Decision Making Models and Theories

This assignment delves into the realm of decision making models and theories, covering a wide range of topics from classical decision theory to intuitionistic fuzzy decision making. It includes references to academic papers and research studies that explore different aspects of decision making in various fields such as aviation, emergency management, and supply chain design.

Problem solving and
decision making

Table of Contents
INTRODUCTION...........................................................................................................................1
Main body (Pre work)......................................................................................................................1
1 (a) Design a solution finding model appropriate for your own department........................1
Classical model of decision-making.......................................................................................2
Rational decision making model............................................................................................6
1 (b) Different tools that are required when implementing the model of decision making and
the concise description of the models...................................................................................10
Implementation of tool and models of decision making......................................................14
2 (a) Decision making model for reducing the employee turnover in the organisation.......17
2 (B) Reflective ...................................................................................................................21
CONCLUSION..............................................................................................................................21
REFERENCES..............................................................................................................................22

INTRODUCTION
Decision making is the process by which individual, organisation, group selects the
course of action from the different alternative so that problem can be solved. It is being known
that there are several problems faced by the venture such as employee turnover, compensation,
conflict between the employees, negotiation etc. Thus, to solve these problems, firm need to find
the different alternative and then select the best one which can solve the problem effective and
efficiently. In simple words it can be said that every decision making process have final choice
which can be or can not be prompt action. Decision making is the way by which different
alternative being collected and selected which is being based on the different preferences, values,
beliefs of the individual who is making the decision. Other than that it can be said that it is
thought process of selecting a logical choice from the different alternative available to the
person. When the person is going to any decision, he or she first try to find the different pros and
cons of the different alternative so that best choice can be done. There is proper process need to
be followed by the individual when he or she is making the decision which start from the
recognising the need of decision and ends with the implementation of the alternative. The report
is going to cover the business problem of Sainsbury which is employee turnover. Other than that
the report is going to cover the different models of decision making which helps the venture to
solve their business related problem.
Main body (Pre work)
1 (a) Design a solution finding model appropriate for your own department
It is being known that employee turnover is the biggest problem of human resource
management which can enhance the cost of venture as well as it reduces the brand image of the
organisation. Employee turnover is the way by which employee start leaving the venture or the
organisation terminate employee due to their performance or any other issue. When the
employee leave the venture, at that time firm need to find the other applicant who can work for
the vacant job position. This will enhance the cost or organisation for hiring and developing the
new employee in the organisation (Groeneveld and Liebelt, 2017). In order to solve the problem,
firm need to make the effective decision. In order to do the same, organisation should implement
the decision making model, which is as follows:
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Classical model of decision-making
It is the traditional approach in order to understand the individual decision making and
this is made on the based of classical decision making. It is the concept which is mostly linked
with the rationality or rational decision which is based on the proper prescription and
discussions. It is the process by which questions is being asked in order to find the different
innovative alternative by discovering the creative answers. Rationality is equated with scientific
reasoning, empiricism and positivism and with the use of decision criteria of evidence, logical
argument and reasoning (Ferré, 2017). Other than that the rational decision are always being
made with the rationality. This is the approach of decision making which helps the manager that
how they can take the effective decision. This approach also assumes that the manager who is
taking the decision should be rational and logical. Other than that it also assume that the decision
which is taken by manager should serve the best interest to the manager.
