The Importance Of Decision Making And Problem Solving

The decision making process : whitney noonan.

The decision making process includes cognitive processes that eventually lead to a choice in action while taking into consideration the alternative possibilities (Allen, Dorozenko, & Roberts, 2016). Not all choices have to lead to an action. The values and preferences of the person making the choice also comes into play when making the final decision. Problem-solving to obtain a certain goal or satisfactory by a solution is the main reason people go through the decision making process (Stefaniak, & Tracey, 2014). This process has many factors that end with one final result or solution. The decisions made can be rational or irrational and can be determined by explicit or tacit knowledge (Qingyao, Dongyu, & Weihua, 2016). Since the decision making process can be very difficult at time, psychologists have viewed the process in different perspectives to get a better understanding (Rossi, Picchi, Di Stefano, Marongiu, & Scarsini, 2015). The different perspectives include; psychological, cognitive, and normative or communicative rationality.

Decision-Making In Health And Social Care

Decision-making in the workforce is a process of responsibilities used by upper management to implement, enforce rules, regulations, and maintain a successful environment. Decision-making implemented more effectively by making a plan, thinking it through, accepting more than one opinion and determining what is best. However, decision-making often utilized more effectively by opening doors of opportunities for a suggestion, question, discussion, and feedback. Although, more involvement helps improve understanding, utilize behavior skills and present opportunities for better communication. Everyday life consists of decision-making, the right decision may not always be applied, but ensure room for improvement and opportunity. Individuals approached decision-making in many different ways. As stated by (Jones, Graham, & Bateman, 2006) decision making is a procedure used to recognize a problem, weigh the alternatives and evaluate a solution in which, certain situations will require different approaches to become effective.

Mgt/230 Week 1 Assignment Essay

People should make decisions every day, some of those decisions are easy to make, while others are quite difficult to implement. An appropriately combined and organized decision-making process will help to control this issue and bring a positive outcome for those involved. The decision-making process may become challenging for people due to “the lack of structure and entail risk, uncertainly and conflict” (Bateman and Snell, 2012, p. 86). That is why people trying to make important personal or professional decisions should have an appropriate model to follow in order to avoid these challenges. Bateman and Snell identified six steps or stages of decision-making process

Decision-Making Model Analysis: 7-Step Decision-Making Model Essay

For the most part, our decision-making processes are either sub-conscious or made fairly quickly due to the nature of the decision before us. Most of us don't spend much time deciding what to have for lunch, what to wear, or what to watch on television. For other, more complex decisions, we need to spend more time and analyze the elements of the decision and potential consequences. To assist with this, many people employ the use of a decision-making model. Utilizing a

Paraprofessional Reflective Reflection

Every action a person takes is the result of having thought about what it is they think they should do and then doing it. Life is riddled with problems that require solving. Decisions are complex matters that require careful judgment and problem analysis especially when one is in a role where others look up to them and are affected by their decisions.

Explain The Use Of Different Problem Solving

Problem-solving involves decision-making is important in Management and job at Merseyside police on the CSI team involves a lot of problem-solving and decision-making. Well me are called out to investigate a crime scene taking samples such as DNA and other types of forensic evidence we have to decide if the evidence is relevant to hopefully catch the perpetrators and get a successful conviction. Making a good decision requires a combination of skills, clarity of judgement which is important in my job role. We recently had a meeting regarding problem solving and we identified seven steps to solve problems effectively.

Coding Strategy: Going Back To College

Define the problem is the most useful strategy for me. It is often hard to identify the root of the problem when making a decision. For example, goal setting can be difficult when you have more than one goal that you want to accomplish. I have so many goals that I want to accomplish, but the problem is trying to finish them all at once. Doing so I never complete any goals. It becomes too stressful and overwhelming. Once I define the problem I can start organizing the information from what is important and what is more realistic to complete first.

