Q:

Why is decision-making so important?

A:

Quick Answer

Decision-making in business is important because there are consequences to making the wrong decision. When managers are making decisions on behalf of the company, it is important that they weigh their options because poor choices can result in legal, financial or brand issues.

Know More
Why is decision-making so important?
Credit: Gregory Kramer Digital Vision Getty Images

Full Answer

To make better decisions, most managers start by defining the problem. Defining the problem removes distractions that are irrelevant to the decision. Once they have a clear understanding the problem, they can determine alternate ways of approaching the problem. Implementing the best alternative is always the course of action, but the best alternative looks different for many companies. After implementing the solution, managers measure their choice to ensure they consistently make wise decisions.

The same decision process managers use works for day-to-day scenarios as well. Irrelevant “noise” distracts people during the decision process, making it hard for them to make a decision. Using the decision process, people who consistently make poor decisions can improve their track record. The problem must first be defined for proper framing. Doing this step incorrectly increases the chances of solving the wrong problem. Using the decision-making process consistently, anyone can make better decisions; otherwise they continue to make the same poor choices.

Learn More

Related Questions

  • Q:

    Why is inventory important for a business?

    A:

    Inventory, or specifically inventory management, is important for a business to ensure that the business is able to maximize potential sales and market share. Inventory plays a key role in business strategy as it represents a portion of the business's assets and one of its primary sources of revenue.

    Full Answer >
    Filed Under:
  • Q:

    What is the importance of information systems in business?

    A:

    Information systems are important as they help ensure regulatory compliance, support better management decision making, assimilate new records management technologies and minimize litigation risks. For any business to remain relevant in a competitive market, it must embrace the use of modern information systems as they provide a cheap and clear way to stay in touch with clients and partners.

    Full Answer >
    Filed Under:
  • Q:

    How do you avoid eye strain while working on a computer?

    A:

    According to All About Vision, key tips for avoiding and reducing eye strain while working on a computer include making sure the work area has proper lighting and reducing glare. In addition, it is important to get regular eye exams and to keep glasses or contacts prescriptions updated.

    Full Answer >
    Filed Under:
  • Q:

    What is a business plan?

    A:

    A business plan is a document that outlines a product, service or business concept and helps convince people of the value of the company providing them. A business plan is an essential tool used to communicate the vision of the proposed business.

    Full Answer >
    Filed Under:

Explore