Illustration 1: Classical model of decision-making
(Source: Decision making models, 2016)
The image state that there are several situations where managers need to make the
decision. And when the manager is facing the decision making situation, he or she should collect
the relevant information about the subject so that he or she can make the decision effectively and
effectively. Information plays very significant role in the decision making which helps the
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manager to find the cause and effect of the decision made by them. Information should be
relevant to the choice of problem and about the different alternative which is being selected by
the decision maker. Other than that information should also been communicated to all the
members who are involved in the decision making. The firm should involve employees in the
decision making so that they find the different innovative alternative and choices which helps the
manager to make the effective decision (Voskuilen and McKoon, 2017). Other than that the
decision which is being made by the manager should made for the organisation interest not for
the self interest of the manager. There are 3 steps that are included in the classical decision
making which helps the manager to keep his or her focus on the different facts and logic and
ignore the inappropriate pitfalls and assumptions. This is designed to help the manager to
approach at the rational or logical decision making. The steps are as follows:
Stage 1: List all the alternative courses of action possible and the consequences of the
different alternative
The first stage of the classical decision making is find the problem and what are the
different causes of the problem. Further, firm need to find the different alternative which can
helps the organisation to solve the problem. Proper meeting are conducted in the organisation so
that manager can collect the information from different people in the venture. That information
helps the manager to find the various alternative which can be implemented to attain the
objectives. Other than that meeting helps the manager to find the view points of different people
who are involved in the decision making and implementation of alternative. In this stage, all the
alternative is being evaluated and then manager find out the different consequences which are
associated with the each alternative (Fahimnia and Farahani, 2017). The key objective of this
stage is reduced the uncertainty in the boniness and external environment, which can be reduced
with the help of evaluation of all the alternative. Further, manager find the different advantages
and disadvantages associated with the alternative. This is done because it helps the manager to
select the best alternative in order to solve the problem. Here the organisation is facing employee
turnover, which is increasing the cost of human resource management and organisation.
Manager here need to find the different causes that what are factors which motivates the
employees to leave the organisation (Salas and Martin, 2017). Then manager need to find the
different ways by which he or she can retain employees in the organisation such as promotion,
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bonus, incentives benefits etc. he or she need to select the best alternative so that it can not arise
in the future and reduce the uncertainty in the future.
Stage 2: Rank each alternative from leas preferred to most preferred according to personal
preferences
This is another important step for the classical decision making, where ranking is being
done by the manager or decision maker. In this stage, manager analyse the different alternative
in order to find the advantages and disadvantages of the alternative. The alternative which have
the highest advantages and lower disadvantages will be preferred by the manager. Other than
that raking is done by the manager (Huk and Yates, 2017). There are several other factors at
which selection of alternative is dependent such as financial resources, man power, resources
etc. When the manager is giving rank to the alternative, he gives on these factors. Rank is given
to the alternative and then total is being done. The alternative which get the highest rank will be
preferred by the manager. It is one of the important stage, this is because if the ranking is being
done in the effective efficient manner, then the decision can be made in appropriate way and
then only it will solve the problem of the organisation. It is being known that reduction of
problem is totally dependent on the evaluation of various alternative. Different choices are being
analysed so that they can find the different advantages and disadvantages of the each one and
select the most appropriate alternative.
In order to select the alternative, ranking is one of the effective way where ranks are
given on the basis of different factors which have impact over the implementation of the
alternative. Each factor should be taken seriously so that it can not become as a barrier while
implementing the alternative. It is known that there are several other factors which resist the
change or alternative to be implemented such as employees resistance, finance availability by the
firm, resources etc. Thus, the firm need to consider these factors first and then rank the
alternative accordingly so that it can not become the barrier while executing the alternative. This
will helps the organisation or individual to select the best alternative so that effective decision
can be made.
Stage 3: Select the alternatives that lead to desired future consequences
This is the final stage of the classical model of decision making where manager select the
best alternative which helps the organisation to solve the problem. Implementation is the most
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significant stage of decision making, this is because if the execution is not done properly, results
can not be achieved. It is being known that every organisation have their own specific aim and
objectives which need to be fulfilled and achieved. So the firm need to evaluate and select the
alternative in such a way that it can able to achieve the aim and objectives. This plays very
significant role in the decision making of the organisation. When the firm is not able to select the
best alternative then it will not solve the different problems of the venture or the change can not
be implemented properly. Other than that there are several consequences of each alternative,
organisation need to find that consequences and then select the alternative which leads to reduce
in alternative. Then also some consequences are not visible and analyse by the venture and arise
when the alternative is implemented. Thus, the venture need to be very much prepared for
uncertain consequences and take the strict action against those factors which become barrier
while implementation of the alternative.
Different assumptions of the Classical model of decision-making
Classical model of decision-making is the rational model of the decision making which
assumes that manager must access the proper information which are relevant to the decision
making and their alternative (Xu and Wang, 2017). There are four main assumptions at which
classical model is dependent, that are as follows:
 First it is assumed that manager or decision maker has clearly defined the goals and know
what all the employees are expecting from him or her.
