1. Is there a difference between wrong decisions and bad decisions?
Yes there is a difference between a wrong decision and a bad decision; a wrong decision can be surmised as an uneducated guess when you are not privy to the facts of a situation. For instance, guessing what’s behind a closed door. A bad decision is when a person makes a decision with total disregard for all the facts that would guide their choice toward the right outcome.

2. Why do good managers sometimes make wrong decisions? Bad decisions?
Good managers will make wrong decisions when they do not have all the facts. Not all managers will have all the information necessary to make the correct decisions especially if the information flow is ineffective in that organization. Communication is a vital part of making the right decisions. Take for example a captain leading his troops in battle; if he is unable to communicate with them; he will be ineffective in giving orders to his men who are scattered across the battle field. Complacency is also another reason for making a wrong decision by not assessing all the options. As most situations are not unique, managers should take reasonable precaution and choose the option that provides the best outcome. If a wrong decision is made, managers should not hesitate to reverse a wrong decision and correct it before it proves more costly. Good managers sometimes make bad decision if they assume that past experiences will suite all current and or future situations.
Bad decisions are also born when a situation is prejudged, each situation should be assessed on its own merit. The Vietnamese war was initially perceived to be an eight weeks mission. The war lasted approximately twenty years. The perception of the war changed when the US armed forces arrived in Vietnam and realized how heavily armed the North Vietnam army was throughout the vast jungle countryside.

3. How can managers improve their decision-making skills?
It is equally important for managers to improve their decision making skills in order to be more efficient as well as to make the organization more profitable on a whole. By approaching decisions in a methodical manner, managers can be more efficient and effective. Managers should first identify the problem and determine the connecting issues associated with it. Secondly, identify a desired goal and priorities; this may be short-term solution aligned with long-term goals. Thirdly, managers should consider reasonable alternatives. Fourthly, analyze and select the best alternatives by conducting a risk and cost (not monetary cost) assessment of each alternative. Once the best alternative has been derived put the alternative into action and allocate the proper resources to complete the task. Lastly, evaluate the decision and the progress of the action taken to archive the end goals.

References

Llopis, G. (2013, May 28). 6 Reasons Leaders Make Bad Decisions. Forbes. Retrieved July 20, 2014, from http://www.forbes.com/sites/glennllopis/2013/05/28/6-reasons-leaders-make-bad-decisions/

Business Management - Five Tips for Improving Employee Decision Making. (n.d.). ForConstructionPros.com. Retrieved July 20, 2014, from http://www.forconstructionpros.com/article/10740618/business-management-five-tips-for-improving-employee-decision-making

How to Improve Your Decision-Making Skills. (n.d.). Harvard Business Review. Retrieved July 20, 2014, from http://blogs.hbr.org/2014/03/how-to-improve-your-decision-making-skills/