Report on Managerial Decision-making and Analysis
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Added on 2020-06-03
Report on Managerial Decision-making and Analysis
Added on 2020-06-03
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Analytical Thinking and DecisionMaking
Table of ContentsINTRODUCTION...........................................................................................................................1TASK...............................................................................................................................................11. Importance of decision making and the application of decision analysis...............................12. Outlining a decision problem relating to work or an external organization which involvesmultiple objectives......................................................................................................................33. Applying simple multi attributes rating methods (SMART) for outlining the decisionproblem.......................................................................................................................................54. Strengths and limitations of analysis with the support of appropriate sources in contextdecision problem.........................................................................................................................8CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................11
INTRODUCTIONAnalytical thinking refers to finding solution of a problem or evaluation of variousalternatives to make the best possible decision for the company in the given resources. It includesdrawing conclusion from the given statistics and also to give an opinion whether it will beprofitable or not. There are various tools which are being evolved in the current modern andtechnological scenario which helps in effective decision making by management. These includevarious software which are being developed like ERP. The analysis of any problem is bifurcatedinto various parts which are diagnosis of the exact problem and its causes. The possiblealternatives to treat the problem along with any creative method to treat it, if possible (Dane,Rockmann and Pratt, 2012). Selection of the best possible alternative considering budget andtime constraints of the company. Anite is software organisation which is the supplier of test andmeasurement solutions in international wireless market. In this report, we will be considering thevarious aspects of managerial decision making and analysis for making business decisions. Theneed and importance of decision making and analysis within an organization will be discussed inthis report.TASK1. Importance of decision making and the application of decision analysisDecision making is a crucial part of business management and is one of the most basicattribute that is expected from a manager who is leading a firm. The job of a decision maker is tochoose the best possible alternative among the options available that will result in the mosteffective and efficient outcomes for the company. Which is of paramount importance for thecompany is usually taken from top management of the firm. Decision involves achievement oftargets and objectives of the firm within the time frame allocated and taking into considerationthe budget constraints which are there. The ultimate aim of the firm is to utilize its resources inthe most efficient way possible to generate higher revenue and profitability for the firm. Decisionmaking helps in efficient utilization of the scarce resources of the organization. It involvesdecision as to how much to use when to use these resources and in what quantity (Subramoniamand et. al., 2013). Decision makers in an organization can be described as follows:Top level management: They are the main decision makers of the company and their roleis to frame and implement strategies for the firm so that the best possible outcomes can begained. The main decisions are regarding planning, controlling etc.
Intermediate management: The job of this level of management is to form and applytactical decisions like fixing authority of subordinates, guiding them on individual tasks on howto perform it and if there is problem in performance of task how it can be improved andenhanced etc.Operations level management: These are decision makers which are responsible for theproper management of operations of company like production process, management of humanresources like labour, employees, etc. They are also responsible for various day to day lifedecisions of the company which include dividing responsibilities among workers, preparation ofscheduled work, etc.Decision making is a problem solving approach and it can be said that without decisionmaking, it is highly unlikely that major business decisions can be taken including coordinating,planning, etc. (Fenton‐O'Creevy and et. al., 2011). The various decisions which are usually takenin management of any business are described as below:Resource utilization: Resources are scarce for both society and company and therefore,effective utilization of the same is of paramount importance. By utilizing resources in the mosteffective way possible will ensure right decisions are taken at suitable time and it results inwealth maximization for the overall firm.Analysis of performance: Analysis of previous decision making and how thosedecisions has affected the firm and whether to make any changes in those decisions or the sameare suitable for the growth of the firm is considered.Selection from various alternates available: The primary task of decision making is theselection of the best possible alternative for the firm among the available alternatives likeselection of the most convenient location to set up plant.Implementation of plans and procedure: Another most important aspect of decisionmaking is the implementation of various policies and procedures framed by top management ofcompany. These have to be implemented by intermediate level management and operationallevel management.Decision analysis applicationIt is an important component of overall decision making and evaluation. It is helpful inselecting the best possible and cost effective way for company. For example, the company mightchoose from various projects, in which to invest and from which to divest so as to increase the
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