Decision-Making Report: Decision-Making in Organizations

This report delves into the critical role of decision-making within various organizational contexts, emphasizing its significance for managers and strategic planning. It explores the application and importance of decision-making, highlighting its impact on resource optimization, organizational efficiency, and innovation. The report introduces the Simple Multi-Attribute Rating Technique (SMART) as a tool for evaluating alternatives and outlines the process, including identifying decision-makers, alternatives, attributes, and determining weights. A case study involving Southern Industrial Gases and its valve replacement problem is used to illustrate the practical application of the SMART technique, providing a structured approach to problem-solving and decision-making. The report concludes with a discussion of the strengths and limitations of the SMART technique and its sensitivity analysis. This report provides a comprehensive overview of decision-making processes and analytical methods.

Running head: DECISION MAKING
Decision Making
Name of the Student
Name of the University
Author note

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Executive Summary
The report helps in analysing the importance of the decision-making in different kind of
organizations in an effective manner. Decision-making is the crucial kind of task for different
managers in organization along with good analytical and thinking skills. The effective kind of
problem solving requires dogmatic reasoning that helps in solving different issues and applies
judgments to reach to conclusions.
The main aim of the report is to explore along with discuss the position of policymaking
along with logical thinking. This can be attained by using Simple Multi Attribute Rating
Technique to choose and analyse the greatest kind of explanation for outlining decision-
making. The paper helps in focusing on strengths and limitations of the analysis with respects
to the delinquent that has been outlined.

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Table of Contents
Introduction................................................................................................................................4
1. Application and Importance of Decision-Making..................................................................5
1.1 Importance of Decision-Making......................................................................................5
1.1.1 Primary Role of Decision-Making............................................................................5
1.1.2 Optimization of Resources........................................................................................6
1.1.3 Efficiency in Organization........................................................................................6
1.1.4 Innovation and Creativity Improvement...................................................................7
1.2 Application of Decision-Making......................................................................................7
2. Problem Structure.................................................................................................................10
2.1 Outline of decision problem...........................................................................................10
2.2 Five Alternatives and Attributes....................................................................................11
2.2.1 Five Alternatives.....................................................................................................11
2.2.2 Five attributes..........................................................................................................12
3. SMART Technique..............................................................................................................12
3.1 Identifying the key decision makers..............................................................................12
3.2 Identification of different alternate courses of action....................................................13
3.3 Identification of relevant attributes................................................................................14
3.4 Measuring the performance of the alternatives’ attributes........................................16
3.5 Determination of the weights of each attribute.........................................................18
3.6 The Weighted average for each attribute and each alternative..................................19
3.7 Make a provisional decision......................................................................................22

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3.8 Sensitivity Analysis...................................................................................................23
4. Strengths and Limitations....................................................................................................24
4.1 Strengths.........................................................................................................................24
4.2 Limitations.....................................................................................................................24
5. Conclusions..........................................................................................................................25
References................................................................................................................................26
Bibliography.............................................................................................................................29

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Introduction
The report helps in analysing the role of decision making along with application of the
decision-making analysis in different kind of businesses. Decision-making is defined as the
vital part of the different kind of businesses that comprises different kind of segments of
different organizations that included strategic, operational and managerial decision makers.
The decision-making process is essential and complex process that requires detailed
processing that will evade consequences that can bring undesirable consequences for the
entire organization.
There can be different kind of complexities in process of decision-making wherein
there are different aspects that needs to be weighed and considered as to achieve effective and
balanced decision that will help in achieving the different objectives in an effective manner.
Furthermore, it can be seen that when the managers will be making decisions on behalf of the
organization, it is essential to weigh the options in a proper manner as the poor kind of results
in different kind of legal and financial losses to the company.
Furthermore, in order to make effective decisions, it is essential to define the issues as
this will help in eliminating different kind of restrictions that is irrelevant to the decisions.
The different alternative methods have to be adopted for approaching problem and best
alternative methods has to be adopted to approach the issues effectively.

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Figure 1: Process of decision-making
(Source: Conrado et al. 2016)
1. Application and Importance of Decision-Making
1.1 Importance of Decision-Making
1.1.1 Primary Role of Decision-Making
The different kind of strategic decisions are adopted by higher level management as
they create core influence on the performance of the organization. Furthermore, the decision-
making is under the category of phase of planning in the management. Without proper
decision-making, there is different kind of managerial functions that includes planning,
organizing, directing, controlling along with staffing that cannot be conducted. The process
of decision-making will help in differentiating the key performance of the business in the
competitive market (Shepherd, Williams and Patzelt 2015).

