The Importance of Decision Making

Section-B Answer any Five: 13.) Importance of decision making. Better Utilisation of Resources. Decision making helps to utilise the available resources for achieving the objectives of the organisation. The available resources are the Six M's ie: Men, Money, Materials, machine, methods and markets. The managers has to make correct decisions for all the Six M's. This will result in better utilisation of these resources. 2) Facing problems and challanges. * Decision making helps the organisation to face and tackle new problems and challanges. * Quick and correct decisione help to solve Problems and to accept new challanges. 3.) Business growth: Quick and correct decisions making resmilts en better utilisation of the resources. It helps to achieve its objectives. All this result in quick business gerowth 4) Achieving objectives: Rational decisions help the organisation the achieve all its objective quickly. this is because vational decisions are made after analyung and evaluating all the alternatives. 5.) Increases ebbiciency. Rational decisions help to increase efficiency is the relation between returns and cost. If the returns are high and the cast is low, then there is efficiency and viceversa. Rational decisions result in higher returns at low cost. 6) Facilitate Innovation Rational decisions facilitats innovation. This is because it helps to develop new ideas, new products, new process, de. This result in innovation, Irmovation guze a competitive odrantage to the organisation. 7) Motiates employees: * This is because the employees are motrated to implement rational decision. * when the rational decisions are implemented the organisation makes high protite. Therefore, it can que financial and non. financial benetits to the employus