Methods of making management decisions when choosing and implementing an alternative

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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.

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Method of successive substitutions
Consists of successive replacement india email list 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.