Structured and Unstructured Decision Making Problems
Discuss About The Strategic Decision Making Models Theories.
Decision making process is considered as the process of making the choices by identifying the requirements, collecting required information, accounting assessing the alternative resolutions. This process includes almost 8 steps which help thee user in making more informed decisions by organizing the relevant information and by defining the alternatives. Eight step process related to decision making is stated below:
- Define the issue:the first and most important step is defining the problem statement, as problem statement is important for making the good decision. This step includes the identification of the basic reason because of which problem occurred, limiting assumptions and issues related to stakeholders (Ahmad, Bwisa, Otieno & Karanju, 2014).
- Determine requirements:Before resolving any issue, it is necessary to determine the requirements completely because any solution related to the problem must meet the requirements.
- Collect information:It is necessary to collect the relevant information before taking the decision. In this step, person focus on different aspects such as required information, best sources through which information can be collected, and methods through which information is collected. This step includes both internal and external assessment.
- Identify alternatives:While collecting the information, person cross through different possible paths of actions, and these different paths are considered as alternatives. Person can also use their predictions or collected information for the purpose of developing the paths.
- Define the Criteria: Organization must establish the criteria for the purpose of measuring the each and every possible criteria identified by the management. Each criterion is developed on individual basis, and must not depend on other criteria. Criteria must be covering all the goals, operational in nature, non-redundant, etc.
- Select the decision making tool:The methods related to the selection must be based on the complexity of the issue and also on the experience of the team. Methods must be simple in nature and easy to understand.
- Evaluate the alternatives against the criteria:another important step is evaluation of the alternatives against the set criteria and this can be done by the quantitative methods, qualitative methods, or any combination.
- Validate solution:After completing the evaluation step, organization choose the most preferred alternative, and analyse it. This assessment is done for the purpose of ensuring that this alternative solution resolves the identified problem (Baker & Bridges, 2001).
Structured problems: these problems are differentiated in the form of structured decisions, as they have all the relevant information for the purpose of finding the solution, and they also have relevant methodology. Structured issues are generally occurred on the regular basis. This can be understood through example, whether or not company needs to withdraw the funds from the international account depends on the present exchange rates. Structured is define as the situation when organization have the process to handle the situation, and the implication is set that’ structured problems are those problems which are recurring on continuous basis.
These problems recur on continuous basis, because of which we put few process and procedures to resolve them. The best example of this is hiring process. Structured issues create the box through which we initiate to think, and this box allowed the person to take their decisions quick and confidently. This automatically generates the confident to use the procedure and process for resolving the problem, because that process is already an approved process and creates bit a justification for the decision taken by the person (Maths, n.d.).
Unstructured decision: Unstructured means that decision making process that has not been met in the similar form and for there is predetermined and clear process or procedure exist in the organization. In other words, organization does not have any process or procedure to resolve this. When no process or procedure exist for taking the decision or resolving the issue, then decision maker become more confuse in taxation-law of taking the decision.
Decision maker becomes less confident while taking the decision because of the immense confusion after considering all the options and alternatives. They hesitate in choosing any one option because off the lack of confidence and fear of making the bad decision. Resolving the unstructured problems is the time consuming task because in this decision makers need to repeat the above stated steps.
There are number of ways which can be chose to resolve the unstructured problems, but this type of problems required the decision making process which is of robust nature (Raheem, n.d.).
Four Views on Ethics
In case business organizations fail to act with integrity in context of its people, customers, society, and community, then it will definitely affect the reputation of the business in negative manner. Therefore, it is necessary for the business organizations to ensure ethics in their management and other processes. Following are the four views on ethics:
Utilitarian View:This view is considers as the superior concept of justice in the late 18th and 19th As stated by the Werhane and freeman, theory of utilitarianism justify the idea that goods things can only be done by conducting the right action. They also accept the concept that welfare of the society can only be achieved at the expense of something. In context of organizations, it is expected that behaviour of the managers and employees must contributes welfare of the maximum people and advantages to the complete society. Utilitarianism is the theory states that ethical action is considered as that action which maximizes the utility of the action. There are number of forms through which utility is defined such as good to the people, advantages, well-being, etc (Baughar & Weisbord, n.d.).
