Question

Why are ressources important in decision-making? (NO PLAGIARISM, MINIMUM 300 WORDS)

Answer 1

EXPLANATION:

Decision-making is central to the planning , organization and hiring, and management and control of all management activities. Decision-making is a method of taking decisions based on factual and value assumptions from alternative courses of action with the goal of moving towards the desired situation. The process of decision making is defined as the process of evaluating and taking a particular decision between a number of alternatives in a better way for achieving a given goal / objective. When decision making is made, this requires dedication to resources.

For all business professionals, at all levels, who make business decisions, the decision-making skills are essential. At the organizational level, the employees create, track and manage the core business operations required to function on a daily basis. Structural decisions arising in situations in which established processes offer potential solutions are considered. Structured decisions are often made and often replicated, impacting business strategies in the short term.

At the executive level , managers constantly review the activities of organizations to improve the capacity of their businesses to recognise, adjust and implement changes. Management decisions apply to schedules, timetables and budgets of short and medium duration as well as strategies, processes and business goals. Such types of decisions are called semi-structured decisions; they are taken in conditions where certain procedures are developed, but not enough, to determine the possible solutions for a definite recommended decision.

At the strategic level, executives develop overall business plans, priorities and targets within the strategic plan of the organization. We also track the company's strategic success and overall position in the political , economic and competitive climate. Strategic decisions are extremely unstructured choices in cases where there are no guidelines or laws that direct the decision-maker to make the correct choice. They are unusual, very significant and are generally associated with long-term business strategies.

Decisions are always forward looking; all decisions taken are based on historical data and future expectations and concerns future goals.Decisions are based on solving a particular problem. This means each decision is unique and concerns a particular problem.Decisions are based on availability of data, the quantity and quality of data plays a very important role in decision making process.Net cash flows are the essence in decision making process. All companies need cash to run and hence cash is the blood of a business. Hence net cash flows is one of the most important criterion for decision making.

Decisions are made based on relevant costs and revenues. Those costs which doesn’t concern a decision will not be taken into consideration while decision making.Opportunity costs are also considered while deciding against or in favor of a particular action. Opportunity costs are those benefits foregone by taking a particular decision. Decisions are generally based on probability testing as the same are related to future. Hence a set of expectations are used based on probabilities and based on which a decision is made.