1. Better Utilisation of Resources
Decision making helps to utilise the available resources for achieving the objectives of the organisation. The available resources are the half-dozen Ms, i.e. Men, Money, Materials, Machines, Methods too Markets. The managing director has to brand right decisions for all the half-dozen Ms. This volition outcome inward amend utilisation of these resources.
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2. Facing Problems too Challanges
Decision making helps the scheme to expression upward too tackle novel problems too challenges. Quick too right decisions assistance to solve problems too to convey novel challenges.
3. Business Growth
Quick too right determination making results inward amend utilisation of the resources. It helps the scheme to expression upward novel problems too challenges. It likewise helps to attain its objectives. All this results inward quick draw organisation growth. However, wrong, tedious or no decisions tin outcome inward losses too industrial sickness.
4. Achieving Objectives
Rational decisions assistance the scheme to attain all its objectives quickly. This is because rational decisions are made afterwards analysing too evaluating all the alternatives.
5. Increases Efficiency
Rational decisions assistance to increase efficiency. Efficiency is the relation betwixt returns too cost. If the returns are high too the toll is low, therefore in that place is efficiency too vice versa. Rational decisions outcome inward higher returns at depression cost.
6. Facilitate Innovation
Rational decisions facilitate innovation. This is because it helps to prepare novel ideas, novel products, novel process, etc. This results inward innovation. Innovation gives a competitive wages to the organisation.
7. Motivates Employees
Rational determination results inward motivation for the employees. This is because the employees are motivated to implement rational decisions. When the rational decisions are implemented the scheme makes high profits. Therefore, it tin plough over fiscal too non-financial benefits to the employees.
