Decision-Making in Organizations: Business Decision Analytics Report

This report delves into the critical role of decision-making in organizational success, focusing on Torrens University as a case study. It examines various aspects of decision-making, including individual and group approaches, highlighting the benefits of group decision-making. The report explores the application of business analytics, emphasizing its importance in leveraging data for informed choices, and discusses the influence of biases on decision-making, providing strategies to overcome them. Furthermore, it analyzes several decision-making tools, such as market research, decision matrices, and Pareto analysis, and recommends a combination of these tools based on the specific decision context. The study employs an empirical approach augmented by an explanatory research design, offering valuable insights into enhancing decision-making processes within organizations.

Running head: DECISION-MAKING
Business Decision Analytics
Student’s Name:
Institution:

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Table of Contents
Executive Summary.........................................................................................................................3
1.0 Introduction................................................................................................................................3
2.0 The Organization-the Problem..................................................................................................4
3.0 The Research Question..............................................................................................................4
4.0 The Decision Making Framework.............................................................................................5
4.1 Individual and Group Decision-Making................................................................................5
4.2 Business analytics..................................................................................................................6
4.2.1 Usage of Data Analytics..................................................................................................6
4.3 Influence of Bias in Effective Decision-Making...................................................................6
4.3.1 Ways to Overcome Biases for Better Decisions.............................................................7
4.4 Tools for Decision Making....................................................................................................8
4.4.1 Market Research..............................................................................................................9
4.4.2 Decision Matrix...............................................................................................................9
4.4.3 Pareto Analysis..............................................................................................................10
5.0 Methods...................................................................................................................................11
6.0 Discussion................................................................................................................................11
7.0 Recommendation.....................................................................................................................12
8.0 Conclusion...............................................................................................................................13
References......................................................................................................................................14

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Executive Summary
In every business, the decision is critical for competition. Many organizations encounter
problems in making the best decisions. In order to solve this, the research concentrated on
looking at the best decision-making approach in Torrens University, the uses of data analytics in
an organization, the influence of bias in effective decision making and the importance of
decision-making tools with the aim of settling at three tools used in decision making. The
empirical approach is employed augmented by explanatory research design. It is established and
recommended that the best method to use in decision-making is group decision making, data
analytics play a big role in making good decisions, and biases are crucial in arriving at solid
decisions. Additionally, there are many decision-making tools to be employed in making a
proper decision. The investigation examines the research method, decision matrix, and Pareto
matrix. The choices of these tools depend on the need and the type of decision. Many tools can
be combined to come up with valid decisions.
1.0 Introduction
In modern management, decision-making has become an integral component where
rationality is the function of administration. People under control come up with decisions either
subconsciously or consciously and in most cases meet a dead end which makes many firms fail
to compete. In the competitive market, the business strives to come up with the best choices that
put their business in the limelight of success. Even though this is the case, many organizations
face challenges of getting the best choices among the alternatives. It is with this view that the
investigation strives to come up with the solution of ensuring that an organization arrives at best
choices. A number of deliverables get considered though empirical and explanatory research.

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2.0 The Organization-the Problem
Decisions play an essential role in the success of an organization and success depend on
how the decisions are realized so that there are quality and in-line with the company’s aims and
objectives. The problem that rises is that there are many corporations small and big face the issue
of getting the best quality decisions for the betterment of their businesses. The research is based
on Torrens University and the reason for selected the study area is that decisions making
processes take place. The researcher found it good to carry out the investigation so that the
findings established will be used for improving decision making procedures at the University.
The research is going to examining decision making through the lens of empirical investigation
where explanatory design gets employed. Since this is a wide area, for simplicity and
comprehension, the researcher detailed the research questions that we strive to unearth the
solution for better decision-making approaches in organizations. The literature on individual and
group decision-making, business analytics, the influence of bias in effective decision-making,
and tools for decision making is done, methods of answering the research questions get
elucidated, make discussion, recommendations and in the end give a conclusion.
3.0 The Research Question
1. What is the best decision making approach in the organization
2. What are the uses of data analytics in the organization?
3. What is the Influence of bias in effective decision making?
4. What is the importance of decision making tools?

