Decision-Making Report

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Word count:2021

Deadline: 10 June 2019

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Table of Contents
Executive Summary ...................................................................................................................................... 3
Theoretical Review ....................................................................................................................................... 4
Real world Management related example:.................................................................................................... 5
1. The collaborative decision making by 'Whole Foods': ............................................................................. 5
Discussion: .................................................................................................................................................... 6
 How to improve decision-making skills?.............................................................................................. 6
a) Defining, Identifying and Developing the problems ................................................................................ 6
b) Analyzing and Selecting the opted solution of problems: ........................................................................ 6
c) Implementation and Control of the made decision: .................................................................................. 6
 Why do managers make the wrong decisions? ..................................................................................... 7
 How one can take a better decision? ..................................................................................................... 7
 Which step of the decision-making process could you have improved? .............................................. 8
Conclusion: ................................................................................................................................................... 9
References:.................................................................................................................................................. 10

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Executive Summary

It is very true that organizations continue to work by people making different decisions.
Different business owners and their managers need to take new decisions for day-to-day
operational issues and also for long-range strategic planning. A manager has the responsibility to
plan, organize, leading, and controlling and staffing the team by framing and executing new
decisions. Managers are always willing to make the best decisions and to take the best decisions,
the manager should be equipped with the ideal resources like having, time management,
managing personnel, proper information and supply of materials and resources, equipment and
also to identify different limiting factors (Managerial decision making ‐ rational decision‐making
within organizations, 2009). In real life, the managers work in an environment in which there is
no proper provision of ideal and sufficient resources. For example, there may be lacking the
extra time, insufficient budget or lack of accurate information. So Managers must have the
capability to satisfy the organization by taking the best possible decisions with the available
time, resources and information. The decision making and different problem-solving skills are
continuous and dynamic processes for solving different problems and considering alternatives.
Hence, decision making and problem-solving processes are the ongoing continuous processes of
evaluating different situations and problems, considering alternatives, making choices, and
taking required actions through follow-ups. Sometimes managers need to take an extremely short
decision-making process which requires instantaneous mental reflection. Hence, this process can
extend on for several weeks or sometimes even months but the complete decision‐making
process depends upon the availability of the right information which is needed to be available at
the right time and to the right category of people (Ivancevich, Konopaske, & Matteson, 1990).
The different real-life examples of better decision-making processes have been discussed in the
report which discussed the success stories of different business enterprises and research on the
reasons for their better decision-making process. The collaborative decision making by 'Whole
Foods' discussed how a better decision can be taken by providing the liberty of thoughts and
expression to the organization's team leaders and employees. It studied the differences and
disagreements between the managers and team leaders which play a significant role in selecting
the final solution to the decision making the process.

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Theoretical Review:

The decision-making process is initiated when the manager finds the real problem. This is the
major step for the following next steps, as though the inaccurate start of the problem; the further
steps of the decision-making process get distorted and all the hard work to reach the final
conclusion gets wasted. By accurately finding and defining the problem, the manager can cross-
check whether the symptoms of the problems are being considered or not. The most common
problem which is faced by the management team lies in the identification of symptoms and the
underlying problems with them (as shown in figure 1). These symptoms are the indicators of the
problems which an organization is facing, which are needed to be identified by the managers
through the identification of their root causes. The successful manager doesn't just attack the
symptoms but always works to uncover these underlying factors for resolving their symptoms.

Figure 1: Symptoms and their real causes (Cliffsnotes, 2016).

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Real world Management related example:
For helping an organization to find an ideal way of handling different challenges of problems, an
example of better decision making and problem-solving at the workplace has conducted at the
organization "whole foods" which is being discussed below (Big Think Edge, 2017):

1. The collaborative decision making by 'Whole Foods':

The Whole Foods CEO John Mackey in the famous big think interview talked about the means by which
he made major decisions at the company premises and hence the decisions which helped the company to
grow into a 13.7 billion dollar organization and hence attracted an eye of Amazon. Mackey's interview
revealed that the major decisions taken by the company are always based on the overall consensus of the
top minds working in the company. He further told that the different disagreements expressed by the team
members helped the company to make better decisions. He further noted that, although it takes more time
for collaborative decision making, once such decisions are taken, the further time to implement them gets
highly reduced due to no resistance and sabotage by the higher team authority working in the
organization. Hence, by knowing the views of dissenting opinions, the flaws in the solution are addressed
more easily. Through the application of such collaborative leadership decision-making, there is highly
contentment among the top leaders in the organization and also the saving of decision-making time and
hence the implementation of the solutions. It further encourages the employees to share their personal
views and comments and allows them to work more enthusiastically.

