management

The essence of management is making decisions. Managers are constantly required to evaluate alternatives and make decisions regarding a wide range of matters. Just as there are different managerial styles, there are different decision-making styles. Decision making involves uncertainty and risk, and decision makers have varying degrees of risk aversion. Decision making also involves qualitative and quantitative analyses, and some decision makers prefer one form of analysis over the other. Decision making can be affected not only by rational judgment, but also by nonrational factors such as the personality of the decision maker, peer pressure, the organizational situation, and others.

Management guru Peter F. Drucker, as quoted in Association Management, identified eight "critically important" decision-making practices that successful executives follow. Each:

·         Ask "What needs to be done?"

·         Ask "What is right for the enterprise?"

·         Develop action plans

·         Take responsibility for decisions

·         Take responsibility for communicating

·         Focus on opportunities rather than problems

·         Run productive meetings

Think and say "we" rather than
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