Question

“Because managers have so many powerful decision-making tools, they should be able to make more rational decisions.” Do you agree or disagree with this statement? Why? What are some of the decision-making tools that managers have?

Answer 1

Managers are the front face for the higher management and Stakeholders of the operations or the business run.
Fortunately enough, Managers are bestowed with relatively most appropriate people and Systems to run the daily operations to the threshold or optimum level. Mainly, managers do have the some of the powerful decision-making tools to help making more rational decisions with respect to the business.

Most commonly used decision-making tools that managers use are:
-   SWOT Analysis: stands for strengths, weaknesses, opportunities and threats, which is a planning tool to assesses the given areas of the Business.
-   Pareto analysis: This technique or tool helps in determining & prioritizing the decisions that have the greatest overall impact.
-   Decision matrix: This tool is used to evaluate all the options of a decision.
-   Decision tree: This is a graphical contemplation involves each option and the outcomes of each option for the decision making.
-   Cost-benefit analysis: This technique is used for weighing the financial ramifications of each possible alternative as a way to come to a final decision.
-   T-Chart: This chart is used when weighing the plusses and minuses of the options.
-   Feasibility Study: A feasibility analysis is a business-planning tool that involves assessing whether a certain project or goal can actually be created or achieved and whether the project can make a profit.
-   Market Research: It is the process of gathering information about a certain market, such as the preferences of potential customers, the presence of competitors and the current state of the market.