 Other than that it is being assumed that manager or decision maker have power to make
the business internal and external environment certain which can have huge impact over
the organisation.
 The third assumption is full information which state that decision maker or manager have
an ability to identify the different alternative so that he or she can able to evaluate it in
order attain the objectives (Hoelscher and Day, 2017)
 The final assumption is most important that is rational decision, all the choices which are
made by the manager are made for the interest for the organisation not for the personal
interest.
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Rational decision making model
It is being known that business people face several problems every day and this is the
reason they made decision in order to solve the problem. This model is very much beneficial for
the business world, this is because manager need to select those alternative which serve the
highest benefits to the organisation rather than themselves. There are two ways by which
decision can be made and model is being applied. Some people are very aware of feelings or
instincts and use them as guides to decision making (Groeneveld and Liebelt, 2017). These types
of feelings are instinctive and rely on intuition and not facts. In fact, intuition is the ability to
have a grasp on a situation or information without the need for reasoning. This type of decision
or selection of alternative is being done when the data and information are not available and
when the decision are very much difficult for the manager. Other type of decision making is
rational decision making which is just opposite to the intuitive. In this type of decision making,
individual start analysing the different facts and figures in order to make the decision. Rational
decision making is a precise, analytical process that companies used to come up with a fact-
based decision (Ferré, 2017). A process need to be followed by the manager in order to make the
rational decision. There are six steps that are involved in this model, the steps are as follows:
Stage 1: Defining and recognizing the decision situation
It is the first stage of the classical decision making where manager or employees identify
the need of decision making so that they can take the further steps. Need of decision making is
being identified when any problem is being faced by the venture or any project they are going to
accomplish. Further, the manager need to understand the problem and the different causes of the
problem. As well as manager need to analyse and consider the situation of the organisation
carefully. This stage very significant role in the whole decision making model, this is because on
the base of this step, whole process is being followed (Voskuilen and McKoon, 2017). If the
manager is not able to collect the relevant information about the problem of situation. And if the
manager is not able to understand the situation clearly, the effective decision can not be made by
the manager. In this situation where the organisation is facing very big problem that is employee
turnover. He or she should find the situation. If they are not capable to find the same, then they
can not solve the problem. Other than that manager should find the different causes of employee
turnover and what are different reason for which employees are leaving the venture (Fahimnia
and Farahani, 2017). It has been identified that there are several reasons of employee turnover
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such as working environment of the organisation, compensation paid to the workers, conflict
between the management and employees, improper negotiation etc. so the firm need to find the
what are root cause of problem and they should do depth analysis of the situations so that best
alternative can be selected accordingly.
Stage 2: List the different alternatives
As the manager or organisation have identified the situation of decision making, next he
or she need to collect the information about the problem and then find the different alternative by
which they can solve the problem. This is also one of the significant stage of the classical
decision making where different choices have been collected by the manager or the organisation.
Alternative are being collected on the basis of information gathered by the manager. First
manager need to find the different causes that why does employee turnover is taking place in the
organisation or what are the different reason employees are quitting the firm. Firm need to find
the different alternative so that they can collect the best one. In this stage manager involve
employees of the organisation and then collect the different ideas from which alternatives can be
collected (Salas and Martin, 2017). Involvement plays very significant role in this phase, this is
because when the employees are involved, firm can actually find that what are the different
alternative and which will be more suitable and accepted by employees. When the decision are
made, several changes takes place and that changes are implemented by the employees so the
firm need to implement those strategies which is more suitable for the employees in order to
implement them. Manager need to ensure that the alternative which they are collecting should as
per their moral and ethical norms so that decision can be made in the effective and efficient
manner (Huk and Yates, 2017). Other factors should also be considered when the alternative are
being collected by the manager that are technology available, economic and social
considerations, social and official norms etc.
These are the factors which plays very significant role selecting the best alternative. This
is because, when the employees and managers are going to implement the alternative, they need
to implement by considering those factors. The important step which is stage is finding the
different advantages and disadvantages of al the alternative (Xu and Wang, 2017). First the
venture internally analyse themselves internally that they are capable to implement the change or
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alternative in the organisation. As per their capability and willingness, the best alternative is
being selected.
