MGMT6002 Business Decision Analysis Report: Petrobras Case Study

This report offers a comprehensive analysis of decision-making processes, tools, and techniques, using the Petrobras corruption scandal as a case study. The report explores various aspects of decision-making, including the application of MBTI tests, decision-making matrices, and Pugh's matrix to analy...Read More

Running head: MANAGEMENT
Business decision analytics
Name of the student:
Name of the university:
Author note:

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Executive summary
This assignment is a reflective report on the decision making approaches towards the
challenge of political corruption scandals prevailing in oil and gas company, Petrobras,
Brazil. Team work was conducted for exploring the trends and patterns towards the decision
making process. Case studies acted assistance in enhancing the awareness about the political
scandals of corruption. Dimensional, analytical and compound analysis forms the main
sources of making decisions in the workplace of Torrens University. Along with this,
secondary data was used for enhancing the familiarity with the problems and the solutions.
The tools and techniques considered are MBTI tests, decision making matrix, Pugh’s matrix,
creativity and innovation.
Governance and compliance programs are apt for Petrobras in terms of enhancing the
standards and quality of the operations to that of the ethical code of conduct. Alternatives can
expand the scope and arena of the business, attracting more and more clients and customers.

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Table of contents
Introduction................................................................................................................................3
Sources of data...........................................................................................................................3
Trends and patterns forming the evidence of decision-making.................................................4
Patterns of decision making.......................................................................................................4
Decision making process........................................................................................................5
Cause and effect diagram.......................................................................................................6
Findings......................................................................................................................................7
Milestones..............................................................................................................................7
Group decision making..........................................................................................................7
External influences.................................................................................................................8
Biases.....................................................................................................................................8
Decision making matrix.........................................................................................................8
Recommendations......................................................................................................................9
Bibliography.............................................................................................................................11
Appendices...............................................................................................................................12

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Introduction
Decision making process is one of the crucial stages, which determines the growth
and development. Making use of the appropriate tools and techniques for decision making
drives the individuals towards their mental growth (Ben-Zur, 1998). I think that tactful
approach in dealing with the issues and challenges helps in enhancing the learning style and
process. Group discussions are a typical exemplar, which depicts the different approaches
towards decision making (Lerner et al., 2015). This assignment attempts to shed light on the
perspectives of the students of Torrens University, towards undertaking decisions for
overcoming the challenges. The main focus is on displaying the perspective of a consultant
for finding solutions towards corruption scandals in Petrobras. Conscious approach towards
following the dynamics helps in achieving positive outcomes. I felt that evaluation helps in
making the necessary modifications towards accomplishing the goals.
Sources of data
In the first minute meeting, our agenda topic was application of the decision making
systems and techniques on the challenges, which the companies and organizations encounter
while executing their operations. In this context, the steps, which were followed were
selection of the modes of communication, allocation of the tasks, upgrading the information
on the scenario, project plan and meetings. One of the crucial activities in this meeting was
the formation of research questions and Group Diversity Chart. I felt that this chart acted
assistance for the managers to keep track of the personal information of the team members. In
the second minute meeting, we had face to face discussions, which helped in discussing about
the Petrobras’ challenge for addressing the political corruption scandals taking place in
Brazil. It is at this stage, that we were acquainted with the various tools and techniques for
overcoming the challenges through strategic approach. Here, one of the steps, which I think
was crucial is that of responsibility allocation.

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In the next minute meeting, tasks allocation was completed for each of the team
member, who were asked to propose strategies for overcoming the identified challenge. We
were also taught about the application of the decision making tools and techniques. The
fourth minute meeting comprised of lectures on the review process for the proposed tools and
techniques followed by evaluation for selecting the appropriate strategies, relevant to the case
study and the challenge.
Trends and patterns forming the evidence of decision-
making
After going through the team work on decision making, I have found that rationality
and quantification are the latest trends. Affirming the arguments of Making, (2015),
rationality is the extent to which decisions are undertaken through the assessment of the
extent to which the decisions align with the concept of social wellbeing. On the contrary,
quantification is the process, where quantity is considered to be one of the crucial elements in
the human thought process.
Rationality
Feedback
Fig: Correlation between rationality and quantification
(Source: Mankelwicz & Kitahara, 2010)
Degree of
Quantification Performance
Moderators