Individual View:The value related to the individualism is based on the independence and making choices for oneself. As an individual person has right to act as a self-directed agent, as right related to privacy states that individual holds the right to take decisions about their own lives. However, two restrictions are imposed on this view of ethics. First restriction states that, individual view does not include the unlimited freedom and must not breach the rights hold by others, or conduct any action which cause harm to others or deprive others from their rights. Second restriction deals with the competency and as per this individual must be competent to take their decisions (Chonko, 2012).
Justice View:By moral philosophers, Justice is described as the fairness. In context of organization; it includes the commitment on part of managers and employees to provide equal and fair treatment to each and every client. This view states that each and every person is entitled to equal access to the products and services served by the organization regardless of their age, sex, religion, etc (Reynolds, 2006).
Moral rights view:This view mainly concentrates on the fundamental rights of all the human beings, and because of this idea is little complex in nature and go through various stages of the evolution. There is no agreed and single definition of human rights which successfully covers all the aspects related to the term. The three most important aspects of the human existence is the human integrity, human freedom, and human equality. This can be understood through example, strict policies on sexual harassment, discrimination, etc (Jaffee & Hyde, 2000).
In an organization, chain of command is considers as the hierarchy adopted by the company for the purpose of reporting the relationships. Flow of this hierarchy is from the bottom to top, and it mainly states, who report the facts to whom. This chain of command not only establishes the accountability but also states the company’s lines of authority and decision making power. Efficient chain of command in the organization ensures that each and every task, position, and department has any one person who is accountable for the actions. Following are the most important elements of the chain of command:
- Chain of command does not form automatically, as designers and management of the organization is responsible to lay down the chain of command. While preparing this chain, each and every aspect of the organizational structure is considered, because it is necessary to ensure that chain meets the requirement of the strategy and defined organizational structure.
- Another important element of the chain of command is the organizational chart, which means that reporting relationship state at the last stage of the administrative project, and is easy to see it on the chart of the organization which already reflects the structure of the company. It must be noted that, each and every position in the organization must be connected to the line.
- Span of Control is also considered as the important element of the chain of command. Generally, manager is connected with many employees, who are reporting under the manager is called as manager’s span of control (Johnson, 2018).
References:
Ahmad, A. Bwisa, H. Otieno, R. & Karanju, K. (2014). Strategic Decision Making: Process, Models, and Theories. Business Management and Strategy, Volume 5 (1).
Baker, D. & Bridges, D. (2001). Guidebook to Decision-Making Methods. Retrieved from: https://www.researchgate.net/publication/255621095_Guidebook_to_Decision-Making_Methods.
Baughar, D. & Weisbord, E. Egoism, justice, rights, and utilitarianism: student views of classic ethical positions in business; Journal of Academic and Business Ethics. [https://www.aabri.com/manuscripts/08098.pdf].
Chonko, L. (2012). Ethical Theories. Retrieved from: https://www.dsef.org/wp-content/uploads/2012/07/EthicalTheories.pdf.
Jaffee, S., & Hyde, J. S. (2000). Gender differences in moral orientation: A meta-analysis. psychology Bulletin, Volume 126, PP 703-726.
Johnson, S. (2018). Chain of Command in Organizational Structure. Retrieved from: https://smallbusiness.chron.com/chain-command-organizational-structure-59110.html.
Maths. Levels of Decision making. Retrieved from: https://www.maths.tcd.ie/~nora/FT351-3/DSS.pdf
Raheem, M. Decision Support Systems: A Summary, Problems, and Future Trends. Retrieved from: https://pathways.cu.edu.eg/library/subpages/training_courses/DTMS-PPP/Problem_Solving-Dr.Mohamed_Abdallah.pdf.
Reynolds, S. (2006). Moral awareness and ethical predispositions: Investigating the role of individual differences in the recognition of moral issues. Journal of Applied Psychology, 91, 233-243.
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