Army Decision Making Process : The Army Problem Solving Process

In the Army, there is a process that is very useful for finding a solution to many different problems. This process is called, “The Army problem solving process”, which is a seven-step process to come up with a solution to a problem. The first step in this process is to identify the problem. Once the problem has been identified, the next step is to gather information. It would be best to identify the pros and cons of the situation. The next step is to develop criteria. This is the perfect time to consider a possible solution, which brings us to the next step, generate a possible solution. This time, possible solutions are taken into consideration and comparing each of them. This is called analyzing and comparing the solution. Finally, in the last step, a decision is made and implemented. Unfortunately, there are some potential impediments that may interfere with the Army problem solving process. One perfect example would be, “The Tyranny of Choice” which is when there are so many choices that may interfere with the decision making process. The Army problem solving

Law Enforcement Officer Hiring Process Paper

Problem solving skills entail two distinct mental skill analytic and creative thinking. Analytical thinking utilizes comparing and contrasting, evaluating and selecting, to find the best alternative (ITS Education Asia, 2005). Creative thinking uses the imagination to create a large picture of the

Mind Tool Analysis

Strategic thinking is a process-using problem solving skills, creative thinking, and decision-making (Toygar & Akbulut, 2013). This process will be utilized throughout my career as a Healthcare Administrator. In preparation to gaining information to increase my administrative skills, I took a “Mind Tool” quiz to define my method to problem solving. The interpretation of the assessment indicated a 67-90, which determine that I revealed an excellent approach to management. This report will outline what skills I will utilize to increase my consciousness and knowledge of problem solving to enhance my decision-making technique.

Decision-Making Model Analysis Essay example

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Decision-making can be a cognitive process of selecting a course of action form various options. Some of us are logical. Some of us are risk taking. Either way such characteristics play a role in our decisions. In my experience decision-making can

Essay on The Problem Solving Process: Steps to Success

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There are many different strategies that good problem solvers use to solve a problem. The steps of the problem solving process are systematic and organized. First, take your time and identify the problem very carefully. Do the research, and become informed about your subject. Few good problem solvers solve problems fast. Life choices need to be supported with well thought-out

The Process of Decision Making Essay

First step in decision making process is identifying the problems. As McShane and Von Glinow (2000) stated, a problem can be

Essay on Business Decision Making

Thinking critically and making decisions are important parts of today’s business environment. It is important to understand how the decision making process works and the steps involved. The nine steps of the decision making process are: identifying the problem, defining criteria, setting goals and objectives, evaluating the effect of the problem, identifying the causes of the problem, framing alternatives, evaluating impacts of the alternatives, making the decision, implementing the decision, and measuring the impacts. (Decision, 2007.) By using various methods and tools to assist in making important business decisions an individual can ensure the decisions they make will be as successful as possible. In this paper it

Essay about Decision Making Process Model

The decision is to select an action among a number of actions that solves a given problem, that prevents a problem from happening, or that forces to apply new ideas for development. The need for understanding decision making process is increasing because the complexity of modern organizations is increasing, and because the modern organizations' effectiveness depends on the decisions made by the managers. The question is how to select the most appropriate action to solve the problem satisfying all stakeholders.

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Decision-Making And Problem-Solving Processes

decision making and problem solving essay

Show More Decision-Making and Problem-Solving Processes Decision making and problem solving is selecting the most logical choice to a problem from the variety of solutions. Decision making is completed by members of management need. Problem solving can be done by non-management. To make a good decision and to solve a problem, you first have to analyze the positives and negatives of each solution and evaluate the alternatives. When making an effective decision you must be able to forecast the outcome of each solution and determine which option is best for the issue at hand. The seven steps that most decision making follows are determining that a decision is needed, determine the importance of the decision, assess the limits that apply to the decision, identify possible choices, gather information about these possible choices, evaluate the possible choices, and decide and implement the decision. (Vaughn, 2007, p. 31) Each of these step is important in making a decision. A person should first must determine if a decision is need and if it does, who has the authority to make a decision when an issue arises. Then the importance of the decision is determined. To determine the importance a person should think about if the decision will have additional cost, if the decision will require a lot of time to resolve, who will be …show more content… Decision making is a part of planning, problem solving and control. (Vaughn, 2007, p. 31) Management using decision making all day long. Examples of decisions made by management is problem solving, goals, objectives and to allocate resources. Decision making and problem solving are an important part of management. The benefit of completing the steps to making a decision or solving a problem is that it guides management to approach their decision in a systematic way. The steps when followed allow the person to say focused and on track to their goal of making an effective decision or solving a

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Problem Solving and Decisions Essay (Critical Writing)

Problem definition, problem analysis, generating solutions, analyzing solutions, making the decision, implementation and reflection.

