Effective Decision Making In Business: Tools, Techniques And Processes

The Importance of Timely and Effective Decision Making in Business

For any business to be successful, one should have a team of management with strong capabilities of decision making in its operations. In case of any department requiring changes due to the influence of external or internal factors, the personnel or team in position is supposed to make strong and faster decision, which will result to positive impact towards the condition (Skipper, Boone & Hill, 2018). The team of experts in decision making they should be able to analyze the matters well and get to know what is happening behind the scene before handling anything. Decision making in a business should be a continuous study and is supposed to improve regularly for a better results in future than immediate. The team of experts involved in decision making, is required to use correct tools and techniques in their work. Use of these tools and technique is important since it helps analyzing and evaluating the situation better. The main reason of making decision in organization is to, handle the immediate problem in the situation, refining the existing situation to be in better position than previous and finally, to secure for the future in case of any occurrence of the problem (Britt, Tsynkov & Turkel, 2018).

Organizations’ decision making is always affected by the internal and external environment of the business. Internal forces which can affect this may be, the employees’ performance in their field of experts and the management capability of handlings different issues. External forces which may influence the decision making processes are like technological factors, social economical influence, government regulations and political status of the environment. Therefore, environment surrounding the business should be well scanned before any action towards decision making since in one way or the other the environment has a strong influence towards decision making. The effects of good or bad decision are always affects the business as whole including all departments inside it.

However, according to this case of study faster and strong decision is required towards the business operations.  Effective and sound decision making is required in this situation aiming to improve the situation of the business which is bad. The business is experiencing loss in its operations due to some reasons since, two products declines and eliminated from the line. Quick and effective decision is required on the area of employees’ salary and elimination of non-productive employees from the business (Bathelt, Cantwell & Mudambi, 2018). These two areas are critical issues which might be the cause of the problem therefore, clear analysis and investigation is needed towards. The team of experts in mind should be aware of how to improve the situation from bad to good with dealing by employees sector like, doing adjustments on their salaries and the number of employees present at the moment (Ponnuru & Gupta, 2018). All this is done using effective tools and techniques of decision making by the selected team to handles this effectively.

Factors That Can Influence Decision Making in Organizations

This is the main and crucial part in decision making process since it includes all the processes involved in solving the problem. These processes includes: defining the problem, analyzing the situation, sence making, potential situations are formulated, selection between different alternatives propose, decision making and finally the implementation and control of the solution (Pennington, Davey & Kehoe, 2018).

The selected team is supposed to define the problem first through identification of constraints and the goals of decision making towards the current situation. Problem visualization and brainstorming of the requirements in this case is very important in defining the problem (Harlow, 2018).

This analysis helps to get the knowledge about the environment surrounding the existing problem. PEST analysis (political, economic, social and technological factors is analyzed by this tool) and SWOT Analysis tools (strength, weakness, opportunity and threat in the business) will be used by the team to analyze the problem. After investigation is done through all internal and external environment using PEST analysis and identifying the weakness and strength of the situation using SWOT analysis, will help a lot in giving a clear direction on how to handle the rest of existing problem.

The team should make sense in decision making by showing that, they have analyzed the situation in a better way. This helps to acquire relevant knowledge on how to deal with the problem (Stieglitz, Bunker & Ehnis, 2018).

The team in the panel will come up with several alternative to be solution of the problem. Many alternatives as possible increases the chance of getting the better solution.

The team will select the best alternative and work on it towards getting the right and strong decision of the problem.

Now, the best single selected solution will help the team to make quick and sound decision as required by the management of the business.

The solution will be implemented as required so as get the problem solved. Control measures will be put on place to protect the solution implemented therefore, expecting positive result.

The feedback and responses will be expected from the parties involved in decision making and any other member of the organization who is affected by decision made (Chandrashekar & Sahin, 2014).