Stage 3: Evaluation of alternative
This is another significant stage of the classical decision making where collected
alternatives are being evaluated so that best choice can be made. When the venture or manager is
going to select the alternative, he or she must evaluate each and every alternative so that best one
can be selected and firm able to implement it. There are three important stages in this phase from
which each alternative must pass on in order to find the successful and failure of the alternative,
the stages are as follows:
Feasibility: It is the term which is being used for the finance availability, firm need to find that
the alternative are financially possible, legally applicable. Other than that organisation need to
find that they are having proper and capable human resource to implement the alternative. With
that they also need to find that they are having proper resources which can support them to
implement and execute the alternative (Hoelscher and Day, 2017).
Satisfactory: This stage finds that weather the alternative satisfy all the conditions of the
decision making. It is being known that there are several conditions that are included when the
manager is going to select the best alternative or making the decision. As per those conditions,
alternative should be selected.
Affordability: It is being known that decision will bring change in the organisation and it has
great impact over the different parts of the venture. Firm need to find that what are different
parts of the organisation at which change or alternative will affect (Groeneveld and Liebelt,
2017).
These are the three factors which plays very significant role in order to find that which
alternative will be effective and efficient for the venture. When the alternative is being analysed,
firm need to find the different advantages and disadvantages which are associated with all the
alternatives. Other that that manager need to put the price tag to the different consequences of
each alternative so that it do not be expensive for the venture (Ferré, 2017). The alternative must
be flexible and satisfactory both and it should not be expensive for the firm.
Stage 4: Selecting the best alternative
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It is also one of the important step of classical decision making model where manager
and organisation need to select the best alternative so that it can solve the business problem of
the venture. It is known that there are several alternatives that are collected and evaluates by the
manager, but the most important aspect is to select the best one. If the organisation fails to select
the best alternative, the problem can not be solved, become the big issue or it can arise again in
the future. The real phase of decision making is to select the best alternative. Other than that firm
need to optimise its goal, this is because the decision will have great impact over the different
people as well as to the various department of the organisation. It can be happen that firm can
select more than two alternatives (Voskuilen and McKoon, 2017). It is not necessary that
manager need to select the one or reject the other. Classical model state that decision which are
being taken should be made on the basis of rational decision. On the other hand manager need to
make those alternatives which is beneficial for the organisation rather than their benefits. Other
than that this model also state that manager can easily list their different preferences for the
various alternative and rank them to the least to the most in order to make the optimum decision
(Fahimnia and Farahani, 2017). Thus, it can be said that weather the model is traditional but it
helps the organisation and manager to make the rational decision and those decision which is
beneficial for the venture.
Stage 5: Implementation the best alternative
As the best decision have been selected by the manager, the next stage is to implement
the alternative so that problem can be solved. While implementation the alternative, firm must
take consent from all the employees who are going to execute the alternative. It is being known
that some decision are easy for the employees for the venture but some of them are not easy and
this is the reason workers resist for the new decision. Manager should consider that these might
be some people who will resist to change and new decision (Salas and Martin, 2017). So, he or
she should communicate those people and make them agree to implement the change. While
executing the decision, firm should make the operational plans. Operational plans helps the
managers to should the path or guide to implement the decision or alternative. This is because
when decision is executed, it is being made on the different operations of the business. On the
other hand, manager must have recognised the consequences of alternative but there might be
some unexpected consequences which resist the alternative to be implemented. Thus, manager
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should have planned to deal with such situations. Solution of problem is totally dependent upon
proper implementation of the alternative (Huk and Yates, 2017).
Stage 6: Follow up and evaluation of the results
As the decision have been implemented in the organisation then the manager need to find
the effectiveness of the decision. When the firm finds that problems is being solved and it will
not go to repeat in the future, then it can be said that the decision have been made and
implemented properly. In this stage firm need to finds that alternative is solving the problem or
not? If he or she finds that it is not working then he should find the other alternative which can
implemented in order to solve the problem (Xu and Wang, 2017). Other than that manager
should find that he or she has analysed the situation properly or not and further start the whole
process again. With that manager can find that weather the alternative have been given proper
time for implementation or the alternative can be executed in other way.
