BUS 2.2: Effective Decision Making - Qualifi Level 5 Diploma Report

This report addresses the critical aspects of business decision-making, focusing on relevant issues, decision-making approaches, and recommendations for process improvement. It identifies key issues such as pricing, investment, financial decisions, and product development, emphasizing the importance of market characteristics and brand image in the decision-making process. The report explores the advantages and disadvantages of participative decision-making, comparing it with autocratic approaches. It also provides recommendations for improving decision-making processes, including task delegation, role specification, and data collection modifications. The report suggests a mixed approach, combining participative and autocratic methods based on urgency and available time, and concludes by referencing supporting literature on ethical decision-making and rational decision-making in business organizations.

Business Decision

Relevant issues that are necessary for making business
decisions with references to the interest and needs of
the stakeholders
Some of the relevant issues that are necessary for making
business decisions includes-
 Pricing of products
 Investment decision
 Financial decisions
 Development of a new product or service
 Promotion decision
TASK 1: Relevant issues in business
decision-making

Some of the business issues where business
decisions are to be made includes-
 Investment decision
 Financial decision
Business issues where decision are needed

Evaluation of the processes of obtaining information
on business information and identification of
strengths and weaknesses in those approaches
In order to identify the business issues information about
the following is collected:
 Market characteristics
 Market profile
 Brand image
 Market share
TASK 2: Approaches to decision-making process
and the ways of improving the approaches

The advantages of a participative style of
decision making includes-
 Better decisions can be made because
information is taken from a lot of people
 Reduced risk since decision is based on
availability of a lot of information
Some of the major disadvantages of the
participative approach of decision making
includes-
 Time consuming approach
 Opportunities can be missed due to the
inability of the top management to take
decision on time.

Some of the decisions taken by the company-
 Investment decision for improving the
awareness of the customers
 Decisions related to increasing the
productivity of the company
 Decisions related to new product
development
Making decision based on the
information and justification of
the decisions and the way the
decisions should be disseminated

Recommendations for improving the decision
making process
In order to improve the decision making process the
following activities is to be done-
 Delegation of tasks
 Proper specification of roles and responsibilities of
the employees
 Moreover the process of decision-making can be
improved by changing the sources of data collection
TASK 3: Recommendations for
improving the decision-making
process of business

The new approach to decision making will
include a mixed approach of participative and
autocratic decision making approaches (Slack
and Cooke 1984).
 Participative approach will be used for
decision which are not so urgent and for
which time is available.
 Autocratic approach will be used when
urgent decisions are there and the decisions
have to be made within a particular period of
time.
Planning for, communicating
and seeing the new
approaches to decision making

 Schwartz, M.S., 2016. Ethical decision-making
theory: An integrated approach. Journal of Business
Ethics, 139(4), pp.755-776.
 Simon, H.A., 1979. Rational decision making in
business organizations. The American economic
review, 69(4), pp.493-513.
 Slack, N. and Cooke, S., 1984. Making management
decision. Prentice-Hall International.
 Yates, J.F., 1990. Judgment and decision making.
Prentice-Hall, Inc.

References