3 Criteria that Determine Whether the Manager Is Making Good Decisions

3 Criteria that Determine Whether the Manager Is Making Good Decisions

admin / December 25, 2018

When a manager makes decisions, he/she thinks about the outcome of the affair. A good decision-making process is resulted in a successful project. This criterion may be considered as one of the signs that good decisions are made. The second criterion, which may determine whether the manager is making good decisions or not, is the possibility to meet the budget.

There are always different risks which cannot be forecasted, but at the same time, the financial issues are usually stated and the possibility to meet them is a sign of good decisions-making skills. The third criterion, which helps a manager understand whether he/she makes a good decision, is the opportunity to follow the process.

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“Achieving success requires that a rational and explicit or structured decision process be developed and used” (Powell & Buede, 2008, p. 13). In other words, the decision process should be structured, without chaotic actions. To make sure that the made decisions are correct, it is always important to monitor the project, consider its results and critically analyze the whole process.

Assumptions in Decision Making

An assumption may be considered from different perspectives. Considering assumptions as a part of decisions making, it may be stated that this notion means responsibility a manager should dear.

The most spread assumptions which usually go with any decision a manager works on are assumptions about information (the necessity to get necessary information on time and reduce the possession of limited information to minimum), assumptions of unitary actors (the possibility to involve other people in the process of decision making), and assumptions about the nature of the problem (the responsibility to define the problem correctly).

The possibility to cope with those assumptions shows a manager a good decision maker (Ahmed & Triana, 2008).

Assumption Scenarios

To understand the main idea of the assumptions and the influence of those on the decisions-making process and the results, it is necessary to check the specific examples. The automobile and airplane industries are going to be considered.

An automobile manufacturer’s assumption is that the demand for SUVs would continue because gas prices would continue to rise. The accuracy of this assumption cannot be put under question as SUVs are famous for their better efficiency. The raise of the fuel prices does not encourage people for buying cars with high fuel consumption.

Otherwise, they try to find something based on economy issues. To test the credibility of this assumption, it is possible to conduct a research and identify the periods when fuel prices were high and when they were low along with the car buying statistics. The comparison and contrast of the information may help us understand whether the assumptions for decisions making are correct or not.

An airline’s assumption that there was a need for an airline that provided no added amenities may be considered as a bad one for decisions making. Those who used this assumption for decisions making were mistaken as a results the decision to increase the number of airplanes did not make additional profit.

Those who made this decision failed to conduct a research, understand the necessities of the company, and set correct objectives. It may be said, that they violated the assumption of information, having taken wrong facts for granted.

Reference List

Ahmed, K. & Triana, E. S. (2008). Strategic environmental assessment for policies: an instrument for good governance. Washington: World Bank Publications.

Powell, R. A. & Buede, D. M. (2008). The Project Manager’s Guide to Making Successful Decisions. London: Management Concepts.

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