Decision Making

Though there are various traits that an individual must possess in order to provide resolutions to conflicts and problems that arise in everyday living, there is a human ability that proves essential above everything else. Critical thinking rests at the center of every decision-making process as it involves the process of weighing odds against the possible and desired outcome, the ability to systematize a plan or scheme in addressing a crucial scenario, and the aptitude in foreseeing results and consequences in order to anticipate what must be done.

These are only a few of the manifestations of critical thinking as the list may very well extend. Nevertheless, it is equally significant to understand the underlying notion that the faculty of thinking judiciously serves the purpose of being able to arrive at a substantial deliberation and decision. Apart from the commonsensical idea that critical thinking is “higher order thinking” (Benesch, 1993), it can also be stated as a set of hierarchically determined cognitive ability of an individual in the sense that there is the presumed hierarchy of human abilities that revolve around thinking.

Critical thinking is seen to be operating at the topmost level of the structure which gives it not only the merit of “higher order thinking” but also of highest degree of thinking. It is quite interesting to note that, as Socrates said, “the unexamined life may not be worth living (Gross, 2002)”, implying the significance of one’s capacity to think about the things that come across one’s life. A personal experience that requires critical thinking is perhaps one of life’s most difficult times as it purges the mind with every bit of our rationality.

Events that require solving problems as well as making crucial decisions nonetheless require proper knowledge and the ability to analyze and evaluate opinions as well as facts, claims and diverse sources and other similar and relevant choices. Being a bookkeeper is no easy task as it requires personal characters beyond the ordinary. To a certain extent, it cannot be doubted that the tasks of a bookkeeper requires diligence, patience and, more importantly, critical thinking skills.

These things I can testify to as I am a bookkeeper myself at a jewelry manufacturing company. To say the least, there is strong reason to believe that poor bookkeeping skills are not only a huge loss for the individual bookkeeper but also for the whole company. Without critical thinking, one can hardly maintain an intellectual way of handling situations that require analysis more than anything else.

Keeping an intact and comprehensive record of all of the financial transactions engaged into by the company require accounting skills far beyond the ordinary as the tasks involved range from keeping complete and necessary records of the transactions of the company such as the items acquired or bought and sold, and the amount of money the company spends, losses and gains. And since the company is essentially a money-making venture, every single detail in keeping a substantial record of these transactions is a must.

Disaster may strike when the individual has no firm grasp of one’s critical thinking capabilities. Critical thinking has its significance in the bookkeeping part of any industry or company especially in terms of securing or ensuring that all the entries are placed under their proper and corresponding ledgers. Deciding which ledger a certain entry should fall requires not only the ability to distinguish one entry from the other but also the ability to completely distinguish one ledger from another.

Confusion has no place in bookkeeping as it may lead to flaws in the records which may amount to misplaced transactions and, hence, company losses. In order to avoid confusion, the bookkeeper is required to critically think over the details of an entry and decide as to which ledger it should be placed. Failure of doing so has its own repercussions that could take away the position of the bookkeeper from the company.

I personally agree to it primarily because I have almost had a close call on confusing entries over the others. Making a decision is one thing, creating a plan or a systematized scheme is another. While it may be true that a bookkeeper can make suitable decisions on the issues revolving around the accounting of records, it does not necessarily follow that the bookkeeper may have followed a certain scheme in order to create a substantial and clean record.

Quite on the contrary, it should be the case that the bookkeeper ought to lay down a certain scheme or plan of doing things prior to the ‘bookkeeping’ activity so that there will be less room for error which might make the whole bookkeeping task futile in the end. Moreover, I agree to the fact that having a scheme for bookkeeping is indeed not only helpful in carefully placing records properly but is also efficient in completing tasks.

And in order to arrive at a suitable bookkeeping scheme, the bookkeeper must have the most important skill—critical thinking. As critical thinking gives way to weighing the odds given a certain scenario in the company such as the sight of loads of records to be completed, it enables the bookkeeper to keep track of one’s progress while placing the entries as well as it ensures that the bookkeeper is mentally prepared for most of the mentally draining duties. I must say that critical thinking skill has been an asset for me in my work as a bookkeeper.

Had it not been for my ability to think critically under pressing and mentally draining circumstances, I could have easily lost my job. But I did not, because I critically think. References Benesch, S. (1993). Critical Thinking: A Learning Process for Democracy. TESOL Quarterly, 27(3), 546. Bookkeeper. (2007). Retrieved November 10, 2007, from http://www. princetonreview. com/cte/profiles/dayInLife. asp? careerID=25 Gross, R. (2002). The unexamined life is not worth living. In Socrates’ Way: Seven Keys to Using Your Mind to the Utmost (pp. 44). New York, NY: Tarcher

Demand in Automobile, FMC and retail is growing at a faster pace than anticipated due to rise in its consumption patterns which is creating demand and margins for Indian Inc. India is the second-largest producer of two-wheelers in the world. In the last few years, the Indian two-wheeler industry has seen spectacular growth. The country stands next to China and Japan in terms of production and sales respectively. The present scenario of especially decision making process of purchasing vehicles, and its importance, current trends are highlighted. In this article study for the emend of vehicles and influencing factors like family, friends, dealers, service and mileage for the process of purchasing vehicles is done.

