Methods for optimizing management decisions in management

The most popular methods for optimizing managerial decisions include: mathematics-based modeling, expert judgment, brainstorming, game theory.

All these methods can complement each other or work in conjunction. The choice is entirely dependent on the information. These methods should be approached prudently, because their correct implementation guarantees a positive result.

Characterization of methods

Mathematics-based modeling is used mainly in those moments when digital information is used in control. This method allows you to quantify the problems that arose in the course of work, and the ability to find a way to solve them.

This method optimizes the management decision using the following steps:

1. The task is set, the solution of which is to be found.
2. A mathematical model is being built.
3. The solution for the constructed model is found.
4. Verification is carried out using experiments and subsequently verifies the solution obtained on its basis.
5. Development of recommendations for using the result.

The method of optimizing a managerial decision based on an expert’s assessment is used at a time when the goal is difficult to solve and formulate in a mathematical way. This method involves the consideration of complex issues at the decision-making stage by persons who have knowledge and experience. An expert opinion is documented, fixing all the decisions and results of the study. First of all, the report indicates data on who, where, when and why did the research. Only after that they describe the object, method and result that was obtained in the process of the work done. In conclusion, write down the conclusions and recommendations of experts.

A brainstorming management decision optimization method is used at a time when there is minimal information about the problem that has arisen and at the same time short deadlines are set for the solution. At such moments, they invite specialists who understand this. They take part in discussions and decision making. At such moments, the requirements must be strictly observed:

1. Speak in order and not interrupt the rest of the experts.
2. Speak out only at the moment when there is something to offer.
3. Not a single statement is criticized.
4. Any offer should be recorded.

This approach allows you to solve the problem quickly enough. It includes a method for optimizing management decisions, of which the jury is a variation. To solve the problem, specialists from different fields and areas are attracted. This allows you to get an alternative solution and new ideas.

The essence of the game is to influence the competitive environment. For example, if after using this method the entrepreneur decided that after increasing the cost of goods and services, competitors would not do the same manipulation, then it is best not to use the idea. Since you can get into an awkward situation when fighting with competitors.

Proposal development

A method for developing and optimizing a management decision is a way to carry out operations. These methods are classified into groups:

• recognition;
• analysis;
• assessment;
• measurement;
• calculation;
• modeling;
• choice;
• representation.

The methods of optimization of management decisions include a special group:

• search for the necessary information;
• broadcast;
• aggregation;
• structuring;
• data processing;
• preservation;
• distribution of powers.

Solution development includes the use of organization and implementation methods. They are able to distribute responsibilities, responsibilities, motivation and more. Do not forget that the solution presents not only options for further actions or formulas for behavior, it can solve the problem.

Division of methods into groups

The set of methods is divided into individual and group. The methods for developing and optimizing management decisions are divided into two groups:

1. Intellectual.
2. Social activity.

Based on this, a matrix is ​​built for the development of a managerial decision. With its help, you can organize knowledge, make the right choice and improve the quality of management decisions.

During work in a team, in most cases, they use brainstorming, general discussion, conferences, as well as processed opinions and posed problems. Such work can be considered individual, but at the same time it is implemented in a group, collective. With the help of a special commission, the information received is processed and analyzed.

Organizational work is carried out by the manager. In this case, questions on motivation, persuasion, and control are brought up for discussion.

A variety of these methods allows you to combine them, combine. All this will allow to obtain a high quality of the decision.

Decision Algorithm

There are a large number of methods for making and optimizing management decisions. Despite this, they have a single algorithm of actions.

In the process of work, many problems need to be solved: low-level sales, constant employee turnover, reduced profit, negative customer attitude and much more. When looking for an effective way to solve a problem, each manager relies on his experience and acquired knowledge. Solving problems is much more difficult on the level of responsibility that a specialist bears.

The algorithm of methods for making and optimizing management decisions includes several stages:

1. A detailed description of the problem and all that bothers you. You can indicate the work of the organization, full-time employees, the results achieved.
2. Description of the desired result, set a clearly defined goal. The more a goal is described, the easier it will be to find a way to solve it. With blurry information, the work will be difficult, as everyone will understand it in their own way, and give completely opposite solutions.
3. Collect all information related to the problem. It is necessary to describe what situation arose, what level of professionalism the employees have, in what conditions the work is carried out. After that, it is necessary to analyze the data. If necessary, remove excess.
4. Develop several options to solve the problem. In this case, the method of development and use is determined. For each goal you need your own method. If you choose the wrong method, the plan will be incorrect.
5. Choose and implement the most optimal solution. It should describe in detail who is responsible for what. To select a solution, a responsible person is involved, who will further break down the tasks into parts and entrust their implementation to employees.
6. Be sure to provide a separate relationship, which will allow you to make some changes and amendments. Based on the results of the work, the analysis of the obtained result is repeated, based on which it can be decided whether the selected method was effective.
   

Optimization models

Methods and models for optimizing management decisions are a process of processing data that can affect the result. The optimization process is quite expensive, but it justifies the result after solving the problem. Optimization methods include:

• analysis;
• forecast;
• model.

Along with the most popular methods and models for optimizing management decisions, there are basic ones. They include:

1. Physical - research is carried out by reducing and increasing the described system.
2. Analog - in the study uses an analog that is close to the real object.
3. Mathematical - symbols are used to solve the problem.

