Managerial decisions refer to actions that are taken by managers in organizations when making decisions. Managers face immense tasks in which they require to make rules and ensure that they are implemented. They are responsible for proper management of funds to ensure that the company operates effectively without wastage of funds (Feldstein and Fabozzi, 2011).
The most notable thing in decision making is ensuring that rules and regulations set by a firm are analyzed before they are implemented. This requires that the manager and organizing committee involved taking their time to analyze the decision. Sequentially for any decision to be made, first there must be creation of rules and regulations.
This may require the company’s organizing committee, shareholders and managers sitting down to discuss the prevailing issues in the company. These issues may involve the governance, progress in marketing, barriers hindering achievement of company goals and necessary steps to be taken to ensure that organizational goals are achieved(Miller, 2007).
Governance involves leadership policy, behavior of employees and relationship that exist between the employer and employees. To succeed in business, first, there must be a mutual relationship between the employer and employees. This helps to hasten the seller and consumer relationship, which usually get motivated by how the seller presents themselves to the buyer.
The company progress determines what policies should be set in the business firm and this helps the management to come up with effective strategies. These strategies may be used to help in regulating income and outcome in business.
Assessment of any investible funds has to be considered by managers when making decisions. This may include addition of assets to its current assets required to facilitate operations to ensure that more income is generated (Douglas, 2010).
Sales promotion. This is where the sales and marketing department come in to assist decision makers to come up with ideas regarding products that can be put on promotion to improve its sales in line with other goods produced by the organization.
Determining optimum output refers to a situation where the company ensures that its products are most favorable to consumers in the market; it also helps in enhancing competition in the market. This helps the product to compete effectively with similar goods from competitors in the market.
Price of the product. This may be determined by the cost spent in purchasing inputs and processing of raw material. This is vital as it ensures that the company does not make any loss in its operations.
Input combination with the technology plays a key role in challenging the company to produce quality goods and services (Feldstein and Fabozzi, 2011). This is vital as the company usually stands a better position to compete with other companies in the market producing similar goods or services.
Implementation of rules is done after they are set. This helps to ensure that whatever was developed is likely to produce a positive outcome to the management of the company. It is the role of the manager to make sure that rules set are adhered to by all in the organization.
Financing regulations. This is the role of the owner of the company or share holders associated with the running of the company. Financing has to be done realistically as set rules may cost the company a lot if not closely reviewed from time to time. The company’s financial position is the final determiner of what should be forwarded for implementation and this helps in making sure that managers do not set up their own rules to satisfy personal ambitions (Gilbert, 2004).
Financing is mainly done when the budget of the company is being developed by managers. It involves planning on how company funds will be spent in the following financial year. A lot of caution needs to be taken when planning for the company to ensure that all departments get sufficient monetary allocations.
References
Douglas, J. (2010). Toma Building Organizational Capacity: Strategic Management in Higher Education Building Organizational Capacity. UK: JHU Press.
Feldstein. S. G., & Fabozzi, F. J. (2011). The Handbook of Municipal Bonds. Anthen: John Wiley & Sons.
Gilbert, N. (2004). The Best Business Schools. London: The Princeton.
Miller, E. (2007). Barron’s guide to graduate business schools, Volume 15 BARRON’S GUIDE TO GRADUATE BUSINESS SCHOOLS. London: Barron’s Educational.