Automobile Industry

The automobile industry is one of the fastest-growing industries of the world. With more than 2 million new automobiles rolling out each year, on roads of India, the industry is set to grow further. The automobile industry made its silent entry in India in the nineteenth century. Since the launch of the first car in 1897, Indian automobile industry has come a long way.

Today India is the largest three-wheeler market in the oral and is expected to take over China as the second-largest automobile Industry in the coming year. Indian automobile industry; manufacturing cars, buses, three-wheelers, two-wheelers, commercial vehicles, heavy vehicles, provides employment to a large workforce. The abolition of license raja in 1991 opened the doors for international automobile manufacturers. A number of leading global automotive companies entered into Joint ventures with domestic manufacturers of India and thus started the large-scale production of automobiles in India.

Some of the well- now players of the Indian automobile industry include Hindustan Motors, Marti Dogs, Fiat India Private Ltd, Ford India Ltd. , General Motors India Pet. Ltd, Toyota Karakas Motor Ltd among others. The production of automobiles in India is mainly for domestic customers. Cars with 79% of automobiles in India, dominate the automobile industry in India. The Indian Automobile Industry is manufacturing over 11 million vehicles and exporting about 1. 5 million every year. The dominant products of the industry are two-wheelers with a market share of over 75% and passenger cars with a market share of about 16%.

Commercial vehicles and three heelers share about 9% of the market between them. About 91% of the vehicles sold are used by households and only about 9% for commercial purposes. The industry has attained a turnover of more than USED 35 billion and provides direct and indirect employment to over 13 million people. Some facts on the Automobile industry in India: India has the fourth largest car market in the world India has the largest three-wheeler market in India India is the second-largest producer of two-wheelers in the world India ranks fifth in the production of commercial vehicles. Hounded Motors ranks second in car production in the world.

Consumer Decision Making Process

“Consumer behavior describes how consumers make purchase decisions and how they use and dispose of the purchase goods or services” therefore we can understand the importance of consumer behavior for a marketer and as a vital process during the decision purchase process. A marketer needs to identify who their consumers are in order to be capable of selling their products, generate revenue and profitability but also to be able to satisfy them for future purposes such as market share through recognition, and only once identifying their consumer”s behavior can succeed be achieved. In relation to purchasing a car why would it be essential for a marketer to be able to understand its consumer’s behavior in order to target them more effectively, this is mainly due to the fact of the car industry having a wide range of variety”s that car manufactures offer its consumers making it competitive.

Consumer Buying Behavior: Problem Recognition

In this information processing model, the consumer buying process begins when the buyer recognizes a problem or need. When we found out a difference between the actual state and a desired state, a problem is recognized. When we find a problem, we usually try to solve the problem. We, in other words, recognize the need to solve the problem. Information Search: When a consumer discovers a problem, he/she is likely to search for more information . We actively seek information by visiting stores, talking to friends, or reading magazines, among others. Through gathering information, the consumer learns more about some brands that compete in the market and their features and characteristics.

Evaluation and Selection of Alternatives

How does the consumer process competitive brand information and evaluate the value of the brands? Under this, a consumer is trying to solve the problem and ultimately satisfying his/her need. In other words, he/ she will look for problem-solving benefits from the product. The consumer, then, looks for products with a certain set of attributes that deliver the benefits. Thus, the consumer sees each product as a bundle of attributes with different levels of ability to deliver the problem-solving benefits to satisfy his/her need. Decision Implementation: To actually implement the purchase decision, however, a consumer needs to select both specific items (brands) and specific outlets (where to ay) to resolve the problems.

Once the brand and outlet have been decided, the Post-purchase Evaluation: “Did I make the right choice? Should I have gone with another brand? ” This is a common reaction after making a difficult, complex, relatively permanent decision. This type of doubt and anxiety is referred to as post-purchase Evaluation.

The Objective of the Study

To study the consumer decision making process of consumers. To identify the factors influencing consumers, in brand selection while purchasing the automobile. To identify the consumer”s choice of preference while purchasing the automobile.  Sings (1981) conducted a survey on A study of brand loyalty in India”. The primary objective of this study was to examine the state of art regarding brand loyalty among consumers in India. Mishear Mohamed N. (1997) examined the factors determining purchase and post-purchase behavior of two-wheeler users. His findings revealed that friends and neighbors’ form the most important source which is followed by one”s own experience, family members, newspapers and observation. Parker and Anderson (1994) examined the consumer”s preferential expectation nickering attributes, the objects and their post-trial perception of the attributes.

