Three Seas Economic Journal (Apr 2024)
THE ESSENCE AND CLASSIFICATION OF MANAGEMENT DECISIONS: THEORETICAL AND METHODOLOGICAL ASPECT
Abstract
The decision-making process plays a crucial role in the management of any business and is a critical factor in its success and stable development. This process not only requires managers to be familiar with the latest methods and approaches to decision-making, but also requires a thorough analysis of the available information to provide an objective basis for selecting the most optimal solution. Management decisions made on the basis of a detailed study of factual data, the use of proven methods and the consideration of one's own experience in the field significantly increase the company's chances of success. The effectiveness of such decisions has a direct impact on the coherence and productivity of the company, transforming it into a well-established organisational mechanism capable of achieving set goals and adapting to changing external conditions. However, the key to improving management efficiency does not lie solely in the application of technical knowledge or data. It is also important for managers to understand the deeper meaning of the term "management decision". Such an understanding contributes to making decisions that are not only technically justified, but also morally justified, taking into account the broader context of the company's activities. The article examines the concept of "management decision", which is considered to be the most important element of any manager's activity. The authors reveal the essence of a managerial decision as a process and a result, which involves choosing an alternative course of action aimed at achieving the company's strategic goals. The subject of the study is a managerial decision as a process and result of a choice made by managers within their powers. The research methodology includes analysis of scientific literature, synthesis and generalisation of the results obtained, systematisation and classification of managerial decisions according to various criteria, as well as identification and description of the main criteria for making managerial decisions. The purpose of the publication is to reveal the concept of "managerial decision", to study its essence, classification and criteria for making it. The article defines the concept of "managerial decision" as a process and result of a choice between possible alternatives made by managers within the limits of their official powers and competences. This choice is aimed at achieving specific goals of the enterprise and solving emerging problems. It includes analysis of the existing situation, evaluation of possible options, their optimisation and economic justification, and finally, selection of the most effective way to achieve the goal. On the basis of generalisation of various approaches, a classification of managerial decisions by various criteria is proposed, which allows better understanding of their diversity and peculiarities. The article describes a set of criteria that serve as a basis for evaluation, development and adoption of managerial decisions. The paper emphasises the importance of a comprehensive approach to management decision-making, based on a thorough analysis of the situation, a balanced choice between alternatives and a clear definition of implementation mechanisms. The results of the study may be useful for executives at various levels, managers, and researchers studying the theory and practice of managerial decision-making.
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