in two main meanings, as a process and a phenomenon. As a process, a management decision is the execution of 8 procedures, among which are information preparation, development of options, coordination of alternatives, selection of a single option, approval, implementation, control of the implementation of the decision, as well as subsequent informing of the initiators of the decision.

Types of management decisions

Types of decisions and their classification are needed when analyzing the structure of managers' activities: it is important to reduce the number of random and crisis decisions, devote more time to research decisions, as well as decisions on choosing opportunities.

Types of management decisions can be classified according to several criteria. In accordance with the conditions in which decisions are made, we can distinguish:

1. decisions that are made under conditions of uncertainty and risk,
2. decisions that are made under certain conditions.

Depending on the duration of the consequences of decisions, types of decisions can be long-term, medium-term and short-term. Depending on the frequency of adoption, one-time (random) and repeating decisions can be distinguished.

In accordance with the breadth of coverage, the types of management decisions can be general, which relate to all employees, and narrowly specialized solutions. Depending on the form of preparation, decisions can be individual, group or collective.

Types of decisions on the severity of regulation

Decisions in accordance with the rigidity of regulation can be contoured, structured and algorithmic.

The outline solution approximately indicates the scheme of action of subordinate employees, giving them great freedom in choosing techniques and methods for implementing them in life.

A structured decision is a regulation of the actions of subordinate employees, whose initiative can only be shown when solving minor issues.

Algorithmic solutions very strictly regulate the activities of subordinates, practically excluding initiative.

Types of solutions in pairs

Types of management decisions can be considered in pairs, with each pair reflecting the corresponding aspect of the managers’ activities in the decision-making process.

Thus, programmable and non-programmable solutions can be considered. A programmable solution is built on the basis of established policies, rules and procedures. A programmable decision is the result of implementing an appropriate sequence of steps with a limited number of alternatives.

Unprogrammed decisions are needed in new situations that do not have an internal structure. This type of decision is most often made in the event of unforeseen or initially emerging problems, making extensive use of the personal initiative of managers, their experience and vision of problems.

Types of management decisions can also be divided into organizational and personal decisions. Organizational decisions are made by the manager depending on his formal powers. Personal decisions, on the contrary, are made by the manager as a private individual.

There is another pair - operational and strategic decisions. Operational decisions are made at lower and middle levels of management, including them in short-term plans. Strategic decisions can be made in connection with emerging complex problems, which are often associated with macroeconomic changes (the state of the economy, the level of competition, etc.).

Examples of problem solving

EXAMPLE 1

Management decisions can be classified:
1. by functional content:
- planning decisions,
- organizational,
- controlling,
- predictive.
2. by the nature of the tasks being solved:
- economic,
- organizational,
- technological,
- technical,
- environmental.
3. by levels of system hierarchy:
- at the system level,
- at the subsystem level,
- at the level of individual elements of the system.
4. depending on the organization of solution development:
- individual,
- collective.
5. by the nature of the goals:
- current (operational),
- tactical,
- strategic.
6. Depending on the approaches to making management decisions:
- intuitive (decisions are based on the manager’s internal conviction of the validity of the decision being made),
- decisions based on judgment (when previous experience and similar situations that have occurred previously are of greatest importance),
- rational decisions (as a rule, associated with complex situations within the enterprise, when a thorough analysis is required, decisions of a tactical and strategic nature are developed),
- expert (related to the widespread use of expert assessments, development of scenarios, situational models).
Since decisions are made by people, their character largely bears the imprint of the personality of the manager involved in their appearance.

In this regard, it is customary to distinguish the following types of solutions:
1. 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.
2. 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”.
3. 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.
4. 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.
5. 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.
Classification of management decisions according to the following criteria:
1. Origin:
- initiative (creative contribution of the leader)
- as prescribed (functional responsibilities)
2. Method of bringing decisions:
- oral
- written
- virtual
3. Subject of decision making:
- individual
- group
4. By repeatability of execution:
- routine (traditional)
- innovative (creative)
5. By duration of action:
- strategic
- tactical
- operational
6. Based on predicted results:
- with a certain result
- with a probable or uncertain outcome
7. By the nature of development and implementation:
- balanced
- impulsive
- inert
- risky
- careful decisions
8. By methods of information processing:
- algorithmic (mathematical and statistical methods)
- heuristic (logic, intuition)
9. Contents of decisions:
- economic
- technical
- social
- organizational
10. By type of problem:
- well structured
- poorly structured
- unstructured.

