Managerial decision requires ability and capacity to make correct decision.
The following sequences indicates the managerial decision:
- a) Formulation of goal and objectives of the firm.
b)Recognition and definition of problem or opportunity .
- c) Obtaining information that means observation of relevant facts.
- d) Specification and analysis of alternatives.
- e) Decision making that means choosing an alternative.
- f) Taking action or implementation.
- g) Bearing responsibility for the decision or action taken.
- h) Evaluating the outcomes.
To obtain the proper sequence in the production process of a firm, various typical farming decisions are needed which are as follows:
1) Production and organization problem decision:
a) Strategic decision which involves the heavy investment and long-lasting effects Programme, construction of building and irrigation, conservation and reclamation structure.
b) Operational decision which involves relatively small investment and more frequent decisions.
Ex: sale of a farm, machinery, and livestock
2) Administrative problem decision:
Ex acquisition of funds through proper agency and time frame, optimum utilization of funds, supervision of work operational timing, accounting and bookkeeping and
adjustment of farm business to governmental programmes and policies.
3) Marketing problem decision:
What to buy and sell, when to buy/sell, from whom to buy/sell, where to buy/sell, how to buy/sell.