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Discussion:

 How to improve decision-making skills?

The decision-making skills can be improved by the study of the following seven steps of defining,
identifying, developing, analyzing, selecting, implementing and controlling. These are discussed below
(Litherland, 2017):

a) Defining, Identifying and Developing the problems

The first three steps of the decision making process involve the problem defining, limiting
factors identification and also developing new potential solutions to the existing problem. It
means the managers must first properly understand the existing problems and define it in an
accurate manner for taking an opportunity to solve it in a short span of time. For doing this, as
discussed above in 'Whole Foods' example; the managers must discuss and put their concerns
and varying ideas for getting the overall picture of the problem.

b) Analyzing and Selecting the opted solution of problems:

These are the next two steps of the decision-making process which involve analyzing different
alternatives and hence selecting the best alternative from choices. After all possible solution
alternatives are considered by managers and their employees, the proper analysis of solutions
is done for getting the appropriate answers. Such an in-depth analysis should include the
availability of available resources and also considering the long-term effect of such solutions.
Hence, on the basis of intense discussions made through collaborative decision making, the
management committee can reach a better solution to the problems.

c) Implementation and Control of the made decision:

These are the two last steps of the decision-making process which are usually the most visible
steps of the management decision-making process. These include the proper implementation of
the decision and the proper evaluation and control of the decision being made. For proper
implementing the decisions on the ground level, the manager needs to inform and explain the
same to different employees in a properly planned manner. This confirms the assigning of the
key role to the concerned employees who are well aware of the part of the problem which is
needed to be solved by them. It proves that the collaborative effort of decision making is better
than the decision taken by only top management.

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  Why do managers make the wrong decisions?

Sometimes the pressure of time and situations cause the manager to move ahead on considering
and taking initial answers. This led them to take the wrong decisions. However, a successful
manager need to deeply examine the problem through the cross-check of examinations as the
quick answer to the problems may not provide the permanent solution to problems. Hence, the
manager should brainstorm and think in all possible directional alternatives for taking effective
and permanent solutions to problems in a short period of time (Ingram, 2019).

 How one can take a better decision?

This can be done through the provision of Break for better decision making:
Through the article written by Ritter, it has been found that by taking small breaks from the regular
conduct of tasks and hence deviating mind to do something else has proved to improve the process of
better decision- making, creativity. This made the concept of how the unconscious thinking of new
ideas can help in making better decisions with new problem-solving tasks. One research conducted
on the above concept in which "112 university students were given two minutes for formulating and
generating a new creative solution of the problem of improving the experience of the line waiting at the
cash register. Ritter made two groups: one worked on the problem directly and others were kept engaged
in playing the video game for two minutes". The results were surprisingly different which shown that the
videogame group had better ideas and were better in identifying the best ideas among the list of them
(Waldron, et al., 28). This example of decision-making cannot be applied at the workplace but has
showcased a thought that giving the employees and managers the time break from their working problems
can help in thinking and opting for better decisions after their coming back from the break. It proved that
providing the employees a little space to move away from their difficult task and hence working back on
it later can help the managers to turn more creative, analytical, and insightful for taking better decisions
(Bhushan, 2007). Further, if considering the decision making of the organization as a whole, as discussed
in the example of 'Whole Foods', there needs to be a collaborative decision-making process for getting a
better solution to the problems.

