Assessing Decision-making Competence in Managers

Peter Drucker (1954, p. 351) notably said that “management is always a decision making process.” That is, managers are charged with the important task of making the decisions that will either facilitate or inhibit effective business operations. Managerial decision making may have an impact upon a wide variety of organizational stakeholders including employees, investors, and customers. A competent decision maker, therefore, can shape a company’s strategy and create a path toward greater organizational effectiveness or efficiency. In contrast, an incompetent decision maker can be disastrous for organizational profits and employee well-being.