1. Classification of management decisions
Describe the presented classifications of management decisions:
Based on the basis of acceptance: intuitive, based on judgment, rational;
According to the degree of impact on the object: operational, tactical and strategic;
By order of adoption: individual, collective and collegial;
According to the criterion of novelty: routine, selective, adaptive and innovative;
According to the degree of regulation: directive, guiding and recommending;
According to the style of decision-making - according to the ratio of efforts at the stage of developing alternatives and their selection: inert, cautious, balanced, risky, impulsive.
Present and characterize three more approaches to the classification of management decisions (10 classifications in total).
Give examples of each listed classification of management decisions.
The classification of management decisions according to the degree of impact on the object is presented in Fig. 1.1.
Rice. 1.1 - Classification of management decisions according to the basis for adoption
Intuitive solutionsis a choice made only on the basis of the feeling that it is right. In a complex organizational situation, thousands of choices are possible. A manager who relies solely on intuition, from a statistical point of view, has little chance of making the right choice without any application of logic.
Example:
When making a purely intuitive decision, people base it on their own feeling that their choice is correct. There is a “sixth sense” here, a kind of insight, usually visited by representatives of the highest echelon of power. Middle managers rely more on computer information and assistance. Despite the fact that intuition becomes sharper along with the acquisition of experience, the continuation of which is precisely a high position, a manager who focuses only on it becomes hostage to chance, and from a statistical point of view, his chances of making the right choice are not very high.
Decisions Based on Judgmentis a choice based on knowledge or accumulated experience. A person uses knowledge of what has happened in similar situations previously to predict the outcome of alternative choices in an existing situation. However, we note that a leader who is overly committed to judgment and accumulated experience may consciously and unconsciously avoid interaction with new technologies and developments, which leads to irrational decision making.
Example:
A decision to give the competent secretary the authority to respond to all routine correspondence without external oversight. The manager's decision on where to build a warehouse for finished products.
Rational decisionis a decision that is based on the basis of the analytical process, and is often independent of previous experience.
Stages of making a rational decision: diagnosis of the problem, formulation of restrictions and criteria for decision-making, identification of alternatives, analysis and evaluation of alternatives, final selection of an alternative, implementation of the solution, feedback, evaluation of results.
Example:
Choosing (purchasing) a car. Selecting a product market based on marketing research.
The classification of management decisions according to the degree of impact on the object is presented in Fig. 1.2.
Rice. 1.2 - Classification of management decisions according to the degree of impact on the object
Strategic management decisions- these are decisions that are made at the highest level of management for the long-term development of the organization. Such decisions are followed by the development of: a strategic plan, the production program of the organization. Strategic decisions involve fundamental changes in the organization: changing the directions of financial flows into product groups or target segments, transforming the structure, entering new regional markets, expanding or reducing activities, changing assortment policy. Strategic management decisions are made at the level of directors, vice-presidents of the company, deputy. directors, heads of production departments and workshops. In a small business, all responsibility for making strategic decisions is concentrated in the hands of the manager and his team.
Strategic are directive acts that direct, organize and motivate the collective actions of people to achieve strategic goals. Strategic planning includes:
developing policies in various areas that determine the life of the organization;
development of programs and projects, forecasting and determination of socio-economic development.
Strategic management decisions are designed to ensure that the organization fulfills its mission and, due to this, its survival in a highly competitive environment.
Example:
A car manufacturing plant is deciding whether to produce any spare parts for the cars itself or find a supplier from which to purchase them.
Operational management decisionsperform a corrective role directly in the course of the production activities of the enterprise, solving suddenly arising problems that cannot be delayed.
Operational management decisions are made daily based on the conditions of production activity, resource availability, market demand, prices, social demands, events in the political, economic, social, and environmental environment. Feature: operational decisions are sensitive to emerging unforeseen situations, and therefore they are called situational.
Subject of operational decisions: organizational measures, urgent orders, replenishment of emerging losses, damages, replenishment of missing material, labor, financial resources, adjustment of planned, program activities, obtaining current benefits.
Programmed decisions have the greatest weight in the totality of operational management decisions, since operational decisions are fleeting, urgent, and require the fastest possible execution and immediate response to the situation.
Example:
Repairing a broken machine in the workshop. Repairing a computer in the office. Software installation.
Tactical management decisions, as a rule, are focused on the short and medium term and problems of a production and technical nature.
Tactical management decisions are associated with medium-term problems, the development of a line of action for a relatively short period of time in accordance with the developing situation in production and markets. Tactical decisions are a way of concretizing a strategy, translating it into specific measures to be implemented during a certain planning, program period.
Orientation of tactical management decisions: as a rule, such decisions are aimed at achieving intermediate goals, solving problems that contribute to promotion and general goals.
Example:
Decisions of the company (manager) on the conditions under which the enterprise will agree on the supply of necessary equipment (software).
Operational and tactical decisions are related to the implementation of current goals and objectives. In terms of time, they are designed for a period not exceeding a month.
The classification of management decisions according to the order of adoption is presented in Fig. 1.3.
Rice. 1.3 - Classification of management decisions by order of adoption
Collegial decisionis a decision made by a group of managers and specialists.
As a rule, decisions are made by the head of the organization in agreement with leading top managers and specialists, collectively. This happens in most companies. The manager delegates parallel powers or uses the technique of mandatory approval, which is stated in administrative documents as “agreed”. With mandatory approvals, responsibility for making significant decisions partially rests with the managers who assume such authority. Parallel powers increase the responsibility and rights of managers, and the decision becomes collective. For example, many companies use concurrent authorities to control financial expenditures, and large purchases require two or three executive signatures.
Collective decisions are usually made at business meetings and during the work of commissions by leading managers and specialists. At such meetings there is already a known balance of power, which significantly influences the management result, the decision.
Example:
The manager has engaged an external law firm to provide advice on any legal issues.
Collective (democratic) decisions- these are decisions made by the majority of the organization’s employees, jointly by the work collective or by a small group. Unlike collegial ones, democratic decisions are a clear expression of the will of the majority of members of the work collective, small or large. Such decisions are made through secret voting, using expert assessment methods, for example, nominal group technique, Japanese ring techniques. The use of such methods is possible with a high level of staff motivation, the use of a democratic leadership style, and a developed and transparent corporate culture.
Collective decisions are also made when significant problems and issues that affect the entire staff are raised.
Example:
Election of a manager by competition, introduction of a new remuneration system, etc.
Individual management solutionsThese are decisions that are made by the manager alone. Small business organizations have a small number of management levels and a high risk of losing competitive status. Such an organization is led by an entrepreneur who bears full responsibility for its further functioning in unstable market conditions. An entrepreneur is afraid to delegate authority on financial and other significant issues to his subordinates and makes decisions alone. The positive aspect of an individual solution is its creative, extraordinary nature.
The disadvantages of individual decisions appear when they acquire an authoritarian character. The manager usurps power, individually manages resources, determines the organization's personnel policy and puts pressure on subordinates. Decisions made by the manager alone allow the organization to remain in the market for some time and be successful. However, in the future, the leadership style used by the leader hinders the development of the organization. A leader must be able to maneuver and be flexible, use the art of delegating decision-making powers to other people in the organization.
Example:
The manager decided to prepare presentation material for the meeting on his own, without resorting to the help or cooperation of employees.
The classification of management decisions according to the criterion of novelty is presented in Fig. 1.4.
Rice. 1.4 - Classification of management decisions according to the criterion of novelty
Routine solutionsare taken in accordance with the existing program, the manager must identify the situation and take responsibility for initiating certain actions. Difficulties can arise here if the manager is incompetent, misinterprets existing indications of a particular situation, acts illogically, or shows indecisiveness. A leader who correctly perceives the situation, draws the right conclusions, acts intelligently and controls the consequences, achieves what is expected of him. At this level, no creativity is required since all procedures are pre-prescribed.
Example:
Where to place the computer on the desktop.
At selective solutionsa certain amount of initiative and freedom of action is required, but within certain limits. Selective decisions imply that the manager evaluates the merits of a whole range of possible solutions and tries to choose those actions that best suit the given problem and are the most effective and economical.
Effectiveness depends on the manager's ability to select the course of action with the highest probability and whether it turns out to be acceptable, economical and effective.
Example:
Selection (rather than development of a new) system of motivation and incentives for personnel.
Adaptive solutionscause difficulties, since here the manager is looking for a new solution to a known problem, must be able to abandon the usual, but already outdated approach to the problem and develop a creative solution. The success of a leader depends on his personal initiative and ability to make a breakthrough into the unknown. Such solutions provide an answer that could have existed before, but in a different form. A manager is looking for a new solution to a known problem.
Example:
Innovative solutionsare the most complex, the manager needs to find ways to understand completely unexpected problems, and solving such problems requires new ideas and methods, the ability to think in new ways, the ability to creatively solve the problem by discussing and using the creative ideas of other specialists.
