THE EFFECTIVENESS OF MANAGEMENT DECISIONS IN THE ORGANIZATION MANAGEMENT

Abstract

The article is devoted to the effectiveness of management decisions and their role at the current stage of business development. The process of making a management decision, its stages and forms are described. The costs arising in the process of making a management decision are considered. The article examines the concept of management decision, factors affecting management decision-making by the organization's management. All factors exert influence together, united. The types of effectiveness of management decisions are presented, the need to assess the effectiveness of management decision-making in management is reflected. The definition of the criteria of efficiency or success of management is disclosed. The principles that allow determining the effectiveness of the manager's work have been formulated. When evaluating the effectiveness of management decisions at the enterprise, it is necessary to ensure the relationship between economic and social aspects of management. Accordingly, it is necessary to develop a system of performance evaluation criteria. Examples of efficiency criteria can be indicators of growth in production volume, profit growth, increase in the volume of products sold, cost reduction, positive dynamics of profitability, turnover of working capital, capital payback terms, etc. Profit will not always be the ultimate indicator of the effectiveness of management decisions. Of course, every enterprise strives, in the end, to obtain a significant figure of net profit, but this will not reflect the role of management, which can ultimately be directed to the social sphere of the enterprise. As a result, which method and procedure to choose for performance evaluation depends on the complexity and nature of the evaluation object. The economic evaluation of the effectiveness of managerial decisions in the management of the organization cannot be considered separately from the evaluation of production efficiency. However, direct application of production efficiency assessment may not be responsive to changes in management. Therefore, it is necessary to look for more specific, clear indicators of management in management.