ECONOMIC PRINCIPLES OF JUSTIFICATION OF MANAGEMENT DECISIONS

The article examines the use of basic economic principles in the development and justification of management decisions. It is shown that all management decisions are based on an economic contradiction — a contradiction between the limited resources of the enterprise and the efforts of its owners (managers) to obtain the maximum amount of profit. The use of such economic factors in justifying alternative options for management decisions as rules for maximizing profits and minimizing losses of a business organization is demonstrated. The formation of the company's profit with its main resources: natural (land, water, forests, minerals) was studied. capital; by work; entrepreneurial ability; information The use of these resources in dependence on ownership of them with ownership of them is justified — own resources generate income, and those involved generate costs. On the example of a specific enterprise, the possibility of using economic factors in the development of alternative options for justifying a management decision regarding the choice of the direction of production expansion is demonstrated. At the same time, the payment matrix method was used under conditions of high and low demand for products by their types. It was concluded that the involvement of economic factors in the justification of management decisions allows to increase the quality of development of alternative solutions and increase the profit of the business organization. Along with such factors of substantiation of management decisions as experience and intuition, the use of economic factors also proves the high level of competence of the manager who develops and adopts management decisions.