A manager must be able to understand completely unexpected problems, the solution of which requires the manager to develop thinking in relation to changing conditions. It is possible that solving today's complex problems may require the creation of a new branch of science or technology.
Development of a new (innovative) approach to organizing and conducting conference calls, for example, via IP telephony or Skype.
Classification of management decisions by content in Fig. 1.5.
Rice. 1.5 - Classification of management decisions by content
Solutions with quantitative characteristics, are accepted on the basis of mathematical and statistical methods. The assessment of quality and efficiency in this case is simplified, since the achieved level is compared with the planned one.
Example:
Reduction of finished product defects by 5%.
Solutions that are not quantitative, are subjective in nature, as they are determined by the personality of the subject receiving them. Assessing their quality is complex and quite controversial, since it is also subjective.
Example:
Carrying out the procedure for rotation (rearrangement) of personnel of the enterprise
The classification of management decisions by degree of regulation is presented in Fig. 1.6.
Rice. 1.6 - Classification of management decisions by degree of regulation
Policy decisionsmust be carried out and do not imply any initiative. They establish a clear relationship between certain parameters and specific solution options.
Example:
Making a decision on the introduction of information and communication technologies in the sphere of municipal government will be directive for those responsible for its implementation.
Orienting solutionsdetermine possible options for employee activities when certain conditions occur.
Example:
The decision will be a guide for archive workers, as it tells them that soon the work of many of them will not be in demand. At the same time, it provides for the training of specialists to work with the municipal information system.
Example:
The same decision for different categories of performers can be directive, guiding and recommending.
The classification of management decisions by decision-making style is presented in Fig. 1.7.
Rice. 1.7 - Classification of management decisions by decision-making style
The nature of the development and implementation of management decisions strongly depends on the personal characteristics of a person.
Balanced Solutionsaccepted by managers who are attentive and critical to their actions, put forward hypotheses and their testing. They usually have an initial idea formulated before making a decision.
Example:
Despite the complaints of some members of the team against their immediate supervisor, the director does not apply sanctions against him, since the complaints turned out to be rumors spread on purpose.
Impulsive decisionsare accepted by managers who easily generate a wide variety of ideas in unlimited quantities, but are unable to properly test, clarify and evaluate them. Therefore, decisions turn out to be insufficiently substantiated and reliable; they are made “at once”, “in jerks”.
Example:
Dismissal of a manager against whom there are unverified complaints from his subordinates.
Inert solutions- the result of a careful search. In them, control and clarifying actions predominate over the generation of ideas, so it is difficult to detect originality, brilliance, and innovation in such decisions. They weakly motivate staff to implement them.
Example:
Conducting an internal audit
Risky decisionsare accepted without careful justification of actions by a leader who is confident in his abilities. Typically, such managers have good support in the form of constantly supporting superior managers or subordinates. They may not be afraid of any dangers.
Example:
Careful decisionsare characterized by the manager’s thorough assessment of all options, a hypercritical approach to business, and a large number of approvals. Such management decisions are effective in resolving problems relating to human life and their environment.
Example:
The decision to increase travel expenses for the company's lawyer after conducting all possible comprehensive analysis of his presence and absence at preliminary hearings on various lawsuits and the consequences of these trips.
The classification of management decisions according to the content of the management process is presented in Fig. 1.8.
Rice. 1.8 - Classification of management decisions according to the content of the management process
Economic solutionsassociated with the management system, necessary for increasing the economic efficiency of the organization’s activities, profitability, payback and liquidity of assets. How best to manage resources, make the enterprise profitable, increase profits - these and other questions will confront the manager making economic decisions.
Economic management decisions are manifested in the fact that the development and implementation of any management decision requires financial, material and other costs. Therefore, every management decision has a real cost.
The implementation of an effective management decision should bring direct or indirect income to the company, and an erroneous decision or a decision misunderstood by subordinates leads to losses and sometimes to the cessation of the company's activities.
Example:
If a manager decides to fire a negligent employee, the latter may suffer greatly, and if he does not fire or take other measures, the entire organization may suffer.
Social solutions- These are decisions that affect the organization's social structure, personnel, corporate culture, climate and shared values. Social decisions can be related to optimizing the work of personnel, improving the system of motivation and social support for employees, the image of the organization in society, and the implementation of the mission.
Example:
Increasing wages, introducing environmentally friendly equipment, improving sanitary conditions, strengthening safety requirements, resolving conflicts.
Organizational decisions- these are decisions related to management methods, ways to achieve goals. Such decisions are an integral part of the management process.
The essence is that company personnel are involved in this work. To work effectively, it is necessary to form an efficient team, develop instructions and regulations, vest workers with powers, rights, duties and responsibilities, establish a control system, allocate the necessary resources, including information, provide workers with the necessary equipment and technology, and constantly coordinate their work.
Example:
Organize workers to complete the task, redistribute functions and powers, and hold a general meeting.
Technical solutions- these are operational decisions that are necessary to ensure labor and production processes, supply the necessary resources, materials, and information.
Example:
Install software in a department, replace a broken machine, pay travel expenses, send an employee to an important production site.
The classification of management decisions according to the method of fixing the management process is presented in Fig. 1.9.
Rice. 1.9 - Classification of management decisions according to the method of fixing the management process
Management decisions can be expressed in in writingas administrative documents in the form of orders and instructions. Managers provide written decisions for legal review and subsequently for execution.
Example:
Order for hiring a new employee
In extreme circumstances, the oral form is used. The disadvantage of this method is that performers sometimes distort the content, and not always consciously, and interpret the decision in their own way.
Verbal management decisionsalso have legal force, and they can be appealed in court if there are at least two people who heard these decisions.
Oral management decisions occur during meetings, conferences and business conversations. Meetings and deliberations are collective events (public or involving a wide range of participants); conversations are mostly conducted individually or with a small number of people gathered.
Example:
Verbal order to establish a work schedule on a day off
Electronic solutionsinvolves recording decisions on electronic media. This method allows you to use all the capabilities of information and communication technologies. After the adoption of Federal Law No. 149-FZ of July 27, 2006 “On information, information technologies and information protection,” the electronic method of recording decisions became widespread.
Example:
Providing documentation for negotiations by a manager to a subordinate via email
In the practice of enterprises, from the standpoint of legal registration of management decisions, the most common are written management decisions.
The classification of management decisions by information processing method is presented in Fig. 1.10.
Rice. 1.9 - Classification of management decisions by information processing method
Algorithmic solutionsinvolve strict formalization of the implementation of procedures and operations based on rules, algorithms, formulas, and statistical data.
Example:
Calculation of the economic efficiency of new production should be carried out using developed algorithms.
But in management, not everything can be measured quantitatively. Something is assessed qualitatively. You can process and evaluate information based on intuition, generalizations, ideas, experience, and associations. Through conversation, discussion, and asking leading questions, you can obtain new information from a client or partner. Such solutions are called heuristic.
Example:
Receiving information from a partner about discounts received on office paper from the same office supply supplier.
2. Target and processor technologies
management business processor
Target technologies
Provide examples of the use of each of the target technologies both in business and in the field of educational and extracurricular activities at the university. Provide at least two examples for each area.
Processor technologies
Provide at least two examples of the use of each processor technology.
Target technologies
Target technologies are technologies based on the priority of goals over situations. Target technologies focus decisions on achieving a goal, rather than eliminating disturbing influences.
The classification of target technologies is presented in Fig. 2.1.
Regulatory technologyconsists of issuing tasks (goals, tasks) for execution, indicating the means and their possible limitations, recommended methods and the estimated time for their implementation. The technology provides for strict control of the process of approaching the target.
The professionalism of completing a task is determined by the qualifications of the manager who issued the task and the performer. This implies strict control over the positive dynamics of the task completion process.
Regulatory technology can lead to two main results:
achieving tangible positive results from the process of achieving the goal;
lack of significant positive results within an acceptable time (treading water).
Regulatory technology involves the development by the manager of the ultimate management goal and strategies with the possible limitation of various resources (material, human, financial, etc.). In this case, the goal will definitely be achieved, but within a time frame that is difficult to determine in advance. Achieving the goal is guaranteed only with strict internal or external control of the progress of the process of realizing the set goals.
the time for completing the goal or its component tasks should not be precisely specified (the process of achieving the goal itself is important);
there may be a significant and unpredictable limitation of resources (financial, technological, raw materials, etc.);
innovative and long-term nature of developments;
The estimated time to achieve the goal is over 1 year.
This technology is based on statistical methods, fuzzy set theory, and the theory of developing solutions under conditions of uncertainty. The authorship of the program and the results obtained belongs to the director and performer.