1 (b) Different tools that are required when implementing the model of decision making and the
concise description of the models.
There are different models that are used when the organisation is selecting the best
alternative or going through the process of decision making. In order to implement the model in
the venture in order to solve the problem, organisation will be needed different tools so that
execution can be done effectively and efficiently. The tools are as follows:
 Decision matrix: It is the matrix which is being used to analyse the different alternative
which are available for the decision to solve the problem or implement change in the
venture. There are several factors that are considered when the venture is going to select
the alternative (Groeneveld and Liebelt, 2017). A table is being created in that different
alternative are being written in the first column and all the factors which affect the
decision are written in the first row. As per the importance, decision maker give the
weight and score to the each option. Further, sum total of each factors is being done and
the factor which the highest score will be selected. This is very much effective tool which
is being used when the manager or decision maker while evaluating the different
alternative.
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Illustration 2: Decision matrix
(Source: Decision matrix, 2016)
From this image, it has been analysed that different solution or alternative have been
written in the rows and the factors which affect the decision making is being written in the
column. Each solution has been given score as per the different factors and score total is being
done in order to find the alternative which have the highest weight. The factor which have the
highest weight will be selected by the manager in order to find the solution (Ferré, 2017). This
tool is very much effective when the organisation have very many options to solve the problem,
when there are significant number of criteria that are 6 to 15 and the organisation want quick
consensus.
 T-Chart: This tool is very much effective tool in evaluating the different alternative on
the basis of their advantages and disadvantages. This chart is used when weighing the
pluses and minuses of the options. When the firm is finding the pros and cons then they
will be very much successful while selecting and implementing the alternative. This is
because decision maker will always try to select those alternative which have more
advantages and fewer disadvantages.
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Illustration 3: T-Chart
(Source: T-Chart. 2016)
From this image, it can be observed that decision maker tries to find the different pros
and cons which are associated with the each alternative. This will help him or her to analyse all
the choices effectively so that appropriate decision can be made.
 Decision tree: In this method, decision maker create relationship between each
alternative and their outcome. He or she finds the consequences of the alternative which
are going to take place when they are implementing the alternative. This will helps them
to find the future outcome in the present by which they can implement different strategics
to certain the future environment (Voskuilen and McKoon, 2017). Other than that there
are several statistical tools that are used by the venture in order evaluate the different
alternative such as co-relation, regression etc. These are the tools which is very much
effective in finding which alternative gives the highest advantage.
 Multivoting: This is the tool which is applicable when there are lost of people involve in
decision making. When group decision is made, there are lots of alternatives being
collected. This is because every individual have their own thinking, perception etc and
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this is the reason they provide different choices to make the decision. In such case this
tools helps in laying down the different options into smaller one so that one alternative is
being selected. This tool is applicable when the organisation have various alternative and
they are confused while selecting the best of when there are large people involve in the
decision making.
 Pareto analysis: This is the tool used when the venture need to take the different
decision at the single point of time. Such as at a single point of time, firm need to reduce
the employee turnover, motivate employees, providing training and development to the
employees in order to adopt new technology. In such case this, tool is being used by the
venture so that they can find the different strategics to solve the different issues of their
business (Fahimnia and Farahani, 2017). The way by which this tool is being
implemented that is creating priorities. Firm give first priority to those problems which is
very much significant for the venture and the second to those which are less significant.
By this way, organisation make the decision in effective and efficient manner.
 Cost-benefit analysis: It is being known that there are several factors that have great
impact over the decision making. One of the important factor is financial resources and
expenses made on selection and implementation of the alternative. Organisation finds the
different choices and give the weight as per the expenses made on that and then select the
alternative which is less expensive (Salas and Martin, 2017). This is the tool which make
the decision on the basis of economic factor.
 Conjoint analysis: This the tool which is mostly used by the marketing department of
the organisation. This is because most of the time, they try to find preferences of the
customers in order to make the decision. There are several factors that are included in
marketing such as product, price, place and promotion etc. While making decision for
each of this factor, firm need to identify the taste and preferences of the customers. There
are several alternatives for making such decision. Thus, it is significant for the venture to
collect all the information about the customers and then select the best alternative.