The findings suggested that differences did exist among individuals in terms of the appropriateness of various preference models. Argue Chowder (2006) has remarked that brand commitment is an important determinant in buying behavior for consumers. Rachel Diarist and Harrisonburg-Fearer (1994) have investigated the rapport between automobile attributes and household characteristics to consumer preferences for cars. The analysis was confined to households that purchased new cars in 1986 and employed outages profit analysis.

Results indicated that the coefficients of most household characteristics were not significant. Households were interested in more fuel efficient and heavier cars as well as cars with lower depreciation rates and a lower frequency of repair are more likely to buy Japanese than non-Japanese cars. Gary A. Knight (1984) has compared the consumer preferences on automobile made abroad and made in the home country by both home country and foreign firms. Indeed he has suggested that the country of manufacture and product quality strongly influence consumer decision making in globally available product categories.

Methodology

A survey method was used to collect the primary data from the respondents. A structured questionnaire was prepared to extract responses from the respondents. The study was conducted on a sample of 96 consumers. Secondary Data: Secondary data was collected from books, articles, the Internet and previous research papers that had been conducted by the company representatives and officials.

Respondent Profile Age group: 45% below the age of 30 years.

Education: 50% of the respondents were educated up to SC.

Occupation: Agriculture (4%), private service (70%), small businessmen (24), others 2%).

Ethics refers to the practice of applying morals and values to various situations. In a business or professional setting, ethics can be defined as a professional code of conduct. Most professional organizations ask that their members abide by a code of ethics and have an ethics committee. Companies have a code of ethics, as well, which dictates how employees deal with stakeholders – coworkers, customers, and the communities they serve. How do you address ethics in your decision making? Ethics drives the decision making process.

Applying the SMART model of a good business scenario can facilitate ethical decision making. Specific, measurable, actionable, reasonable, time-bound business decisions are values based decisions. In the Kava scenario, one ethical issue to address is how to cultivate human resources with respect to the various cultures represented in that nation. To be specific, we could apply American standards for human rights. To be reasonable, we have to consider the various religions that may apply different standards of human rights issues.

How might people from different parts of the world approach decision making? Why? Culture often defines ethics. Some people may use a religious standard for ethical decision making. In some countries Islamic law is not only practiced as religion, but is also the basis for the countries’ legal systems. In the United States we make ethical decisions despite our religious beliefs. For example, a Christian landlord may disagree with his unmarried tenants, but will choose to rent to them because to do so is illegal and therefore unethical.

In the Kava scenario, the challenge will be to address the cultural and religious differences. The goal will ultimately be to find a way to apply the company’s corporate culture in a way that facilitates the various ethics and processes that are representative of Kava’s population.

Reference

www. philodialogue. com. The Cultural Dimension of Business Ethics. Retrieved August 9, 2008, from http://www. philodialogue. com/10. html

Ford was established in 1903 by Henry Ford and 11 other associates. The company launched its T-model in 1908. The company began producing truck and tractors in 1917. During 1925, Ford acquired the Lincoln Motor Company, branding out into luxury cars. In 1956, Ford went public. The global expansion of Ford continued through this era and the company made several acquisitions. Ford Motor Company is now one of the largest automotive manufacturers in the world.

The company manufactures and distributes automobiles in 200 markets across six continents. The company’s core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mazda and Volvo. It is headquartered in Dearborn, Michigan and employs 283,000 people. The Company operates in two business divisions: Automotive and Financial services The Automotive business division consists of the design, development, manufacture, sale and service of cars, truck and service parts.

Through this segment, Ford produces a wide range of vehicles including cars for the small, medium, large and premium segments. In addition to producing and selling cars and trucks, Ford also provides retail customers with a range of after sales services and products through its dealer network. The financial services division operates through the company subsidiary, Ford Motor Credit Company (Ford Credit). Ford Credit offers a wide variety of automotive financing products to and through automotive dealers throughout the world.

Ford Credit’s primary financial products fall into the three categories: retail financing, wholesale financing and other financing. In retail financing, Ford engages in purchasing retail installment sales contracts and retail lease contracts from dealers. In wholesale financing, Ford offers loans to dealers to finance the purchase of vehicle inventory. In other financing, Ford offers loans to dealers for working capital, improvements for dealership facilities, and acquiring and refinancing real estate.

Ford Motor Company has now earned the status as a worldwide industrial icon. The company already has a proud history from which to gain perspective and inspiration and many hopeful developments to build on. Ford Motor Company had record sales in China and India in 2006. While challenges are being faced, Ford is making continuous improvements to their plan in order to capitalize on opportunities to create and sell more products and save more costs. Priorities combined with a sense of urgency, will continue to transform Ford Motor Company.

