Custom «Analyzing Business Decisions » Essay Paper Sample
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Decision making is an essential part of management. Managers are often called upon to make decision in regard to performance of an organization irrespective of whether the organization is private, public, or governmental. The quality and effectiveness of a decision determines the success of the manager as well as the entire organization. Good decision making produces positive change and helps an organization to move forward. I recently hired a manager into our retail business; a decision which proved to be very successful. Below is my self-evaluation criteria based on Bazerman & Moore's six steps.
Defining a problem: Our retail shop was undergone a difficult and stressful shopping season which called for additional management staff.
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Identifying criteria: The main objective of hiring a new manager was to help deal with the high numbers of clients to be served during the high season at a minimal cost and high returns.
Weighing the criteria: criteria are cost and returns the scale
0-3 – Low
4-7 – Medium
Alternative course of action: The possible course included hiring a new manager and increasing the hours for part time staff.
There were discrepancies between the calculated optimal decision and actual decision. The overall cost of hiring another manager in the payroll didn’t seem viable in the initial stages. However, the actual/favored decision yielded greater returns that expected. This can be attributed to the increase in productivity and 14% increase in sales. A fully-rational decision making model doesn’t necessarily describe the actual nature of an individual’s judgment. This is mainly because of the limitations of rationality. Decision makers lack the essential information; the quality and quantity of the available information is constrained by time and cost; the perception, memories, and the brainpower of decision makers are also limited.