Multi-criteria assessment methods
Allows for comparison of alternatives by various criteria. These methods are especially effective in situations where several parameters must be taken into account simultaneously. The validity of the choice of criteria used is of great importance.
Methods of expert assessment
They involve the development by experts of a logical analysis system that combines intuition and quantitative assessment of alternatives. They are used to solve various non-formalizable problems that cannot always be measured quantitatively, as well as to solve problems of a socio-economic nature or in cases where the necessary information is lacking from external sources. Experts are required to have a high level of competence to successfully apply these tools.
Expert methods for making management decisions
Forecasting based on the synthesis of professional vietnam telegram opinions on the direction of development of an object in the future. These methods are used to forecast entities for which mathematical models cannot be applied. Expert approaches include both individual and group methods of making management decisions.
Factual strategies
Making forecasts based on business information about the historical and current development of an object. They are used in conditions where the probability of maintaining factors that contributed to the evolution process in the past is higher than the probability of their change.
Factual strategies
Source: shutterstock.com
However, when unexpected constraints arise, the use of these strategies may lead to erroneous forecasts. The reliability and accuracy of fact-based strategies can be improved by combining them with expert foresight methods.
Combination methods
Forecasting is based on expert and factual material. They are used to resolve various problems (from formalized to informal methods of making management decisions). Most often they are used to develop strategic decisions at the highest level of management.
Methods of making management decisions when choosing and implementing an alternative
Another group of methods for making management decisions includes:
Functional cost analysis
The analysis identifies differences between functions and costs in order to optimize the costs of performing functions. This method is used to select optimal solutions, which allows saving without compromising quality. This analysis is extremely effective in practice.
Read also!
"Selling price list: 5 marketing tricks + 10 tips for design"
Read more
Method of successive substitutions
Consists of successive replacement of planned values of one factor to determine its influence on the function. It is used in cases where the problem has a clearly expressed functional nature, which allows identifying which factors contributed to deviations from planned values.
Cause and effect analysis
This method is aimed at identifying important factors and consequences in order to decide on the next steps to eliminate the problem. It is applicable when there is complete and reliable information about the object being studied. There is a difficulty in determining the moment when it is necessary to stop compiling the chain of causes and effects.
Methodology for choosing management decision strategies
Management as a field of knowledge provides various approaches that allow one to reach the optimal conclusion in a complex situation. The decision-making process consists of several main stages, where the “7 steps” model is a widely used method:
problem statement;
collection of data and information;
exploration of alternatives;
assessment of possible options;
choosing the optimal solution;
implementation of the plan;
analysis of the result.
Each stage involves the use of different methods, and the choice of the best approach to making management decisions depends on the specific situation, the personal qualities of the manager and his experience. Also important factors are the goals, the nature of the problem, awareness of the situation and the degree of risk associated with the decisions being made.