Introduction to Analytical Thinking & Decision Making

Analytical
thinking and
decision-making

Table of Contents
INTRODUCTION...........................................................................................................................1
1. The importance of decision making and the application of decision analysis .......................1
2. Recognition of decisions problem that is faced by the company Sainsbury's during work..4
3. Applying SMART technique on the decision problem...........................................................5
4.Strength and limitation of SMART technique regarding decision problem of supplier for
raw material...............................................................................................................................11
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................12

INTRODUCTION
The ability to solve problems quickly and effectively is been given by the analytical
thinking and it is also a critical component of visual thinking. The methodical step by step
approach to thinking is being involved in it that help to break down complex problems into
single and manageable parts (Olausson and Nyhlén, 2017). In the option of a content or a
course of action among various possible choices decision-making can help. The last choice is
been made on all decision-making process. Based on the values, preferences and beliefs of the
decision-making the process of decision-making identify and choose the alternatives. In order to
achieve the objectives of organization decision- making is essential as it aid the organization to
make usage of resources in efficient way.
This report will conduct a critical review on the value of decision-making. In the
organization the decision-problem that is being taking place will also be identified in this report.
Further more this report will presented the illustration of the problem that is being there in the
work due to not making appropriate decisions. Sainsburry is the UK's second-largest
supermarket chain. In order to make decisions in the selection of suppliers of raw material the
problem is faced by this company. To the problems that is faced by the company the SMART
technique will be applied. This report will also present the advantages and disadvantage of
SMART technique.
1. The importance of decision making and the application of decision analysis
As per Parry Cohen and Bhattacharya, (2016), decision -making can be defined as the
process of choosing the course of activity from a possible approachable options in order to come
at a conclusion for a specific problem. At one point there is s need to make decision in all
organization. In the best interests of the company the decision need to be made. When the
decisions are made then the person should weigh both the positive and negative point of each
option that is available and also all the alternatives need to be considered by the decision-maker.
According to Janssen, van der Voort and Wahyudi, (2017), in order to achieve success in
the operations of organization activities the decision-making is essential .By decision-making
the various activities such as planning, organization, directing and controlling etc are been
determined. In very organization by the top level management only the strategic decision such
as planning, organization , controlling and directing are been made. The middle level
management makes tactical decision. These decision are based on work division, fixation of
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authority and responsibility. The operational level management makes the regular operating
decisions in the organization. In this the decisions are made regrading the preparation of
schedule for daily activities, work division, delegation of authority etc. As per Stern, (2016), the
needs the decision-making is been performance across all the departments in the organization. In
the organization performance the decision -making process provides uniformity and smoothness.
To make decision in any organization the managers of an enterprise are responsible. In
management the decision-making plays and essential role. The most essential component of a
manager's activities is decision-making. In the planning process it plays the most important role.
On many matters the decision is been taken by the manager such as the goals that will be pursued
by their organization, the use of resources etc. The managers have to decide what to do to correct
the deviation when plans go wrong or out of track. In a series of decision-making situation the
whole planning process involved the managers constantly.
Every part of the organization is been covered in decision-making process and also the
functions of management is determined. With the effective use of decision-making the various
issues that is been faced by the organization can be solved. On the contrary not as stated by
Hohnisch,Pittnauer and Pfingsten, (2016) , in order to make effective decisions a lot of time is
been wasted in it. In order to make an individual decision all the benefits and drawbacks of each
alternatives need to be considered by the manager that may take a tome to reach a conclusion.
From many people the advice need to be taken in order to develop a decision. In various
meetings and other discussions that is been taking place in the organization a lot of time is also
been considered as opinion of each member need to be considered to make decisions. This may
develop delayed decisions or no decision as the opinion of each member in a meeting can differ
form one another. However as stated by Lechler and Salas, (2017), the limited analysis can be
produced by the manager if the experience is not there in researching then all the merits and
demerits of each alternatives will not be considered by the manager. With correct decisions the
growth and opportunities can be provided .On the other hand as per Lovan, Murray and Shaffer,
(2017) due to wrong decision the loss and instability can be produced.
Decision analysis
The essential decision that are been confronted by the organization can be addressed by
using the approach of decision analysis. In this the larger problems are been divided into smaller
problems. The better understand about the problem can be given by decision-analysis when there
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