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4.0 The Decision Making Framework
In this section, the research investigates literature concerning individual and group
decision-making, business analytics, the influence of bias ineffective decision-making, and tools
for decision making.
4.1 Individual and Group Decision-Making
Individual decision making is decisions made by an individual with exploitations of own
critical thinking and intuitions. The whole process is done by one person (Dong et al., 2018). The
benefits of individual decision making are that is very fast as it does not require any form of
communication, no scheduling of meetings. Prompt decisions get realized, saves time, money
and energy owing to the fact that it is logical and made fast (Xu, & Wang, 2016).
Irrespective of this, decisions made are not better because of the time taken to make, and
hence no provision of complete information. Thus it gives group decision making some benefits
(Kochenderfer, 2015). Besides making complete decisions, group decision making combines the
views of many and hence better decisions. Also, there is the discovery of talents in a group,
competencies discovered in people within the group, and the interest of all members in the group
is put in consideration and there is synthesis (Thompson, 2017).
Parkss (2018) posits that the decisions from a group are ‘Big-bet’ and therefore not
reversible owing to the accumulation of small decisions over and overs so as to come up with a
complete overall decision in the end. They involve different experts, level of positions and
multifaceted cultural settings (Dong et al., 2018).

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4.2 Business analytics
4.2.1 Usage of Data Analytics
Data analytics is useful in the management of people in numerous associations. Among
the various assets that make up a business, the human asset matters the most (Gandomi, &
Haider, 2015) and the accomplishment of organizations fundamentally relies on its productivity.
Information bits of knowledge and investigation has made it feasible for some organizations to
distinguish, enroll, and advance gifted workers (Akter, & Wamba, 2016).
Moreover, it causes organizations to put in place sound strategies for managing
customers. It is because clients are the most significant resources for the business (Wren et al.,
2015); without appropriate management of customers and without examining at their worries, a
business will not succeed (Phillips-Wren et al., 2015. Data is an essential element in
organizations in deciding how their clients feel about the company in terms of services and
management (Günther et al., 2017). Among these, other uses of data analysis in an organization
are for settling on choices concerning product development, assembling of items, and utilized by
producers to oversee wastes (Verhoef, Kooge, & Walk 2016).
4.3 Influence of Bias in Effective Decision-Making
Data bias is an inclination to a particular point of view making other alternatives
inappropriate is analysis. The Influence of biases in decision making is that decision will never
be as per the set goals as they lead to the inclination of the decision made based on preferences
or own personal goals. The results are a decision that will not propel the organization. If it is
research biased will give a conclusion that is not valid and cannot be generalized as a whole for
the subject matter. Despite the fact that biases can be detrimental to the organization, there are

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other sides of positivity in bias and in this regard, decision-making biases that are essential get
elucidated (Frederiks, Stenner, & Hobman, 2015).
Confirmation Bias: This is favoring data that affirms the already existing convictions. For
instance, people tend to align with particular news channels and select data that fits with what
they have effectively chosen before. It gives a person room to choose which data to consider in
settling on a choice dependent on whether it concurs with existing convictions.
Anchoring Bias: This is concentrating intensely on one part of the choices that could
conceivably the primary factor to a decision reached.
Self-confidence Bias: It is having excessive confidence in action like for instance being sure of
what outcome is even though there is no solid proof. It gives self-assurance in choices.
When all these biases are put together, they assist in making fast decisions, however, the
decisions made might not be necessarily better. Even if biasing is not employed, the process of
decision-making become so laborious and consumes a lot of time.
4.3.1 Ways to Overcome Biases for Better Decisions
Paying attention to the internal environment: It is established that the power of the mindfulness
together with dynamic relates to the making of the decision. When in the process of making
decisions and under some form of influence, then it is not advisable to carry on with decision
making. There is a need to take a pause, relax and get the mind composed. It is established that
decisions made while under duress result in bad decisions (Brighton, & Gigerenzer, 2015).
Relational Impact: There is needed to take into consideration the impact of target setting. This
requires the examination of other decisions so that the mindfulness of others in the ways and
hence the practice of mindfulness. Decisions made to causes other suffer may not be the best
decisions. Therefore there is a need for rationality in decision making (Saposnik et al., 2016)

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Rational Analysis: There is a need to undertake a rational analysis to come up with a decision.
While instinct plays a role in settling on better choices, there is need to check whether there are
any genuine perceptions that can be made, give the discerning mind a few information in order to
rapidly re-frame and practice the basic leadership. From that point, if one can't settle on a choice,
one needs to investigate further for more information or search for some other fundamental data
about choice (Saposnik et al., 2016).
Outsider Perspective: The use of credible sources is another way of enabling one to come up
with decisions. It is prudent to look at the past work done by others and that their work has to be
credible so as to increase the credibility of the decisions to be made in the organization
(Brighton, & Gigerenzer, 2015).
Reflect on the past: Examining the past history of decision-making history, and see whether you
have encountered a situation like in the past, check the similarities and differences, what was
made, what influences the choices, and how the decisions were made. Through this, informed
way of making the decision is arrived at for better results (Saposnik et al., 2016).
4.4 Tools for Decision Making
There are a large number of methods that business people can use to take up a choice. In
any case, it is critical to take note that while a specific method may work in one association, it
might not be applicable in another. An entire scope of components has to be put into thought
before utilizing a particular method. There are cases where one establishes that consolidating a
few methods become a perfect circumstance. For the purpose of the investigation, three tools are
analyzed.

