Decision-Making Tools And Techniques For Business Sustainability

Learning Outcomes

Operating any successful business requires the capacity to make upright decisions (Fahimnia, Nielsen & Omid, 2018). One small wrong decision can totally influence the whole company. It is very important for the management or the owner of the business to understand the facts behind the decision making and have continuous improvement on the skills toward decision making. There are many systems, tools, and techniques which can be used to evaluate and investigates decision making in the organization. The reason behind decision making is to solve an existing problem or prevent future uncertainties or to improve the existing condition in the organization (Fahimnia, Nielsen & Omid, 2018).

Decision making in the organization can be influenced negatively or positively by the internal factors inside the organization or external factors. The internal factors are management skills on an area of specializations while external is like government policies, technological, social cultural and political forces. In making organization decision all these factors are supposed to be considered in all direction for the successful result. A team of researchers or panel is required to handle decision-making matters in the organization. Positive and negative effects from good or poor decision may influence business in the following sector: the marketing and sales department, business income, production sector human resources department and all in all the whole organization (Canova & Hamidi Sahneh, 2017).

However, in this scenario, they are business which is required to make a decision towards several matters (Banaeian et al., 2018). The decision is on the key products which have lost market values due to the governmental policies which have affected business profit negatively. Urgent changes are required toward this by doing research on employee salaries and reduction process of the employee. This will influence a lot towards addressing this problem positively and improve the situation. The solution should be on the, how many employees will remain in the job and what is the recommendation about them.

This part is the main sector in the decision-making process. More activities will be involved in this like problem definition, situational analysis, sense-making, formulation of potential solutions, and selection between the suggested solutions. Therefore, decision making is based on the solutions and analyzed together with the implementation of decisions. Finally, testing and team response towards the decision is the last stage. Each part is discussed below as required.

This is a very important part of the decision-making process. Problem definition is the first step to be handled in the process of decision making (Harlow, 2018). In this section, one must identify the constraints, the goals, and current operations. Consuming time and analyzing all these are important since will help one or the team to determine whether they are dealing with right solution or not (Kirby & O’Mahony, 2018).

Most teams or individuals want to ignore this step of defining the problem and go directly to the solving problem. This means identifying it, is not enough instead, you have to define it correctly. One researcher said that “if he had an hour to save the world, he would spend 55 minutes defining the problem and 5 minutes solving it” (Harlow, 2018). According to Kirby & O’Mahony (2018) in defining the problem this is what is required exactly:

• Visualizing the problem. When the team is requested to solve the problem with the product, they will start by going through all facilitates related. Facilities like, marketing and governmental policies affecting the product. All related information is needed to be gathered together and put in practice using the current methodology present. These two objectives are to be achieved, first of all is to walk through evaluating the problem more carefully and second is to understand it better and then contribute towards the problem. This shows clearly that very few occasion problems have been solved in one area.
• Brainstorming the constraints and requirements. The next step is brainstorming, after evaluating the problem. In this step, the template is used to get the full benefit from the study. The templates includes different professional requirements and example of each obligation. Professional or business requirements are functional, financial, strategic and operations. This involves quantitative and qualitative products in order to evaluate determinant criteria. Evaluation criteria should be determined throughout, therefore, deciding the best solution towards the existing problem.

Main Discussion

The problem in this scenario is the decline of the business profit which was caused by product failure. The template to be used in this effect is from the government mechanism which negatively affected the product line. Also product, employees and salary template will be used to evaluate and analyze the real problem. Therefore, to understand the problem well, the team should study all these templates including, where, who, how, why and whom the situation specifically involves.

Situation analysis will help the team to understand the situation surrounding the problem. This comes after learning and analyzing the problem. This includes, systematic collection and examining of data from social, economic, political, technology and government policies. This helps to identify internal and external forces which affect the organizational decision making. This aims to assess the future and current strength, weakness, opportunity, and threat affecting the entire business. Therefore, the tool of SWOT Analyses will define all these as governmental policies influenced the product negatively. Performing situational analysis is done through four approaches which includes:

• The first approach is a system oriented view, this is used to construct the problem area involved in the case.
• The second approach, is because oriented view, which assists in understanding and identifying the effect and situation related to the problem.
• The third approach deals with a solution-oriented view, this helps to get possible and alternative which are available within the situation.
• The fourth approach is based on the future-oriented view, this brings all the above approaches together focusing both present and the future.

Through use of PESTL tool in analyzing this situation is that external environment that is government policies has interfered with organizations’ products. The main two products are removed from the line and therefore leads to the reduction of profit in the business. Despite all this forces from the external environment, the organization is planning on how to improve the situation by dealing with internal and controllable factors within the organization. This is dealing with employees’ salary and wages plus reducing the number of them from the organization.