Example:
Writing a book. Preparation and writing of student work (thesis project, course work, etc.).
Drawing up a business plan.
Initiative-target technologyis based on issuing tasks without specifying the means and methods for their implementation and is designed for an initiative and professional performer.
Initiative-target technology involves the development by the manager only of the final goal of the task for an employee or department, as well as the deadline for completion, without indicating the mechanism for achieving it. In this case, the goal may not be achieved for some reason, it may be achieved within the stipulated time frame or earlier, or it may be achieved outside the established period.
Initiative-target technology gives great scope for initiative decisions of subordinates.
Basic conditions for using this technology:
the staff of the organization or its division is no more than 10 people;
the time required to complete the assignment should not exceed one month from the date of its issuance;
high professionalism of the staff or great confidence in them on the part of the manager;
production of new goods, services, information or knowledge;
the presence of stable informal relationships in the team.
The professionalism of the task is determined by the qualifications of the task performer, and the qualifications of the manager play a secondary role. Technology does not guarantee achievement of the goal.
Example:
In the process of completing the task assigned by the manager to the employee, the specialist quit, which resulted in a significant reduction in the necessary resources.
To reduce occupational diseases, the company's management decided to purchase technology that does not use asbestos as fillers for building blocks, while they decided to “freeze” the construction of a new technological building.
Software-targeted technologyused most often in organizations. It consists of issuing tasks (goals, tasks) for execution, indicating the means, methods and time for their implementation; there are instructions on external or internal control of intermediate states of this implementation.
The professionalism of completing a task is determined by the qualifications of the manager who issued the task, and the qualifications of the performer play a secondary role. Software-targeted technology usually guarantees the achievement of the goal.
The use of software-targeted technology can lead to three main results:
achieving the goal within a given time frame with acceptable deviations from the given intermediate values;
achieving the goal within a given time frame with significant deviations from the specified intermediate values;
consistent failure to achieve a goal within a given time frame.
This technology involves the development by the manager of management goals, means and methods for their implementation, as well as the timing and states of intermediate process values. If any given intermediate value is not achieved, then additional resources are allocated for its implementation; if the given intermediate value exceeds the planned one, then part of the resources is transferred to other needs and the goal will be achieved within the stipulated time frame.
Program-target technology is based on modern knowledge, economic and mathematical methods and information technologies.
Basic conditions for using this technology:
certainty and availability of management and production resources;
clearly expressed separation of management and production;
a large volume of standard procedures, situations and solutions.
Example:
When developing a political platform for a political organization in which its leader is the ideologist and conductor of a set of activities. In this case, the qualifications of the performer play a secondary role, and the professionalism of the task is determined by the qualifications of the manager who issued the task.
Development and implementation, for example, of the Federal Target Program “State Border of the Russian Federation”
Processor technologies
For successful implementation, each target technology for developing management decisions has its own set of processor technologies that represent the mechanism for implementing the target technologies.
The processors include six control technologies (see Fig. 2.2).
Rice. 2.1 - Classification of target technologies
Results-based management technologybased on the priority of final results over planning and forecasting. The main function performed by managers is coordination (adjustment) of actions and decisions depending on the results obtained.
This technology is well implemented for medium and small organizations or divisions in which:
the time between decision-making and the result of their implementation is minimal (hours, several days);
there are no insurmountable difficulties in quickly acquiring the required resources or returning unclaimed ones;
the professionalism of the head of the organization or the project manager is quite high;
The nature of production is predominantly mechanized.
The basis of this technology is a business plan and developments for making management decisions under conditions of possible uncertainties. It is known that the most necessary factors for developing an effective management decision are either unknown or precisely indeterminable.
This technology is the cheapest among other technologies, since it does not require the development of detailed plans and the calculation of funds for the implementation of solutions.
Example:
1. solving and writing independent work for the exam.
Planning a report on the annual sales volume of products (services).
Management technology based on needs and interestsis based on the priority of interpersonal relationships over other means and methods for forming interaction between employees participating in the implementation of the goal.
Interaction between a manager and a subordinate when implementing this technology can only occur if the impact affects the needs and interests of both the manager and the subordinate. All other options lead to resistance from the subordinate.
This technology is effectively implemented in large and medium-sized organizations in small regions (cities, towns, etc.), where the organization’s activities significantly affect the municipal infrastructure.
The number of personnel involved in this technology is not limited. The main function performed by managers is planning and organizing interaction between participants in the labor process; a positive result is guaranteed.
Example:
Creation of an enterprise in cities and towns with a developed textile industry, where one large organization gives life to a number of smaller service enterprises.
Opening of a new city library in a place where there is no public transport
Control technology through constant checks and instructionsis based on the priority of control and strict personnel management over other means and methods for forming interaction between employees participating in the implementation of the goal. Control and strict management are justified by the fact that in this case a person better realizes his needs for self-expression, self-display, stability and order.
This technology is effectively implemented in small organizations in which the authority and professionalism of the manager is beyond doubt, especially in new knowledge-intensive organizations, educational institutions or in enterprises where consultant-managers work on a contractual basis.
Example:
1. Conducting testing, certification, exams, testing the knowledge of students by the teacher.
Choreography for the play. In this case, the group leader (choreographer) is the authority who regulates and controls every movement of the dancer (actor).
Control technology in exceptional casesis based on the priority of the professionalism of performers or proven and well-executed production technology over other means and methods for the successful completion of assigned or selected tasks.
This technology is effectively implemented in small organizations that work either using strictly regulated technology or in organizations with a trust (functional) management structure.
In this structure, the manager exercises linear influence in all areas of the production process in administrative functions, and in economic, technological and other functions he provides the required assistance to subordinates and colleagues. The leader is in a situation: an equal among equals. The contractor can also transfer part of his work to a lower level and act in relation to him as a line manager and as an advisor.
Example:
1. The accountant fulfills the instructions of the chief accountant to prepare and submit reports to the director of the enterprise.
The teacher assigns the student to conduct an open lesson.
Control technology based on “artificial intelligence”is based on the priority of proven practice, statistics and modern economic and mathematical methods, implemented in the form of knowledge bases or databases using modern information computer technologies.
This technology is especially effective for any organizations with a large volume of standard complex procedures.
Example:
Filtering email using a computer. In this case, the most important letters are first submitted for consideration to the head of the enterprise.
Maintaining logs of student progress in universities.
Management technology based on the activation of personnel activitiesis based on the priority of incentives and rewards for the employee over other means and methods for the successful completion of assigned or selected tasks. It is effective in predominantly manual production, when labor productivity and quality of products are mainly determined by the mood, psychology and health of the worker, as well as the socio-psychological climate in the team. The number of employees is unlimited. Technology requires a system for monitoring the effect of incentives and rewards on the activities of each employee or team.
This technology influences the satisfaction of the needs and interests of employees not directly from the manager, as in management technology based on needs and interests, but through the decisions of the employee himself. Technology requires a high level of professional training of HR specialists.
Example:
Incentivizing an employee by giving him a responsible task or paying remuneration in cash and (or) commodity forms.
Writing essays, independent study of educational literature as a student’s motivation to receive automatic final grades for the semester (year).
List of used literature
1.Abryutina M.S., Grachev A.V. Analysis of the financial and economic activities of the enterprise. - M.: Publishing House “Business and Service”, 2010. - 256 p.
2.Baldin K.V., Vorobiev S.N., Utkin V.B. Management decisions: Textbook. - M.: Dashkov and K, 2007. - 496 p.
.Batrick R. Techniques for making effective management decisions: Textbook. - 2nd ed. - St. Petersburg: Peter, 2010. - 416 p.
.Vertakova Yu.V., Kozyeva I.A., Kuzbozhev E.N. Management decisions: Textbook. - M.: KnoRus, 2009. - 352 p.
.Vertakova Yu.V. Management decisions: development and choice: Textbook. - M.: KNORUS, 2010. - 422 p.
.Garkusha N.M. Models and methods of decision making in analysis and audit: Textbook / Ed. N.M. Garkushi, O.V. Tsukanova, O.O. Goroshanskaya. - 2nd ed. - K.: Knowledge, 2012. - 591 p.
.Golubkov E.P. Technology of management decision making: Textbook. - M.: Delo, 2010. - 544 p.
.Zlobina N.V. Management decisions: Textbook. - Tambov: TSTU, 2007. - 80 p.
.Kokoreva T.A. System analysis of decision-making procedures. - M.: Timber Industry, 2009. - 290 p.
.Litvak B.G. Development of management decisions: Textbook. - 3rd ed. - M.: Delo, 2011. - 288 p.
.Litvak B.G. Development of a management solution. - 4th ed., rev. - M.: Delo, 2012. - 392 p.
.Mashchenko V.E. Systematic corporate governance: Textbook. - M.: Sirin, 2013. - 251 p.