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4.4.1 Market Research
Marketing research is a fundamental device, particularly when there is a need for
gathering the data before coming to a choice. The tool entails, for example, the investigation of
the potential clients, condition of the market and the challenge in the market among others. It is a
vital instrument, employed by most business people to settle on the correct choice (Mooi,
Sarstedt, & Mooi-Reci, 2018).
4.4.2 Decision Matrix
With this instrument, one will basically investigate all options of a specific component. It
enables one to go through all the choices and the elements that influence each choice. One can
utilize an examination with the goal that one can locate the best alternative to help in basic
leadership. This is a standout amongst the most basic tools for most associations as help uncover
the best methodology and choices to take (Uygun, & Dede, 2016). The example of the matrix is
illustrated below.
Decision matrix

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4.4.3 Pareto Analysis
It is employed when organization have many decisions that need to be made. The choices
are slanted towards the prioritization in that 20% of the variables that add to 80% of the
association's development will be taken first with priority. This is done by giving the decisions
that have the largest amount of effect high priority (Kramp et al., 2016). The example of the
matrix is given below.
Pareto Matrix
In conclusion, there are such a large number of different instruments that can be utilized
by associations to encourage compelling decisions. As referenced before, there might be
occurrences where one may need to consolidate various procedures with the goal of
accomplishing the best outcomes for the association. It is imperative to scrutinize each choice to
be taken logically in order to guarantee that the organization is accomplishing the set goals.

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5.0 Methods
The empirical method gets employed in the investigation because it allows the use of past
experiences to be employed. In this case, secondary data get analyzed from past literature and
quantitatively analyzed. Through this we are able to answer the research questions and deduce
the best decision-making approach in an organization, get to know the uses of data analytics in
an organization, the Influence of bias in effective decision making, and the importance of
decision-making tools (Bell, Bryman, & Harley, 2018).
6.0 Discussion
The benefits of individual decision making are that is very fast as it does not require any
form of communication, no scheduling of meetings. Prompt decisions get realized, saves time,
money and energy owing to the fact that it is logical and made fast. However, group decision
making combines the views of many and hence better decisions, the discovery of talents in a
group, put all interests of members together and irreversible.
Data analytics activities have the power to enable organizations to build incomes,
improve operational proficiency. Data analytics is useful in the management of people in
numerous associations. Moreover, it causes organizations to put in place sound strategies for
managing customers.
Even through bias in decision making is thought to result in inclination towards one side,
when different biases are put together, they assist in making fast decisions, save time and make
decision-making faster. However, the decisions made might not be necessarily better. In order to
get better results, biases get overcome by paying attention to the internal environment, using
relational impact, rational analysis, outsider perspective and reflecting on the past.

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There are such a large number of different decision-making tools that can be utilized by
associations to encourage compelling leadership. As referenced before, there might be
occurrences where one may need to consolidate various procedures with the goal of
accomplishing the best outcomes for the association. Marketing research is a fundamental
device, particularly when there is a need for gathering the data before coming to a choice.
Decision matric is a standout amongst the most basic tools for most associations as help uncover
the best methodology and choices to take and Pareto analysis be employed when an organization
has many decisions that need to be made.
7.0 Recommendation
In order for the organization to come up with the best decisions, there is a need to use
group decision-making approach. It combines all views of many, gives better decisions, the
discovery of talents in a group and irreversible.
Organizations have to utilize data analytics activities because these techniques have the
power to build incomes and improve the operational proficiency of every establishment.
Moreover, it causes organizations to put in place sound strategies for managing customers.
It is established that biases are useful when putting together. It assists in making fast
decisions, save time and make decision-making faster and is possible by paying attention to the
internal environment, using relational impact, rational analysis, outsider perspective and
reflecting on the past.
Irrespective of the fact that a large number of different instruments that can be utilized, it
is advisable to consolidate various tools but not all with the goal of accomplishing the best
decisions for the association.

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8.0 Conclusion
In doing the investigation, I have learned that there are different options that are available
for the decision-making process and that one is able to choose from the many and apply for the
benefit of the organization. Also, I have learned that biases are beneficial in the decision-making
process and that one needs to know the ways of overcoming these biases. Moreover, I have
learned that group decision making is best as opposed to individual decision making.

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