Managerial Decision-Making Essay Example

Paper Type:  Essay
Pages:  6
Wordcount:  1541 Words
Date:  2022-11-20


The psychological definition of decision-making is the cognitive act of selecting an option among a variety as the appropriate course or belief in achieving desired goals. The net effect of this is creating a scenario where the desired behavior is induced among the target group (Drescher, 2013). Decision-making is a common practice in any business organization. However, at the managerial level, it is entirely different because it is at that point that 'make it' or 'break it' decisions are made. Because no business organization aims at breaking itself, decisions have to take the competitive route. It thus becomes a fundamental tool with which the top management gather relevant data, interpret, evaluate available and possible alternatives, and finally settle on a decision (Forgang, 2015). The net effect of such a practice helps business organizations reach actionable and productive choices. For instance, if an Arabian multinational company, Charter Spectrum, intends to provide internet services in the United Arab Emirates, there are strategic decisions that have to be made this to make this a livable dream.

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The idea here is to think of a market entry strategy. Because there are various market entry strategies does not mean that the company will pick any and implement. Among them, there are strategic options. For instance, considering joint ventures with partners will enable the company to blend in with its partners in the market as it plans to stand out after capturing the market.

How do Decision-Making Techniques Help the Organization Run More Efficiently

Rational decision-making processes and activities spell messiness and disorganization within a business (Khosrow-Pour, 2018). As a result, things might fall out of place. However, with managerial decision-making, efficiency is obtained as the process sees the management through costly, sensitive, complicated as well as decisions lacking consensus harmoniously (Forgang, 2013). There are various ways through which these techniques work to stimulate efficiency, and the countdown is as follows.

Advancement of Managerial Productivity

Management of productivity increases the scale of operations in a business organization, and this is a precursor to growth. Every business organization yearning for growth has to put in production management strategies. This point has strong links with efficiency, and this is demonstrated in various ways. An excellent example could be automation of operational processes such as clerical works and digital communication among departments (Monger, 2014). While automation of clerical works makes the processes of data storage and extraction secure and hassle-free, digital communication enhances quick conversation among various departments. As such, work keep on going without interruptions. The converse of this, paperwork and manual communication has been a daunting task to the organization. Documents have been lost, and delayed communications have derailed operations, whether in the office or at work. Decisions to consider such moves may be motivational or emotional (Bazerman & Moore, 2009). In one way, the company may be motivated by the lack of fast and reliable internet in some parts of the world. In another way, it could be driven by emotions of desiring to capture a wide market as opposed to its competitors.

Quality Decisions

High-quality decisions inform proper ways of operations, and a converse of this is true. The point erecting out of this is that the management will seek to increase the odds of profitability and efficiency while making decisions (Wang, 2010). The endgame of these moves is arriving at the best decision possible. Naturally, having the best possible decision with minimal risks is a precursor to efficient operations. For instance, in cases where Charter Spectrum intends to supply internet over long distances, a decision has to be made on the construction of the network infrastructure as well as the materials. It is a fact that various materials can help achieve this, and still, there are also various network infrastructures that the company can utilize. However, depending on the size of the target market, their location as well as the geographical setup of their location, there is a specific infrastructural design, with the use of the right materials, that make this a reality. Managers have a role in shaping the destiny of such projects. In such a case, they will probably choose to use costly materials, and construct resource-intensive infrastructure in pursuit of a vibrant network system that does not disappoint their clients. Thus, quality decisions translate into quality service delivered as well as efficiency.

Decision-Making and Competitive Advantage


Activities surrounding decision-making mother competitive advantages, and this comes with minding consumers' position regarding the quality, price as well as features of the product (Forgang, 2015). This is fundamental in the journey towards vision 2030 because this enhances chances of a large market, and hence, profitability. However, the aspect of ethics comes in because ethical practices in business activities is a fabric fastening Saudi Arabian business organizations (Oncioiu, 2018). The fact that Saudi Arabians value business ethics, they are most likely to associate, and partner with business organizations that embrace this quality. As such, Charter Spectrum stands better chances of establishing itself in the local market as well as the global market place. The internet service provider will receive positive reviews as well as much accolades from countries that have experienced her accommodating practices. As such, the business will compete against competitors that do not value the quality of business ethics. A typical way through which the company displays the practice of ethics is integrity. This helps the business avoid unnecessary biases and fabricated lies that will work against it sometimes in the future (Bazerman & Moore, 2009). The company prioritizes ethics in decision-making as a sign of law.