In the modern information society, it is extremely important for a manager to understand the intricacies and essence of management activities and to have a solid supply of relevant knowledge and skills. In this article we will briefly examine one of the most important aspects of the activities of any company, more precisely, the content and types of management decisions. After all, they are the ones who play the decisive role

role in any business activity, lead to its success or failure. In turn, the preparation, discussion and adoption of such resolutions is the most important part of the manager’s activity.

Essence and types of management decisions

A management decision is any action of planning, preparing an organization, choosing a goal and program, as well as a set of interrelated actions aimed at performing specific tasks. Each such regulation is developed for a social system, usually represented by the entire population of the company's personnel. However, this could be the population of the state, or another social organism. In the process of making a management verdict, three driving forces are most often noted: intuition, rationality and judgment. Intuitive decision making is important when quick action is required. Judgment as a method of choosing a ruling is also not always reliable, but it is effective when a similar verdict in a similar situation has already brought results before. The most effective manager skillfully combines his activities depending on external conditions. Management decisions are aimed at a wide range of aspects, the main ones being the following:

Types of management decisions

In this aspect, managerial decisions are very multifaceted and are classified according to many points.

1. Types of management decisions on large-scale impacts: general and specific.
2. By time of action: operational and strategic.
3. According to predictable properties: with a probable outcome and with a predictable outcome.
4. By methods of information processing: heuristic and algorithmic.
5. Types of management decisions according to the number of criteria: single-criteria and multi-criteria.
6. According to the value of the result: single-level, as well as multi-level.
7. By method of adoption: individual and collective.
8. And, finally, the types of management decisions by the nature of fixation: written and oral.

Performance parameters

The effectiveness of a management decision largely depends on the following points:

1. The verdict is determined by real goals.
2. There is sufficient time available to implement the decision,
   funds, etc.
3. Risk situations are anticipated before the action plan is approved.
4. The solution applies to specific conditions existing company.
5. The plan does not foresee conflict situations in its forecasts.
6. The process of implementing the decision can be controlled by the manager.
7. Additional conditions arising in the process of implementing a management decision are taken into account.

Management: training course Makhovikova Galina Afanasyevna

5.2. Types of management decisions

Management decisions, being similar in the main, are extremely diverse, characterized by significant differences that leave their mark on the process of their preparation, adoption and implementation. That is why it seems very important to divide them into groups characterized by a common approach to their preparation.

Let's look at the table. 5.1, which presents the characteristics under consideration and possible groups of solutions formed according to these characteristics.

Table 5.1Classification of management decisions

Strategic and tactical management decisions are the most important.

The differences between strategic and tactical decisions are more or less clear from the very name of these types of decisions.

Strategic decisions that in one way or another make changes to the organization’s strategy are considered. And strategy, as we know, finds its expression in a comprehensive plan for the development of an organization for the long term (5–10 or more years). The strategy is designed to ensure the implementation of the organization's mission and the achievement of its long-term goals. It should be noted that the results of the implementation of strategic decisions do not appear immediately, but after quite a long time, sometimes after several years. Strategic decisions include such decisions as the development of a product strategy, personnel management, etc. One of the distinctive features of a strategic decision is that during its preparation the structure of the organization itself, its goals and objectives are called into question, therefore strategic decisions are made at the highest level of management up to before the shareholders meeting. They are always collective.