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  Which step of the decision-making process could you have improved?
The step of selecting a solution to the problems through the process of time clearance for providing
solutions or making better creative decisions can be done. It can be explained through the famous writer
Tim Ferriss, the author of the book Tools of Titans, who conducted several interviews of different
entrepreneurs and successful business owners to conduct his research writing and podcast. Ferriss, in one
of the big think article, talked about one common aspect which he recognized in these business owners
through the interviews conducted over several years. The Ferriss talked about the "empty space" which is
the free time for better thinking, learning and hence concentrating on working on solutions with no
worrying about the interruptions of phone calls, emails, text messages, and several other disturbances
provide the business leaders the ability to think and focus in a more creative manner. Such empty spaces
have led some enterprises to grow and excel beyond others. By splitting the concentration to all the
members of the team can distort the decision-making process and hence no proper solution can be
extracted through such continuous interruptions. Hence, the best tool for finding solutions or better
decision making is the creation of an empty block of space in the working schedule of team leaders for
getting escape from such interruptions. It is also proved through the above discussed real-world
management example which revealed that during collaborative decision making, a lot of discerning ideas
and solutions are expressed by managers. Hence, reaching a specific solution is the major concern of the
discussion which can be improved through better polling, opting creative solutions, feasibility, etc.

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Conclusion:

The different limiting factors like lack of time and money, no proper availability of resources
and tools are needed to be taken care of as different constraints in the decision-making process.
Further, the different possible solutions and their best alternative solutions are needed to be
considered and analyzed for giving weight to all varying proposed solutions. Sometimes the
best solutions cannot be taken or are delayed due to a lack of proper resources or constraint of
time. In such adverse situations and circumstances, the back-up plans and decisions need to be
taken which are implemented and hence controlled by the manager. On proper implementation
of the problem, the cross-examination and evaluation of the decision are made and if the
solution works in a proper manner then it is taken to the next step of taking future decisions
which are needed to be solved in a similar manner. This can be done through the collaborative
effort of the implementation team by a prolonged and in-depth discussion as is done in the
'Whole Foods'. If there is any problem in the solution to the problem, then another alternative
is considered and the above steps of the decision-making process are repeated for
implementing the best decision-making process.

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References:
Bhushan, N. (2007, May 1). Strategic decision making: applying the analytic hierarchy process.
Retrieved June 10, 2019, from books.google.co.in:
10https://books.google.co.in/books?hl=en&lr=&id=Tp8MBwAAQBAJ&oi=fnd&pg=PR6&dq=Requirem
ent+of+Break+for+better+decision+making&ots=zjZcii8cFm&sig=5fstc5TvziwfkHqpnl3wLCroFRI#v=o
nepage&q=Requirement%20of%20Break%20for%20better%20decision%20making&f=false

Big Think Edge. (2017, November 20). 4 Decision-Making and Problem Solving Examples in the
Workplace. Retrieved June 10, 2-019, from bigthinkedge.com: https://www.bigthinkedge.com/blog/4-
decision-making-and-problem-solving-examples-in-the-workplace

Cliffsnotes. (2016). The Decision‐Making Process. Retrieved June 10, 2019, from
https://www.cliffsnotes.com/study-guides/principles-of-management/decision-making-and-problem-
solving/the-decisionmaking-process

Ingram, D. (2019, February 05). What Are the Steps in the Decision-Making Process of a Manager?
Retrieved June 10, 2019, from smallbusiness.chron.com: https://smallbusiness.chron.com/steps-
decisionmaking-process-manager-10601.html

Ivancevich, J. M., Konopaske, R., & Matteson, M. T. (1990, March 1). Organizational Behavior and
Management. Retrieved jUNE 10, 2019, from s3.amazonaws.com:
https://s3.amazonaws.com/academia.edu.documents/4153727/612672646.pdf?response-content-
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Litherland, N. (2017, September 26). Decision-Making Process of Managers. Retrieved June 10, 2019,
from bizfluent.com: https://bizfluent.com/how-does-5280248-decisionmaking-process-managers.html

Managerial decision making ‐ rational decision‐making within organisations. (2009, March 1). Retrieved
June 10, 2019, from http://cws.cengage.co.uk:
http://cws.cengage.co.uk/colekelly7/students/Video%20Cases/Chapter%2019%20-
%20Video%20Case%20Study%20111.pdf

Waldron, N., Johnson, C. E., Saul, P., Waldron, H., Chong, J. C., Hill, A.-M., et al. (28, September 28).
Development of a video-based education and process change intervention to improve advance
cardiopulmonary resuscitation decision-making. Retrieved June 10, 2019, from
bmchealthservres.biomedcentral.com:
https://bmchealthservres.biomedcentral.com/articles/10.1186/s12913-016-1803-x

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