Report on Decision-Making in Management: Process and Improvement

This report analyzes the decision-making process from a manager's perspective, addressing real-world management issues and strategies for enhancing decision-making skills. It explores reasons behind flawed managerial decisions and suggests improvements, focusing on key steps such as problem analysis and data collection. The report uses the Coca-Cola formula change as a case study to illustrate decision framing and risk management. It emphasizes avoiding psychological biases, promoting objective views, and considering multiple perspectives to make better decisions. The conclusion highlights the importance of scientific techniques in decision-making, recommending models to address constraints and enhance effectiveness. Desklib provides this insightful report along with numerous other resources to aid students in their studies.

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author Note

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Executive summary:
The report demonstrates the process of decision making which is employed by mangers
facing management issue in the real world. It continues by discussing about the ways that can
be used by managers to improve their skills of making decisions. Furthermore, the reasons
why sometimes managers make wrong decisions have also been discussed. Since, the
decision making process involves several steps, there are some steps that requires further
clarification. This has been done by recommending ways to make some of the process of
decision making effective.

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Table of Contents
1. Introduction:...........................................................................................................................4
2. Discussion:.............................................................................................................................4
2.1 Process of making decision from manager’s point of view:................................................4
2.2 Ways to improve decision making skills:............................................................................5
2.3 Reasons why managers take wrong decisions:....................................................................6
2.4 Ways to make better decisions by managers:......................................................................6
2.5 Ways to improve a particular step in the decision making process:....................................7
3. Conclusion:............................................................................................................................8
4. Recommendations..................................................................................................................9
5. References list:.....................................................................................................................10

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1. Introduction:
The report is prepared for analyzing the decision making process from view point of
managers in the contemporary business environment. Such process has been explained by
considering management related issue faced in the real world. One of the essential aspects of
the modern management is the process of decision making and is regarded as the
indispensable component that pervades all the managerial actions (Amanchukwu et al.,
2015). For decision making or problem solving, managers tend to employ an organized
process along with using a rational approach.
2. Discussion:
2.1 Process of making decision from manager’s point of view:
There are several models of decision making that is a suggested course of action
which should be taken by mangers when making certain decision. However, it has been
shown by the research that a sequential process should be followed and generally, a decision
frame to a decision is applied by managers when making decision in real world. It is the
perception which the managers held regarding the outcome of the decision in terms of loss or
gain. Considering the nature of decision framing is important because it is the tendency of
managers to avoid risky options and decision framing might lead to decision failures and it
normally goes wrong in the product of choice between losses (Anderson et al., 2015). In
order to avoid losses, managers are motivated to take risks. This can be explained with the
help of real example.
Coca Cola was considered as the biggest selling soft drink when they decided to
change the formula and new product was introduced in the market. Outcome of the decision
was disastrous because the new formula was disliked by the consumers as they preferred the

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old formula. Few months down the line, company took the decision to reintroduce old
formula by launching the product Coca Cola classic. This decision to reintroduce the earlier
product was because of the negative decision frame. Consequently, company was left with
the option of either continue to have their market share decline and making no change or to
change the formula (Gilleducation.ie, 2019). Coca cola chose to take the risky option of
altering the formula. Hence, choice was between the certain loss or risk.
2.2 Ways to improve decision making skills:
Decision making skills of managers can be honed by avoiding common pitfalls
through constructing some strategies. Some of the strategies are listed below:
 Making events that are based on decisions- Instead of trusting and relying on the
instincts, managers should use some scientific evidence when making decision. In this
regard, decision to be made should be supported by using performance data and
suggesting a course of action which the data supports.
 Challenging status quo- Justifying the decision while being comfortable in using a
particular approach cannot be enough. The available options should be examined as
realistically as possible. The cost of efforts involved in making change should not be
overstated (Marsh & Farrell, 2015).
 Reframing the problem- The identified problem should be reframed in the sense that
managers should take a step back and think about its complete context. A particular
issue should be viewed by them using as many perspectives as possible as it would
help in ensuring that other options are not neglected and one particular aspect is not
overemphasized (Yang & Gabrielsson, 2017).

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2.3 Reasons why managers take wrong decisions:
Decision making is sometimes susceptible to psychological biases as subjective
decisions interfere with the objective decision making. Managers often allow their feelings
and emotions to creep into the process of decision making. Illusion of control also affects the
decision making by managers because even when do not have control over particular events,
they are able to develop a sense of influencing the outcome and this can prove to be very
dangerous when making decision. Another reason that might results in wrong decision
making by managers is the timing issue. Time crunch might put the managers into a situation
when the quality of decision gets hampered as the decision made has been rushed
(Stiggelbout et al., 2015). This is due to the fact that they are not able to thoroughly research
all the options available to them. However, the failure to make right and rational decision by
managers might not be possible due to several other reasons such as limitation in the capacity
of decision maker, uncertain environment, inadequate data, information and knowledge and
presence of personal elements when framing decisions.
2.4 Ways to make better decisions by managers:
Decision making is the central and core part of daily leadership and managerial
activities. The development of managers as great decision maker can be supported by the
following mentioned points.
 Reversing directions too easily should be avoided- It is considered appropriate to
adjust the decisions based on the availability of compelling evidence and lessons
learned. Many managers fall victim to the continuous lobbying efforts of other and
falling victim to the self doubt (Shepherd et al., 2015). In such situation, results
should be evaluated by using decision journal, expectations and evaluations.