Competence naturally translates into a competitive advantage (Fraser, 2016). This point has links with efficiency. One decision that Charter Spectrum values and dwells on are that which ensures that it completes its operations successfully and efficiently. A typical example of how the business has been pulling this off is through complete infrastructural construction with much respect for the environment. There are some cases where internet service providing companies do not adequately seal cable lines they dig in the process of laying their infrastructure. When it rains, the top loose soil is washed away pretty quick. Charter spectrum ensures optimum environmental conservation in its operations.

Still, competence is a quality that helps Charter Spectrum avoid the adverse effects of overconfidence. Typically, overconfidence results into devastating aggression that may see the organization overquoting, overestimating costs as well as over placement of resources (Bazerman & Moore, 2009). This may trigger a dilemma in which the company may not know what to do, and how to do it. However, with competence, the organization stand better chances of transforming such a dilemma into creative advantages (Petrakis & Konstantakopoulou, 2015). Following the bad decisions, there are strategic approaches that the company can adapt, and overcome their effects.


The vision 2030 is not realistic without commitment, especially in a global marketplace characterized by stiff competition. This is only achieved by a management system aiming at creating good impressions at out itself (Bazerman & Moore, 2009). To achieve a competitive advantage over its rivals in pursuit of the international market opportunities, the company considers thorough external as well as internal analysis. This is a way of establishing potential opportunities, strengths as well as weaknesses that the business can exploit to draw operational plans that hep it outdo its competitors (Forgang, 2015). Another dimension of commitment does not span around hard and smart work, it revolves around emotions and motivations influencing the company's decision-making processes (Bazerman & Moore, 2009). This means that the company is down for the idea of "doing the greatest good for the greatest number of people." A typical example of how Charter Spectrum achieves this is avoiding any form of internet downtime and outages that may be of inconvenience to its clients. There are cases where the internet service provider finds alternative supplies to her consumers when her systems are down for maintenance, for instance. Of course, this is a move that forced the company to dig into its financial accounts, but it is for the common good.


Decision-making provides means through which business organizations live their dreams. Thus, they are instrumental features that enable the business to attain their goals by overcoming hurdles and obstacles. In such a way, it becomes the role of managers, and business organizations are seeking excellence must appreciate this quality. Charter Spectrum is a typical example of a business organization that is rapidly rising among competitors in the global marketplace courtesy of this quality.


Bazerman, M. H., & Moore, D. A. (2009). Judgment in managerial decision making. Hoboken, NJ: John Wiley & Sons.

Drescher, F. (2013). Insolvency timing and managerial decision-making. Wiesbaden: Springer.

Forgang, W. G. (2015). Strategy-specific Decision Making: A Guide for Executing Competitive Strategy: A Guide for Executing Competitive Strategy. Routledge.

Fraser, C. (2016). Business statistics for competitive advantage with Excel 2016: Basics, model building, simulation, and cases. Switzerland: Springer.

Khosrow-Pour, M. (2018). Green computing strategies for competitive advantage and business sustainability. Hershey: Business Science Reference.

Monger, R. F. (2014). Managerial Decision Making with Technology: Highlights of the Literature. Saint Louis: Elsevier Science.

Oncioiu, I. (2018). Ethics and decision-making for sustainable business practices. Hershey, PA: Business Science Reference.

Petrakis, P. E., & Konstantakopoulou, D. (2015). Uncertainty in Entrepreneurial Decision Making: The Competitive Advantages of Strategic Creativity. New York: Palgrave Macmillan.

Wang, C. (2010). Managerial decision making and leadership: The essential pocket strategy book. San Francisco: Jossey-Bass.

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