Importance of Decision Making Techniques
Examine decision-making systems and techniques to engage organisational intelligence and analyse how these can enhance entrepreneurial outcomes.
The aim of this report is to give effective information about the certain issue and the decision executed by the organization in relation to the concerns. The report will describe the analysis of the issue situation that is provided in the case. The group decision is vital for the organization that is why the report will be represented the decision taken by the group evaluating the entire factors. Moreover, the latter part of the assignment defined that technique in which the decision was executed by the group. The report will present the critical issues at the workplaces which need valuable decision making. The main focus of the report will be benefits, weakness and complexities which faced by the group in the process of decision making.
Decision making is considered as the vital process of every organization. Decisions are been taken as per the activity to be performed and reach the outcomes of any desired levels. It is vital for the organization to make decision-making techniques while making a decision that is why the importance will be demonstrated in the context of decision-making techniques (Saaty &Peniwati, 2013). This paper will evaluate the system of decision making and the techniques for employing the intelligence of the organization and investigate that how the results of organization could be improved. There is a number of companies at a multinational level that face issues regarding decision-making process. The examples of the real company within the report will be elaborated in a significant manner. Thus, the report will emphasize the concerns and the decision making process to be used in the handling the same effect
It is significant to evaluate the issues that the organization can face in initial point a group decision before evaluating the issues of other organization. Being a team member of a smaller number of group members the organization would not face a number of issues regarding the communication conflicts and gaps. There can be other numerous concerns that can hamper the working criteria of the organization in an efficient manner to attain the strategic and effective decisions. Moreover, these problematic situations as per the case study where the company is facing issues regarding fewer revenues and hinder by competitors are analyzed by me and my team member.I have found that Sonos Company had significant influence over the customers as it provided innovative products with high quality to the customers. Due to this approach, the company has attained huge revenues in the year of 2015 which was accessed by 50% annually. In the mid of 2015, the growth of sales was prevented that brought the adverse situation for the company. I and my team member had analyzed the reason behind losing the market by Sonos. According to the discussion, it has been found that the company should have focused towards the more innovative products and invested in Research and Development program to analyze the current situation of the market. Sonos had made various missteps in 2015-2017 which raised the concern of falling sales.
Issues Faced by Sonos Company
It was vital for the Sonos Company to understand the need for the change and management. I have been found that Sonos should have taken the decision in the context of innovation as it is required for the company to made amendments in its sound speaker time to time. In the context of issues, I and my team member analyzed the entire case study and we found that company must have conducted the training program within the company for making them aware of the changes. However, the conflicts have arisen while making a decision because it is not possible that perception of each member of the team would be same. Due to the difference in the understanding, conflicts had taken place but it was improved due to depth discussion in which the perception or viewpoints had been considered individually (De Dreu, Nijstad & van Knippenberg, 2008). After that, it has been found that the missteps taken by the company in 2015-17 were lack of knowledge of innovation, ineffective approach to analyze the competitive advantages, unskilled employees and lack of leadership and culture within the organization. The company could have succeeded if it approached effective strategy within the organization to attain the competitive advantages.
It is imperative for the large team to delegate the responsibilities to each employee of the organization but a team of fewer members does not require any kind of delegation of the responsibilities. Due to fewer team members, we have found that in 2016 the growth of the sales was totally stalled and it was amplifying apparent that Sonos was behind in comparison to its competitors. At that time MacFarlane who was CEO of the organization did not take a step to get the company back on the track. The company was required to change in the leadership and culture to get the company on the way of growth’s track. We found that the leader of the company took the decision to hand over the entire organization in the hand of Patrick Spence who has enough knowledge about the latest environment of the company and latest technology adopted by them.
We decided to found out the area where Sonos missed the innovation-led opportunities because it was the reason behind falling of the company. The company could compete with Amazon and Google as it had satisfied customers from which it had become the famous organization. The company had missed the chance of innovation-led growth due to inefficient knowledge and inefficient leader in the organization (Hess & Bacigalupo, 2011). The company could reach at a high level by making changes in the speaker as per the latest technology as other competitors did. The company should have analyzed the reason behind falling down instead of keeping silent.
Analysis of Missteps Taken by the Company
The following decisions were made by the group with the help of collective decisions of all the members. We decided that the company should make changes within the environment and conduct the training program for improving the productivity of the employees.