 SWOT analysis: Strength, weakness, opportunities and threats are the tools which are
used for planning the different activities and operations. When the organisation is finding
their strength and weakness, it will help them find that what are their capability and
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willing and where they are lacking behind. Other than that they can find that weather
they are able to implement the alternative or not. On the other hand, when opportunities
and threats are identified they able to find that where they can grow and what can
become the barriers while implementation of alternative (Huk and Yates, 2017). These
factors can helps the manager to find which alternative will be best where they can use
their strategics and grab the opportunities.
 PESTLE analysis: Political, social, technological, legal and environmental are the
factors which can helps the venture to implement alternative or can become the barriers
while the firm is executed its selected alternative. Political factors consist different laws
and regulation made by government, social consist taste, preferences, needs and wants of
the customers etc. When the firm is evaluating the alternative they need to do PESTLE
analysis so that they can find that what will be the factors which they need to be
considered while implementing the alternative.
Implementation of tool and models of decision making
Classical model of decision making is the way by which decision maker of manager
make the rational decision and select those alternative which is more beneficial of the
organisation. The process start with the listing those alternative which are available to them.
When the venture do not have lack of time and resources and continuing to find the alternative
until unless it does not serve the maximum alternative. Second step is ranking listed alternative
as per the requirement of organisation. It is being done by prioritising the alternative as per the
benefits served to the organisation. The final stage is selecting the best alternative which can
maximise the utility of the organisation (Xu and Wang, 2017). On the other hand when the
rational decision making model is being used then also different steps have been followed. For
example firm want to select the best marketing strategy which can helps in attracting and
retaining large number of customers. Now the firm need to identify the different alternative
which can helps them to market their product effectively and efficiently. The decision making
models which is being used to select the marketing strategies to market the products and services
of the organisation are as follows:
Stage 1: Recognising the need of decision making and listing the available alternative
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The firm first need to find that why they are going to make the decision and what
problem they are facing. Such as sales of the venture have been increasing day by day due to
effective selection and implementation of strategics for marketing the products and services. The
key problem of the organisation is select the best marketing strategics which helps the venture to
market their products and services in economical manner (Hoelscher and Day, 2017). The firm
wants them to market their products and services at the fewer expenses and able to create and
retain large customers. There are several strategies by which firm can market their products and
services which firm need to be evaluated, that are as follows:
Digital marketing: It is the way by which organisation market their products and services with
the help of online platforms. In simple words it can be said that it is the way by which
organisation create awareness and sell their products and services with the help of digital
technologies such as internet, display advertisements etc. There are several modes of digital
marketing that are search engine optimization, pay per click, search engine marketing, content
marketing, influencer marketing, content automation, campaign marketing, data-driven
marketing, e-commerce marketing, social media marketing, social media optimization, e-mail
direct marketing, display advertising, e–books, optical disks etc.
Social media marketing: It is also one of the effective way by which organisation can market
their products and services. Social media advertisements is the way by which venture can
promote their goods and services with the help of social platforms such as Facebook, Instagram,
Twitter, Pinterest etc.
Sales promotion: It is the strategy by which firm serve the promotion to the customers so that
they can be attracted such as discount, samples, coupons etc. it is also one of the effectively
strategy to attract those customers who are waiting for the promotions (Groeneveld and Liebelt,
2017)
Advertisements: When the venture want to create awareness to the mass people, then this is one
of the effective strategy. The ways by which advertisements is being made that are TV, radio
advertisement, holdings etc.
This is the way by which organisation collect the different alternative from which they
select one in order to attain their objective. Other than that information will be collected from the
internal and external sources. Internal sources are those where the decision marker collect the
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information within the venture. Whereas external sources are the source where the information is
being collected outside the organisation.
Stage 2: Evaluation of alternative
The model of decision making is based on assumptions that managers should make
logical decisions that will be in the organization's best economic interests. The three assumptions
included that are the decision maker operates to accomplish goals that are known and agreed
upon, the decision maker strives for conditions of certainty, gathering complete information,
criteria for evaluating alternatives are known and the decision maker is rational and uses logic to
assign values, order preferences, evaluate alternatives, and make the decision to maximize goals.
