Once these constraints are well understood in a decision Strategic management and decision making essay situation, better decision could be taken for satisfactory outcomes. This model takes into consideration the fact that decision makers are bound by certain constraints while they make any decision.
However, in practical context, the decision makers do not follow the exact model. As salary was negotiable, he was appointed for a good amount of remuneration based on his prior experience and his excel in the work.
The concept of presence of biases such as judgmental biases, and availability heuristics present risk to decision making process that can be done away with formal search of the situation and taking rational decisions that do not take only the recent occurrences or actions into consideration, but also previous actions and occurrences for arriving at decisions that give satisfactory outcomes both at the personal level if personal decisions are made; and at organizational level if managerial decisions are made in context of the workplace.
The decision maker captures the simplified model and then makes the decision within confined understanding of complex problems that can lead to satisfactory outcomes Champoux, Decisions made at right place and at right time ensure the success, while wrong decisions can prove to be the cause of failure of organizations as well as failure of the individual at personal level.
I worked on making calls to potential applicants, inviting them to appear for the aptitude tests and undertaking preliminary interview.
Instead, he recalled the time recently when the employee showed good performance. The manager continually accumulates the information even before the problem arises, and uses this information that is pre accumulated or saved in mind to come at some decision for the problem.
The rational decision making model comprises of six steps. Events that have occurred more recently have the tendency to remain more available in the memory of people. This process comes under bounded rationality in which the human mind cannot formulate and then solve the problems in a full rational way.
Scenario I worked as an intern in XYZ Company in the HR department and my role was to assist the manager in its HR activities, such as recruitment, selection, making performance sheets and making checklists for determining the performance of the employees on the sheet.
If this framework had been studied at the situation I faced at the workplace, I could have understood the assumptions of the model in real context and the limitations in making the decision.
A systematic approach is required for decision making so that decisions could be taken with confidence no matter what type of decisions has to be taken Shapira, The model relies on a number of assumptions. Conclusion Decision making is one of the very important aspects in business organizations as well as in personal life.
There are two models and one theory discussed including rational model, normative model, and the rational action theory by Simon, all of which give an idea of presence constraints in decision making and assumptions in decision making process. The issue can be subjected to the availability heuristic.
Knowledge of the factor of availability bias can solve the problem of understanding of the overall performance of the employee.
The decision making of the manager regarding the performance appraisal of newly hired employees particularly the candidate that consistently shows poor performance on records is an issue that led to not so satisfactory outcomes in terms of giving performance ratings.
Good decision making demands understanding of the constraints and gathering of all information related to the situation, so that risk could be avoided and success could be ensured.
The normative heuristics suggests that the decision making process is characterized by limited processing of the information, judgmental heuristics are present while making decisions as they are the shortcuts to the way of simplified decision making, and satisficing which means that the solution that meet the minimum requirements and is good enough as a solution is chosen.
Formal search could have avoided the risk of availability heuristics while making the decision of giving rates to the employees, thus leading to satisfactory outcomes Schermerhorn, Theory and application of models The rational action theory of Simon suggests that managers tend to remain rational in their decision making, but the fact is that the problems are very complex in nature.
Therefore, the appropriate understanding of the models, theories and concepts related to decision making process can improve the level of decision making, thus making the organization able to achieve the intended outcomes through critical decisions made in complex situations.
But, as he did well in the test and based on his interview, he was selected.Strategic decision making is a process of generating alternatives and choosing the best feasible alternatives for achieving long run objectives of the organization. Good strategic decisions are rare, consequential and directive, that set standard for future actions.
Strategic decision making: Mintzberg, Raisinghani and Theoret () describe a strategic decision as one which is significant, in terms of the actions taken, the committing substantial resources, or the precedents set.
these decisions determine the overall direction of the organisation (Quinn,). Management decisions There are different levels of decision making within an organisation, which include strategic, tactical and operational.
(Appendix 1) Strategic decision-making determines the goals and purpose of a whole organisation, and is concerned with the long-term overall direction. The term strategy is derived from a Greek word strategy which means generalship.
A plan or course of action or a set of decision rules making a pattern or creating a common thread. Essay Strategic Management and Strategic Competitiveness.
This may have a direct impact on the strategic management of the business, Economic and Financial influences may seriously impact the decision making process and as such determines the manner in which the business will operate and allocate funding to projects.
Strategic Decision Making is an essential component in the success of any firm. However, the strategic decision making process can be wrought with challenges. The purpose of this discussion is to investigate how senior Management influence peers to adopt cultural change within a decision making.Download