Decision making is the study of identifying and choosing alternatives based on the values and preferences of the decision maker. It can also be regarded as a problem solving activity which is terminated when a satisfactory solution is found. Therefore, decision making is a reasoning or emotional process which can be rational or irrational, can be based on explicit assumptions or tacit assumptions. The Decision Making Process At Ford, decision making is achieved through ‘Group’ approach.

The group shares ideas and analyses and agrees upon a decision to implement. Studies show that the group often has values, feelings and reactions quite different from those the manager supposes they have. No one knows the group and its tastes and preferences as well as the group itself. Although it is possible to identify types of decisions group leaders might take, it is another to determine how those decisions are taken. In determining what decisions to take, the group leaders rely upon their knowledge and experience (tacit knowledge).

Direct questioning of group leaders makes them unable to directly express their knowledge. Therefore, a methodology can be used to illustrate the decision making process at Ford. The methodology first aims to elicit information on the group leaders’ decision making strategies and then to look for ways to improve their decision making. The most significant step in any decision making process is describing why a decision is called for and identifying the most desired outcome(s) of the decision making process.

One way of deciding if a problem exists is to couch the problem in terms of what is required or expected and the actual situation. In this way a problem is defined as the difference between expected and/or desired outcomes and actual outcomes. For instance, in a simple maintenance scheduling problem where there are 2 actions, which are not mutually exclusive and 2 engineers who can be asked to act if available. Each of them has 2 alternative decision options: the action can either be taken or not taken; the engineers can either be asked to act or not to act.

We know that the once linear and transaction-centric purchase funnel is now multi-directional, random, and heavily influenced by opinion and information gathered by consumers. And we know that because of social media and technology, consumers can now enter the purchase cycle at various points, and spontaneously influence others as they travel along the path of the purchase. But do we really understand how marketers can unlock the real value of all this? Do we know how social media works with other more established media?

However, our study found that while the integration of social, TV, and mobile has indeed altered the way consumers make decisions about brands, it is not because of their ability to simply multiply brand messages. Increasingly, consumers are becoming the driving force powering what, when and where brand interactions occur. Based upon our findings, Initiative believes that by leveraging the consumer’s natural inclination to engage with media across multiple screens and social media, we can create a consumer-powered media synergy effect that is both non-linear and emotional – driving deeper engagement and trust.

Listo systems was doing very well before it even took the decision of employing more individuals in managerial and supervisor positions that linked the line staff and executive management. Lack of training in good management is the root of all the problems that are being experienced by the organization. Refining implies making changes in the way the company operates. Change is very vital for organizations that seek to develop. It enables them to identify their weaknesses and correct them hence increase productivity. The company hence needs to refine the way it carries out its operations especially in terms of employee relations.

Employee relations which describe the way an organization relates with its employees is very crucial for the success of that organization in terms of meeting its goals and vision (Huczynski & Buchanan 53). The organization needs to refine the role of managers and how they operate. The management has to include programs that motivate employees so that they develop a form of ownership of the company. This would make them to be committed and work hard as they feel part of the organization understanding that its success is theirs as well. One way of motivating employees is by involving them in decision making of the company.

This is achieved by using teams formed by employees from various departments in making decisions that require multiple judgements (Huczynski & Buchanan 53). The suggestions they come up with should be implemented by the management for the employees to feel involved. Apart from encouraging team work, the organization needs to empower the employees such that they can be allowed to make their own decisions which are in accordance with thee organization’s mission and vision without much interference fro the management. This increases interpersonal competence amongst them increasing the quality of their work hence the organization’s productivity.

Listo systems need to refine its management practices and focus on its employees. It needs to ensure that the vision and mission statements which encourage team work, innovation and leadership are designed into a work model. Its practices are not goal oriented and need to be refined if the company wants to get back to track and resume the growth and success it was enjoying before. Considering organizational level 2 of Entity (culture) and strategy (mission), the most appropriate leadership challenge response would be defining. Using the theories discussed in chapter 1-4, the reason for choosing defining as response is;

For any organization to operate successfully, the vision and mission statements must be clearly defined and the organization’s goals and objectives be made clear to all the employees. This is done in to ensure that employees work towards fulfilling the vision and mission. The employees also need to know the culture and values of the organization. This acts as guidance to the decisions and strategies they come up with. It ensures that all the strategies made do not deviate from the organization’s culture which is usually structured in a way that points towards the vision.

This implies that strategies made in accordance with the organization‘s culture are goal oriented and work towards achieving the vision and mission. In the above case study, Listo systems in spite of having vision and mission statements, it had not defined them to its employees and especially the new ones it had employed to managerial and supervisor positions. The fact that these individuals had not been offered any training on the company’s culture resulted to them coming up with strategies that were not directed towards the organization’s mission.

The case shows that the organization’s goals and objectives had become unclear because of the way the new employees who occupied leadership positions were running the organization. It seems that the strategies they adopted did were not in accordance with the organization’s culture. This can be explained by the fact that the managers were only interested in increasing the organization profits and did not care about the methods the employed to meet their targets. The implemented strategies were not goal oriented resulting to the organization’s declining productivity.

