The Effect of Decision Making Competence on Managerial Performance

Abstract

The performance of the manager, is partly related with decision-making competence. Making decisions properly at the right time and in the best period has the potential to increase the overall success of the manager. Decision-making which means comprehending, thinking, evalua-ting the alternatives and choosing one of the alternatives is a factor that affects manager’s performance directly and provides a competitive advantage for organisations. In this research, the relationships between decision-making competence and managerial performance were discus-sed. The main thesis of this research is that the managers who have high decision-making competence will have high managerial performance. The research was carried out with a population of 424 managers, subordinates, executives and customers/farmers. The evaluation of mana-gerial performance was conducted by taking the factors of subordinates, executives and customers into consideration. The research scales compiled from the literature review and measurement tools developed by the researcher were used in the research. The test of hypothesis was examined by the method of linear regression analysis. The results of this research provided that there was a statistically significant relationship between the decision-making competence of the managers and managerial performance. However, this preliminary study needs to be tested in other businesses and sectors because the data of this study were gathered from a single institution of business.