Tactical decisions are decisions aimed at implementing the adopted strategy. With an unchanged strategy, the company often changes tactics, adapting to changing external conditions, changes in market conditions, and also taking into account the actions of its competitors. Therefore, tactics are sometimes called short-term strategy. The results of the implementation of tactical decisions appear quickly, and therefore both the advantages and disadvantages of the adopted tactical decisions are discovered just as quickly. They are classified as medium-term. They last for two to three years, and sometimes longer. Unlike strategic ones, tactical decisions are made by management not only at the top, but also at the middle level. They can be collective and personal. Tactical solutions include solutions in the field of inventory management, quality, service management, repairs, etc.

Under operational refers to the decisions that have to be made in the process of day-to-day management of the work activities of the organization’s employees. This includes the distribution of work between performers, maintaining order, logistics of the labor process, and much more. The lower the level of management, the more decisions of this kind are made by the manager during the working day. They are communicated directly to the performers, orally. They are accepted by the manager quickly, without special preparation.

Some solutions are provided in advance. Their preparations are proceeding according to plan. Therefore we can call them planned. Since these decisions are always collective, to prepare them, working groups are created that develop a draft decision. All managers who will make and implement the decision become familiar with it; they pass on their comments and suggestions to the working group. During the discussion, the draft decision is finalized and adopted collectively.

Unscheduled decisions are prepared in much the same way if they are collective. The only difference is that due to time constraints, preparation is not always as thorough.

As can be seen from table. 5.1, decisions can be collective, group and individual. It is a mistake to believe that if a group of workers participates in preparing a decision, then the decision made will be a group one. It will only be so when it is accepted by a group of leaders vested with the right to make a decision. Persons involved in preparing the decision may not have such a right. Collective decisions are made by a formally existing team.

Solutions can be programmed or unprogrammed. Programmed a solution is a solution for which an algorithm for finding alternatives has been compiled. The algorithm is a logical sequence of specific steps. It is designed to solve specific problems in specific situations. The number of options is limited, and this also affects the decision made. Programming solutions provides significant time savings and reduces the likelihood of errors. The manager must be firmly convinced that the decision-making procedure is correct and must correct it in a timely manner. Relatively simple solutions are programmed, often repeated in known situations. These are a number of operational decisions.

Most solutions are unprogrammed. These include not only strategic and tactical decisions, but also a significant part of operational ones.

In the management literature, three approaches to choice and decision-making are often written about. From this point of view, decisions are divided into three types (based on sources of information): intuitive, judgment-based and rational. Intuitive they call decisions if the choice is made on the basis of intuition, an internal feeling that everything is right. Solution, judgment based is a choice made on the basis of knowledge and accumulated experience. Rational the decision is based on an objective analysis of the situation, quantitative and qualitative assessment of alternatives and selection of the optimal or preferred option. A scientifically based decision should be called rational.

Of particular interest is the classification of management decisions according to level of creative contribution. Based on this classification criterion, solutions are divided into four levels: routine, selective, adaptive and innovative.

1. Routine decisions are part of normal routine. At this level, no creativity is required since all procedures are pre-prescribed. The leader behaves in accordance with the existing program, almost like an automaton that recognizes situations and acts according to a predetermined program.

2. On selective level requires a share of initiative and freedom of action, but within certain limits. Here the manager evaluates the merits of a range of possible solutions and tries to select from a number of well-developed alternative sets of actions those that best suit the given problem.

3. On adaptive level, the manager must develop a creative solution, which in a certain sense may be completely new. The success of a leader depends on his personal initiative and ability to make a breakthrough into the unknown.

4. On innovative level, the manager needs to find ways to solve completely unexpected and unpredictable problems that may require the creation of new techniques and technologies to solve them.

In table 5.2 brings together the four levels of decision-making and the key skills required by the relevant manager. Managers who work on high-level decision making require lower-level skills as well. For example, a manager working at level 3 (adaptive solutions) requires skills not only from this level, but also from levels 1 and 2.

Table 5.2

Types of decisions according to the level of creative contribution of the manager

LECTURE No. 5. Making management decisions 1. The concept of a management decision and its place in the management process A management decision is a product of management work, and its adoption is a process leading to the emergence of this product. Decision making is