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Figure 2: Importance of Decision-Making
(Source: Azadnia, Saman and Wong 2015)
1.1.2 Optimization of Resources
There are plenty of theorists of management who have verified the process of
decision-making as one of the essential management activities in comparison to the other
activities of organization (Azadnia, Saman and Wong 2015). There are different business
organizations wherein there is constraint relating to the availability of resources. It is essential
in nature to utilize the existing kind of resources as this will help in achieving target without
any kind of issues. The decision making helps in providing a clear view of objective that will
allow top management as this will divide the utilization of resources effectively (Yayla et al.
2015).
1.1.3 Efficiency in Organization
There is different kind of decision making process that is carried at the time of
planning phase in the management. The decision-making is a vital element in the different
stages of the process of management wherein the study of different alternatives of process of
decision-making that can help in generating different policies along with referrals (Shay and

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Lafata 2015). There are different kinds of information that will help in allowing key
personnel to analyse the different kind of decisions that are made and prepared. This kind of
information will be used as to make different long-term decisions for the entire organization
and this will help in making quick decisions.
Figure 3: Management functions
(Source: Azadnia, Saman and Wong 2015)
1.1.4 Innovation and Creativity Improvement
There are multiple objectives that are required to be implemented in the process of
decision making. In order to fulfil such objectives, there are different methods of solving that
has to be explored and considered effectively. Proper creative and innovative decisions are
required to be undertaken as this will help in facing challenges to resolve issues effectively
(Zheng et al. 2015).
1.2 Application of Decision-Making
The analysis of decision is defined as the set of different kind of tools that has to be
established as to aid the managers in solving different problems in different kind of uncertain
situations. The entire analysis is carried by weighing different kind of alternatives along with

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generation of statistical and quantitative data in regards to the problems related to decision-
making. The entire data can be used in order to produce reasonably and rational data and
systematic kind of solutions as this will make decisions in a corporate level.
The role of the analysis of decision-making is useful in complex situations wherein
the solutions that are easy are difficult to be identified effectively. The analysis of decision is
used in an extensive manner in different fields that includes management and government
business operations (Power, Sharda and Burstein 2015). There is different kind of
applications of analysis of decision-making that is summarized as follows:
Figure 4: Decision Analysis Application
(Source: Created by author)
There are different kinds of methodologies that can be adopted for analysis of
decision application (Mardani, Jusoh and Zavadskas 2015). This includes multiple attribute
technology, decision tree analysis, and heuristics strategy and rationality methodology. The
GovernmentBusinessCommonLitigationNegotiationandBiddingMedicaltreatmentanddiagnosis

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SMART (Simple Multi attribute Rating Technique) is one such tools that is adopted for
analysis of decision (Cabrerizo et al. 2015).
The entire technique of SMART helps in allowing prioritizing the different attributes
that helps in contributing towards the decision (Wright et al. 2016). It is regarding model of
linear additive wherein certain kind of values are assigned to each of the attributes and the
sum of such attributes leads to selection of final decision. The process of SMART technique
is as follows:
Figure 5: SMART technique process for analysis of decision
Identification of decision
makers
Assigning values for each
criteria
Determination of the weight
of each of the criteria
Identifying the different issues
of the issues
Identification of different
alternatives
Identification of the criteria
Calculation of average
weighted of the values that are
assigned to alternatives
Implementing provisional
decisions
Performing sensitivity
analysis

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(Source: Created by author)
From the above figure, it can be analysed that proper technique has to be used as this
will help in understanding the SMART procedure that will be used for performing sensitivity
analysis. The proper calculation of the weighted average of the values is required to be done
as this will help in identification of different criteria that will identify the issues of the issues
in an effective manner.
2. Problem Structure
2.1 Outline of decision problem
Decision Making can be commenced when the different kind of unclear issues are
structured into the attributes that are organized in nature. The entire scenario helped in
explaining the different application of decision problem with the help of business case
analysis that is done as follows:
Southern Industrial Gases is one of the largest organizations with different
involvement of different industries in the world (Siggases.com, 2018). The respective
organization is top industrial suppliers of gases with more than 25 centres of sales and more
than 55 manufacturing plants in the entire world (Strandburg-Peshkin et al. 2015). The
manufacturers and suppliers of the medical gases division of Southern Industrial Gases help
in supplying medical industrial gases to other hospitals in Malaysia. The medical industrial
gases are supplied to the different hospitals that are manufactured and later stored in the Air
plant and later on they are distributed to the other hospitals accordingly (Soltani et al. 2015).
The medical air plant of Southern Industrial Gases comprises of different kind of
equipment, valves, tanks, pumps and other kind of machines that are related to medication.
The main equipment in the plant of Southern Industrial gases are Valves and tanks. The
valves functions as the primary and major machine in the process of manufacturing (Celebi et

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al. 2017). Furthermore, in the present era, it can be seen that the efficiency of the valves has
been dropping gradually to the level that is non-favoured in nature. The main cause is due to
the aspect of the wear and tear as the valves are operating for more than twenty years and
they are depreciated in the market as well(Conrado et al. 2016). The demand for the medial
industrial air gases is high in nature in different hospitals as there are different kind of
threatening surgeries and other operations in the hospital that requires air gases (Li, Liao and
Liu 2015). The procedures of the hospital can be affected when the supply along with
production of the air gases is reduced and disrupted in nature. There are times when there are
break down of the valves in the hospitals and this charges huge maintenance costs and
volume of the supply that is unreliable in nature.
With such kind of deliberations, the entire invention team with the corporate
management has decided to substitute the valves as to evade the disruption in the medical
gases supply. The valves of the trade scale are on high-level cost items, therefore decision-
making team has to select valve as this will help in solving issues in the economic climate.
The cost, quality and the production outputs have to be analysed effectively before making a
decision of replacing such valves (Govindan et al. 2015).
2.2 Five Alternatives and Attributes
2.2.1 Five Alternatives
The five alternatives that are required to be considered are as follows:
AVK is one of the USA based companies that is specialised in supplying valves and
they operate in more than 200 countries with good track record in supplying medical
valves in different hospitals globally (Musen, Middleton and Greenes 2014).