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 Cautious of decision trap in group settings- Managers working in group tend to bring
histories, biases and values and open dialogue can also be suppressed due to
personality issues power structure. Objective views should be promoted by avoiding
complex human behavior and inviting outsiders to put their views (Deligianni et al.,
2016).
 Avoid focusing on single negative and positive frame- It has been shown by the
research that different decision are tend to be made when description of problem is
done either as positive or negative. Managers should always strive to make
independent decisions using multiple frames.
 Cautious of influencing the decision by allowing emotions- There is no compatibility
between making big decisions and emotions. It is so because they either slow down
the decision making process or make managers to frame judgment in rush. Rush to
take decision should be resisted is the situation is emotionally powerful
(thebalancecareers.com 2019).
2.5 Ways to improve a particular step in the decision making process:
Decision making process involves several steps and every step should be properly
considered by the managers that help in facilitation of accurate decision making. Managers
should take into detailed account of some of the steps such as analyzing the problems,
collection of relevant data and when developing alternative course of action (Beach &
Lipshitz, 2017).
 The collected data should be manipulated in a number of different ways such as
creating pivot table, finding correlations and plotting it. Data manipulation leads to
ascertainment of exact data which the managers are looking for. A certain problem or
the question will be better answered using tools of data analysis.

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 Managers should make considerable amount of efforts when looking for relevant new
information that would help in further evaluating the alternatives. It is considered very
essential in the decision making process as information quality forms the basis of
decision quality (Mazalová & Richter, 2016).
 While identifying any particular problem, it is required by managers to learn about
diversified group as much as possible as learning is considered as the greatest asset to
problem solving. Managers would be able to better understand the nuances of a given
issue by gaining varied knowledge and collaboration with some key experts. The
success of decision making process is to maintain diversity by digging into diverse
perspective.
 Alternative course of action can be devised through imagining and brainstorming. The
chance of asking right questions can be improved by asking right questions by
probing interest, objectives and goals. Moreover, the consequences of each alternative
should be taken into account by the managers. A wide range of alternatives should be
laid out by entrepreneur decision makers by posing the issue in terms of objective.
Managers are motivated by the performance of alternative whether it is worse or
better in relative to a certain relevant point (Intezari & Pauleen, 2018).
In order to enhance the effectiveness of the decision making process, the data
gathered should be accessed by multiple users that would bring consistency among the
decision makers.
3. Conclusion:
From the analysis of the above facts regarding decision making process, it can be
inferred that the managers in real world do not usually follow the suggested course of actions
when making decision. Instead, a sequential process is followed by them that also involve

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application of decision frame. Managers intend to make programmed decisions as they are
supposed to be routine, well structured, occurring and repetitive on regular basis. However,
there are some barriers in making rational and effective decisions due to various reasons that
have already been discussed above. Managers need to adopt and inculcate certain decision
making skills in order to make good and effective decisions.
4. Recommendations
The constrained involved in effective decision making should be dealt by employing
certain model that would help in serving the purpose. Decision making by mangers should be
correct for which it is essential to employ scientific decision making techniques. However,
there exist some perceived weakness in the models could be employed for making decisions;
they are regarded as essential tools in making effective decisions.

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5. References list:
7 Ideas to Support Your Development as a Great Decision Maker. (2019). The Balance
Careers. Retrieved 22 February 2019, from https://www.thebalancecareers.com/how-
to-make-better-decisions-at-work-3961619
Amanchukwu, R. N., Stanley, G. J., & Ololube, N. P. (2015). A review of leadership theories,
principles and styles and their relevance to educational
management. Management, 5(1), 6-14.
Anderson, D. R., Sweeney, D. J., Williams, T. A., Camm, J. D., & Cochran, J. J. (2015). An
introduction to management science: quantitative approaches to decision making.
Cengage learning.
Beach, L. R., & Lipshitz, R. (2017). Why classical decision theory is an inappropriate
standard for evaluating and aiding most human decision making. Decision making in
aviation, 85, 835-847.
Deligianni, I., Dimitratos, P., Petrou, A., & Aharoni, Y. (2016). Entrepreneurial orientation
and international performance: The moderating effect of decision‐making
rationality. Journal of Small Business Management, 54(2), 462-480.
Gilleducation.ie. (2019). Retrieved 22 February 2019, from
https://www.gilleducation.ie/AcuCustom/Sitename/DAM/058/Modern_Management_4
th_ed_-_Look_Inside_Sample.pdf
Intezari, A., & Pauleen, D. J. (2018). Conceptualizing Wise Management Decision‐Making:
A Grounded Theory Approach. Decision Sciences, 49(2), 335-400.
Marsh, J. A., & Farrell, C. C. (2015). How leaders can support teachers with data-driven
decision making: A framework for understanding capacity building. Educational
Management Administration & Leadership, 43(2), 269-289.

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Mazalová, I., & Richter, J. (2016). The elimination of selected barriers in the decision making
process. Central European Journal of Management, 2(1, 2).
Shepherd, D. A., Williams, T. A., & Patzelt, H. (2015). Thinking about entrepreneurial
decision making: Review and research agenda. Journal of management, 41(1), 11-46.
Stiggelbout, A. M., Pieterse, A. H., & De Haes, J. C. J. M. (2015). Shared decision making:
concepts, evidence, and practice. Patient education and counseling, 98(10), 1172-
1179.
Yang, M., & Gabrielsson, P. (2017). Entrepreneurial marketing of international high-tech
business-to-business new ventures: A decision-making process perspective. Industrial
Marketing Management, 64, 147-160.