Elements of Decision making...

Elements of Decision making One of the important tasks of an executive is the decision making. It generally takes a small fraction of his time. Nevertheless the decision making is a very important aspect of his work since the decisions he makes by virtue of his position, knowledge or experience have significant impact on the entire organization, its performance, and the results. Hence, executives to be effective are to make wise decisions. They are to make the decisions as a systematic process with clearly defined elements and in a distinct sequence of steps. For an effective decision making, the executive is to normally concentrate on those important and strategic decisions which have big impact for the organization. These strategic decisions need to have the highest level of conceptual understanding. The executive is required to find the constants in a situation and is to apply his skill to manipulate a great many variables arising out of the chaotic thinking in order to make an effective decision. He is to know what the decision is all about and what the underlying realities are which the decision is required to satisfy. The executive is to look out for impact rather than the technique. He is to ensure that the decision he makes needs to be sound rather than clever. An executive while making a decision is required to know whether the decision is to be based on principle or it is to be made on the merits of the case and logically. He is to be aware that the trickiest decision is the one which is between the right and the wrong compromise he has to make and he is to be able to judge one from the other. Further, the executive is to be aware that...

Strategic Management

Strategic Management Strategy is the term used for integration of the organizational activities and utilization and allocation of the scarce resources within the organizational environment so as to meet the present objectives. While planning a strategy it is essential to consider that decisions are not taken in a vacuum and that any act taken by an organization is likely to be met by a reaction from those affected, competitors, customers, employees, suppliers or other stakeholders. Strategy is an action that managers take to attain one or more of the organization’s goals. Strategy can also be defined as ‘A general direction set for the company and its various components to achieve a desired state in the future. Strategy results from the detailed strategic planning process’. Strategic planning Strategic plan is a document which is used to communicate with the organization the goals of the organization, the actions needed to achieve these goals and all of the other critical elements developed during the planning exercise. Strategic planning is a management activity that is used to set priorities, to focus on energy and resources, to strengthen operations, to ensure that employees and other stakeholders are working toward common goals, to establish agreement around intended outcomes/results, and to assess and adjust the organization’s direction in response to a changing environment. It is a disciplined effort that produces fundamental decisions and actions that shape and guide what the organization is, who it serves, what it does, and why it does it, with a focus on the future. Effective strategic planning articulates not only where the organization is going and the actions needed to make progress, but also how it will know if it is successful. The Association for Strategic Planning (ASP), a U.S.-based, non-profit professional association has developed the following criteria for strategic planning and management. Uses...