Defining the vision, culture and mission of the organization to the managers would have guided the way strategies implemented and decisions made ensuring that they were goal oriented and in accordance with the organization’s culture. As such they would be aimed at the vision. The organizations growth and productivity would have increased instead of declining as it is. Considering organizational level 3: Departments (units) and key results (success factors), the most appropriate leadership challenge response for this scenario would be involving.

Using the theories discussed in chapter 1-4, the reason for choosing defining as response is; The human resource (employees) are a very vital invest fore any organization. Employees of an organization are the ones who determine whether the organization will be successful in attaining its goals and vision or not. As such, the management has to take precaution of ensuring that they are well motivated and committed to working for the organization. Involving employees means that they are allowed to participate in making the organization’s decisions especially those that are related to their work.

A good way of involving employees is by empowering them. This is achieved by training them on how to make good decisions and defining the organization’s culture and vision to them. Armed with the two, the employees are then left to make decisions in their work without much interference from the management. The employees have to ensure that whatever decision they make are goal oriented, market based and directed towards meeting the organization’s vision. Teams could also be created to provide solution for company problems that need multiple judgements.

The teams should comprise of individuals from all departs so that all units are well represented in the decision making. Involving employees is important as it makers them feel appreciated. It also instils in them a sense of belonging which makes them develop a form of ownership of the organization. This increases commitment to their work as they feel that success of the organization is theirs as well. Involving employees is the best tool of motivation and always guarantees success as it increases work output hence productivity which increases the organizations competitive advantage.

The moment Listo systems stopped considering its employees opinions, its productivity decreased. The increase in rate of turn over and absenteeism is as a result of lack of motivation on the employees part through involvement. Considering organizational level 4: Teams (groups) and Goals (objectives), the most appropriate leadership challenge response would be focusing. Using the theories discussed in chapter 1-4, the reason for choosing defining as response is;

Most successful organizations have identified the value of using teams to solve problems and in achieving of their goals and objectives. Focussing on developing of teams and on the organizations goals would be the best response for Listo systems to the scenario. The organization does not seem to involve employees in decision making . All the decisions seem to be made by the managers without consultation of the other employees. Focussing on development of teams to meet the organization’s goals and objectives has several advantages.

Teams usually comprise of individuals with different experiences and skills, working together in a team enables employees learn from each other hence develop skills that they did not initially have and are important in performing of their tasks. Applying the acquired skills in their work increases the quality of the output hence the productivity of the organization. Teams also offer a variety of decisions that are diverse which makes it possible for the management to have other options in the event one solution is not effective.

For effective team development, the organization must ensure that its norms allow for freedom to the teams, the employees should be encouraged to assume ownership of the organization, the teams have to be supported by being availed the required resources for any task being under taken, commitment by the individuals to the team should be cultivated by both the company through its policies and the individuals and finally, there has to be empowerment of the team members by way of regular training (Albrecht, 113).

Apart from increasing the quality of the solutions to problems, teams also motivate employees as they feel that they are part of the organization. Working in teams also increases interpersonal competence as individuals working together are able to recognize their weaknesses hence do some self development which increases their competence. The fact that the members are drawn from different departments implies that teams are representative of the entire workforce. Focussing on development and use of teams in problem solving is the best response in addressing Listo systems’ situation.

Considering organizational level 5: Individuals (people) and Tasks (Jobs), the most appropriate leadership challenge response would be empowering. Using the theories discussed in chapter 1-4, the reason for choosing empowering as response is; Employee empowerment is one of the strategies that all business oriented organizations must adopt. Empowering employs literally means the management giving power to employee. In the discussed scenario, the company’s management made the mistake of not involving he employees in its plans to increase its growth and profit margins.

The organization should have realized that it needs the employees in order to meet these objectives as the management can not do it on their own. The best way of getting the employees to help in achieving the goals and objectives of an organization is by motivating them. Empowering is said to be the best form of employee motivation. This is because apart from helping in achieving the organization’s vision, it also enables the employees to achieve their career objectives.

Employee empowerment involves offering training programs to the employees on various topics amongst them decision making and management. The employees are then left to make their own decision as they see it fit in their tasks without having to wait for the management’s approval. Employees however have to ensure that the decisions they make comply with the organization’s culture in terms of rules and regulations. Employee empowerment encourages innovation and creativity in an organization.

This is attributed to the fact that it allows employees to think on their own of solutions to problems. It also increases the quality of work done as employees understand that they will be held responsible and accountable for every decision they make. This ensures that they are careful with the decisions they make only implementing the ones that give best results. Employee empowerment enables an organization to tap talent, skills and knowledge that the employees have hence use it to the maximum in achieving its vision.

