Question

Do you think the statement “management decisions must always be based on information that is objective and verifiable” is correct? Justify your answer with specific examples. 100 words)?

Answer 1

No, the statement “management decisions must always be based on information that is objective and verifiable” is not correct. For example, if we see the financial accounting data is always expected to be objective and verifiable, but the managers would like to have the “relevant” data for the internal decision making irrespective of the data to be entirely objective or verifiable. Here relevance of data means the information or data should be appropriate for the issue and helpful for the decision making. Lets’ say, we can’t verify the estimated number of workstations needed at the proposed workspace facility but this may be the type of information all managers may be looking to take decision for hiring. And they rely on the management information system which should be flexible to provide them relevant data for the decision making.