Analytical Thinking and Decision Making Assignment Solution (GC0396)

Table of Contents

1.0 Introduction.

2.0 Discuss the importance of decision making and the application of decision analysis.

2.1 What is decision making?.

2.2 Importance of decision making.

2.3 Application of decision analysis.

3.0 Identify and outline a decision problem relating to your work or an external organization.

4.0 Apply the simple multi-attribute rating technique (SMART) to the outlined decision problem.

Step 1: Who is the decision-maker and why?.

Step 2: Identify all the alternatives courses of action.

Step 3: Identify the attributes that are relevant to the decision problem (minimum of 5)

Step: For each attribute, assign values to measure the performance of the alternatives on that attribute

Step 5: Determine the weight for each attribute.

Step 6: Convert the raw data into a weighted value.

Step 7: Make a provisional decision.

5.0 Discuss and detail the strengths and limitations of your analysis in the context of your decision problem

Strengths of my analysis.

Weaknesses of my analysis.

Conclusion.

References.

1.0 Introduction

Decision-making and problem-solving for a particular issue are the challenging jobs for the management in business organizations. This paper discusses a number of issues related to decision-making and problem-solving. The first part of this paper discusses the need for decision making and the application of decision analysis in solving real problems. The second part of this paper finds out a real problem. In this paper, a real problem is found out from the Greggs plc regarding the computer system. The third part applies the simple multi-attribute rating technique (SMART) to the identified problem in Greggs plc. The last part discusses the strengths and limitations of the outcome of the analysis in the context of the identified decision problem.

2.0 Discuss the importance of decision making and the application of decision analysis.

2.1 What is decision-making?

The term “decision-making” is defined by several experts in different ways. According to Stephen (2014), decision-making refers to the process of defining the best option from different alternatives. Tyrocity (2016) defined “decision making” as the selection of a specific course of action from more than two alternatives or options. Decision-making is the task of making the best choice. Against a problem, many alternatives can have in business organizations and their different departments (Corner and Kirkwood, 2013). Before making the final decision it is essential to critically evaluate the merits and demerits of every single alternative. This process helps the decision-makers to make the best decision (Corner and Buchanan, 2014). In addition, this is one of the key responsibilities of management people to evaluate all possible alternatives in making any business decisions. According to Goodwin and Wright (2014), without making effective decisions it is not possible for management people to conduct proper planning, directing, organizing, staffing and controlling the business activities and performance.

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2.2 Importance of decision making

Most of the management theorists agree that decision-making, most importantly in businesses, plays important role in all management activities (Drucker, 2013). However, not only the management people make decisions in businesses, but also employees and other business stakeholders contribute to decision making (Mintzberg, 2014). There would be a common and dangerous mistake if only management people make decisions without considering employee voices and ideas (Simon, 2015). According to Drucker (2013), making effective and sound decisions are a crucial skill in organizations.

Different kinds of decisions are made in businesses by groups, committees and teams. Group decision making refers to the decisions made by a group of people that can take place in different degrees (Bonito, 2012). First, group decision-making can be consultative, where leaders consult with group members and seek ideas from group members for making effective decisions. Second, group decision making can be democratic, where the group members are empowered to solve the problem and make effective decisions. Third, group decision making can be consensus, where the managers or leaders share the problems with the group members to generate and evaluate alternatives and find out the best solution (DuBrin, 2012).

In consensus decision making, every individual group/team member can share their views and agree on the decision (Hartnett, 2011). The benefits of these group/team decisions are a) different alternatives are examined and evaluated; b) expertise and knowledge are shared to solve the problems; c) more commitments are available among team/group members in making effective decisions; and d) the decision made is better accepted and understood by all team/group members (Kirkwood, 2017).

According to CIMA (2007), effective decision-making is being the basis of value creation and competitive advantages for organizations. Therefore, improving the decision-making process and making an effective decision can be the key to superior business performance (Simon, 2015). However, as Janczak (2015) notes, the effectiveness of decision making depends on how organizations can access all the required resources and business processes in a competitive market to ensure world-class standards. In addition, the quality of decisions making can differentiate the business and link up the value chain as illustrated below in the diagram:

Diagram: Importance of decision making Source: CIMA (2007)

According to CIMA (2007), effective decision making in businesses promotes the strategic planning process, governance planning process, operational planning process, and documented processes. This is because, in all of these processes, risks, alternatives, and potential outcomes are analyzed and evaluated before coming to a decision (Janczak, 2015). As different decision-makers have different attitudes, prejudices, personalities, self-interest to and appetites for errors and risk, and effective decisions making processes can communicate this information effectively and efficiently, share insights, manage risk and performance effectively (Kirkwood, 2017).

There are a number of other specific importance of decision making are defined and illustrated as follows:

Implementation of managerial functions: it is not possible to complete the different managerial functions (such as staffing, controlling, directing, organizing, and planning) without making effective decisions by the management people (Corner and Corner, 2015). Therefore, it is essential for the management people to go through an effective decision-making process to sort out any particular problem (Tyrocity, 2016).

The pervasiveness of decision making: in a business organization, it is essential to make decisions in all managerial activities and business functions (Tyrocity, 2016). Without an effective decision, it is impossible to run the business function smoothly. This means it is pervasive to make proper decisions to sort any issue (Golub, 2015)…………………

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