In economics, a science-based on rational decisions, there is an underlying concept of opportunity cost. It suggests that by making any choice, a person is giving up potential benefits or outcomes of other alternatives. Therefore, in any rational decision-making mechanism, it is critical to consider every possible path of action before choosing to take it. The theory can be applied to the process of problem-solving. Using a structured method, a problem is defined and analyzed, allowing one to form viable solutions.

A person can then compare and select the most rational and beneficial resolution which is implemented to resolve an issue (“The problem-solving process,” n.d.). There may be occurrences that the chosen solution fails or a person becomes emotionally compromised. However, it is a logical sequence of thought that can be used in all areas of life when one is faced with a problem or difficult decision.

The main problem in the selected scenario is the concatenation of circumstances that place the subject in a position of having to make some difficult choices, all of which have significant consequences if avoided. A lack of physical time prevents one from establishing a balanced approach and dedicating time to every activity or responsibility. Also, each side is essential in its own way, creating an internal conflict of interest. The issue lies in identifying and selecting the most critical priority on which to focus and which has the most significant long-term impacts.

When analyzing the problem, it seems that the difficult position which puts the subject at the crossroads of making these decisions is partial personal responsibility, just as much as it is a matter of circumstance. The person involved in such a predicament failed to account for future events accurately and to plan accordingly. There is an apparent lack of time management, preparation, and communication within the context of the person’s responsibilities and activities.

Every individual struggle with achieving a delicate work-life balance, but problems begin to arise if there is a continuous occurrence of mismanagement and procrastination that lead to the situation, such as described in the scenario. This induces a re-examination of the main problem that is being resolved. While solutions may focus on fixing the current crisis, they should attempt to influence the underlying behavior which precipitated the dilemma in the first place. Therefore, in the process of generating solutions, the criteria for evaluation should include addressing the problem of adequate time management, planning, and proper communication to prevent similar situations in the future.

There are some solutions that can be suggested in the given scenario. The person can make a choice based on an accountability factor. Therefore, since the job schedule requires one to work 55 hours without calling in, it would be the first priority as there is actual accountability to an employer with concretely defined consequences. Any remaining time is put towards writing the exam since missing the party holds no weight. Another solution would be to make the decision based on long-term consequences. Therefore, focusing entirely on the exam, as doing poorly will result in the termination of education, is a critical factor in the person’s life. Missing shifts at work only leads to a two-week suspension, while skipping the party has a minor consequence of being unable to relax for the time being.

There can be a more concrete rationale for the decision-making process, such as basing priorities on their financial costs. For example, if the person depends on their job to pay rent and various bills, it would be impractical to miss out on the work hours, mostly since the consequence is set at two weeks of a non-paid suspension. There may be more personal reasons, namely high-stress levels or a relationship with a friend, which would make going to the party a priority.

All of the solutions offered so far focus on prioritizing the offered choices built on a specific parameter. However, it is possible to fulfill most, if not all, activities if the subject attempts to communicate. For example, the student can communicate with a professor to relay the stressful situation and pressures at work, hoping that the deadline could be extended due to personal circumstances. The person can also attempt to communicate with the employer, explaining the critical importance of the specific exam and hopefully negotiate a reduction of work hours for the week.

In a tricky situation, it is rare that there is a perfect solution that can resolve the issue without any potential consequences. Therefore, it is critical to analyze each decision from an opportunity cost perspective to determine the situational intricacy of various outcomes that may arise. There were a number of factors pointing to prioritizing each one of the activities over others. Attending the party has very few benefits other than satisfaction, entertainment, and relaxation, all of which are short-term aspects. Skipping the party may result in disappointment or a possible tension with the friend, conclusions which are inconclusive.

There are no long-term consequences, accountability, or financial risks in connection to the party other than some time spent away from other more critical activities. Meanwhile, the job holds a higher priority since it is a real responsibility that the person has as an employee. It presents concrete consequences that may impact finances, job status, and future recommendations for employment. These details can vary significantly based on a person’s life situation and type of job, which are unknown in the scenario. Nevertheless, work is a serious matter to a rationally thinking adult and should not be lightly disregarded.

Looking at the scenario, the first instinct is to prioritize the exam, which has a tremendous impact on the continuation of the person’s education. Although indirect, there is a massive accountability factor to various figures, including the instructor, the institutions, family, and most importantly, the student. Since a low grade on the exam will result in failure, it is a significant responsibility for one’s future, with long-lasting consequences that are dependent on a single decision to input time and effort.

