In: Economics
Define the nature and realms of administrative decision-making.
Administrative decision making is a process of choosing useful method to gain profits and revenue.In this process,all available methods or solutions by using principles are drawn out to solve a problem in a business or organisation. Then, a useful and appropriate method is chosen and decision is made.This is the procedure of administrative decision making.Nature of decision making is ideas and efforts of deriving all available methods is not from an individual person but from various people.Many people are involved in this process inorder to use their skills in deriving useful methods. Choosing appropriate method as a solution is nature of decision making.Among available methods,the most benefitting one is implemented after making decision of choosing a method.Another nature of decision making is choosing from available methods or solutions only.New methods which are suggested by not considering threats or output shouldn't be included in available methods.Only those methods should be considered to which all negatives and positives are derived.So that decision making would be easy and will have only suitable solutions.Decision making is done to solve all problems of business units.Only one problem is not considered decision making,but all the problems in a unit are taken into account and suitable decision is made. Decision making realm is utilizing skills to take best decision inorder to gain profits.One of the realm of administrative decision making is analyzing methods or solutions and their outcomes of implementing those methods.Another realm of decision making is utilizing and applying all skills to overcome problems of available methods and deriving cheapest way to implement decision.Being able to solve unexpected outcomes of a method is also a realm of decision making.
Hence,these are the realms and nature of administrative decision making.