.Raizberg B.A., Lozovsky L.Sh., Starodubtseva E.B. Modern economic dictionary. - 5th ed., revised. and additional - M.: INFRA-M, 2007. - 495 p.
.Smirnov E.A. Development of management decisions: Textbook. - 2nd ed., add. - M.: 2012. - 271 p.
.Smorchkov A.V. Development of management decisions: Textbook. - Part 2. - Bryansk: BSTU, 2011. - 44 p.
.Travin V. Preparation and implementation of management decisions: Textbook. - M.: Delo, 2008. - 80 p.
.Fatkhutdinov R.A. Management decisions: Textbook. - 5th ed. - M.: INFRA-M, 2008. - 314 p.
.Shemetov P.V., Radionov V.V., Cherednikova L.E., Petukhova S.V. Management decisions: Textbook. - 2nd ed., add. and revision - M.: Omega-L, 2012. - 400 p.
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CLASSIFICATION OF MANAGEMENT DECISIONS
Introduction
1. Creative nature of management decisions
2.1 Classification of solutions according to subject-object criteria
2.3 Classification of solutions by form
2.4 Classification of decisions by nature of goals and duration of actions
2.5 Classification of decisions according to their place and functions in the management process
2.6 Other classifications of management decisions
Conclusion
Bibliography
Introduction
Management is the process of purposeful influence on the managed system or object of management in order to ensure its effective functioning and development.
Managers at every level must consider numerous combinations of potential actions in order to find the right action for a given organization at a given time and place. Essentially, for an organization to operate smoothly, a leader must make a series of correct choices from among several alternative possibilities.
A management decision is a creative and volitional influence of a management subject, based on knowledge of the objective laws of functioning of the managed system and analysis of management information about its condition, aimed at achieving its goals. Consequently, a management decision is a choice of an alternative, a choice of one path or another, a behavior option.
The object of a management decision is a system or operation. The subject of a management decision can be either the control subsystem of the organizational-production system or the decision maker. For the practical implementation of targeted impact on the control object, the decision made (depending on the level at which it was made, complexity and time of action) is specified in the form of an appropriate action program. The program includes a list of activities, methods for their implementation, timing and boundaries of actions, the range of performers and the necessary funds, as well as the necessary results and criteria for their evaluation.
The program determines the place of each production unit in the process of achieving its goals. At the same time, the actions and resources of structural units are coordinated and linked in space and time. At the same time, the decision, as a rule, is of a directive nature and becomes, as it were, a signal, an impulse that encourages production teams to act. Thus, making a management decision is a choice of how and what to plan, organize, motivate and control.
Responsibility for making important decisions is a heavy moral burden, which is especially evident at the highest levels of management. Therefore, a leader, as a rule, cannot make ill-considered decisions. The variety of solutions represents a certain complex, the understanding of which is facilitated on the basis of a systematic approach, which makes it possible to reveal a strict system of solutions. In such a system of decisions, both general features and specific features inherent in individual types of decisions should appear.
The purpose of this course work is to classify management decisions.
Our main task is to streamline the distribution of elements of management decisions according to essential characteristics and classify them into a certain class. In this course work we will consider such issues as the creative nature of management decisions and the classification of management decisions in general.
The problem of decision-making is fundamental in nature, which is determined by the role that decisions play in any sphere of human activity. Research on this problem is interdisciplinary, since the choice of a course of action is the result of a complex linking of various aspects: informational, economic, psychological, logical, organizational, mathematical, legal, technical, etc.
1. The creative nature of management decisions
A management decision is the result of analysis, forecasting, optimization, economic justification and selection of an alternative from a variety of options to achieve a specific management goal.
A management decision has both features characteristic of all decisions made by a person, regardless of the field of activity (the presence of a conscious and purposeful choice), and special features characteristic specifically of decisions made in the management process.
Management decision:
forms a control action, thus connecting the subjects and the object of control;
becomes the result of a person’s creative mental activity, which is based on knowledge and the conscious use of objective laws and the involvement of personal experience;
determines the range of actions of the subject and object of management to achieve the general goals of this system, i.e. leads to action, practical results.
A management decision can be defined as a creative act by the fact that the development and adoption of a decision is an interesting process, even if formal models are used to develop, since the solution obtained using the model is not final. Before the resulting version is approved and sent for execution, it is discussed and analyzed from the point of view of factors not taken into account in the formal description of the problem.
By pointing out that during the process of developing and implementing a decision, the manager consciously (creatively) applies his scientific knowledge and experience in practice, we thereby note the presence of a subjective moment, from which no decision made by a person is free.
The presence of the subjective in a management decision is not a negative phenomenon provided that the objective element predominates in it, which can be judged by the tactical results of the implementation of the decision, since only through practice does a person prove the correctness of his hypotheses, the validity of concepts, the accuracy of knowledge. Maximum objectification of the subject’s ideas about the problem being solved is achieved through the use of its solutions are scientific methods, therefore, the definition emphasizes that a management decision must be scientifically based, that is, made by a manager on the basis of knowledge of objective laws and scientific prediction of their actions and development in the future.
Usually, in making any decision, three elements are present to varying degrees: intuition, judgment and rationality. When making a decision based only on intuition - an intuitive decision, people base their own feeling that their choice is correct. The correctness of a management decision is achieved through a person’s ability to penetrate into the essence of the problem being solved and understand it. Often such penetration comes unexpectedly, while a person is doing other things, or even in a state of sleep. Developed associative thinking helps a person solve completely diverse problems. There is a “sixth sense” here, a kind of insight. Sometimes very effective intuitive solutions come to a person in a dream. These decisions must be immediately recorded on paper or a tape recorder, since most of this information is forgotten 3-5 minutes after waking up. Dreams are a significant part of our mental activity. A person can give himself the task of finding solutions to some problems while sleeping, and sometimes he succeeds. Thus, the famous Russian scientist Dmitry Ivanovich Mendeleev in a dream (dream) found a solution to how to organize metals, gases, and amorphous substances. This solution was implemented in the form of a periodic system of elements (Mendeleev's system of elements). Management decisions based on judgment and common sense occupy a large place in the overall decision set. Experience is very important when developing and selecting a specific management solution. The latest theory may turn out to be opportunistic and ineffective, and experience that has not been tested can be useful for young and new leaders. It is no coincidence that the business schools of Moscow State University and the State University of Management have published several collections of management situations with options for their solutions and the real consequences that occurred as a result of the implementation of these decisions. The same collections are published by leading universities and companies around the world. They reflect extensive practical and theoretical elaboration of the proposed solutions.
Management decisions based on judgments are the cheapest in terms of the cost of their formation and selection. Managers of a number of companies themselves create databases of such solutions according to the following schemes (Fig. 1.):
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Fig.1. Schemes for forming a database of management decisions based on judgments: a) decisions initiated by new situations; b) decisions initiated by new (planned) goals
Rational management decisions are based on the professional use of management technologies (target and processor) and development and selection methods (analytical, statistical, activating, expert, etc.).
2. Classification of management decisions
Many prominent scientists dealt with the problems of theory and practice in developing effective solutions. Any theory begins with the classification of the object of study, that is, the identification of similar (homogeneous) groups.
Classification of solutions allows you to study their features and select the most effective ones under the conditions of a specific task. However, due to the complexity of the conditions (influencing factors), decision-making goals, requirements and decision structure, creating a simple and clear classification of them seems problematic. Therefore, various classifications of management decisions can and do exist.
The choice and practical use of a particular classification is determined by the specific conditions of decision-making.
As a result, we compiled the following classification of management decisions:
by functional focus: planning, organizing, activating, coordinating, controlling, informing;
by organization: individual, collegial (group) and corporate;
for reasons: situational, prescribed, programmatic, initiative, seasonal;
by repeatability: same type, different type and innovative (no alternatives);
by impact scale: general and private;
by duration: strategic, tactical and operational;
according to predicted results: with a certain result, with a probabilistic outcome;
classification management decision
by the nature of development and implementation: balanced, impulsive, inert, risky, cautious;
on methods of information processing: algorithmic, heuristic;
by number of criteria: single-criteria, multi-criteria;
according to the direction of influence: internal and external;
by depth of influence: single-level and multi-level;
according to resource restrictions: with restrictions, without restrictions;
by fixation method: written and oral.
Let's look at this classification in more detail.
2.1 Classification of decisions according to subject-object criteria
In any science, its branch or institution, the leading place among the subjects of management decisions is occupied by the state.
Decisions made by the state and its authorities cover the entire society as a whole, all its spheres and regulate the behavior of all classes, social strata, groups and individual citizens without exception.
Laws and other normative legal acts act as the highest form of law, have the highest legal force and regulate the most important social relations.
Acts of supreme and local elected authorities are the basis for the law-making activities of all bodies and organizations.