It even has implications towards financial and personal aspects. Although the effects are not felt immediately, failing out of school is more likely to compromise one’s potential career and financial future while causing many mental health challenges due to severe stress caused by the problems—all of these aspects on a large-scale contrast with the minor consequences of disregarding other activities. However, the solution to communicate is very beneficial in this situation. It has a potentially high return without any substantial drawbacks. Since in a real physical world, a person would not be able to perform all these activities and function typically, it is critical to ask for more time.

When making the final decision, the most logical approach is to consider a method to resolve the situation or focus on salvaging the best alternative. Communication with the involved parties can potentially create a window of opportunity to succeed in fulfilling the most important responsibilities. Since people usually have a sense of understanding and desire to help in times of crisis, this can help manage the situation.

Even if the communication does not provide any results, due to the gravity of the consequences, it is critical to focus on completing the exam at the highest quality to fulfill educational requirements. This definitely includes skipping the party and may require being absent from work without a satisfactory excuse. This decision is the most rational provided the opportunity costs of foregoing; other activities are much smaller than maintaining one’s education.

At this point in the process, it is essential to be confident in the chosen decision and proceed with a plan. In consideration of the scenario, timely communication can be more beneficial to create a plan of action. One should contact the employer first and explain the situation since there is a more significant chance of flexibility than moving the exam date. One can discuss the possibility of working more in the following weeks to make up for the missed time.

It can be helpful to contact the course instructor in any situation to discuss the critical academic importance of the exam and hope that help can be offered. Obviously, the friend will be notified that one will not be attending the party. A detailed schedule should be created for the week in order to stay focused and fulfill all necessary responsibilities that there is time for. This is not only beneficial for stress and time management but will help to form habits that can prevent such problems from occurring in the future.

In this paper, a scenario was used to define, analyze, and find a viable solution to a problem. It represented a series of relatively small choices that had significant long-term consequences in the person’s life. The problem-solving process allowed one to logically identify priorities and understand how each decision impacted the outcomes helping to select the solution which best resolved the situation.

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Problem Solving and Decision Making in Management

Problem solving and decision-making are fundamental in all managerial activities. Although these defining characteristics of management can be used interchangeably, current literature makes a comprehensible delineation between the two. Problem solving can be defined as a mental process and is part of a larger process that begins with identifying the problem and ends by assessing the efficiency of the solution. Decision-making is also considered a mental process and identifies several alternative scenarios before making a final selection. For the purpose of this analysis, I will discuss the similarities and differences of problem solving and decision-making. I will also explain the steps of the decision-making process and discuss the different decision-making approaches. The problem solving and decision-making processes are commonly used in management throughout all business models. Both processes share a similar uniqueness by combining an analysis and perception along with systems and outcomes. Much like the steps of the decision-making process, problem solving also follows a similar sequence of steps. Despite the fact that problem solving and decision-making are somewhat related, they are completely different. The main difference between the two is that problem solving is considered to be a method whereas decision making is more of a process. Management uses problem solving to reach a resolution with hope of achieving a positive outcome. Decision-making is frequently used during problem solving to help reach a resolution. Decision-making generates criteria for problem solving and develops alternative solutions. It also evaluates possible solutions and chooses from among the solutions (Huitt, 1992). Since problem ... ... middle of paper ... ...s go about making judgments and choices. Both theories play an intrinsic role with behavioral decision making and have proven to be successful approaches for management (Shanteau, 2001). Management will continue to encounter new challenges that require problem solving and decision-making strategies. Some problems may be easily resolved while others could take much longer depending on the complexity of the problem. In order for management to make effective decisions and achieve success for their businesses, the decision makers need to have adequate knowledge of the situation, critical thinking and excellent communication skills, and a sophisticated approach for tackling problems. Every business should have a systematic approach for solving problems and making decisions. Without one, decision making would be insufficient and businesses would be unproductive.

