|
HOW TO JUDGE IMPORTANCE
There are three criteria by which a manager can determine the importance of
his decisions:
1.
What is the cost of the
action? The greater the cost of the intended course of action," the more
important the decisions. (Of course, this is relative to a man's position in a
firm. A $1,000 expense could be an important decision to a sub-department
manager and unimportant to the president.) Cost should also be related to
benefit (PRINCIPLE OF OPPORTUNITY-COST). The cost of the action itself might be
nominal, but the resultant benefit (or loss) might be great and therefore the
decision would be important.
2.
Who will it affect? Obviously a course of action which affects
hundreds of employees or customers is more important than one which affects only
a few.
3. Will it set a precedent
or establish future policy? When your decision sets precedent or establishes
policy it is always important. While you are examining this aspect of
decision-making, you should also consider the affect of the decision at some
future time say a year or more.
PRINCIPLE OF DECISION-MAKING —Decisions should be made at the lowest level
of an organization at which the facts are
available
to make that decision.
TOP
|
| |
|