Acts of government bodies are acts adopted by them in the process of executive and administrative activities on the basis and in execution of laws and other acts of representative bodies, organizations, officials and citizens, as well as on the emergence, change and termination of specific administrative-legal and other relations.
2.2 Classification of decisions according to the degree of certainty of the situation
The decision is made in conditions of certainty, when the manager knows exactly the result of each of their alternative choices, when he sees what will follow after he makes a specific management decision.
An example of a definite decision is that a manager, at least in the short term, can determine exactly what the costs of producing a particular product will be because rent, materials, and labor costs are known or can be calculated with high accuracy.
Decisions are made under conditions of uncertainty, when it is impossible to estimate the likelihood of potential outcomes. Uncertainty is characteristic of some decisions that have to be made in rapidly changing circumstances, in emergency situations, under very difficult conditions.
When faced with uncertainty, a manager has two main options. First, try to obtain additional information and analyze the problem again. The manager combines this additional information and analysis with accumulated experience, judgment, or intuition to give a range of outcomes a subjective or perceived probability. The second option is to use your intuition and make assumptions about the likelihood of events. This is necessary when there is not enough time to collect additional information or the costs for it are too high.
Decisions made under risk conditions include those whose results are not certain, but the probability of each result is known. Probability is defined as the degree of possibility of a given event occurring and varies from 0 to 1. The sum of the probabilities of all alternatives must be equal to one. Under conditions of certainty, there is only one alternative.
The most desirable way to determine probability is objectivity. Probability suggests what exactly can most likely happen with high confidence. In such a situation, a manager can use a judgment about the possibility of alternatives occurring with one or another subjective or estimated probability.
The nature of the development and implementation of management decisions greatly depends on the personal characteristics of a person. It is customary to distinguish between balanced, impulsive, inert, risky, and cautious decisions.
Balanced decisions are made by managers who, as a rule, are attentive and critical of their actions, put forward hypotheses and their testing. Usually, before making a decision, they have a formulated initial idea.
Impulsive decisions are made by managers who easily generate a wide variety of ideas in unlimited quantities, but are unable to properly test, clarify and evaluate them. Decisions therefore turn out to be insufficiently substantiated and reliable, and are made spontaneously.
Inert solutions are the result of careful search. They are dominated by control and clarifying actions over the generation of ideas, so it is difficult to detect originality, brilliance, and innovation in such decisions. They weakly motivate staff to implement them.
Risky decisions are made without careful justification of actions by a leader who is confident in his abilities. Typically, such leaders have good support in the form of constantly supporting senior managers or subordinates. They may not be afraid of any dangers.
Cautious decisions are characterized by the manager's thorough assessment of all options, a hypercritical approach to the matter, and a large number of approvals. Such management decisions are effective in resolving problems relating to human life and their environment.
2.3 Classification of solutions by form
The predominant form of management decisions are written decisions (orders, instructions, instructions). This form of decisions allows us to introduce that element of stability, orderliness and recording of information, without which management itself as a whole is unthinkable.
Nevertheless, oral decisions also occupy an important place, which in the activities of the managerial and production apparatus constitute its most operational part. Such decisions may involve important issues and should be supported by accountability for implementation.
But according to the regulations of many companies, managers must provide the most responsible management decisions in writing for economic and legal examination and subsequently for execution. Oral management decisions also have legal force; they can be appealed in court if there are at least two people (witnesses) who heard this decision voiced by the manager.
Another form of solutions are solutions used in automated systems. These are coded solutions that are applied to special documents, punched cards, and various magnetic media.
Thus, the traditional types of work in which a manager develops and implements management activities are: working with information; working with a person, a team; work with the control system; providing management consultation.
Currently, modern organizations have introduced the position of head of information service, reporting directly to the general director for the overall management of the company's information resources.
2.4 Classification of decisions by the nature of goals and duration of actions
The total duration of management decisions is determined by its importance. There are strategic, tactical and operational decisions.
Strategic decisions usually address root problems. They are accepted at the scale of the control object and above, designed for a long period of time, to solve long-term problems.
Strategic goals are goals that involve solving large-scale problems and relate to the company as a whole.
Strategic management decisions are the most important decisions. They are especially significant for competitiveness and have a high cost of consequences. Such decisions are associated with significant transformations of the organization (change of technology, change of goals, personnel renewal).
Strategic decisions are developed for a long term (5-10 years) covering key elements of the company (personnel structure, production, etc.).
Tactical decisions, as a rule, ensure the implementation of strategic objectives.
Tactical goals are tasks that involve solving specific problems, outlined by middle managers and describing the steps that the organization's strategic goals require.
Tactical management decisions are tools for strategic decisions and are developed over a shorter period (1-3 years) covering some of the key elements of the company.
Operational decisions are related to the implementation of current goals and objectives. In terms of time, they are designed for a period not exceeding a month.
Operational goals are tasks that provide solutions to current issues, outlined by lower-level managers and describe the actions necessary to achieve tactical and strategic goals.
2.5 Classification of decisions according to their place and functions in the management process
Assessing the situation (external conditions) is usually associated with the preparation of a certain action, but at the same time is an independent task. It is impossible to assess the situation only by inference based on judgments contained in the initial information. Usually there is no complete guarantee of correct recognition of the true state of affairs and circumstances. The assessment of the situation itself contains all the basic signs of preparation and decision-making.
Making a decision about what information should be considered true is called an information decision. An information solution involves transforming information into a form that best suits a specific management task.
For example, for some time, the manager of an enterprise receives a wide variety of information about the state of work in various areas. As a result of processing this information and comparing it with earlier information, the manager develops his own idea of the production situation, that is, he creates a mental model of it. This is an information solution.
The next type is organizational decisions. An organizational decision is a choice of alternatives that a manager must make in order to fulfill the responsibilities of his position. Its goal is to ensure movement towards the tasks set for the organization.
An organizational decision consists of determining the structure, distributing functions between departments and officials, establishing subordination and a pattern of relationships.
A feature of organizational decisions is their orientation towards a relatively wide range of situations. Even single-purpose organizations may encounter a variety of conditions when performing a given task. Therefore, their necessary qualities are adaptability (the ability to adapt to the situation) and resistance to outside influences.
The most complex and responsible decisions include those called technological or management-technological. The class of technological solutions in production organizations includes, in particular: defining a goal, establishing readiness for work and determining their main direction, distribution of forces, means and method of work, setting tasks for departments.
The most important thing in the class of technological solutions is the definition of the goal, on the basis of which the remaining elements of the solution and the efficiency criterion are built. The goal is not an external factor in relation to the technological solution, but part of its content.
In a number of cases, the initial goal, although clearly formulated, undergoes significant changes in the process of preparing a technological solution, and additional goals and subgoals appear.
A technological solution always specifies a specific action, while an organizational action is not associated with a specific action, its content and method of implementation.
2.6 Other classifications of management decisions
By the number of alternatives there are:
· standard solutions are an unambiguous choice, but it does not have the character of unconditional correctness and may not fully correspond to the true cause of the problem;
· multi-alternative solutions. A multivariate type of solution is not found so often and is characterized by many solution options;
· innovative solutions - a choice in the absence of obvious alternatives. In this case, there is a process of switching from rational to creative thinking, and then again to rational. When analyzing solution options, a method of combining the best features of known alternatives can be used.
Based on the frequency of decision-making, they are distinguished: one-time decisions - solutions to major problems. An example of such decisions could be the decision to create or liquidate an enterprise. Cyclic solutions are solutions to problems that have a known cycle. An example of cyclical decision management: once a year, decisions are made on the execution of the current year’s budget and the adoption of the budget for the next year. Frequent decisions are decisions that need to be made at random times on unrelated problems so often that the process can be considered continuous.
Based on the number of subjects influencing decision-making, the following are distinguished: determining decisions - decisions made by one specialist or manager; competitive decisions - decisions made by two specialists; adapting decisions - decisions made collectively, based on the assessments of a group of experts.
Based on predictive efficiency, the following are distinguished:
ordinary decisions - decisions in which the efficiency of resource expenditure per unit of effect obtained corresponds to the norms and standards adopted for the industry or type of activity under consideration. Among the ordinary ones, the following types of solutions can be distinguished: ineffective - not allowing to solve the problem; rational - allowing to solve the problem; optimal - allowing to solve the problem in the best way, in the sense defined by the criterion, or to build the best system in the sense defined by the criterion; synergetic solutions - solutions in which the efficiency of resource expenditure per unit of effect obtained increases sharply, i.e. the effect is clearly disproportionately increasing. Synergistic solutions appear, for example, when developing new technologies. Since the effect is most often expressed in monetary terms, the synergistic effect is most often found in the financial sector. In financial management, such decisions are called the leverage effect. The indicator of the synergy of a management decision can be included in the criterion for assessing effectiveness, in particular as an additional parameter of the effect; Non-synergistic decisions are decisions that result in a disproportionate reduction in the efficiency of the system and/or operation. Among the most common reasons for such decisions are: delayed decision, lack of necessary resources, low level of organization, motivation, etc.
