Table of Contents
2.0 Discuss the importance of decision making and the application of decision analysis.
3.0 Identify and outline a decision problem relating to an external organization.
4.0 Apply the simple multi-attribute rating technique (SMART) to the identified decision problem
5.0 Discuss and detail the strengths and limitations of analysis in the context of the decision problem identified.
Decision-making is an important part of organizations and businesses and a major function of the success of any business. Organization owners and managers are greatly accountable for the final result of their business decisions. Making decisions in a small company, chiefly about the employee will have a greater influence on business than in big companies. However, poor decision making hampers business success. It wastes the time, money and energy. Many difficulties may happen at various times and situations (Scheid, 2018). By using appropriate decision-making tools, management can solve these difficulties and problems.
The organization can survive when appropriate and rational decisions are created in a competitive world. In this assignment, the first part describes the concept of decision making and its importance. Then it discusses the decision making flow chart. This assignment also describes the types of decision making. Characteristics and principles of decision making are also described in this assignment. Lastly, it describes the pros and cons of the SMART technique. It is concluded that in the modern business era, decision making is a very significant function to achieve success in the business.
2.0 Discuss the importance of decision making and the application of decision analysis
2.1 Decision making
Decision making is the process to make a decision of something or any matter within a group of members (Merriam, 2017). In the management sector, decision making is a significant factor. A proper and accurate decision making helps to achieve definite objectives of any subject. Decision making is a process of choosing one alternative among various alternatives. In the decision-making process, it always chooses the best alternative. It is also the procedure led by reasoning and consideration. It involves commitment (Diksha, 2018).
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2.2 Importance of Decision Making
Management is fundamentally a decision-making procedure collection. Decision making is the method of choosing the best alternatives among various alternatives. An enterprise’s manager is accountable for decision making and this proper decision making helps to fulfill certain objectives and goals (Covey, 2018). This is very helpful for the successful activities or operations of an organization. These four managerial functions are also determined by the proper decision-making process. There is much importance in the decision-making process. These are described below:
Rational decision making motivates the workers of an organization. Employees are provoked to apply rational decisions. Organizations or companies enhance profits by making rational decisions in their businesses (Covey, 2018). It provides benefits (financial and non-financial) to the workers and staff. Decision making is acknowledged as the indivisible element of the function of management. It is a significant method for successful organization or business function. Every person of an organization (from the top level to the line-level) is involved in the decision-making process. The rational decision-making process helps in increasing innovation. It helps to build up new processes, new ideas, and new products, etc. Innovation provides a competitive advantage to any company or organization sector (Lehrer, 2017).
Decision making is the process which is very time-consuming. In choosing the best alternative of the decision-making process, decision-makers take more time. Rational decision evaluates managerial performances (Hunt, 2018). This provides proper guidance to organization management for gaining certain goals and objectives of an organization. The managerial performance achievement is measured and assessed with considered performance (Bazerman, 2015)
The selection of the best alternative among many alternatives is known as the decision-making process. A decision-maker assesses all possible alternatives on account of the suitability and process of an organization (Charlesworth, 2017). It smoothens the business operation. Decision making is a significant device for business operation success. In the path of operation, many difficulties may happen at various times and situations. By using appropriate decision-making tools, management can solve these difficulties and problems………………