The team must see the real sense of the problem. This means they must have the ability to make sense of difficult situation. In another word, this is the process of coming up with situational awareness and getting better understanding of the situation (Wright, McCarthy & Meekison, 2018). This helps to have enough knowledge towards high complex ideas which helps to come up with better decision. It becomes motivation if the panel gets a clear connection among place, people and events.

The team members selected to handle this problem should be very creative to come up with high-quality decision regardless of the minimal time needed use. Making sense in the process of solving the problem and should be exercised to remove some errors through having communication channel. The panel, being aware of the existing shortcoming will become more creative and innovative thus making sense in the decision they will come up with (Stieglitz et al., 2018).

Sense making can be achieved using the tool of “Root cause analysis”, this helps them to trace the origin of the problem or use of five Whys.

After identifying the problem, situational analysis, and sense-making as a panel or individual, this step follows by solving the problem through the formulation of several decisions towards the problem surrounding the environment (Kratzwald et al., 2018). In this area, the team of the panel will come up with real choices and options focusing to achieve the problem objectives. Several alternatives to be the solution are formulated by the experts (Campbell, Mao & Al-Barakati). The good solution is not possible minus several good options. However, alternatives are not single action. Furthermore, they are set of actions or a portfolio of strategies or package of single elements that when combined they result to a good approach towards decision making. All these alternatives are one called potential solution since one will be selected for the implementation. According to Yeomans (2018) these potential solutions should have the following characteristics before presented to the panel:

• Value-focused. These means are designed in a manner that is going to address critical values, objectives, and ways which lead to final decision making.
• Technically sound. In achieving the objectives set, the panel should draw up effective and creative alternatives. Also, the sound analysis is required to be accomplished towards all options.
• Consistently and clearly defined. This means that all alternatives should be sufficient and consistently using logical assumptions which can be clearly compared.
• High quality and small in number. This is the elimination of several alternatives which are of poor quality. The small number of the solution are recommended if they meet the decision objectives.
• Mutual exclusive and comprehensive. The single element selected should have complete packages related to each other directly comparable.

Problem Definition

Therefore, we can conclude that most possible decision formulated, they are of more high chances likely to come up with the correct decision (Feuerriegel & Prendinger, 2018). The superiority of the decision is directly comparative to the quantity of solution evaluated in problem-solving.

However, using the above information, several alternatives in solving this problem is required. For example, to improve the business profitability, the organization could do the following changes:

• Check and replace the lost product with another of the same character.
• Encourage employees to work hard so as to compensate the profit in the next coming season.
• The business could invest seriously with the remaining product in the market and improve its reputation covering that of lost products.
• By minimizing the production cost, this could be an alternative of raising the revenue in the coming season.
• The business could sell the most of the permanent assets to recover the situation and meanwhile lease from other business.
• Reduce the employee’s salary and wages and cut of the employees number from the job.
• The final option is to take loan from financial situation so as to improve the situation and repayment slowly by slowly until it recovers fully.

This is like making a decision by selecting the best alternative of all after evaluating them. This is picking out one option and deciding what is the next action to carry out for implementation (Britt, Tsynkov & Turkel, 2018). This is an important step because selecting the solution first will save time and reduce the impact and high cost to be incurred in the process. Solution selection can be performed using different tools like, a solution-selection matrix which is a very powerful tool. This is used in selecting solutions from multiple alternatives, therefore, improving the decision-making process. According to Chandrashekar & Sahin (2014) this tool is used when:

• If selecting the best option is the solution among the selected potential solution.
• If the present solution is not covering clients’ requirements or acting as required.
• If the present product and process needs a serious improvement.
• If the process in the system has problems, errors, and other issues.

However, if there are some competing options, still many tools can be used in between to sort out. Since in this scenario we have group members in the panel, they should discuss the alternatives and come up with one solution. The multi-voting tool can be used in the panel to win the solution and get into one agreement (Pennington, Davey & Kehoe, 2018). This is done through voting towards the alternatives and go for the majority win. Or else use Hartnett’s Consensus-Oriented Decision-Making Model which will involve all members to participate and encouraged to handle one solution (Skipper, Boone & Hill, 2018). This is used by raising up different issues towards the solution, like the benefits of the solution. From this point, the team will come out with one solution to deal with it finally.

The business as selected to deal with reduction of employees’ salary and expel others from the job. The panel suggests that, this will be the best decision to improve the current loss and profit statement for the next season.

After selecting now the best solution from all alternatives, the team will work on only one solution to solve this problem (Simpson, Koh & Tan, 2018). To handle this problem of low profit earned by the business, the team has decided to do quick recovery by reducing the number of employees which also results to cost reduction on wages and salaries. The list of all employees will be presented and total analyses will be done using different criteria. This means that, every part involved in decision making should be ready for the change in behavior. However, the discussed ideas are going to be put in reality by the team (Zhang, Jiang, Liu & He, 2017). Others may work in a different sector or done away from the work. If all this will affect the people like employees and part of management should make sure that the solution and objective is achieved correctly. The remaining team after the decision is implemented will perform well, including senior to the junior employee of the organization (Simpson, Koh & Tan, 2018).