In this essay, the author

  • Explains that problem solving and decision-making are fundamental in all managerial activities. problem solving is a mental process that begins with identifying the problem and ends by assessing the efficiency of the solution.
  • Explains that problem solving and decision-making processes are commonly used in management throughout all business models. they share a similar uniqueness by combining an analysis and perception along with systems and outcomes.
  • Explains that problem solving is more analytical and uses intuition for gathering facts, so it is important for management to take the right steps toward solving problems.
  • Explains that problem solving closely mirrors decision-making, which leads to a course of action or final judgment.
  • Opines that it is important for managers to focus on making high quality decisions regardless of these challenges. they emphasize the importance of a systematic approach to decision-making.
  • Analyzes how j.p huber's book titled, "managerial decision making," discusses two theories of management decision making known as the normative and descriptive analyses.
  • Opines that management will continue to encounter new challenges that require problem solving and decision-making strategies. decision makers need to have adequate knowledge of the situation, critical thinking and excellent communication skills.

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Decision Making: A Five Step Model Of The Rational Decision-Making Model

In everyday real life situations, one keeps on making various decisions depending on a number of factors. Thus, decision-making is an integral tool in human life, and one cannot avoid it. In view of this, experts report that individuals make use of varying decision-making models to arrive at a decision that suits them. Here, the writer presents four decision-making models, namely the classical, behavioral, satisficing, and optimizing models.

Pros And Cons Of Decision Making

Decisions can be made using below mentioned approaches (Various Types Of Decision Making Models, 2009).

Decision Making at the Executive Level

A study published in the winter 1997 volume of Business Strategy Review suggests the major factor in a decisions success is the decision process itself. The study, by Paul Nutt, suggests that poor decision making processes cost North American businesses billions of dollars each year. The study also proposes that most managers don't realize the importance of the process, and it's effect on the success of the decision.

Enhancing Workplace Communication for Competitiveness and Trust

Therefore, they must be able to identify problems and opportunities and determine the most appropriate action. This involves both problem-solving and decision-making skills. The major difference between the two processes is that the first step in problem solving involves identifying the root cause of the problem; whereas the first step in decision making is simply to recognize a decision is needed. Nevertheless, the same basic process is effective for both decision-making and problem-solving. This process includes identifying the root cause of the problem or recognizing a decision is needed, gathering information, developing and selecting a solution, creating and implementing an action plan, and evaluating and monitoring

Decision Making Model Paper

Make the decision through the integration of ideas and data, and negotiation and prioritization of ideas

Impact of Outdated Decision-Making Techniques on Executive Leadership

Having learned how decision-making occurs overall and in business, this section describes how business decisions have been ineffective when using traditional theories and styles. Research shows that leaders make poor decisions when using old-fashioned techniques. However, when practitioners apply academic decision-making theories and styles in real-world situations, leaders find these tools and methods cumbersome and irrelevant to decision quality and effectiveness (Yates et al., 2003).

What Is Decision-Making In Decision Making

As a manager, decision making is much more than simply making a decision. There are steps or methods he/she should take in order to evaluate the situation as well as the possible outcomes. This paper will discuss how managers can make ethical decisions and how they can remove any personal biases they may have. In addition, the paper will state how system one and two thinking affect business decisions and how a manager can keep these two types of thinking in balance. Furthermore, the paper will discuss how rational decision making affects negotiations, as well as suggested steps for a manager to negotiate properly. After, the paper evaluates creative problem solving and how it can help alleviate bounded awareness. Moreover, the papers state that the Kepner-Tregoe method guides a manager into assessing their decision and the risks associated with their decision. Finally, the paper discusses how overconfidence negatively affects a manager’s decision-making skills. After

Problem-Solving and Decision-Making

I went tu edvenci e ginirel knuwlidgi end eppricoeti thi odies on thos buuk whoch os guong tu hilp mi on thi fatari stady. Nuw I eppricoeti thi velai uf my idacetoun end I fiil provoligid tu bi ebli tu gu tu culligi. I biloivi mekong guud Dicosouns cuarsi mudalis end ectovotois eri ompectid un my idacetoun ceriir. Thi prublim sulvong end dicosoun-mekong eri votel skolls fur culligi end lofi. Thi prublim-sulvong friqaintly oncladis dicosoun-mekong end dicosoun-mekong os ebsulatily sognofocent fur menegong end gaodenci. Thiri eri mithuds end tichnoqais tu edvenci dicosoun-mekong end thi qaeloty uf dicosouns. Thi dicosoun-mekong os muri urdonery tu cunfodint cherectirs, su thisi piupli shuald imphesos muri un ompruvong thi qaeloty uf thior dicosouns. Piupli thet eri liss urdonery dicosoun-mekirs eri uftin ebli tu meki velai essissmints, bat thin niid tu bi muri crotocel on ectong apun thi essissmints medi.

