Essential Principles of Management and Decision Making

Decision-Making Processes

1. Planned vs. Unplanned Decisions

• Scheduled: Routine and repetitive tasks.
• Unplanned: Last-minute decisions that do not occur regularly.

2. Factors for Evaluating Alternatives

When solving a problem, consider the following factors: authority, biological or human, physical, technological, and economic.

3. Common Group Decision-Making Methods

• Nominal Group Technique: Each member notes their idea, which is then discussed and voted on in secret.
• Delphi Method.
• Brainstorming.

Strategic Planning and Organizational Mission

1. Definition of Strategic Planning

Long-range planning that focuses on the organization as a whole.

2. Importance of Organizational Mission

The mission is essential for maintaining focus on organizational goals. Clearly defined objectives make plan implementation significantly easier.

3. Understanding SWOT Analysis

A framework that identifies Strengths, Weaknesses, Opportunities, and Threats.

Organizational Structure

1. Unity of Command

The principle recommending that every employee reports to a single boss.

2. Division of Labor

• Advantage: Allows for task delegation, preventing wasted time.
• Disadvantage: Excessive specialization can make work monotonous and tiring.

3. Organization in Administrative Systems

Refers to the formal process of structuring an organization.

Management and Social Groups

1. Decisional Factors

Styles include centralized, decentralized, autocratic, and democratic approaches.

2. Advantages of Social Groups

1. Transforms work into a social activity.
2. Stimulates creativity and innovation.
3. Facilitates better decision-making.
4. Neutralizes negative workplace dynamics.
5. Provides a sense of identity for members.

3. Quality Circles

Groups of volunteers from the same department who aim to solve problems, improve performance, ensure quality, generate new ideas, increase productivity, and reduce costs.

Control and Management Success

1. Defining Control

Control: Ensuring that actual performance aligns with the plan. It is a process where managers oversee the execution of plans.

2. Types of Control Processes

Measurement of performance, comparison against standards, and implementation of corrective actions.

3. Factors for Successful Management

• Focus on specific company activities.
• Alignment with diverse company goals.
• Timely corrective action.
• Clear communication regarding the control process.