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In the process of evaluation, I have found that greater the value of the quantification,
more is the rationality. Further, rational approach in the decision making process enhances
our performance in the workplace.
Patterns of decision making
Engaging in team work has helped me to gain an insight into the dimensional and
compound pattern decision model, which help in undertaking the decisions in an efficient
and effective manner. In case of the dimensional comprehensive analysis model, I have found
that it is slow, complex yet controlled, where adequate availability of the resources is a
motivation for achieving effective solution for the new problems and challenges. On the other
hand, Rezaei, (2015) states that dimensional analysis model is fast, simple and controlled,
where experience, cognitive strain and inadequate resources are the typical components. In
case of the compound pattern, intensive training helps in overcoming the extensive threats.
Here, there is no requirement of any kind of resource.
Decision making process
In the first week, the integration was small, as it consisted of commitment of the team
members, loyalty and commitment. I think meeting proved beneficial for identifying the
purpose, orientation, goals and objectives. In this, consideration of the limitations was a
tactful approach. In this stage, we applied SWOT analysis for enhancing the preconceived
skills, expertise and knowledge on the identified challenge of political scandals going on in
Brazil. We also implemented the feasibility study for assessing the extent to which the
proposed solutions and decisions are feasible in terms of the workplace environment. This
study helped us in assessing our capability towards overcoming the challenge.
At this stage, we were asked to propose solutions for the ways and means for
resolving the challenges. Brainstorming sessions were organized, where options were
collected. These options were as follows:

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 Option 1- Compilation of the test results from MBTI and Belbin
 Option 2- Identification of the gaps and capabilities
 Option 3- Identification of strategies for compensating the gaps
I also found that alternatives are one of the important step of the decision making process.
Here, I can bring in problem solving cycle, which is accounted as a strategic approach
towards undertaking the decisions. This is according to the compliance with seven stages,
which are:
 Creating a constructive environment
 Investigation of the situation of political corruption scandals
 Consideration of good alternatives
 Exploration of the available options
 Selection of the best option
 Evaluation of the plan
 Communication of the decision for taking the necessary action
Cause and effect diagram
I felt that this is one of the important techniques assisting in the process of decision
making. This analysis is effective for us in terms of exposing measured approach in the
operations for the achievement of positive outcomes. In this tool, the important components
are the machines, method, materials, man power and measurement. In our case, internet
search about the political corruption scandals in Brazil in team work helped in gaining an
insight into the ways and means of achieving the effective solutions. I felt that explorative
research proved assistance in terms of proposing relevant conclusions and recommendations.
In the process of evaluation, I felt MBTI and Belbin test results were effective in
terms of gaining an insight into the capability of the team members.

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Ishanpreet Rafael Rupinder Saiteja Diana Achala
MBTI
Executive Advocator Logistician Adventure Defender Defender
Dedicate,
Strong-willed,
Direct and
honest,
Creative,
imagination,
sensitivity,
Soft-spoken
Integrity,
Fast based
mind,
Self-
sufficiency,
honest
Imaginative,
Sensitive to
others,
charming
Kindness,
Generous,
Supportive,
Reliable
Enthusiastic,
Observant,
Reliable,
patient
BELBIN TEST Innovator
17%
Executive
22%
Team
Player
17%
Innovator
17%
Executive
17%
Driver
19%
Imagination,
Investigator,
Communicator,
creative
Organizer,
Systematic,
Practical,
efficient
Caring,
Friendly,
Diplomatic,
Team
cohesion
Imagination,
Investigator,
Communicator,
creative
Organizer,
Systematic,
Practical,
efficient
Ambitious,
Energetic,
Strong
motivator,
emotional
According to the table, diversity is reflected in the team roles. I think that the gaps
display limitations in the creativity and innovation. Difficulties emerged in presentation of
the ideas.
executive innovator driver chairperson team player expert explorer analysit completer
0
5
10
15
20
25
saiteja rupindeer rafael isha diana achala
Weakness
(Gap)
Capability
Fig: Belbin test results

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Findings
Milestones
The first initiative was the integration of the processes, suppliers and responsibilities.
In this case, the main challenges were overloading of the data, inadequate time and biases in
the thought process. Data overload aggravated the complexities in collecting exact data
regarding the political corruption scandals, which have destroyed the peace and harmony of
Brazil. Team work proved to be effective in selecting the methods for extracting the relevant
data. In this stage, consensus method proved to be beneficial for indulging in debates
regarding the selection of the appropriate means. Indulging in team work proved to be
assistance in gaining an insight into the alternative perspectives. Consensus seemed to be
effective in generating acceptability or rejection towards a particular decision. Conformation
towards the alternatives was avoided in order to avert the risks, which might stall the process
of deducing relevant conclusions.
Group decision making
Group work helped us in conducting search engine optimization for the collecting
data on the research subject. In this process, the skills, knowledge and expertise were
transmitted from one team member to the other, which I felt was important for filling the
knowledge gaps. In this context, I can say that acquisition of Tuckman’s stages of team
development would have been appropriate in terms of selecting the right people for the
achievement of effective solutions. Along with this, Belbin’s team role model would have
been an efficient option for making the employees aware of their role and responsibilities
within the team. I can cite the instances of differentiation of opinion, which resulted in
conflicts, degrading the stability in the professional relations.