By the nature of taking into account changes in the conditions for implementing a solution, they distinguish: flexible solutions - solutions whose implementation algorithms provide for various options for action depending on the emerging conditions; hard decisions - have a single implementation option under any conditions and state of subjects and objects of management.
Other approaches to classifying solutions are also possible. This is due to the variety of solutions and factors significant for a particular case. However, the above list of classification criteria shows the variety of types and characteristics of solutions due to the complexity of the object; characterizes the list of parameters that should contain the conditions of the decision made.
In general, knowledge and use of classification characteristics of management decisions allows structuring the task facing the manager. This allows you to more clearly formulate and solve management problems and contributes to the concentration of efforts and more efficient use of time and money when developing solutions.
3. Efficiency of management decisions
Considering the process of making management decisions as a sequence of two interrelated, but at the same time independent stages - the development of a solution and its implementation - it is necessary to note, in accordance with this, two modifications of the management decision: theoretically found and practically implemented. In relation to the first, the concept of quality should be applied, and to the second - efficiency. Thus, the quality of a management decision is possible and must be assessed at the stage of its adoption, without waiting for the actual result to be obtained, using a set of characteristics that express the basic requirements for the decision. In other words, the quality of a management decision is the degree to which the parameters of the selected solution alternative correspond to a certain system of characteristics, satisfying its developers and consumers and ensuring the possibility of effective implementation. These characteristics include:
scientific validity;
timeliness;
consistency;
adaptability;
reality.
A manager can be competent to make a high-quality decision, as well as implement it effectively, only if he has special knowledge in the field of activity that he manages. The decision will be competent if it sufficiently fully reflects the goals and objectives of managing a specific object in combination with knowledge of the nature and specifics of this object, as well as trends in its development in interaction with the environment. In addition, knowledge of the matter, the specific object and the problem being solved must be complemented by knowledge of management and , in particular, decision-making theories.
Only a decision that is made on the basis of reliable, systematized and scientifically processed information, which is achieved using scientific methods for developing and optimizing solutions, can be justified.
The unity of management of modern complex organizations, carried out by a deeply specialized apparatus, cannot be achieved otherwise than by a sequence of complementary, consistent private decisions that are goal-setting, organizing, motivating, controlling and regulatory in nature. What performers are actually guided by is usually their generalized understanding of the decisions, tasks, instructions and standards communicated to them by different governing bodies and managers and at different times. The situation is complicated by the fact that forecast scenarios for the development of the control object are, as a rule, absent, and the control apparatus reacts only to current problems. In addition, each manager, when making a decision, pursues his own goals and interests, which requires an assessment of each of the decisions being developed from the perspective of the interests of the organization as a whole. All this indicates the enormous importance of consistency and consistency of management decisions. In this case, one should distinguish between the internal consistency of a solution, which means the correspondence of goals and means of achieving them, as well as the correspondence of the complexity of the problem being solved and the methods for developing a solution, and external consistency - the continuity of decisions, their compliance with the strategy, goals of the organization and previously made decisions (actions necessary to implement one decision ,must not interfere with the performance of others). Achieving a combination of these two conditions ensures consistency and consistency of management decisions.
The effectiveness of solving many problems is very often determined by its timeliness. Even the optimal decision, designed to obtain the greatest economic effect, may turn out to be useless if it is made late. Moreover, it can even cause some damage. Thus, the time factor has a significant impact on the content of the management decision.
If the need for validity and consistency of a decision increases the time spent on its development, then the requirement for timeliness and efficiency, on the contrary, significantly limits this period.
The decision must be developed and made taking into account the objective capabilities of the organization and its potential. In other words, the material capabilities and resources of the organization must be sufficient for the effective implementation of the chosen alternative.
So, a management decision can be considered effective and of high quality if it meets all the requirements listed above. Moreover, we are talking specifically about a system of conditions, since failure to comply with at least one of them leads to defects in the quality of the solution and, consequently, to loss of efficiency, difficulties or even the impossibility of its implementation.
Conclusion
A management decision is a choice of alternative made by a manager within the framework of his official powers and competence and aimed at achieving the goals of the organization.
A management decision is a direct result of mental and rational management activity, which has a semantic meaning (refusal of a decision is also a decision). A management decision can be expressed both in the abstract form of mental constructs using various sign systems (verbal, symbolic, schematic, body language, facial expressions, gestures, pantomimes, etc.), and in the form of various types of physical influences on the subject of activity (person), but at the same time, a prerequisite is an understanding of the meaning of this mental structure or influence by the subject of management. If there is no such understanding on the part of the object of management, then this decision cannot be considered as managerial, but is purely power-based or some other unconscious one. Thus, a management decision is any document or word, action that has meaning and is further aimed at the implementation (implementation) of this decision.
Through the decision, the purpose, types, volume of activities, terms, conditions, equipment and technology of work production, rights and responsibilities, distribution of resources are established, the actual state of phenomena, objects at a given moment in time, etc. is recorded. Accordingly, the management decision is reflected in the form of various documents (drawings, diagrams, plans, projects, schedules, statements, reports, certificates, etc.) and undocumented orders, assignments, settings, directions of action, etc., expressed in oral verbal or other sign systems.
A management decision, depending on the chosen grounds, can be classified in a variety of ways, which we discussed earlier.
The development of effective management decisions is a fundamental prerequisite for ensuring the competitiveness of products and the company in the market, the formation of rational organizational structures, the implementation of correct personnel policies and work, the regulation of socio-psychological relations in the enterprise, the creation of a positive image, etc.
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In connection with the activities of an organization aimed at achieving its goals, many problems arise, i.e. complex theoretical or practical issues and problems requiring special study and solution.
At the heart of the problem, as a rule, lies a complex situation, which is characterized either by the uncertainty of the causes of its occurrence, or the uncertainty of ways out of it, or both at the same time.
A problem always has a certain content, is associated with a specific place, time of occurrence, frequency of recurrence, time frame for resolution, has certain quantitative parameters, and is characterized by the circle of people involved in it. Identification of the listed points allows us to determine the so-called “problem field” in which actions aimed at solving the problem should unfold.
Management problems can be classified according to a number of criteria. One of them is the degree of importance. Important issues have a decisive impact not only on the current situation, but also on the future of the organization. The next classification characteristic can be considered the scale of the problem, which is characterized by the magnitude of economic losses associated with the occurrence and existence of problems, as well as the number of members of the organization who are affected by the problems or who will be involved in resolving them.
Problems can be differentiated by the degree of risk. It is measured by the likelihood of undesirable consequences for the company: the occurrence of major economic and other damage that undermines its stability, or the cessation of its existence altogether. Such problems must be resolved as soon as possible, before the situation becomes further complicated and the risk increases. Thus, high-risk problems are also the most urgent, but not all urgent problems are high-risk.
The ability to structure and formalize them is important for successful problem solving. Some problems can be clearly formulated and can be easily divided into individual elements, so they are easy to formalize and express in quantitative terms; others are structured only in the main; they manage to quantitatively describe and formalize only the main elements; third problems cannot be structured at all and can only be described qualitatively, which does not allow their formalization.
Problems can be classified in the very possibility of their solution. Some cannot be solved in principle, under any circumstances (for example, to create a perpetual motion machine); others cannot be resolved under the circumstances, for example due to a temporary lack of funds; for the third, there are no obstacles at all, and they can be resolved at any time.
However, problems can and should not only be solved, but also prevented, which is much cheaper. This process can begin with the establishment of standards for the normal operation of the company, knowledge of which allows one to detect possible deviations in work and identify their causes, which forms the basis of preventive measures to reduce the likelihood of undesirable situations.
Solving problems - large and small, complex and simple, important and minor - is the essence of the management process.
Management decisions can be classified according to many criteria, the main ones of which will be discussed below. Thus, from the point of view of the impact on the future of the company, decisions are divided into strategic and tactical. The former, for example, determine the main paths of its development, the latter - specific ways of moving along them.
In accordance with the time horizon covered, we can talk about promising solutions, oriented to the future, and current ones, based on the needs of today.
Depending on the specific implementation time frame, solutions can be long-term (over 5 years), medium-term (1-5 years), short-term (up to 1 year). Long-term decisions are usually forward-looking. Medium-term decisions are reflected in plans and programs that are mandatory for execution; they can be adjusted. Short-term decisions are reflected not only in plans, but also in oral and written orders and instructions.
Decisions can be classified depending on what level of the hierarchy they are made: higher, middle, lower. The higher the level of hierarchy, the more important the decisions are for the company, the more strategic and long-term they are.