It also increases interpersonal competence amongst the employees. Empowering is an employee motivating strategy that ensures that employees are involved in the running and decision making of the organization. Organization that employ it have increased productivity which has put them ahead of their rivals in the market. This would be one of the best responses for Listo systems to its current situation. ‘ Situational Approaches – Consistency The scenario presented by the case study represents many aspects of management and leadership.

First of all it portrays a leadership that is not effective, this is attributed to the fact that leadership has not been well defined in the organization. There is no hierarchy structure in this organization as one can not tell between who the leader is between Eileen and her boss, jack. The fact that she is allowed to carry out some of her tasks in his office and even chart about her personal life with the boss at working hours brings a weakness in the leadership of Jack. But then, good management involves taking care of the employees needs.

The problem with this scenario is that the boss is biased in the way he treats his employees. If he showed the other employees the same concern he shows to Eileen, his management skills would be said to be effective. Jack as a manager does not seem to involve the other employees in major decisions that affect them. This has created an enemity between him and the employees. He does not seem to have any relationship with them which is dangerous for the organizations as it decreases the commitment of the employees.

Major decisions especially those that affect employees and their work are best reached at through teams which are representative of the entire organization. This organization however has no team culture and its manager has not yet even realized the value of using teams as opposed to individuals in decision making. The fact that Jack as the manager sometimes leaves Eileen as an individual to make all decisions by herself lowers the quality of these decisions. It is important to let all employees participate in making decisions that affect them if a manager wants to get successful results from the decision.

The rest of the employees do not seem to be motivated by the manager. In fact they seem to dislike him. The system Jack uses to run the organization does not encourage interpersonal competence at all as no one is given a chance to challenge Eileen. Roles have also not been well defined. For example, the specific responsibility of Eileen is not clear. This is a weakness that could harm the organization in the event it grew. The case study generally portrays poor management skills and leadership that is not effective. It brings out an organization with poor employee relations.

Such an organization can not easily grow as weakness in management affects the entire organization. 3. Special Assignment Decision making requires managers to be ethical so that they make decisions that are objective and self centred. Most managers believe that they are ethical and fair in their decisions and that they do not let their personal interests affect what they decide upon. This has however been proved wrong by psychological research which shows that there exist some unconscious biases that influence all decisions made by humans.

These biases are however unintentional and one can not be judged for making unfair decisions based on them. These biases are said to undermine manager’s roles such as recruitment, boosting employees’ performance through rewards, promotions amongst many other roles. These unconscious biases cause managers to be unethical such that they favour their own groups, cause conflicts of interest increases cases of managers over claiming credit. The research therefore asks individuals to stop believing that their decisions are always ethical and offers solutions on how managers can reduce the impact of these biases.

The research article explains that these implicit biases have negative effects on organizations. The most fundamental impact is that they be costly to the organization such that they cause the manager during recruitment to exclude qualified individuals whose talent, experience and skills are needed by the organization. The research proposes that one of the ways of dealing with the unconscious biases that are unintentional by the managers first identifying and revealing their presence by collecting data on them.

Managers should then expose themselves to the objects they are biased against by shaping their environment so that they can learn more about them. Managers are also recommended to broaden the way they make decisions as being narrow encourages the biases to manifest themselves. Managers should also practice unpacking whereby the considering why some employees qualify for some things that other employees are not getting. Implanting these practices are said to help managers reduce cases of implicit biases which are not only pervasive but also costly to organizations.

In my opinion, it is true that the unconscious biases do exist and affect every aspect of our decision making. I concur that they are costly and have caused several organizations to miss out on talent and skills that would have helped them grow. They also have social effects as they have led to some communities to be underdeveloped as their members are always discriminated against when they seek employment. However, I do not agree that the suggestions made would be effective on their own for managers. This is because humans have no control over the unconscious part of their mind.

I feel that the best suggestion would be to have the manager either resign from the decision team whenever it involves subjects that he is biased against or seek opinions from other individuals who are neutral so that the decision is not made by him alone. Works Cited Albrecht, Salai. Information, involvement and trust in senior management as determinants of cynicism toward change, Australian Journal of Psychology, (2003): 55, 113. Andrzej Huczynski, and David A. Buchanan, Organizational Behaviour: An Introductory Text. Old Tappan NJ. Pearson Education, 2007,

Decision Support Systems

Introduction

Beginning in the late 1970s, many vendors, practitioners, and academics promoted the development of computer based Decision Support Systems (DSS). Their actions created high expectations for DSS and generated much optimism about the prospects for improving decision making. Despite the building and excitement, the success rate of decision support applications has been unsatisfactory. Although the computing industry has transformed how business transactions and data are processed, managers have frequently been disappointed by attempts to use computer and information technology to support decision making (cf, Drucker, 1998). Recently, because of technological developments, managers have become more enthusiastic about implementing innovative decision support projects. This attitude change is a positive development, but both managers and Management Information System (MIS) practitioners need to discuss and review their expectations about Decision Support Systems before beginning new projects.

According to Sprague and Carlson (1982, pg. 9), “DSS comprise a class of information system that draws on transaction processing systems and interacts with the other parts of the overall information system to support the decision-making activities of managers and other knowledge workers in organizations”. Decision Support Systems are defined broadly as interactive computer based systems that help people use computer communications, data, documents, knowledge and models to solve problems and make decisions. DSS are ancillary or auxiliary systems; they are not intended to replace skilled decision makers.

Decision Support Systems should be considered when two assumptions seem reasonable: first, good information is likely to improve decision making; and second managers need and want computerized decision support. Anecdotes and research show that some computer-based DSS can provide managers with analytical capabilities and information that improve decision making.

In pursuing the goal of improving decision making, many different types of computerized DSS have been built to help decision teams and individual decision makers. Some systems provide structured information directly to managers. Other systems can help managers and staff specialist analyze situations using carious types of models. Some DSS store knowledge and make it available to managers. Some systems support decision making by small and large groups. Companies even develop DSS to support the decision making of their customer and suppliers.

Today, e-business technologies are transforming business transactions, and similar technologies can transform and improve decision activities. This report will also discuss how computing, the World Wide Web and information technologies can support and improve business and managerial decision making.

A brief history of Decision Support Systems

Prior to 1965, it was very expensive to build large scale information systems. At about this time, the development of the IBM system 360 and other more powerful mainframe systems made it more practical and cost effective to develop Management Information Systems (MIS) in large companies. MIS focused on providing managers with structured, periodic reports. Much of the information was from accounting and transaction systems.

In the late, 1960s, a new type of information system became practical model-oriented DSS or management decision systems. Two DSS pioneers, Peter Keen and Carles Stabell, claim the concept of decision support evolved from “the theoretical studies of organizational decision support making done at the Carnegie Institute of Technology during the late 1950s and early 60s and the technical work on interactive computer systems, mainly carried out at the Massachusetts Institute of Technology in the 1960s” (Keen and Scott Morton, 1978, preface).

Management Information Needs

Managers and their support staff need to consider what information and analyses are actually needed to support their management and business activities. Some managers need both detailed transaction data and summarized transaction data. Most managers only want summaries of transactions. Managers usually want lots of charts and graphs; a few only want tables of numbers. Many managers want information provided routinely or periodically and some want information available on-line and on demand. Managers usually want financial analyses and some managers want primarily “Soft” non-financial or qualitative information.

In general, an information system can provide business transaction information, and it can help managers understand many business operations and performance issues. For example, a computerized system can help managers understand the status of operations, monitor business results, review customer preference data, and investigate competitor actions. In all of these situations, management information and analyses should have a number of characteristics. Information must be both timely and current. These characteristics mean the information is up-to-date and available when manages want it. Also, management information must be accurate, relevant and complete. Finally, managers want information presented in a format that assists them in making decisions. In general, management information should be summarized and concise, and any support system should have an option for managers to obtain more detailed information.

In summary, DSS must provide current, timely information and analyses that are accurate, relevant and complete. A specific DSS must present information in an appropriate format that is easy to understand and manipulate. The information presented by a DSS may result from analysis of transaction data, it may be the result of a decision model, or it may have been gathered from external sources. DSS can present internal and external facts, informed opinions and forecasts to managers.

DSS versus MIS

Is a DSS an MIS? How does a Decision Support System differ from a Management Information System? One can begin drawing distinctions between these two terms by first examining the concepts management information system (MIS) and information system (IS). Many authors have used the term “MIS” to describe a broad, general category of information systems. Also, MIS and IS are used interchangeably to describe a functional department in companies and organizations responsible for managing information systems and technology.  In 1970s, and MIS generated periodic management reports. Today, managers use data-driven DSS to meet their management reporting needs. When the term “Management Information System” is defined narrowly, it refers to a management report system that provides periodic structured, paper based reports. In contrast data-driven DSS are intended to be interactive, real time systems that are responsible to unplanned, as well as planned, information requests and reporting needs. Model-driven DSS are usually focused on modeling a specific decision or a set of related decision (cf., Power, 1997).

DSS include a wide variety of analytical information systems. DSS provide managers more control of their data, access to analytical tools, and capabilities for consulting and interacting with a distributed group of staff. An enterprise-wide DSS is linked to a large data warehouse and serves many managers within one company. Also, a DSS is defined as an interactive system in a networked environment that helps a targeted group of managers make decisions. The primary focus in the following discussion is on various types of DSS. The term MIS will be used sparingly and will usually refer broadly to an information system that provides managers with on-line access to information.