- It has been decided by our team that company should overcome those aspects which is the cause of stalled the sales in 2015-2017. Sonos needs to consider the latest technology after analyzing the strategy of its competitors as Amazon and Google have taken place in the market. Various missteps were being taken by the company that decreases the revenue of the company inappropriate manner. We focused on the areas where the company could stand at that time when it faced underestimation by its competitors and suggested the company to implement the adoption of latest technology (Jato-Espino, Castillo-Lopez, Rodriguez-Hernandez &Canteras-Jordana, 2014).
- Environment culture should be effective and friendly for increasing the productivity of the employees as due to lack of this, attrition rate would be increased significantly. We took a decision that the Non-founder CEO of the company should make health environmental culture within the organization by involving them in the process of decision making. Different culture and background of the employee can bring new innovative ideas in the process of the organization that may lead the company on the path to success (Sanayei, Mousavi &Yazdankhah, 2010).
- We have found after analyzing the situation of the company that the adoption of the latest technology would be easier for the company but it is required for the Non-founder CEO of Sonos to conduct an efficient training program for the employees. It would be facilitated by the employees of the company to understand the new concept of the latest technology and how to implement it in the organization (Lunenburg, 2011). Due to unskilled employees, the company can face the adverse situation as they do mistakes on regular basis and unable to satisfy the customers (Kabak &Ervural, 2017).
- We made decision in the context of Sonos Company that it should change the leadership style as it affects significantly on the working style of the employees. The leader should involve the employees in the decision-making process which facilitates leader to understand the viewpoint and the interest of the employee towards the growth of the company (Tang, Wen & Wei, 2017). Company had faced number of challenges and now it is essential for the company to drive innovations and shift in culture.
- There should be proper decision process regarding the change within the organization as the wrong decision may lead the company to the adverse situation. It has been decided by my team that company should adopt the number of decision-making model to address the issues within the organization. These methods will facilitate adequately to sustain the organization in developing the decisions in an effective way when they handle any conflicts in the organization (Saunders, 2017).
Group decision has the ability to develop more new ideas that can carry creativity in resolving the issues of the company. There are various models such as Tuckman model, Vroom Yetton Decision model or Drexler Sibbett Model that facilitates group to make decision in the context of the company. Sonos Company had faced a number of severe issues regarding decision-making process. It is required for the company to reach towards the purposeful resolution with the help of group decision, the management of the company would have to employ people from the concern departments and gather their ideas and overviews over the same. It would be helpful for them to make decision-making process in the context of the company. We undertook the decision-making process to reach the decision in which five steps were entailed such as identification of the process, gathering information, indentifying the alternatives and solutions, evaluation the alternatives and selection of the strategy for performance (Alonso, Cabrerizo, Chiclana, Herrera, & Herrera?Viedma, 2009). These steps facilitated use to determine what steps must be taken by the company in order to improve the structure of the company. I along with my team initially recognized the concerns which facilitated us to design the strategy to handle the issue. Subsequently, jobs were allocated to each member to collect the information regarding the concern. Collection of information will facilitate in developing various alternatives from which the team, as well as I, analyzed entire alternatives and at last with the harmony of my team members; I chose an effective alternative for performance that changes in leadership and culture within the organization.
Along with this we had taken consideration of Vroom Yetton Decision model that facilitates me to understand the number of things I need to observe at the time of decision making. This model is deliberated to fit each condition and could be utilized to make decision on daily basis issues or complex issues (Haug, 2008). I could reach at possible decision due to effectiveness of this model. I have realized that wrong decision can turn the way of the company in an adverse situation in which many stakeholders of the company can be influenced. Vroom Yetton Decision model helped me to take decision without getting afraid. Sonos company’s founder CEO can help a new non- founder CEO success in which he can give description about the behaviour of the employees and their skills. CEO has entire knowledge about the organization as financial condition, turnover, employee status and the sales description in last year. The discussion of them regarding the issue can bring the noteworthy solution for the company as one has knowledge about the organization and other one has efficient skills to bring change in the organization for increasing the productivity of the employees. It would be great help for the non-founder to make changes in the organization after having knowledge about the organization before implementing it (Brownson, Fielding & Maylahn, 2013). He would be able to find out the area that requires change or development. These processes facilitate me and my team to reach at the decisions that can help the organization in making change. This model has identified the five kinds of decision-making process which includes autocratic, Autocratic (A2), Consultative (C1), Consultative (C2) and Collaborative (G2). Under the process of autocratic I would make decisions without taking any consideration from my team. In contrast under the process of Autocratic (A2), I have take decision after taking enough information from my team member. As per the consultative, I have consulted each of my team members regarding the situation and ask for their point of view but I did not bring the team together for discussion which made decision individually. Consultative (C2) brainstorming has been considered to gather the information. Under the process of Collaborative, I approached my entire team member to gather the information regarding the situation (Hank, 2009).
