MANAGEMENT DECISION MAKING

Management Decision Making

Management Decision Making

Introduction

The business case discusses about the company which is specialized in setting up leisure centres all across the United Kingdom. In order to set up a centre in specific area, the company will analyze and assess considerable demographics of that area. These centres will provide a variety of sporting as well as other associated leisure services such as badminton, sauna, squash, gym, swimming, along with a bar and cafe. After analyzing the demographics of that particular area, the company has planned to establish centre in Plymouth. In this case, management of decisions will play a significant role in managing several different business operations during the establishment of centre in Plymouth.

Better decision making provides business growth, increased efficiency, better use of available resources, motivates employees and facilitates innovation. Effective decision making helps in tackling with the challenges and problems that are being faced by the business organization in running its operations. Correct and efficient decision making ensures effective use of available resources (Koning, n.d., Pp.1-2). It assists the business organization to attain its goals and objectives. The achievement of business objectives leads to business growth. This paper will discuss the role of management decisions in marketing, operations management, finance and human resource management. Moreover, the paper will highlight the significance of MCDA i.e. multi-criteria decision analysis methods in decision making of management processes of organization (Koning, n.d., Pp.1-2).

Management Decisions in Operations Management

There are several important management decisions which are included in operations management. As the operations management is critical; thus, it is necessary to make effective decisions in order to manage business operations effectively. Operations management creates such products and services of the organization upon which entire business depends. Business organizations produce certain mixture of products and services regardless of the size of organization (Linkov, 2011, Pp.1-5). Thus, there is a great and inevitable significance of effective business operations for supporting business growth. Effective and efficient operations management provides the potential for improving both customer service and efficiency simultaneously. All the managers of organization whether of human resources, finance, marketing or operations are required to make effective decisions for serving their customers and managing their processes (Linkov, 2011, Pp.1-5).

Several operations decisions that have both short term and long term effects on the ability of organization for producing services and goods that offer added value to its consumers are necessary to be created. Business organization area required for making better operations decisions in executing and designing its transformation system in order to meet the customer's needs, its probability for long survival in the market enhanced greatly. Key management decisions in operations management include capacity, inventory, scheduling, quality, technology, process type, layout, supply chain management and location (Linkov, 2011, Pp.1-5).

Inventory Decisions

While making decisions related to inventory, operations managers identify that how much inventory is necessary. Organizations understand correct inventory levels for effectively carrying business operations. When the inventory exceeds the requirements, then it poses needless costs to the organization. Thus, effective decision making is necessary for effective ...