5.2.1 Solution as a control element

The implementation of any human activity is associated with the decisions that precede actions. Even the simplest actions of a person (got up, picked up an object, etc.) are preceded by a person’s decision to implement them. True, since simple actions are often obvious and the time interval between a decision and its implementation is very small, the decision is almost merged with the action and is not recognized as an independent one.

A solution is a prescription to action to resolve a problem.

Decision making is the choice of a specific action from a variety of possible options (alternatives) . In the simplest case, it is a choice of two alternatives: to act or not to act. Managerial work necessarily associated with decision-making. The need for decision-making permeates all actions of the head of the organization management from the formulation of goals to their achievement. Managers have to analyze numerous options for potential actions in order to find the right action. In order for an organization to work effectively, the manager must constantly make the right choices from among the possible options.

Solutions include the insignificant choice of a newspaper in a kiosk or breakfast menu, and the choice of a job or life partner. Although there are often many alternatives — dozens of newspapers or dishes, we make almost all everyday decisions without systematic thinking through. In addition, such decisions usually do not affect other people.

The manager ^* chooses directions of actions not only for himself, but also for the organization and other employees. Management decisions can greatly influence the overall financial condition of the organization, as well as the lives of many people working in the organization and outside it. Therefore, the head, as a rule, can not make ill-considered decisions.

If in the general case a decision is a choice of one of the alternatives, then a management decision ^* is a choice that the manager must make in accordance with his position to ensure the fulfillment of the tasks set for the organization .

In order for an administrative decision to be effective and ensure the achievement of the goals of the organization, it must satisfy a set of specific requirements:

1. A clear target orientation - a clear focus on achieving a particular goal or system of goals. The goal of management is a leading element in management, in making and implementing decisions. The management task is to bring the result of the implementation of the solution to the goal as close as possible.

2. Comprehensive validity , which means the validity of the choice of an alternative and the individual components of the alternative itself. Comprehensive validity of the management decision requires the use of sufficiently complete and reliable information about the state and ways of development of the organization and the environment, the degree of compliance of the decision to be taken with the objectives of the development of the organization. In reality, the manager always faces the need to make a decision in the context of limited information, because no information can fully reflect the real state of the organization’s elements, the totality of all external conditions. Under these conditions, the experience and intuition of the leader and his professionalism play a huge role.

3. Targeting is a clear focus on a particular managed object and specific performers, on their capabilities, qualifications and competence.

4. Coherence with previous decisions and other decisions taken . The inconsistency of a consistent series of decisions, the need for their constant adjustment or adaptation indicate incompetence of management, weak elaboration of target functions and the provision of management decisions.

5. Competence , i.e. compliance with the rights and powers granted to the body or person. This implies a balance of rights and responsibilities at all levels and authorities. Violation of this requirement for managerial decisions significantly affects the effectiveness of their implementation, both in the case of overstating the authority of the management entity and in the case of substitution of the responsibilities of lower-level managers.

6. Efficiency means the minimum need for resource support in the development of a management decision and for its implementation in achieving the desired result.

7. Timeliness , i.e., a managerial decision should be made not earlier, but not later than the necessary deadlines. The premature decision gets on the unprepared soil organizationally, psychologically, financially, etc. In this case, the effect may be insignificant or even opposite to the expected one. A delayed decision is also practically ineffective or even has a destructive effect that discredits the government.

8. Completeness, brevity, clarity . Completeness means the necessary set of all components, covering all aspects of a decision’s impact on a controlled object: a goal; the means and resources used to achieve the objectives; main ways and means of achieving goals; deadlines for achieving goals; organization of work performance and management at all stages and stages of the implementation of decisions. Management decisions should exclude unnecessary, minor details that are not relevant to the merits. The clarity of management decisions eliminates the ambiguity of interpretation, the uncertainty of the position of performers, their rights and responsibilities.

9. Compromise . In practice, it rarely happens that a managerial decision ^* , especially a complex one, does not have negative consequences. At the same time to achieve good results in achieving all possible goals almost almost never succeed. For example, when the goal is achieved - improving product quality - its cost increases, and when using the solution solution that gives the lowest cost, much more time is required to implement it, etc. Thus, almost all management decisions are based on a compromise between positive and negative results.

The factors that determine the quality of management decisions are divided into internal and external . The internal factors associated with the controlling and controlled systems include the qualifications of management personnel ^* , management technology and methods, management culture, the sustainability of the management system, its susceptibility to management decisions, etc.

Among the external factors characterizing the influence of the environment are:

• legislative, political, socio-economic environment;
• regulatory support of management activities;
• restrictions on the resource availability of the decision-making process (time, number of experts, etc.);
• organizational forms of production and management;
• consistency of the controlling and controlled systems (psychological climate, authority ^{* of the} manager, professional qualification composition of the executive personnel, state of the performing discipline, etc.);
• system of assessing the level of quality and effectiveness of management decisions;
• the quality of forecasting both socio-economic processes in general and the development of the production system.

In transitional conditions characterized by instability of the political and socio-economic situation, external factors are dominant in determining the quality and effectiveness of management decisions.