Here the organisation want to select the best alternative which helps them to attract and retain
with the help of effective marketing strategy (Ferré, 2017). Evaluation of the alternative can be
done with the help of different tools such as decision matrix, t-chart, decision tree, multivoting,
pareto analysis, cost-benefit analysis, conjoint analysis, swot analysis, pestle analysis etc. in
order to analyse the different alternative that are available to the organisation for marketing their
products and services that is decision matrix and t-chart.
Alternative and
factors
Cost Time Resources Sum total
Alternative 1: Digital
marketing
2 3 4 9
Alternative 2: Social
media marketing
3 2 5 10
Alternative 3: Sales
promotion:
5 4 5 14
Alternative 4:
Advertisements
6 3 1 10
Alternative 2
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Pros Cons
Highly interactive High cost involved
Effective to attract mass people who are active
at social media
Can create negative image
Feedback can be easily collected
Alternative 3
Pros Cons
Can attract and retain large customers Average cost involved
More effective for those customers who want
to purchase the products and services of the
brand
Can create negative image
From the decision matrix analysis, firm have founded two alternative very much effective
which are achieving the aim and objectives of the venture that are sale promotion and social
media marketing. As the firm want to market their products and services at economical cost both
of the alternative are effective.
Stage 3: Selection of alternative
As the analysis of the different alternatives have been analysed and evaluated by the
organisation, they need to select one which can be implemented to solve the problem. Every
organisation have their aim and objectives, on the basis of same, they need to select the choice.
Such as key objective of marketing is to use those strategies which are effective and economical
(Voskuilen and McKoon, 2017). In order to achieve the objective of organisation, they have to
select the best alternative that is sales promotion.
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2 (a) Decision making model for reducing the employee turnover in the organisation.
It is very significant for the organisation to reduce employee turnover, this is because it
has very adverse impact on the business. Such as reduce the brand image of venture in the eye of
different stakeholders, enhance the cost of recruitment and training, reduce productivity and
profitability of the organisation etc. Thus, firm should focus on the different strategies by which
they can reduce the employee turnover of organisation and able to retain employees. The model
which the firm use is rational decision making model which helps the manager to take the
rational decision by which aim and objectives of the company can be achieved. There are
different steps that the manager and decision maker need to follow to reduce the employee
turnover.
Stage 1: Defining and recognizing the decision situation
This is the first stage of the rational decision making is finding the reason by the decision
need to be made. Firm calculate their employee turnover at every quarter in order to find that
weather the rate have been increasing or decreasing. Here the firm have founded that employee
turnover have been increasing day by day and it is hampering the performance of the
organisation (Fahimnia and Farahani, 2017). This is the reason firm have founded that they need
to take the different steps to solve the problem and reduce the employee turnover in the firm.
Stage 2: List the different alternatives
As the firm have founded that they need to reduce their employee turnover, they start
finding that what are the different reason the employees are leaving the organisation and find the
different strategies by which they can retain employees. In this stage firm find that what are the
different reason employees are leaving and what are the different alternatives to solve the
problem. The reason for increasing employee turnover in the venture, are as follows:
As employees are back bone of any organisation, all productivity and business growth is
dependent upon their performance. But some time due to some issues and problems workers
leave the organisation (Salas and Martin, 2017). These issues and problems decrease the
productivity and growth of business within the corporation. Some major reason of employee turn
over as following
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 Poor management: this is one of the big reason of this problem this is because when
management of any firm are not able to satisfy their employees with their decision and
structure then they can not enhance their performance. Some time management does not
involve the point of views of their workers and this can cause the high employee turn
over within the firm.
 Lack of motivation: this is another major reason of employee turn over. Because due to
lack of trainings and development high workers are not able to use new techniques and
they feel work pressure at the business environment. So every organisation has
responsibilities to offer trainings and development to their workers (Huk and Yates,
2017).
 Pay-scale: corporation have to assign the same pay-scale for candidates. Management
should not do any parochiality. Moreover, the another reason is that when workers are
not get the work and task according to their qualification and interest then they prefer to
leave the organisation and go with another firm.
 Lack of facilities and other activities: sometime workers feel bored form the same
tasks and schedule. Corporation have to offer different activities and program to motivate
the clients.