Group Decision Making and Vroom Yetton Decision Model
With the beginning of the decision making, it needs to gather the relevant data from a number of sources which will facilitate in putting the firm arguments and viewpoints towards the organization. It has been found that the nominal and brainstorming group decision-making technique will establish to be advantageous in evaluating the issue being recognized in the workplace. It would facilitate to engage in the discussion over the various alternative solutions. The brainstorming techniques permit the members of the group to keep their viewpoints and ideas towards the concerns and facilitate in handling the same consequences (Boran, Genç, Kurt and Akay, 2009). On the other hand, the Nominal group technique is been majorly used to find out the definite issue and evaluate the optional solutions over it. The contribution of these techniques to the problem solving to the huge extent and facilitate the management of the company in making sure that the effectiveness of the solution exclusively (Khasawneh & Abu-Shanab, 2013).
Primary data is according to the results of the surveys, notes of the commission, and reports of meeting and many more. The relevancy in primary data is more in comparison of other data as it is gathered and analyzed personally. It is on actual discussion and fact happening as it is not made on the assumptions. It shows the definite facts and figures that help the decision maker to make more efficient decision (Plummer-D’Amato, 2008). However, it is more expensive in comparison to secondary data as it covers interviews, surveys, seminars and etc that consume a lot of money. On the other hand, the secondary data can be gathered by the others for their use. It can be collected from the government reports, online resources, research papers, journals etc. secondary data is more reliable in comparison to primary data. The data has been collected with the help of interview of CEO and Non-founder CEO of Sonas Company to find out the view point of them regarding the change. However, it has cost more in comparison to secondary data but the effectiveness of this is more reliable. The actual information about the company has been collected by the team which was helpful to determine the conclusion (Herrera, Alonso, Chiclana and Herrera-Viedma, 2009).
It shall be noted that there is a number of methods, frameworks and models are used in the first assignment that can facilitate a group in developing the decision. The use of these models is huge in the implementation of the group decision. However, the use of these models is dependent on the situation, feature of the members of the group and various other factors that influence the decision (Lunenburg, 2011). These models are not taken by the group in decision making as it facilitates them to protect for taking a wrong decision that is why the group cannot rely on it completely. The proper format for executing the numbers of activities are provided by these models on the basis the team can save them in making wrong decisions. Vroom Yetton Decision model has been taken to make the decision that facilitated the team to gather the information in an effective manner by analysing each factor that may influence the other factors (Saaty & Peniwati, 2013).
Strategies to Improve Employee Productivity
At last, it should be noted that the information given in the first assignment supported in the accomplishment of the second part of the report. Even though, the procedure of the implementation of the group decision and the decision by individual is different as in group decision it is the responsibility of one person to take decision by considering the entire team significantly while vice versa pertain in individual decision-making process (Solomon, Dahl, White, Zaichkowsky & Polegato, 2014). The decision-making methodology of this assignment is sustained by the decision-making methodology of Part A. Various models and frameworks were implemented in the previous assignment that draws a significant conclusion regarding the decision making process. Thus, it should be noted that the methodology process of decision making neither support completely nor shatter completely to the models of the group decision making and theories that present in Part A
Conclusion
In the limelight of above discussion, it can be concluded that the effective decision-making process can change the entire criteria of working within the organization. However, this method is a time consuming process but the provided outcomes by the group decision-making process are more reliable in comparison to that outcome that conclude by individual decision making. The report has been analyzed various techniques which are helpful to eliminate the complexities and make up your decision. It has been found that all the techniques and models have their own importance with suitable as per the group structure and business structure the use of techniques has been taken into consideration after analyzing the organizational intelligence. It is necessary for the leader to choose the right technique for his group which facilitates the engagement of the organization intelligence. However, it is not possible to apply the same technique due to the different perception of the team member. But the eventual aim of adopting such technique is to assist the decision which might outcome in amplified business results. Moreover, this report has been concluded that the viewpoint of CEO of the company is different that being the cause of lacking behind of the company in comparison to other organization. The group decision making process has been defined in an apparent way with the help of taking various models
References
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Conclusion
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