Decision Making and Analytical Thinking Assignment 2022

Running Head: DECISION MAKING AND ANALYTICAL THINKING
Analytical Thinking and Decision Making
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DECISION MAKING AND ANALYTICAL THINKING
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Table of Contents
Introduction......................................................................................................................................3
Importance of decision making and application of decision analysis.........................................4
Identifying and outlining a decision problem in a raw material supplier....................................7
Simple Multi-Attribute Rating Technique (SMART) to the Outlined Decision Making..........11
 Identification of the decision maker................................................................................11
 Identification of issues which are related to the selections of the supplier.....................11
 Alternatives identification...............................................................................................12
 Criteria identification......................................................................................................12
 Value assignment for each of the above mentioned criteria...........................................13
 Weight determination for each of the mentioned criterion.............................................13
 Weighted average calculation of the values assigned to each alternative.......................13
 Provisional decision making...........................................................................................13
Strengths of the analysis done in the decision making context.................................................13
Limitations.................................................................................................................................14
Conclusion.....................................................................................................................................15
References......................................................................................................................................17

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Introduction:
The modules of analytical thinking and decision making helps in the understanding of the
importance of the application of making decision and thinking analytically to resolve the
occurred problem in an organization that includes several objectives which would analyze the
limitations and strength of the following analysis. For the process of analysis the technique used
is the “simple multi attribute rating technique”, in short SMART analysis. Analytical thinking
incorporates critical reasoning of the occurred problem resulting in an effective and efficient
solution to the problem. Analytical thinking involves several steps in order to achieve the
required solution of the problem such as addressing the issues and collection of related
information (Whimbey, Lochhead and Narode 2013). Thinking analytically is the process of
analyzing a problem efficiently and rapidly (Cook et al. 2014). Analytical thinking involves
analyzation of a situation or problem by means of practical knowledge and information available
be it quantitative or qualitative. Analytical thinking can be compared with intuition also. As
discussed by Anders Omstedt, analytical thinking sometimes make the mental process of a
person “limited and slow” whereas intuition is opposite of analytical thinking that is “theory free
and fast” (Alter, Oppenheimer and Epley 2013). However the combination of intuition and
analytical thinking can lead to effective solution (Rusou, Zakay and Usher 2013). Therefore,
decision making and analytical thinking is the key to a successful business. A complex problem
is broken down into several small parts which would be easier to solve. The process of making
vital decisions in order to solve a problem is called as decision making (Hoffenson & Söderberg
2015). In any organization, every individual is responsible in the process of decision making, as
analytical thinking involves analyzation of a situation or problem by means of practical
knowledge and information available be it quantitative or qualitative therefore it can be used by

DECISION MAKING AND ANALYTICAL THINKING
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most of the people in an organization (Kremer-Asaf 2015). This report would discuss about the
problem in the organization is the identification of raw material supplier selection also the use of
the technique called SMART in the analyzation and finding out of the solution to the problem.
Significance of decision making and utilization of decision analysis:
Decision making can be expressed as the choices made on the basis of identifying
decision, collection of information, and analyzing several alternatives. Decision making includes
selection of a particular alternative from the possible alternatives for arriving to a desired
solution (Sharma 2013). Moreover, the process of decision making is considered as a check and
balance system for the growth of a business in several direction. The process of decision making
always aims to achieve a goal, a business always pre-set its missions and visions. The individuals
involved in the process of decision making required to have proper scientific knowledge
accompanied with experiences and skills. The decision making process of a management ranges
from simple to critical decisions. Decision making involves the study of the all the possible
alternative from the available option that can lead to the effective solution of the problem (Kanna
et al. 2013). The management takes several important decisions such as employees’ effort,
location of the production, choices of the suppliers etc. Decision making is explained as the
decisions taken in several small steps and analysis of the progress in every step of problem
solving rather than making decision for reaching the ultimate goal (Kremer-Asaf 2015).
According to the view of Organizational procedure in decision making, an organization should
utilize the previous experiences in formulating the procedures of the upcoming decision making
(Domingues et al. 2015).
The importance in the decision making process are as follows:
 Decision making facilitates the growth of the organization.