The Power of Rational Decision Making

Rational decision making is one of the most common problem solving methods and can be used to solve almost all problems. Rational decision making and problem solving processes can be explained in a logical manner. Effective leaders use rational decision making processes to identify the problem, think up solutions, evaluate alternatives along with select a solution, implement and evaluate the final solution. In rational decision making leaders analyze the problem to achieve the most efficient choice through different possible alternatives from different scenarios before making a selection.

Business Decision Making

Thinking critically and making decisions are important parts of today’s business environment. It is important to understand how the decision making process works and the steps involved. The nine steps of the decision making process are: identifying the problem, defining criteria, setting goals and objectives, evaluating the effect of the problem, identifying the causes of the problem, framing alternatives, evaluating impacts of the alternatives, making the decision, implementing the decision, and measuring the impacts. (Decision, 2007.) By using various methods and tools to assist in making important business decisions an individual can ensure the decisions they make will be as successful as possible. In this paper it will be examined how the decision making process can be followed using various tools and techniques to make successful business decisions by using these same tools and techniques during a thinking critically business scenario. The paper will also discuss how different tools and techniques could have been used to make different, yet still successful decisions.

Improving Our Ability to Make Decisions

From a practical point-of-view, of the most important human skills is decision-making. Both at a personal level and in context of organizations, decision-making skill strongly affects the quality of life and success. Decision-making is the process by which a person or group recognizes a choice, gathers information, analyzes the data, and determines the best option to choose. The decision-making process employs high levels of critical thinking skills and problem-solving techniques. Decisions are guided by several factors, primarily the significance of the issue, the impact the decision may have, and the person's or group's morals and cultural norms. For less significant decisions that have little impact, people might not invoke the higher thinking skills that theorists expect (Decision-Making 2015). Flipping a coin, hoping for a miraculous sign, following the crowd, or by passing the responsibility to someone else are all means of making decisions. For more important decisions with greater impact, people often employ more advanced thought processes like those demonstrated in decision-making models by social psychologists and behaviorists.

Decision Making Reflection Paper

Making decisions is an important part of our everyday life. Decisions define actions and lead to the achievement of goals. However, these depend on the effectiveness of the decision-making process. An effective decision is free from biases, uncertainties, and is deeply dependent on information and critical thinking. Poor decisions lead to the inability to achieve set objectives and could lead to losses, if finance is a factor. Therefore, it is important to contemplate about quality and ways to achieve it in decision-making, which is the focus of this paper. The purpose is to look into the needs of decision-making, including what one should do and what one should not do.

Strategic Management and Decision Making

...c management or planning presents a structure or agenda for dealing with issues and solving problems, therefore, understanding potential risks or pitfalls of strategic management and being prepared to deal with them is critical and vital to success. Strategic management not only permits top leaders and managers to be more proactive than reactive in building or developing their own potential or outlook in an organization, and it also lets them to make the first move and influence activities, consequently, executives and management can control or in charge of the company’s own future, and achieve its main goals and objectives. Overall, increasing cost-effectiveness and efficiency, improving the value for its stakeholders, and advancing customer services and management excellence are the key objectives of strategic management and decision making in an organization.

Operations Management Reflection

Some decisions prove to be vital and any miscalculation that may be involved may prove dire for the individual or the organization. In identifying the criterion to use while evaluating different decisions, many factors pertaining the structure should be considered. The pros and cons of every decision made should be evaluated to ensure that the option chosen has the most positive effect on the individual and the organization. Some of the activities that may require keen decision making include project development, finance and operations. With the knowledge attained it will be easier to cope with tough decisions that may come up in my career. Decision making models may be generated to give an in depth view to the problem and also provide critical analysis ability. It is also vital noting that for those in managerial positions, they face a bigger task in decision making. A good understanding of the business function and structure will provide an in depth knowhow to those that have studied the

What Is Managerial Economics?

Therefore, to achieve this objective, managers have to make choices in decision-making, which is the process of selecting a course of action from two or more alternatives (Weihrich & Koontz; 1994, 199). A sound decision making requires extensive knowledge of economic theory and the tools of economic analysis, that are directly related in the process of decision-making. Since managerial economics is concerned with such economic theories and tools of analysis, it is very relevant to the managerial decision-making process.

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