Situation Analysis

This is the final stage in decision making and solving the problem. Here, the team will go to the reality of the solution. The successful solution is the one to be implemented by the organization or individual. Selecting the wrong decision will make it very hard for an organization to implement the decision now and in the future (Barrett, Marathe, & Bisset, 2018). Therefore, implementation will depend on how the decision is positive towards the business. In implementing the decision, several factors should be considered. For example, the operations of the business, the size of the organization, the structure of the organization and the communication channel used in the organization. Several steps are required for the implementation of the decision to be successful (Richter & Arndt, 2018). These are: identifying and evaluating step by step the required actions to be carried out in decision making, next is alerting those who will be exaggerated influenced by the decision, when will the implementation take place and finally, comparing and contrasting other successful implemented decision for the benchmarking which will enable the team to have enough support (Marciniak & Jarz?bowicz, 2017). All stakeholders should be prepared on how to handle the changes to come. Allocation and classification of tangible and intangible resources available in the organization are required together with the set timeframe for this implementation process. Let all parties be involved in the implementation of the decision (Stieglitz, Bunker & Ehnis, 2018). The step identification is classified as to whether to be administrative or physical in nature. If it is administrative in nature, the implementation only needs to create and test the policies which are new. If it is physical in nature, it does not include only implementing the policies but classroom training is needed. During implementation processes, the team should be silent, the combination from all direction is required to ensure smooth flow of ideas as discussed and analyzed (Bathelt, Cantwell & Mudambi, 2018).

Feasibility study of the employees’ data was used perfectly to implement this decision. The competent employees concerning the year of service, department, performance rate, and comments were discussed and analyzed keenly using data analyses tool. Few employees will remain in the job to maintain its stability and the rest to be expelled away.

After the decision is implemented it needs to be monitored in the right way. The stakeholders should be assigned and the responsibilities to be carried out towards decision making. Follow up and monitoring policy should put in place for a close supervision of the decision implemented. This makes it easy to see the success and the achievement of the decision. If not, the question comes why?

Testing the implemented decision also is important. This is like setting measures toward the solution made. Otherwise, without performing test on the solution, the team or organization will not know whether the problem is solved completely (Martin, Kobrin & Marcus, 2018). Also, testing is assisted by assigning the experts with the responsibilities of carrying out some elements which are useful in testing process. Testing also involves analyzing and measuring success by all means. This will help to identify whether the problem is fully solved. If yes, it gives the team a good guidance on the way to handle the same problem in future.

Sense Making

Team response is very important to get a general overview of the solution. This is the section where minor and major constraints need to be identified, such as employees’ attitude and time consumption value in coming up with the solution (Heselmans, 2018). Communication from all parties involved is required. Comments, discussion and suggestion should be allowed from the teams so to have the insight of what is done and create the base of the future decision making. This all will deal with employees’ retention (Ponnuru & Gupta, 2018).

Conclusion and Recommendations

High quality and the quick decision was required in this problem-solving situation. The team was willing to achieve the stated goals and objectives towards solving the problem. Various and powerful tools in decision making have been used to achieve all this successful result.

Few employees are recommended to remain in the job. From the total population of the employees, only 60% was retained. The following criteria was used to recommend on the retained employees. This is done using the data provided to the panel from the employees’ spreadsheet database. The recommendation was done regarding on the safety situation one belongs, team, performing rate and comments. According to the analysis of the solution, the panel conclude that, if your status comes across one of those low rate statuses you will loss the job. Thirty-one employees remained in the job and their salary ranges were decreased so as to compensate for the revenue of the next season. The cost of expelled employees and salary deduction for remained employees will improve the financial status of the business.

Decision Tables.

The following table shows the eliminated employees form the work, comparing the Age, team group and performance. Employees with old age in the organization are said to be unproductive therefore, anyone having 50 years and above or those performing rate is well/acceptable or share the both character will be expelled from the job. Below are 17 employees who Age group is within the brackets of unacceptable regardless the team since each team has several members.

Table 1: Created table, 2018

Comparing the Safety and work performance rating, three employees are going to be expelled since, safety rating 3 (Has been in an accident) and performing rate is not recommended in the organization despite they ages and team group as per now.

Table 2: Created table, 2018.

The table below, shows the nine employee whose working performance rate are acceptable meaning that are not productive to the organization at moment. Therefore are having the lowest level of performance in the organization.

Acceptable (highlighted yellow, meaning production level for those employees is slow and down)

Table 3: Created table, 2018.

In total, 29 employees are going to leave the job leaving the productive employees which they will work hard to improve and maintain high level of profit and loss statement.

The rest of employees, which are 31 employees are going to retain in the job due to their good qualities in performance and belonging to productive age.

Formulation of Potential Solutions

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