 Lack of reward system: due to lack of reward and increment, workers leave the firms.
Due to lack of reward system and increment in the salary, Employees not feel valuable at
the business environment and they leave the enterprise (Xu and Wang, 2017).
 Lack of leadership: this is another big reason this is because when leader is not able to
direct and guide the employees then employees feel work pressure and they chose the
quite options.
Different alternatives to reduce the employee turnover in the organisation
 Proper recruitment: Primary task of human resource management is to find those
candidates who are willing and interested to wok for the organisation for the long
periods. It is very much essential to reduce the different aspects such as conflict,
additional demands, employee turnover etc. if the firm want that employee do not leave
the company, then find those candidates who are responsible to work effectively.
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 Different benefits other than salary: It is being known that salary is important for the
venture but other monetary and non- monetary benefits also plays significant role. Most
of the employees get motivated to work for the venture with the additional benefits and
this is the reason they stay long in the venture.
 Serve respect and enhance involvement: When the employees feels that they are
important for the organisation and firm thinks for their benefits and growth, then they
work for the organisation for long period. Thus, firm should involve employees and
respect them.
 Proper training and development: At every point of change and learning, employees
need training. This helps them to implement change. If training is not given then they
will get demotivated and leave the venture (Hoelscher and Day, 2017).
Stage 3: Evaluation and Selecting of alternative
There are different tools which can be used by the venture to analyse the different
alternative such as decision matrix, t-chart, decision tree, multivoting, pareto analysis, cost-
benefit analysis, conjoint analysis, swot analysis, pestle analysis etc. This stage plays very
significant role (Groeneveld and Liebelt, 2017). On the basis of evaluation, effective alternative
is being selected. Firm have used decision matrix to analyse the alternatives.
Alternative and
factors
Cost Time Resources Sum total
Alternative 1: Proper
recruitment:
2 3 4 9
Alternative 2:
Different benefits
other than salary
3 2 5 10
Alternative 3: Proper
training and
5 4 5 14
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development
Alternative 4:Serve
respect and enhance
involvement
6 3 1 10
After analysing the alternatives with the different factors, the alternative 3 have been had
scored more. The firm have selected training and development to reduce the employee turnover.
Stage 5: Implementation the best alternative
It is one of the important stage of the decision making and solving the problem. If the
implementation is not taking place effectively then whole process of decision making will fail.
Thus, the firm have started arranging the different programs for the employees so that they work
in motivated manner and reduce the employee turnover.
Impact on the different factors
Human development impact
This is one of the important aspect who implement the decision made by the
organisation. They are only one who are responsible for implementing change in the venture.
When the venture is implementing some decision, they arrange or organise some training and
development programs for the employees and this will enhance their skills and knowledge.
When the venture is facing employee turnover problem, they have selected to organise training
and development to reduce the same problems. The impact of this decision will be on
employees, they become more skills and capable to work effectively.
Technology alignment
When the organisation is implementing change or any decision, they need new resources
which can be in the terms of technology. When the firm implement new technology, it will
enhance the working quality of the organisation.
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2 (B) Reflective
I have learned from the project report that there are different models that can be used by
the organisation in making the decision and solving the problem. I have learned that firm first
need to find the different reason for which they are going to take the decision. Then they need to
collect the different alternatives which helps them to solve the problem. Further, organisation
need to analyse and evaluate the different alternative so that best one can be selected. And at last
the alternative need to be implemented in effectively manner so that decision making process
can be executed and purpose of making decision can be solves. Other than that i have learned
that there are different reason for which employee turnover can be increased such as poor
management, lack of motivation, pay-scale, lack of facilities and other activities, lack of reward
system, lack of leadership. With that I have learned that there are several strategies by which
organisation can reduce the employee turnover such as training and development given to the
employees, fair treatment and proper involvement etc. if I will be facing any situation like this,
then I would select training and employee involvement to solve the problem and retaining
employees in the organisation.
CONCLUSION
It can be concluded from the project report that decision making models plays very
significant role in selecting the best alternative in solving the problem (Ferré, 2017). There are
different models of decision making such as rational decision making, Classical model of
decision-making etc. it is very significant that manager or decision maker take such decision
which serve gathered advantages to the organisation.
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