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Discussion Topics for Management Course - United States - Essay Example

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Decision-making is an important practice in business management and administration, something that propels business to success or failure depending on how the decisions are made. Good decisions in the management process enable businesses to make good use of resources in…
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Discussion Topics for Management Course - United States
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Download file to see previous pages In this case, employees feel motivated and increase their dedication business practices, something that enhances its chances of success and quality outcomes.
It is important for business executives to understand that risk and uncertainty are not actually similar. Uncertainty often concerns possible results and outcomes, which are not known to the business managers. On the other hand, risks can be described as certain kinds of uncertainties that involve actual probabilities of loss for various outcomes (Ferrell & Fraedrich, 2005). In this case, it is evident that situations involving risks can be accounted for easily as compared to those involving uncertainties.
The process of making decisions based on risky conditions has to seek, where possible to provide a definite identification of risks, quantifying and absorbing them. In this case, business executives have to understand that the quantity of a risk is often equivalent to the total of all the probabilities relating to the particular risky outcome, alongside the expected loss from the outcome.
From the foregone discussion it is evident that business managers are better placed to account for the management outcomes that are made under risky situations that those involving certainties. One of the most important aspects of a business’ management decision-making process is accounting for the outcomes. Accountability, in this case is needed in the process of making assessments and evaluations, which are important in the growth and development stages of the business (Ferrell & Fraedrich, 2005).
Business managers are expected to avoid uncertainty situations in the business, this is because, they often lead to many losses in the management process. Risky situations can often bring positive outcomes depending on the effectiveness of the decisions made in the business. This is the reason why business managers that make effective decisions over ...Download file to see next pagesRead More
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