Common models include:

• game theory - predicts the activities and actions of competitors;
• queue theory - with its help, the optimal service used for a certain number of channels is determined;
• inventory management - defines the time frame for replenishing resources and the quantity in stock;
• programming - allocates resources in the presence of competitors, this may include:

• scheduling production;
• creation of an assortment of goods;
• technology used in production;
• production technology management;
• control of stocks used in the production process;
• drawing up organization plans on a calendar;
• development of a schedule for the shipment of finished products;
• search for a place for the construction of a production workshop;
• distribution of employees by department;
• movement of materials.

4. Imitation - used to solve situations that are as close as possible to reality.

5. Analysis of the economy - used to estimate costs.

6. Payment matrix - rewards;

7. Forecasting - based on experience.

Optimization

This is any problem that involves choosing a solution from among other options. It is common for everyone to strive for a better choice, which is called optimal. Optimization of the managerial decision-making process can be defined as the ordering of decisions using a scale according to criteria.

Quality is usually understood as the correspondence of all solution parameters. In this case, a lot of options help to make a choice. Optimization contributes to the definition and selection of minimum and maximum criteria. Optimization always answers a number of questions:

• the state of the problem after finding a solution to it;
• how much time will be needed to solve it, and what methods are used;
• what difficulties may arise, in what ways to solve them;
• how everything will affect the social level.

Optimization of managerial decision making is closely related to the effectiveness of the result.

What can affect decision making?

Personal evaluations of an entrepreneur are subjective. Before relying on personal assessments, you need to consider the direction of the alternative action. It is always worth remembering that management decisions are based on a system of values ​​that each person has is different. Decision making depends on this.

• Wednesday. When making and optimizing management decisions, always take risks into account.
• Certainty. Rather rarely, the leader has a clear idea of ​​which alternatives to choose.
• Risk. There is always a risk of not getting the desired result. This also needs to be considered.
• Uncertainty. In this case, the decision made cannot be estimated in advance.

Each leader perceives the problems in his own way. All this can lead to conflicts. Due to the heavy workload, an entrepreneur may not notice the prospects that open before him.

Delegation process

Delegation - this is the choice of the responsible person and the transfer of part of the tasks to solve it. These powers can also be transferred when choosing methods, preparing and optimizing management decisions. Powers should not be transferred to a person, but to the position that he occupies. All types of authority can be divided:

1. Regulatory. Decisions are made by the person who is entrusted with the responsibility and solve the task. There are two varieties. Linear - there must be a direct position between the employee and the manager. Functional - with indirect connection.
2. Recommended - in this case, advice is given to employees or the entrepreneur.
3. Coordinating - joint decision making.

The transfer of authority is required in the following cases:

1. The head is not able to independently perform the entire list of tasks.
2. The manager takes on only those tasks that the organization’s employees are not able to perform.
3. The transfer of authority helps employees penetrate the life of the organization. This contributes to staff development.
4. Everyone has the right to make mistakes and risks, as well as independently make decisions and achieve results in the work.

The responsibilities of employees are fully related to liability. When choosing methods for optimizing a managerial decision in management, responsibility is general and individual.

Classification of Management Solutions

Optimization and effectiveness of management decisions affects the success of the organization. In this regard, each decision considered must be well-founded and taken at the required time interval, and most importantly, be appropriate to the situation. All management tasks can be classified according to a number of signs.

According to the characteristics of the available information:

• the specialist chooses a solution, the result of which is known in advance, or he is confident in the correctness of his choice;
• if there are risks, all work is carried out, relying on luck;
• information is not provided in full, which makes it difficult to determine the success of the selected option.

Depending on the choice of solution:

1. Programmed. When making a decision, the goal is clear, the essence of the problem is known, and the information is presented in full. When solving such problems, standard rules and solutions are used.
2. Not programmed. They are encountered in new situations.

By the method of solving the problem:

1. Based on intuition. The choice is taken without risk. Such decisions can be made by employees with extensive experience.
2. Based on judgment. The basis should be the experience and level of knowledge in this area of ​​the problem. Often choose an alternative solution.
3. The combined method. In such cases, experience, knowledge, intuition, and scientific approach are used.

Number of decisions made:

• by chance, once;
• with periodic repetition.

Depending on the area in which the problem arose:

• as part of production;
• in the field of supply;
• in the field of financing.

By the form used:

• decisions are made independently, without discussion with other team members;
• the resolution of the problem falls on the shoulders of the specialist, but at the same time its solution is formulated by an entrepreneur who is responsible;
• the decision is made in the team by voting and responsibility in this case rests on the shoulder of all those present.

Depending on the involvement of authorities, to make a decision:

• highest level;
• middle;
• low.

Separation of the process into objects:

• the use of fundamental aspects in top management;
• execution is carried out by lower-level specialists.

By the method of solving the problem:

• assessment of the information received;
• establishing a structure in management;
• making the right decision.

By size of coverage:

• common to the entire staff;
• having a narrow focus.

In this embodiment, management decision optimization methods are briefly described above.

What requirements should solutions meet?

The choice of a solution is considered quality when it meets certain requirements:

• a minimum number of changes were made;
• decision making was based on genuine information, taking into account all the trends of further development;
• all decisions will be made by a person who has the authority to do so;
• the chosen settlement methods do not contradict anything;
• conclusions are taken on time, without delay, which can reduce effectiveness;
• all information, requirements and goals are formulated specifically;
• the powers of the person who makes the decision correspond to his responsibility;
• the decision made fully meets the requirements of the management;
• an effective solution has been found at minimal cost;
• all methods of resolving the problem that have arisen were developed and adopted based on the capabilities of the organization.

If all these points are observed, you can count on the effectiveness of the decision. It should also be remembered that the correct and objective division into groups with further optimization of their work is an important condition on the way to high efficiency.