Chapter 12, Problem 17MLM

Explanation of Solution

Factors preventing managers from making good decisions:

• Decision-making is a vital element of modern management.
• A manager must take lot of important decisions in his day-to-day operations.
• Decision making is choosing the course of action from a possible list of options, that can have an impact to the business function.
• Because of this, good managers need to consider several factors before deciding a course of action.

Some of the important constraints that hinder making good decisions are as follows:

• Relevant information
  • The absence of adequate and accurate data will affect the quality of decisions taken.
  • Less information is as ineffective as too much information.
  • Handling the data and extracting the relevant information is needed.
  • Skill to handle the data, store the data from previous experiences are also needed.
• Manager’s capacity / skill
  • The intelligence level of the decision maker and their ability to handle information is important factor...