Question

Discuss how you should use the information in managerial decision-making.(300 word)

Answer 1

Information plays a very crucial role in the process of decision making. Even simplest of decision in business requires adequate information, so that decision can be successful. Decision making is consist of various stages and in order to understand the role of information in decision making, it is important to understand the contribution of information at every stage of decision making. The stages and role of information is discussed as follows:

Stages of decision making	Role of Information
Identification of the problem	There should be sufficient information regarding the problem and its structure, how big it is, how it is occurred and how to solve it, this all requires proper information without which
Putting the problem	It is essential that information about the context in which the problem has occurred is properly known, then only necessary corrective measure can be taken to resolve the same. In a way, it can be said that information of a problem’s context eventually defines a problem and its magnitude.
Alternatives generation	Information is essential in generating alternatives to the concerned problem, if there is proper information then it becomes easier to generate alternatives for the problem and hence ultimate solution to the problem becomes easy.
Choice of best alternative	Based on the information, which alternative best suits the problem is evaluated and then the same is selected in an effective manner. The information about various alternatives and their potential impact on the problem should be well known beforehand only then the solution of problem can be achieved in an effective manner.