Management Principles: Decision Making, Ethics, Chain of Command

Management Principles 1
Management Principles

Management Principles 2
Answer 1:
Decision making process is considered as the process of making the choices by identifying
the requirements, collecting required information, and by assessing the alternative resolutions.
This process includes almost 8 steps which help thee user in making more informed decisions by
organizing the relevant information and by defining the alternatives. Eight step process related to
decision making is stated below:
 Define the issue: the first and most important step is defining the problem statement, as
problem statement is important for making the good decision. This step includes the
identification of the basic reason because of which problem occurred, limiting
assumptions and issues related to stakeholders (Ahmad, Bwisa, Otieno & Karanju, 2014).
 Determine requirements: Before resolving any issue, it is necessary to determine the
requirements completely because any solution related to the problem must meet the
requirements.
 Collect information: It is necessary to collect the relevant information before taking the
decision. In this step, person focus on different aspects such as required information, best
sources through which information can be collected, and methods through which
information is collected. This step includes both internal and external assessment.
 Identify alternatives: While collecting the information, person cross through different
possible paths of actions, and these different paths are considered as alternatives. Person
can also use their predictions or collected information for the purpose of developing the
paths.
 Define the Criteria: Organization must establish the criteria for the purpose of
measuring the each and every possible criteria identified by the management. Each
criterion is developed on individual basis, and must not depend on other criteria. Criteria
must be covering all the goals, operational in nature, non-redundant, etc.
 Select the decision making tool: The methods related to the selection must be based on
the complexity of the issue and also on the experience of the team. Methods must be
simple in nature and easy to understand.
 Evaluate the alternatives against the criteria: another important step is evaluation of
the alternatives against the set criteria and this can be done by the quantitative methods,
qualitative methods, or any combination.
 Validate solution: After completing the evaluation step, organization choose the most
preferred alternative, and analyse it. This assessment is done for the purpose of ensuring
that this alternative solution resolves the identified problem (Baker & Bridges, 2001).

Management Principles 3
Answer 2:
Generally decision making problems are divided into two forms that are structured and
unstructured, and explanation related to both is stated below:
Structured problems: these problems are differentiated in the form of structured
decisions, as they have all the relevant information for the purpose of finding the solution, and
they also have relevant methodology. Structured issues are generally occurred on the regular
basis. This can be understood through example, whether or not company needs to withdraw the
funds from the international account depends on the present exchange rates. Structured is define
as the situation when organization have the process to handle the situation, and the implication is
set that’ structured problems are those problems which are recurring on continuous basis.
These problems recur on continuous basis, because of which we put few process and
procedures to resolve them. The best example of this is hiring process. Structured issues create
the box through which we initiate to think, and this box allowed the person to take their decisions
quick and confidently. This automatically generates the confident to use the procedure and
process for resolving the problem, because that process is already an approved process and
creates bit a justification for the decision taken by the person (Maths, n.d.).
Unstructured decision: Unstructured means that decision making process that has not
been met in the similar form and for there is predetermined and clear process or procedure exist
in the organization. In other words, organization does not have any process or procedure to
resolve this. When no process or procedure exist for taking the decision or resolving the issue,
then decision maker become more confuse in context of taking the decision.
Decision maker becomes less confident while taking the decision because of the immense
confusion after considering all the options and alternatives. They hesitate in choosing any one
option because off the lack of confidence and fear of making the bad decision. Resolving the
unstructured problems is the time consuming task because in this decision makers need to repeat
the above stated steps.
There are number of ways which can be chose to resolve the unstructured problems, but
this type of problems required the decision making process which is of robust nature (Raheem,
n.d.).
Answer 3:
In case business organizations fail to act with integrity in context of its people, customers,
society, and community, then it will definitely affect the reputation of the business in negative
manner. Therefore, it is necessary for the business organizations to ensure ethics in their
management and other processes. Following are the four views on ethics: