Discuss about the Quality management for organizational excellence.
This report discusses the issues associated with the aspect of decision making. Making a perfect decision at a perfect time need skill and experience. The mangers gather information based on which they find various alternatives. To manage particular situation and utilize opportunities, the mangers need to take effective decisions at right time. For making an effective decision they use various types of tools to categories alternatives. There are many challenges which pervert them to make an efficient decision. In addition to these, there are some cognitive biases that affect either positively or negatively to the decision making process (Agoritsas et al., 2015). The process of decision making is completely different for an individual and an organization. Hence the mangers use differ decision making style perfectly matching with the requirements and situation of the organization. This report discusses the process of decision making, challenges faced in the process, cognitive biases affecting decision making procedure, tools for effective decision and various styles.
Decision making is a method of making choices through identifying decision, gather data and evaluating all the alternative resolutions. This is a daily activity of human being without exception and when it comes to the aspect of business decision becomes the habit as well as a part of the process as well. Effective and positive decisions can make profit for the company hence this process is one of the most critical for many organizations (Heyler et al., 2016) There are numerous steps or alternatives from which one can efficiently select one course of action and use tools, techniques or perceptions.
Using a systematic decision making process make the managers more deliberate to make thoughtful decisions. This step-by-step approach of decision making help to make the most sustaining alternative possible. These steps are-
Decisions are the chief factors that regulate the operations in the professional world. There are numerous factors that affect the decision making procedure and complicate the whole process with various types of barriers (Hoefer & Green, 2016). These barriers challenge the efficiency of the decision makers lengthen the process of implementation. The common difficulties of decision making process are-
Making decision plays critical role in the survival of both the company as well as the individual. Hence the nature of decision making largely depends on the causes for which the decision is being made (McGuinness, 2014). In case there is only an individual involved in the decision making process, it becomes easy but when it comes to question of organizational decision making then the employees and other associated are taken into consideration. In such cases, group discussion can be the best solution. Deciding for the organization or individual select the methods based on the requirements (Pettigrew, 2014).
The decisions made without any contribution of the team members or decision taken for the needs of an individual is naturally individual decision making. It is more traditional approach where the mangers make decisions effectively without any requirement of the input of the groups. In individual decision making process one can make decisions more quickly than organizational decision making (Barros & Ryngaert, 2014). There are various models of organizational decision making process but consultation and consensus decision making are the most effective. In the consensus decision making process the groups pose several alternatives and select the most appropriate one for the organization process. In consultation type of decision making the organizations ask for opinions of all the members while making decisions.
In the process of decision making, there are hot of cognitive biases that help to act quickly at the time of danger but needs to assess probabilities, weighing evidences and logical methods to make decisions (Ingold & Leifeld, 2014). However, there are some most common biases in the decision making process which include-
Eisenhower box: this results in four quadrants with different strategies. It helps in understanding the urgency of the task then decide what to do and how to do the task. In the first quadrant, the most urgent tasks are kept and get first priority to avoid negative consequences. In the second quadrant, the most important tasks are kept which need to special investment of time (Mosier & Skitka, 2018). In the third quadrant, one keeps those tasks which apparently seem not to be so important but teach to delegate things. In the final quadrant, the most invaluable tasks are kept which may be deleted at any point of time.
Decision matrix analysis: it is used to assess all the available alternatives of a decision. Through this tool, one can make good decisions when feel confused with the difficult to compare factors. The factors such as underlying technology, complicated contract length and other service levels requirements are needed to be considered while making decision (Goetsch & Davis, 2014). Rather than identifying a simple list of pros and cons, the decision matrix tool allows the decision maker to place importance on each of the factors. It helps to remove subjectivity and emotion with confusion for making an efficient conclusion. This tool assists to reveal the best option very easily.
Decision tree analysis: decision trees tools help to select several course of action as well as alternatives. Decision trees are represented through a tree shaped diagram which is used to determine the course of action and show the statistical probabilities. Each branch of this decision tree represents the possible decision as well as occurrence (Hoffmann, Montori & Del Mar, 2014). This tree structure demonstrates that each of the choice leads the next. The use of these branches specifies that every option is exclusive. The managers use this decision tree to represent the choice of action graphically. It also shows how these chosen actions can be related to the future events.
SWOT analysis: it is a very useful technique for understanding the strengths as well as weaknesses of the individual along with the organization. SWOT analysis helps the managers to identify the upcoming opportunities that the individual may have and the threats to face perceptibly. SWOT analysis in decision making helps to carve the sustainable niche in the market and develop one’s career in a way so that one can take the best advantage from his or her talent and capabilities (Shepherd, Williams & Patzelt, 2015). One of the most important factor that makes this particular tool more powerful is its ability to uncover opportunities which the business is well paced to exploit. Moreover, easily identifying one’s strengths and weaknesses, one can manage as well as eliminate all the impending threats. In addition to this, a perfect SWOT framework helps the companies to craft perfect strategies which provides a distinguished feature to the business in a competitive market.