What determines decision-making also largely depends on the level of the hierarchy. At the highest level, it is usually dictated by the circumstances within which the firm operates. Based on them, top management takes the initiative to make decisions, and the latter, accordingly, has a proactive character. In its development and with the aim of further concretizing the decisions received from above, lower levels of management make their own decisions, which will have the nature of prescribed ones. Their degree of freedom will be significantly less.
According to the degree of mandatory execution, decisions are divided into directive, recommendatory and guiding.
Thus, directives are usually adopted by higher authorities in relation to lower ones in a stable situation, regarding the most important problems being solved at the moment or in the near future. They are mandatory and are designed for a very specific expected result. Recommendatory decisions are developed by advisory bodies - various kinds of committees or commissions. Their implementation is desirable, but not required. Finally, orienting decisions, like directive ones, are intended for lower levels of management; however, acting in conditions of freedom from the center, forecast decisions can also be considered orienting in their essence.
According to the functional content, organizational, coordinating, regulating, activating and controlling decisions are distinguished. An example of an organizational one is the decision to create a company, a subsidiary, the distribution of responsibilities between the founders, etc.
Regulatory decisions prescribe ways to carry out certain actions in certain situations and are manifested in relevant documents, routines, work schedules, norms and regulations. Coordinating decisions are mainly operational in nature, for example, the distribution of current work among performers. Control decisions serve to evaluate certain actions of subordinates and their further adjustment.
According to the method of decision-making, they can be selective or systematic. Selective ones relate to one aspect of the problem; systematic - cover the problem as a whole in all the diversity of its individual elements.
Decisions are made by people and, depending on the nature of the work on them and the number of participants, are divided into individual and collective. The latter, in turn, can be consultative, joint and parliamentary. An advisory decision involves the final decision maker consulting with subordinates and experts and then making his own choice based on these recommendations (which can be accepted, taken into account, or rejected). A joint decision is made as a result of mutual agreement of all participants based on the consensus that emerged during the process of its preparation. A parliamentary decision is based on the fact that the majority of those involved express their agreement with it; Participation in the development of a decision is not required here, and in most cases we are talking only about its approval.
Based on the breadth of problems covered, general and special solutions are distinguished. General ones apply to a wide variety of problems and are based on the characteristics that unite them. For example, for all divisions of the company there may be a common decision on the start and end times of the working day, the schedule of lunch breaks, and the payment of wages. But decisions on issues that constitute the substantive side of their work will be considered special.
From the point of view of predetermination, management decisions are usually divided into programmed and programmed. The very logic of the development of the situation leads to the adoption of programmed decisions, and the task of those who make decisions comes down to answering the question not “what to do?”, but “when to do it?” and "how to do it?". Most often, such decisions are associated with standard, repeating situations.
In contrast, unprogrammed decisions are made under unusual circumstances and require individual creativity that integrates a variety of experience, specialized research, and the manager's art and instincts.
Depending on the areas of activity, solutions are classified according to their functional focus on problems related to production, sales, scientific research, personnel, etc. Since in this case one aspect of the problem is usually considered, solutions can also be divided according to content into technical, economic and social.
Typically, all decisions made are developed in a varying number of options. From this point of view, solutions are distinguished between non-alternative, binary, multivariate and innovative.
In the case when everything is extremely clear and there is only one way out of the published provision, they talk about no alternative solutions. Usually these are simple solutions that arise in standard situations.
However, most problems admit of more than one solution. In this sense, a binary solution is more preferable, suggesting two possible options that can be close or opposite (alternative).
To ensure that the choice is optimal, multiple solutions are needed. However, it may happen that none of the existing options are suitable, in which case an innovative solution can be formed. The search for such a solution occurs on the basis of a combination of suitable characteristics from those solutions that were generally rejected. These characteristics should not only be consistent and compatible, but also complementary and reinforcing each other.
This approach does not always lead to the optimal option, so it can be considered temporary or as a basis for continuing work in this direction.
When preparing management decisions, various methods can be used:.
analogies - the use of similar situations from other areas of knowledge or past experience;
inversions - overcoming psychological inertia and approaching the problem from a new position;
empathy - considering a problem from someone else's perspective;
fantasies - idealized proposals, fantasies with an attempt to come across an idea for solving a problem;
"brainstorming" - free expression of ideas without criticism or discussion;
morphological analysis - identifying functional areas, generating ideas and solutions based on them, preparing combinations of ideas;
simplifications - discarding, neglecting the unimportant and highlighting the determining factors;
classification - assigning a problem (situation) to a typical group;
structuring - dividing into parts, unfolding the problem;
diaries - preparation of proposals in advance and preliminary analysis by the leader; individual generation of ideas and collective discussion.
DEFINITION
It is a process of choosing from several options, searching for an alternative. A management decision is the choice of an alternative, which is carried out in the process of implementing basic management functions.
— creative and volitional influence of management subjects, based on knowledge of the objective laws of existence of the managed system and the study of management information of its state.
The object of management decisions can be a system or an operation. The subject of management decisions is the management subsystem of the organizational (production) system or the person who makes the decision.
Classification of management decisions
The classification of management decisions makes it possible to study their features and select the most effective solutions given a specific task. Due to the complexity of the conditions and goals of decision-making, it is necessary to create a simple and clear classification of management decisions.
According to the nature of decision making, intuitive decisions and decisions that are based on judgments, as well as rational decisions, can be distinguished.
Intuitive decisions are choices that are made based on a feeling that they are right. A person who makes an intuitive decision does not consciously weigh the pros and cons of each alternative, and sometimes does not even have a complete understanding of the situation. An intuitive decision is made based on insight or the so-called sixth sense.
Judgmental decisions are choices that are based on knowledge or experience. The decision maker uses knowledge of what has happened in similar situations before to predict the outcome of alternative choices.
Rational decision making is based on an objective analytical process.
Classification of management decisions by time
Depending on the time of onset of consequences for the control object The classification of management decisions is as follows:
- A strategic decision is made in relation to a set of actions that are aimed at achieving organizational goals through adaptation to changes in the external environment.
- a long-term decision is a decision that is aimed at the adoption and implementation of a long-term plan;
- the current decision develops and refines the promising solution and is adopted within the framework of a subsystem or stage of one of its cycles;
- the operational solution covers the production process of manufacturing and supplying lower-level elements, which delivers planned tasks to specific performers of each department.
- The stabilization decision is made to ensure that the system is in the sphere of a controlled or acceptable state.
Classification of management decisions by technology
In accordance with management decision development technology classification of management decisions consists of:
- organizational decisions, the main purpose of which is to ensure movement towards the objectives set for the enterprise. Organizational decisions, in turn, are divided into programmed decisions (implementation of successive steps or actions similar to the stages of solving a mathematical equation) and unprogrammed decisions (made in new, internally unstructured situations).
- Trade-offs are decisions that are made using a systems approach and take into account the likely consequences for all structures of the organization.
Examples of problem solving
EXAMPLE 1
The classification of management decisions allows us to study their features and select the most effective ones in the conditions of a specific problem to be solved. However, due to the complexity of the conditions and goals of decision-making, requirements and decision structure, it is quite difficult to create a simple and clear classification of them. Therefore, there can and do exist different classifications of management decisions.
The choice and use of a particular classification is determined by specific decision-making conditions. In a generalized form, the classification of management decisions can be presented as follows.
According to the object of management, management decisions are divided into: production, marketing, personnel and financial.
Production management decisions affect objects in the sphere of production. Marketing - areas of sales of finished products. Personnel - personnel management policies of the organization. Financial - areas of monetary relationships with various entities.
Based on the nature of the decision-making process, the following types of management decisions are distinguished: intuitive, rational and judgment-based decisions.
In intuitive decision making, a choice is made based on a feeling that it is the right one. The decision maker does not consciously weigh the pros and cons, making a choice relying on his intuition.
In judgmental decision making, the choice is made based on experience. The decision maker weighs the pros and cons using common sense and his knowledge of past experience in solving a similar problem.
In rational decision making, choices are made based on an objective analytical process. The decision maker does not take into account past experience.
According to the target orientation, single-purpose and multi-purpose management decisions are distinguished.
Based on predictive efficiency, management decisions are divided into types: ineffective, rational, optimal.
Ineffective management decisions do not allow solving the problem, but rational ones, on the contrary, do.
Optimal solution options allow you to solve the problem in the best way in the sense defined by the criterion.
Based on the number of alternatives, the following management decisions are distinguished: standard, binary, innovative and multi-alternative.
In standard management decisions, the choice is clear, but it may not entirely correspond to the true cause of the problem.
In binary management decisions, a choice is made from two opposing alternatives, which lead to a choice of the “yes-no” or “either-or” type.
In multi-alternative management decisions, a choice is made from many alternatives.
