Research in Decision Making

Topics: Management, Decision making, Strategic management Pages: 5 (1643 words) Published: September 18, 2013
TOPIC 1 DISCUSSION
Why research is considered essential in the decision making function of management. Research may be defined as a systematic inquiry whose objective is to provide the information that will allow managerial problems to be solved. It is also seen as an activity that is often carried out by most people, knowingly or unknowingly in the course of their daily lives. It is a systematic inquiry whose objective is to provide the information that will allow managerial problems to be solved. It is another word for gathering information.  The more information we have the closer we get of making our own decision.  Research is the result of advancing knowledge created in the past.  There are people from all walks of life that contribute to gathered information.  These are ordinary people and extraordinary people.  These are everyday citizens we interact with.  They all help with the flow of information that people use. In any organization, Research is essential in collecting facts and statistics about a company's customers, employees and competitors. On the basis of these numbers, companies are able to make better managerial decisions and knowledgeable decisions. The collected statistics are organized into reports and the management team uses them to take action. A good research mechanism is essential, irrespective of the size of the company and its client base and it is also imperative for staying competitive in the market

In the research process, initial research is required to gauge whether getting into a given type of business would be profitable and if demand for a proposed product is beneficial. Since research is a prerequisite at all stages and phases of business operations, an organization is able to obtain information about key business areas, analyze it, develop a strategy and distribute business information. Reports, provided to the top management, often include information on consumer and employee preferences and all the available routes for sales, marketing, finance and production. This information helps management to decide the best strategy to adopt. By conducting business research, the organization ascertains what its customers want and then takes steps to prepare a product meeting those desires. Research also helps determine whether a product is accepted in the market and aids expansion into new markets. Another benefit to business research is that an organization is able to learn more about consumer choices and preferences. Research provides information on the product features that lure customers and flaws in the product or marketing that contribute to slow sales. It further helps an organization fix problems and cash in on the strengths and also contributes to a company's ability to clearly identify the customer demographics and target demographic, including age, gender and monthly income of the household and educational levels. Research is essential in all businesses, whether small or big. Based on research, management can make intelligent and informed decisions. Companies need to research which products to make, how to make them, the quantities thereof, how to market them, entice/attract customers, motivate employees and run more effective systems. In the research mechanism, the analyst collects data, organizes and tabulates it, then presents it to top management in the form of text and charts, this help management make required decisions best for the organization. Research is necessary for managerial decision making; tactics for more efficient operations are developed. Every business often has several means of performing a task. Through research, the organization is able to choose the most efficient, productive and profitable operation. Research could be applied to marketing, production, finance, information technology and human resource. Through research, the organization is able to gauge initially whether getting into a new line of trade would be a profitable venture. On-going research is...
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