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Economic Factors Affecting Managerial Decision Making

1088 Words5 Pages

Managerial decision making is the activity of distinguishing the defects that makes the organization retired and changing them in to profitable and applied this manner for currently as well as in the future plans.
Unfortunately, through time information changes, technology changes as well and the organization objectives may need to be changed for the better benefits and to maximize the profit of the organization so that plans need to have amended or another new managerial decision has to be made and the plans could be formulated without errors. However in many cases, there might not a perfect knowledge. Therefore, while decisions have to made there might have some factors which could influence the managerial decision-making. Such as:

Economic factor
Many people think economy is dealing with only the amount of money which you have in hand or which you will earn as an income. I …show more content…

Emphatically, without adequate knowledge and skill there is no expectation that the firm could uphold the strength, to stand courageously, to be profitable, to be competent, and etc. Therefore, skill and knowledge has to consider as main role play in the decision making process of the firm.

Public awareness (social) factors
This factor has a direct relation with information and technology factors, whenever the information and technology changes through time the public awareness also grows up. Social challenges and pressures emerge from every direction like population growth, employment needs, political parties, taxation, and government intervention in business, infrastructure problems, etc. Therefore the decision maker has to put in to consideration and adjust things to the external environment of the society.

Environmental factors
The production system of the organization has a direct relationship with the environmental factors, and environmental factors has large side effect for the living organism around the

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