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Considering the arguments of Saaty, (2016), I can say that adopting Drexler and
Sibbet Model of Team Performance is effective for gaining an insight into consultation,
consensus and democratic means of group formation process.
External influences
My past experiences in decision making had not been productive. I took the assistance
of the decision making tools and risk assessment for upgrading the standards and quality of
decision making thought processes. In the current case, I encountered challenges in the form
of deviations, delays and conflicts, which compelled me to deviate from the original role. In
this case, I can apply the condition of bounded rationality while exercising the options and
choices. I also experienced resistances towards blindly accepting the facts, which are
available.
Biases
Cognitive biases adversely affect the decision making process. In this, Mankelwicz
and Kitahara, (2010) states that the reliance is on the observations and the past knowledge.
Garbage can finds its applicability here, as the doubtful data needs to be eliminated at this
instance. I felt that influence generates poor choice. However, cognitive choices assist the
individuals to make effective choices through the consideration of heuristics.

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Decision making matrix
In the implementation process, I found that decision making matrix seemed to be
effective in terms of providing alternatives to the proposed resolutions and decisions. These
alternatives was needed in terms of enhancing our thinking skills and judgmental capabilities.
In this context, I was aware about the consideration of common sense and good judgement,
which are the important traits, enhancing my personality as a decision maker.
Factors Score
Team work 9
Supervisio
n
7
Training 8
According to the matrix, team work achieved the highest score. This, I think is crucial
in terms of executing the project related activities. In contrast to this, supervision and training
is also important, however, team work or group discussions need to be initiated. In this
context, I also applied risk assessment matrix, which seemed to be effective in terms of
mapping the scope and arena through which the operations would venture. According to the
identified factors, discrepancies in the team work attains high value in terms of risks, as it
aggravates the complexities for us in terms of taking unbiased decisions.
Consensus model was appropriate for us in terms of reaching to the mutual
understanding and negotiation. I think this approach was apt for averting the instances of
conflicts, discrimination and harassments. Apart from this, mention can be made of the
creative intuition tool, which helped us to assess the proposed decisions in terms of the
judgments and the ideas. This tool is effective for assessing the compatibility within the
decisions made. Pugh decision making matrix seemed apt for evaluating the decisions on the

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basis of pros and cons of the accepted references. I felt that team work was essential in terms
of deciding which facts are relevant and which needs to be eliminated.
Recommendations
 I think good governance programs are needed for sustaining the interest of the
stakeholders and shareholders. The top level management can indulge in meetings
with the directors for discussing the roles and responsibilities.
 Establishment of a platform in the public and private spheres would be an effective
step for developing agenda and pitch.
 Audits by third parties would act assistance in gaining flexibility in the cases of
income statement, balance sheets and others
 I also felt that Ethical code of conduct is needed for averting the instances of biases
and differentiation of opinions. In this context, rationality and quantification would
seem an important component for adding value to the choices and perspectives.
Revision, audits and evaluation of the prepared policies would be assistance in terms
of detecting the areas, which needs to be modified for undertaking effective and apt
decisions.

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Bibliography
Ben-Zur, H. (1998). Dimensions and Patterns in Decision-making Models and the
Controlled/Automatic Distinction in Human Information Processing. European
Journal of Cognitive Psychology, 10(2), 171–189. [doi:10.1080/713752271]
Lerner, J. S., Li, Y., Valdesolo, P., & Kassam, K. S. (2015). Emotion and decision
making. Annual review of psychology, 66, 799-823. [https://doi.org/10.1146/annurev-
psych-010213-115043]
Making, S. O. D. (2015). Leaders as decision architects. Harvard Business Review.
Mankelwicz, J., & Kitahara, R. (2010). Quantification, rationality, and management
decisions. Journal of Business & Economics Research (JBER), 8(5).
[https://doi.org/10.19030/jber.v8i5.719]
Rezaei, J. (2015). Best-worst multi-criteria decision-making method. Omega, 53, 49-57.
[https://doi.org/10.1016/j.omega.2014.11.009]
Saaty, T. L. (2016). The analytic hierarchy and analytic network processes for the
measurement of intangible criteria and for decision-making. In Multiple criteria
decision analysis (pp. 363-419). Springer, New York, NY. [10.1007/978-1-4939-
3094-4_10]

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Appendices
Appendix 1
Fig: Bain’s model framework for decision making
(Source: Saaty, 2016)
Appendix 2
Decision
Making
Tools
Description Potentials for Application
Decision Matrix
In this decision-making tool a table of
alternatives and factors affecting that
decision is formed and the group
member weigh and allocate the score.
Decision Matrix Analysis helpful
when there is no clear preferred
alternative is available and different
factors need to be considered while
making group decisions.
Pugh Matrix
The Pugh matrix is widely utilized
tool. In this tool of decision making
several alternatives are evaluated
according to their pros and cons
against a reference concept.
This tool helps a team-based process
for alternative identification and
selection.

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Creative-
Intuition Tool
This is an innovative way of decision
making based on experience and
rationale judgement to make fast and
effective decision when multiple ideas
are available.
To assess the compatibility of
decision made through decision
matrix and Pugh matrix tools.