CREATING TRAINING TOOLS 6
Decisionmaking is associated with the problem-solving process. Both managersand small business owners make decisions to address the dailyoperational issues and long-term strategic planning. The major roleof managers is decision making and making sure that the decisionsmade offer viable solutions. Despite the process used for makingdecisions, a manager must always come up with effective solutions toevery problem. Decisions made by managers depend on the type ofproblem and who is involved in the problem. As part of thedecision-making process, every manager should come up with a strategythat ensures employees that are part of the problem are fully engagedor motivated to become more productive. Decision-making is a criticalpart of modern management since it plays a major role in determiningboth managerial and organizational activities. Understanding theprocess of decision-making as a manager improves the effectiveness indecisions made.
Thefirst step in making decisions is identifying the problem. Theproblem can be defined by explaining it as a question for aparticular problem and how to come up with the appropriate solution.While trying to select feasible solutions to the limiting factors, itbecomes easier to make the best decisions. The second step isanalyzing the problem. Best decisions are based on properclassification, collection, and analysis of data. Some analysisprinciples are determining the impact of the decision, qualitativeconsideration and the consistency of the decision (Anderson et al.,2016). The third step is developing alternative solutions. Theprimary purpose of developing alternative solutions is to achieve thebest possible decision from the available solutions at your disposal.Alternative solutions also help the manager to be creative andoriginal in creating solutions. Operation research such as computerapplications is an example of modern tool that helps in developingalternative courses of action.
Thefourth step in decision making is selecting the best alternative. Amanager has to select the best alternative from various courses ofaction identified. While selecting the best alternative the managerhas to consider the risks involved against the benefits expected, theeffort involved in each alternative, proper decision timing, andresources available at your disposal. The fifth step is theimplementation of the decision. For effective implementation of thedecision, a manager has to consider elements such as effectivecommunication of the decisions to subordinates, acceptance of thedecisions, and appropriate execution of the decisions (Anderson etal., 2016). The sixth step is following up by con trolling theimplementation of decisions. The last step is monitoring the feedbackto determine the effectiveness of the decisions implemented.
Groupdecision making allows members such as the employees to participatein the decision-making process. Collaborative decision-making has twoadvantages synergy and information sharing. Synergy involves the ideathat a team is better than an individual. The power of makingdecisions as a group is critical analysis and judgment of decisions.Through questioning, discussion, and teamwork, members can be able toidentify complete and efficient solutions (Anderson et al., 2016).Sharing of information is also a great advantage since groupdecisions consider the broader scope of information. Group memberscan contribute unique information and experience. Sharing ofinformation also increases the understanding, clarity of issues andfacilitates a more collective decision.
Thevarious decision-making process can be approached in different waysto ensure that each employee produces the best results. Participationof employees in the decision-making process results to valuecreation. Employees can participate in many ways such as board level.Participation at Board level is also referred to as industrialdemocracy. Representation at this level plays an important role suchas protecting the employee’s interests. This representation canpresent problems in front of management and guide the board membersto invest in benefit schemes. Participation through ownership alsoensures that employees participate in the decision making. Ownershipinvolves making employees shareholders of the organization.Motivating employees to buy shares and advancing loans ensures thatthey are involved in the decision-making process (Anderson et al.,2016). Suggestion schemes is another way of ensuring employeesactively participate in making decisions. Suggestion systems workthrough motivating employees to come up with creative ideas onmatters such as waste management, cost reduction, safety measures andrewarding system. Satyam Company is an example of a company thatcontains suggestion scheme whereby the company receives ideas andapproves one-fifth of the ideas.
Participationthrough job enrichment is another approach. While expanding the jobcontent, it is important to include rewards and motivationalpackages. Rewards can be awarded to appreciate employee’sperformance and achievement. Employees are motivated when theyreceive recognition. Some forms of rewards are promotions, time off,bonuses, verbal praise and awards (Anderson et al., 2016).Participation through quality circles is also another motivationstrategy. Quality circles involve groups of five to ten people whohave the expertise in a particular field. Anyone working in theorganization can become a member of the circle. The circle identifiesanalyzes and solves problems that arise in their area ofspecialization. It is the most suitable way to work out problems andimproving working conditions of employees.
Managersare in the position and have the power to develop employees accordingto their different strengths. There are various approaches tomanaging a business, but the classical approach ensures that all thestaff is utilized according to their strengths. The classicalapproach considers three key functions of management that isplanning, organizing and controlling. The approach considershierarchical organizational structures such as the pyramid structureas the best method of operating business. The pyramid structureconsists of few managers at the top, middle managers at the middlesupervising people below them and workers at the bottom. Anotherhierarchical structure is the division of labor. Most Americanmanufacturing industries have been successful due to the division oflabor. The process of dividing labor enables the breakdown ofhigh-skilled tasks such as mechanical engineering into smalllow-skilled tasks. This method helps the less skilled people toreceive the appropriate training (Anderson et al., 2016). Division oflabor focuses more on talent management and employee engagement. Anorganization can attract, retain, develop and motivate employeesthrough talent management. It also ensures that every employee isutilized according to their skills. Employee engagement involves fullutilization of employees according to their strength and capability.It is a better way to create a competitive advantage by increasingemployee productivity and improving customer service.
Inconclusion, no particular approach is better than the other when itcomes to business management. Every manager has the choice to use anyavailable method depending on the problem at hand. Each problem hasdifferent approaches to solving them. The most critical point is formanagers is to be creative enough to identify the resources and toolsavailable to them and how to use the resources and tools available attheir disposal appropriately.
Anderson,D, R., Sweeney, D, J., Williams, T, A., Camm, J, D., Cochran, J, J.,Fry, M, J., &
Ohlmann,J, W. (2016). Anintroduction to management science: Quantitative approaches todecision making.14 ed. Cengage learning.