Conclusion and Recommendation

In summary, sound decision is required in this situation to solve the problem systematic and have positive impact on the organizations’ activities. The necessary tools have been used to help the team in getting the right way to handle the problem. The process of decision making has helped the team to achieve the targeted goals and objective in solving the problem in a perfect way.

Tools and Techniques for Analyzing Situations and Evaluating Alternatives

The organization profit and loss statement was negatively affected by the drop of those two main products. The main cause of this to happen is due to government policies which affected the products and the management had no power to influence it. The selected panel to handle this problem finally finds the solution of the problem as was expected by the management. To improve the next profit and loss statement of the organization two main actions are required to be implement. One, the adjustment of employees’ wages and salary should be dealt with it perfectly. Secondly, the number of staff members should be also adjusted to maintain the active and productive one. This is done through analyzing employees data provided from the database. This data will help to identify the employees who will maintain in the job and the one to be eliminated. Especially, employees with poor performance and status in the business will be eliminated regarding to the solution made by the team. The exact number of employees to be retain in the business was not indicated but the team decided to maintain 60% of the employees with good condition in the job and work under revised wages and salaries as recommended.  

The selected team used the recommended ways to solve the problem by coming up with effective decision making towards the problem.

Selection of employees should be done accordingly with the data provided in excel format. The total number of employees are 60, and all they have different status in their working condition regardless the group each belongs. The criteria used to retain and expel other employees will be based on the age, performance and safety (incidence one has been or not been in an accident) and finally the general comment provided in the list. According to the recommendation 52% of the employees will be retained in the business and work under adjusted wages and salary. This condition will improve the profit and loss statement of the business in the next period.

The following table will display the list of retained employees. The employees above age of 50 not retain since is said are non-productive according their ages. Safty performance was very good factor to consider. Accepted performance was for 1 and 2 only. All this employees they have acceptable recommendation to retain in the job.

Table 1: Created table, 2018

The following employees was totally eliminated since there safety was at bad state. Also they performance was unacceptable when both combined with safety.

Table 2: Created table, 2018.

Twenty nine employees were eliminated from the job due to the low and poor performance of the job, old ages and incidents involved in the accident. The following is the list of employee fired from the job due to the above reasons.

1. Pam F
2. Louis M
3. Marcel M
4. Colins M
5. Rashid M
6. Easle M
7. Mica F
8. Torri F
9. Lee F

The above mentioned employees were eliminated due to low performance in the business.

Reference

Bathelt, H., Cantwell, J. A., & Mudambi, R. (2018). Overcoming frictions in transnational knowledge flows: challenges of connecting, sense-making and integrating. Journal of Economic Geography, 18(5), 1001-1022.

Britt, S., Tsynkov, S., & Turkel, E. (2018). Numerical solution of the wave equation with variable wave speed on nonconforming domains by high-order difference potentials. Journal of Computational Physics, 354, 26-42.

Chandrashekar, G., & Sahin, F. (2014). A survey on feature selection methods. Computers & Electrical Engineering, 40(1), 16-28.

Harlow, E. (2018). Defining the problem and sourcing the solution: a reflection on some of the organisational, professional and emotional complexities of accessing post-adoption support. Journal of Social Work Practice, pp. 1-12.

Pennington, C., Davey, K., & Kehoe, P. G. (2018). Tools for testing decision-making capacity in dementia. Age and ageing, 47(6), 778-784.

Ponnuru, K. R., & Gupta, R. (2018). Employee Retention: Important Factors to Be Considered by Human Resource Professionals While Creating Retention. In Harnessing Human Capital Analytics for Competitive Advantage (pp. 265-286). IGI Global.

Skipper, J. B., Boone, C. A., & Hill, R. R. (2018). Back in business: Operations research in support of big data analytics for operations and supply chain management. Annals of Operations Research, 270(1-2), 201-211.

Stieglitz, S., Bunker, D., & Ehnis, C. (2018). Sense?making in social media during extreme events. Journal of Contingencies and Crisis Management, 26(1), 4-15.

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