Firstly, Decision making is the process of selecting a best course of action out of many available alternatives.
• In other words, It is the process of identifying and defining the problems, developing alternative solutions, evaluating them in term of possible consequences and choosing the best solution among them and implementing the decision effectively.
- It is also known as the heart of management.
Short term decisions
Short-term decisions are tactical choices that are taken frequently and are repetitive in nature.
- These decisions aim to optimize day-to-day operations, manage costs and respond to market changes.
Need and Objectives of short term decisions
- It allows businesses to adapt quickly to changes in market conditions, such as fluctuating demand, competitive pricing, or raw material cost changes.
- They are very important to maintain operational efficiency of a business.
- They are future oriented.
- They mostly focus on utilizing the scarce resources efficiently.