Importance of Decision-Making in Management - MIT School of Distance Education
                     MIT School of Distance Education
Importance of Decision-Making in 
Management
 Decisions lead to either upliftment or degradation of a business. 
The process of decision-making is considered to be one of the 
key aspects of management. At every level of management, 
proper decision-making ensures realisation of goals, 
coordination among departments and development of the 
organisation from all directions. For every business activity, 
decision-making is a continuous and indispensable process.
 In order to make a well-informed decision, the managers must 
gather all relevant information and analyse the data. Then, he/she 
must explore diverse alternatives and choose the best among 
them to implement the plan. The sound decision-making process 
has several advantages: 
 1. Optimum Utilisation of Resources
 An organisation can aim for success only if there is optimum 
utilisation of the available resources. Successful decision-making 
and proper integration of human efforts help organisations to get 
the work done in a proper way. In general, there are 5Ms of 
management and optimisation of these can garner success for 
an organisation.
 The 5Ms are as follows:-
•Money
•Material
•Manpower
•Machinery
•Method
 Through a proper decision-making process, these Ms can be 
utilised optimally.
 2. Organisation tackle risks and challenges in a better way
 While looking for growth and prosperity, an organisation is 
expected to face serious challenges such as recession, crises or 
trade cycle. In such situations, management must be able to 
make effectual decisions to face such challenges easily and 
assertively.
3. Accomplishment of end goals
The primary aim of any organisation is to accomplish 
departmental objectives and maximize profits. For this, the 
workforce should be motivated to work in mutual cooperation and 
coordination to realise the goal. Effective decision-making and 
coordination in the management build team spirit and leadership 
virtues among team members.
 4. Employees’ involvement in decision making motivates them
 Management is an art to get the work done by directing the efforts 
of employees in the right direction. Thus, organisation must seek to 
inspire its employees regularly to get the best from them. 
Furthermore, employees must be given an opportunity to take an 
active part in the decision-making process and suggest any 
improvement. This leads to better decisions and it even keeps the 
employees motivated.
5. Better implementation of managerial functions
The five functions of management- planning, staffing, 
organising, directing and controlling are incomplete without 
the decision-making process. Every step of these functions is 
successful only on the basis of effective decision-making. 
Thus, the element of decision-making is vital for 
management.
 6. Sustains business
 Every organisation has to strive hard to sustain in the long-run. 
Sound decision-making gives an edge to the organisation to 
successfully operate its operations and achieve success for years.
 So, these were some of the points that accentuate the 
importance of decision making in management. A manager, as 
well as an entrepreneur, has to be a sound decision-maker in 
order to garner success for the organisation. So, if you wish to 
enter the field of management, then along with knowledge & 
industry-specific skills, you need to possess decision-making 
skills.
 At MIT School of Distance Education (MIT-SDE), we equip the 
future managers with all the necessary traits for their succession 
in the field. We train our students in such a way that they acquire 
sound decision-making skills along with industry knowledge. So, 
pursue our job-centric management courses and establish 
yourself strongly in the industry.   
        
                       THANK YOU