Analytical style of decision making supports capabilities such as high tolerance ability to face ambiguous situation. The analytic people are rational and enjoy to solve the most critical problems. The analytical style of decision making is innovative which analyses a large amount of data before the decision maker makes a decision (Rezaei, 2015). Analytical people are easily adaptable who can function sound even under a tremendous or unique situation. Under challenges even these people do not lose their rationality. In this type of decision making one need to have ample data among which the decision makers consider many alternatives. In doing so, they often try to find creative solution to the problems.
Behavioral style of decision making has lower tolerance ability to face ambiguous situation. These type of people have more intuitive style of thinking. These people are more interested in making sure that event one in the group is working well and stay together by avoiding any kind of conflict. These leaders are very persuasive in their speeches and capable to bring people work according to their decision. These decision makers prefer working in the groups. Behavioral decision makers are generally broad in their outlook and receive the suggestion of the group members (McGuinness, 2014). These leaders often use meetings for communicating to motivate in one hand and avoid conflict. The chief aim of these leaders is to be accepted by others. Together with their team members, these leaders attempt to reconcile the differences as well as negotiate the solution which is acceptable to all the parties. The most important advantage of this type of decision making is that there remains no room for doubt and can be communicated early.
Conceptual style of decision making is featured by high degree of tolerance for ambiguity and like behavioral style of decision making, it is intuitive in nature. The managers who prefer this style of decision making look for many alternatives (Mosier & Skitka, 2018). They gather data and judge them to clear their concepts of the situation first. These decision makers analyse each of the issues from artistic angle. They are creative in nature and this nature help them to see the problems from different perspectives. These leaders do not focus not on the short term outcomes. They have achievement outlook hence find the long term outcomes by thinking far into the future. This particular decision making style motivate the leaders to take risk in business and win. Conceptual decision makers make decisions based on the wide vision before solving any problem.
Directive style of decision making is also called autocratic style. The mangers who follow this style assess fewer alternatives as well as consider limited information. This type of style has low tolerance capacity for ambiguity but they are rational in their way of thinking. These managers prefer logical way of thinking and they act efficiently. As these type of decision makers do not prefer to gather more information and then assess the alternatives, they need very little time to take decisions. They have their own set of knowledge and experience hence can take the control of any situation very fast. Directive or autocratic style decision makers are proved to be excellent verbal communicators and focus on comparative style of decision making.
According to me, decision making is one of the most difficult action that the leaders or managers perform in their work. The style of decision making changes according to time and situation. As a decision maker I followed the behavioral style of decision making while managing a team of five members. I had to prepare a group presentation where the participation of all the team members were necessary. Every one of the members were from different background hence had different perspectives and ideologies to solve any problem. As a leader of the team, I engaged in a long discussion with all the members and responded all of their queries. I did not want to create any room for doubt hence prefer to communicate clearly. I gathered information and place the alternatives before the members. Thus we negotiated a solution which was acceptable by all and I implemented the final decision successfully.
In some cases, time and situation ask for directive style of decision making. In a situation when my team had to perform on a specific project but the time was limited. In this case there was no time to discuss with other team members and as a leader I had to make a decision quickly. Starting from topic selection to decide which part will be done by whom, everything was my responsibility. I had experience and ample internal knowledge hence I did not need to ask for suggestion. In the emergency situation I did not get scope to assess alternatives, I had to act quickly and efficiently so that my team members do not suffer.
Conclusion
Therefore, it can be concluded that the decision making procedure is one of the most vital aspect of performing leadership efficiently there are numerous decision making process that the effective leaders follow. However, in making a successful decision the managers come across a lot of challenges which create barrier in efficiency as well as consume more time. To avoid conflict, there are some tools which help the mangers to act successfully. The different decision making style can be applicable in different situation and different times.
References
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Barros, A. S., & Ryngaert, C. (2014). The Position of Member States in (Autonomous) Institutional Decision-Making: Implications for the Establishment of Responsibility.
Blumenthal-Barby, J. S., & Krieger, H. (2015). Cognitive biases and heuristics in medical decision making: a critical review using a systematic search strategy. Medical Decision Making, 35(4), 539-557.
Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence. Upper Saddle River, NJ: pearson.
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Ingold, K., & Leifeld, P. (2014). Structural and institutional determinants of influence reputation: A comparison of collaborative and adversarial policy networks in decision making and implementation. Journal of public administration research and theory, 26(1), 1-18.
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