Types of DSS

Data-Driven DSS

The first category of DSS, data-driven DSS, emphasizes analysis of large amounts of structured data. These systems include file drawer and management reporting systems, data warehousing and analytical systems, Executive Information Systems, and Spatial DSS (SDSS). EIS are targeted to senior managers, and SDSS display spatial data for decision support. Business Intelligence (BI) systems are also examples of data-driven DSS.

Model-Driven DSS

A second category, model driven DSS, includes systems that use accounting and financial models, representational models, and optimization models. Model driven DSS emphasize tools provide the most elementary level of functionality. Some OLAP systems that allow complex analysis of data may be classified as hybrid DSS systems providing modeling, data retrieval, and data summarization functionality. Model-driven DSS use data and parameters provided by decision makers to aid them in analyzing a situation, but they are not usually data intensive. Very large database are usually not needed for model-driven DSS, but data for a specific analysis may need to be extracted from a large database.

Knowledge-Driven DSS

The terminology for this category of DSS is still evolving. Currently, the best term seems to be “Knowledge-Driven” DSS. Sometimes it seems equally appropriate to use Alters’ term “Suggestion DSS” or the narrower term “Management Expert System.” knowledge-driven DSS suggest or recommend actions to managers. They use business rules and knowledge bases. These DSS are person-computer systems with specialized problem solving expertise. The “expertise” consists of knowledge about a particular domain understanding of problems within that domain and “skills” at solving some of these problems. A related concept is “Data mining.” This term refers to a class of analytical applications that search for hidden patterns in a database. Data mining is the process of sifting through large amounts of data to produce data content relationships. Tools used for building these systems are also called Intelligent Decision Support methods (cf., Dhar and Stein, 1997). Data mining tools can be used to create hybrid data-driven and knowledge driven DSS.

Document-Driven DSS

A new type of DSS, a document-driven DSS is evolving to help managers gather, retrieve, classify and manager unstructured documents, including Web pages. A document-driven DSS integrates a variety of storage and processing technologies to provide complete document retrieval and analysis. The web provides access to large document database including databases of hypertext documents, images, sounds, and video. Examples of documents that would be accessed by a document driven DSS are policies and procedures, product specification, catalogs and corporate historical documents. Including minutes of meetings, corporate records and important correspondence. A search engine is a powerful decision-aiding tool associated with a document driven DSS (cf., Fedorowicz, 1993). Some authors call this type of system a Knowledge Management System.

Communications Driven and Group DSS

Group Decision Support Systems (GDSS) and groupware came first, but now a broader category of communications-driven DSS can be identified. This type of DSS includes communication, collaboration, and decision support technologies that do not fit within those DSS types identified by Alter. Therefore, communications-driven DSS need to be identified as a specific category of DSS. It seems appropriate to call these systems communications driven DSS even through many people are more familiar with the term GDSS. A GDSS is best viewed as a hybrid DSS that emphasizes both the use of communications technologies and decision process models.

Inter-organizational or Intra-organizational DSS

A relatively new category of DSS made possible by new technologies and the rapid growth of the public internet is inter-organizational DSS. These DSS serve a company’s customers or suppliers. The public Internet is creating communication links for many types of inter-organizational systems, including DSS. An inter-organizational DSS provides stakeholders with access to a company’s intranet and authority or privileges to use specific DSS capabilities. Companies can make data-driven DSS available to suppliers or a model driven DSS available to customers to design a product or choose a product.

Examples

Some examples show the wide variety of DSS applications. Major airlines use DSS for many tasks including pricing and route selection. Many companies have DSS that sir in corporate planning and forecasting. Specialists often use these DSS that focus on financial and simulation models. DSS can help monitor costs and revenue and track department budgets. Also, investment evaluation and support systems are increasingly common. Frito-Lay has a DSS that aids in pricing, advertising, and promotion. Route salesmen use handheld computers to support decision-making activities. Many manufacturing companies use Manufacturing Resources Planning (MRP) software. This specific, operational-level DSS supports master production scheduling, purchasing, and material requirements planning. More recent MRP systems support “WHAT-IF” analysis and simulation capabilities. DSS support quality improvement and control decisions. Monsanto, FedEx, and most transportation companies use DSS for scheduling trucks, airplanes and ships. The Coast Guard uses a DSS for procurement decisions. Companies like Wal-Mart have large data warehouses and use data mining software. Business Intelligence and Knowledge Management Systems are increasingly common.

References

Michel Klein, Leif B. Methlie, Wiley, 2007, Knowledge-based Decision Support Systems: With Applications in Business

Peter G. W. Keen, Michael S. Scott Morton, Addison-Wesley, 2007, Decision Support Systems: An Organizational Perspective

Ralph H. Sprague, Eric D. Carlson, Prentice-Hall, 2006, Building Effective Decision Support Systems

Steven Alter, Addison-Wesley, 2004, Decision Support Systems: Current Practice and Continuing Challenges

Daniel J. Power, Greenwood, 2002, Decision Support Systems: Concepts and Resources for Managers