The Reality of Managerial Work: Myths vs Facts on Decision Making

Josif TOSEVSKI
2 hours ago
3 min read

Managers often deal with a storm of myths about what they actually do all day. Contrary to the hilarious notion that they're just fancy doorstops who pass out tasks like candy and then sneak out early, many managers are actually the office's early birds and night owls. A deep dive into the diaries of over 160 English managers uncovers some eyebrow-raising insights into their time-warping schedules and decision-making antics.

How Managers Spend Their Time

One of the most striking findings from the diary study is the length and intensity of managers’ work periods. Managers often work without interruption for anywhere from half an hour to two full days. This continuous focus is necessary to handle the complex and varied demands of their roles.

About 93% of their daily activities involve business communication. This includes interactions with clients, business associates, and team members. Such communication is not just casual conversation but a critical part of understanding market needs, negotiating deals, and coordinating efforts.

Key Activities Managers Engage In

Analyzing consumer needs: Managers gather and interpret data to understand what customers want.
Evaluating supply costs: They assess the expenses involved in sourcing materials or services.
Segmenting the market: Identifying different customer groups to tailor products or services.
Studying competition: Keeping an eye on competitors to stay ahead.
Projecting profitability: Estimating future earnings based on current data.
Financial forecasting: Planning budgets and financial strategies.

These tasks require a sharp analytical mind and the ability to synthesize large amounts of information quickly.

Office with city view — Rational decisions help businesses avoid costly mistakes

The Myth of Easy Decision Making

Many people assume that managers make decisions quickly and without much effort. The truth is quite different. Making rational business decisions is widely regarded as the most important and challenging part of a manager’s job.

Rational decision-making involves several steps:

Diagnosing the problem: Understanding the root cause rather than just the symptoms.
Exploring alternatives: Considering a wide range of possible solutions.
Analyzing options: Comparing the pros and cons of each alternative.
Selecting the best solution: Choosing the option that offers the greatest benefit.
Implementing the decision: Putting the chosen solution into action effectively.

This process demands patience, critical thinking, and a clear understanding of business dynamics. Managers must balance short-term pressures with long-term goals, often under tight deadlines.

Why Rational Decisions Matter

Rational decisions help businesses avoid costly mistakes and seize opportunities. For example, a manager who carefully analyzes market trends before launching a new product can better predict its success. On the other hand, a rushed decision based on incomplete information might lead to losses.

Consider a retail manager deciding whether to stock a new product line. By studying customer preferences, supplier reliability, and competitor offerings, the manager can make a well-informed choice. This reduces risks and increases the chance of profitability.

Challenges Managers Face in Decision Making

Despite the structured approach, managers face several obstacles:

Incomplete information: Sometimes data is missing or unclear.
Time constraints: Decisions often need to be made quickly.
Conflicting interests: Balancing the needs of customers, employees, and shareholders.
Uncertainty: Market conditions can change unexpectedly.

These challenges require managers to be adaptable and resilient. They often rely on experience and intuition alongside analysis to make the best possible decisions.