In innovative management solutions there are no obvious alternatives. First, decision alternatives are formed, and then rationally weighed.
Based on their duration, management decisions are divided into: permanent, long-term, periodic, short-term and one-time.
The period of validity of permanent decisions is equal to the period of existence of the organization or until the date of issuance of the corresponding resolution to cancel this decision. Long-term decisions - only until the date of the decision to cancel the decision is issued. Periodic decisions - ten days, month, quarter or any other reporting period. Short-term solutions - a short period of time. One-time decisions - for a specified period.
Based on the frequency of adoption, one-time, cyclical and frequent management decisions are distinguished.
One-time decisions - solutions to large problems, for example, the decision to create or liquidate an enterprise.
Cyclic solutions are solutions to problems that have a measurable, known cycle, such as planning and budgeting.
Frequent decisions are decisions that need to be made at random times.
Based on the time of occurrence of consequences for the control object, management decisions are divided into: strategic, long-term, current, operational, stabilization.
Strategic decisions are decisions regarding a set of actions aimed at achieving the goals of the organization through its adjustment (adaptation) to changes in the external environment.
Prospective decisions are decisions aimed at the adoption and implementation of long-term plans.
Current decisions are decisions that develop and clarify promising decisions and are made within the framework of a subsystem or stage of one of its cycles.
Operational decisions - decisions that cover production processes for the manufacture and supply of lower-level elements, bringing the planned task to specific performers in each department.
Stabilization decisions are decisions made to ensure that the system and its subsystems are in the control area or acceptable state.
Based on the method of communication to the performer, a distinction is made between written and oral management decisions.
Based on the possibility of adaptation, management decisions are divided into: programmable, amenable to partial automation, made on the basis of logical justification, and unexplored.
Programmable management decisions are associated with a large amount of information. The algorithm for their development and implementation can be determined in advance, since the problem to eliminate which management decisions are being developed is quite common in the practice of the organization.
Management decisions that are amenable to partial automation are also associated with a large amount of information, but unlike programmable management decisions, automation of development and implementation is only within the framework of private subtasks.
Management decisions made on the basis of logical reasoning are made on the basis of common sense and an understanding of natural laws.
Unexamined management decisions are aimed at solving a problem for which the decision maker has no experience.
Based on the number of subjects influencing decision-making, management decisions are divided into: determining, competitive, and adapting.
Determining management decisions are made by one specialist or manager.
Competitive management decisions are made by two specialists.
Adaptive management decisions are decisions made collectively, based on the assessments of a group of experts.
According to the nature and specificity of the method of influencing the management object, management decisions are divided into: political, economic, technical.
Based on processing technology, management decisions are divided into: organizational, compromise.
The purpose of organizational management decisions is to ensure movement towards the objectives set for the organization. The most effective organizational management decision will be the choice that will make the greatest contribution to achieving the ultimate goal. Organizational decisions can be classified as unprogrammed and programmed.
Programmed solutions are the result of implementing a specific sequence of steps or actions similar to those taken when solving mathematical equations. The manager programs solutions for situations that repeat with a certain regularity. Typically, the number of possible alternatives is limited. There is also time saving.
Unprogrammed decisions are made in situations that are somewhat new, internally unstructured, or involve unknown factors. Since it is impossible to draw up a specific sequence of necessary steps in advance, the manager must develop a decision-making procedure. In this case, a large number of options are possible.
Compromises are decisions made from the perspective of a systems approach and taking into account the possible consequences of a management decision for all parts of the organization.
Based on development methods, a distinction is made between quantitative (including mathematical programming methods and statistical methods) and heuristic management decisions (based on the use of logic, intuition, experience and knowledge).
Based on predictive efficiency, management decisions are divided into types: ordinary, synergetic, asynergetic.
Ordinary decisions are decisions in which the efficiency of resource expenditure per unit of effect obtained corresponds to the norms and standards adopted for the industry or type of activity under consideration. Among the ordinary solutions are:
Ineffective - not allowing to solve the problem;
Rational - allowing you to solve the problem;
Optimal - allowing to solve a problem in the best way in a sense defined by a criterion or to install the best system in a certain sense of a criterion.
Synergetic solutions are solutions in which the efficiency of resource expenditure per unit of effect obtained increases sharply, that is, the effect has a pronounced disproportionately increasing character.
Asynergetic solutions are decisions in which the efficiency of resource expenditure per unit of effect obtained is sharply reduced. Among the most common reasons for such decisions are: delayed decision, lack of necessary resources, low level of organization, motivation, etc.
According to the degree of uncertainty, depending on the amount of information available to the decision maker, management decisions are divided into deterministic (made under conditions of certainty), uncertain (made under conditions of uncertainty) and probabilistic management decisions.
Based on the creative contribution made by the manager to the development of management decisions, routine, selective, adaptive and innovative management decisions are distinguished.
Routine decisions are made according to a proven mechanism and an existing program of action, without showing a creative approach that is not necessary.
Management decisions at the innovative level are associated with the complexity and unpredictability of events, which necessitates the adoption of extraordinary management decisions containing innovations.
Adaptive and selective decisions are a combination of routine and innovative management decisions in varying degrees of proportionality.
According to the degree of importance of taking into account time restrictions on development, adoption and execution, management decisions are divided into decisions: in real time, made at one of the stages, without obvious time restrictions.
Real-time decisions are decisions made and implemented quickly enough.
Decisions made in one of the stages are decisions limited in time by the framework of a certain stage.
Decisions that do not have obvious time restrictions for their adoption - decisions regarding the start of a process or individual action.
Based on the composition and complexity of implementation, management decisions are divided into: simple, process.
Simple solutions are solutions that can be implemented by performing one action.
Process decisions are decisions implemented when performing a certain set of interrelated actions.
In turn, the latter are divided into algorithmized decisions (with a clearly defined sequence and deadlines for completing component actions) and vague decisions (poorly structured in terms of component actions and deadlines for their implementation).
By the nature of taking into account changes in the conditions for implementation, management decisions are divided into: flexible, rigid.
Flexible solutions are solutions whose implementation algorithm provides for different options depending on various conditions.
Rigid decisions are decisions that have a single implementation option under any conditions and state of the subjects and objects of management.
According to the degree of regulation, i.e. how strictly the terms and conditions for the actions of subordinates are established, distinguish between recommending, guiding and regulating management decisions
Based on the dependence of the goals and conditions of the decision on time, management decisions with statistical and dynamic dependence are distinguished.
Based on the degree of formalization of the problem area, structured, weakly structured (mixed) and unstructured management decisions are distinguished.
Structuring refers to the possibility of quantitative expression of dependencies between elements of a situation.
Thus, well-structured management decisions are based on solving a problem in which dependencies between elements of the situation can receive numerical values or symbols. As a rule, when solving such problems, quantitative methods of analysis are used: linear, nonlinear, dynamic programming, queuing theory, game theory, etc.
Weakly structured management decisions are based on solving a problem containing qualitative and quantitative elements with the predominant composition of the former. Depending on the type of weakly structured problem, the following can be used to solve it: system analysis and synthesis, methods for constructing models, etc.
Unstructured (or qualitatively expressed) management decisions are based on solving a problem that contains only a description of the most important execution resources, features and characteristics, in the complete absence of any quantitative dependencies between them. Such problems are solved using heuristic methods based on intuition, logic and professionalism of the person or collegial body making the decision. This is the most numerous class of problems.
In addition to the above characteristics of classification and typologies in the theory of decision making, other classifying factors can be distinguished:
Source of occurrence (initiative, by prescription);
Degree of novelty or uniqueness (routine or traditional, innovative or creative);
The presence of random and uncertain conditions;
Factor for assessing the acceptability or unacceptability of consequences for the control object and (or) elements of the external environment;
Possibility of implementation (unrealizable, realizable, partially realizable);
Degree of risk (acceptable, critical);
Responsibility (legal, moral, social);
Life or market cycle stage;
Control object (system, process).
Other approaches to the classification of management decisions are also possible, which is due to the variety of decisions and factors significant for a particular case. However, the above list of classification characteristics shows the variety of types and characteristics of management decisions due to the complexity of the object. The classification of management decisions characterizes the list of those parameters that should contain the conditions of the decision made, and also shows the validity of including the academic discipline “management decisions” among those required for a specialist in the field of management.
Knowledge and use of classification and typological characteristics of management decisions allows structuring the task facing the manager. This allows you to more clearly formulate and develop management tasks and contributes to the specification of efforts, more efficient use of time and money when developing solutions. However, knowledge of the problem area and various types of solutions does not yet solve the problem of choosing an effective management solution, but only helps to build a list of alternatives. Each management decision must be evaluated and compared with other developed solutions. Various conditions and comparison parameters will be discussed in the next paragraph of this work.