What is management?  Study Topics Factors for making an entrepreneurial business decision  Essential factors for decision making Decision-making

What is management? 

Management is a process aimed at achieving specific goals through the use of known resources (people, money, energy, materials, space, time). Resources are assumed to be inputs and goals are outputs. By comparing input and output, the degree of success in management is determined. An indicator of this is the productivity of the entrepreneurial firm. Productivity depends on the proper and timely performance of certain managerial functions, such as planning, organization, management, control, etc. In order to fulfill all these functions, decisions need to be taken. For many, this process is equivalent to the concept of management. Because of the individuality of individual managers, the decision-making process has for many years been regarded as an art based on the talent and experience gained on the basis of the principle of error sampling. For this, certain personal qualities contribute to creativity, the ability to evaluate properly, intuition, experience, etc. Apart from art, decision making is also a science, because without the use of certain systematic and analytical approaches, individual managerial decisions can lead to bankruptcy.

Study Topics

After studying this chapter you will:

• study the factors that influence the entrepreneurial decision making for a business; 
• get an idea of ​​the main features of the business decision-making process in an uncertain environment; 
• find out what are the factors that determine the nature of entrepreneurial decision-making processes at risk; 
• learn the essence of making an entrepreneurial decision using the tools of scientific management: decision matrix and logical decision tree; 
• study theoretical models based on specific examples; 
• get an idea of ​​what management approaches can be used in entrepreneurship; 
• get an idea of ​​what are the stages of development of an entrepreneurial company.

Factors for making an entrepreneurial business decision

In most cases, making a managerial decision by an entrepreneur is as easy as it is difficult. The question is how to make the most accurate and correct decision, not just any solution. It is a difficult task, given how many factors depend on this solution. 

 Essential factors for decision making

• analysis of facts that can be measured; 
• defining relationships that can be quantitatively and qualitatively defined; 
• definition of cause and effect relationships in human resources business.

Decision-making

Decision-making is the end of a process where you choose from two or more alternative actions to achieve specific business goals. According to some researchers, managerial decision making is synonymous with management as a whole. The process is carried out in the following sequential steps:

1. problem definition; 
2. identifying alternatives for its solution; 
3. evaluation of alternative options; 
4. choosing one of the alternatives.

You can also make decisions without going through the steps indicated. The question is to what extent the result of this decision will be sufficiently successful. In the entrepreneurial business, different types and content of decisions are made and at the same time different. Decisions such as what to buy, how to sell, when to part with a particular subcontractor, subcontractor or partner, etc., are made relatively quickly. However, things are different when it comes to whether you trade or produce, provide only services or carry out ancillary activities, where, how and how much to invest, etc. In such cases, without thinking, make a decision. Even more responsible and difficult to make should be the decision to start an entrepreneurial business or not. In these cases, you will also need to apply some scientific approaches.