Decision Theory Application: Ritz Carlton Hotel and Global Market

This report delves into the application of decision theory within the global market, using the Ritz Carlton hotel as a case study. It identifies the problem of declining employee performance due to seasonal work pressure and explores two decision-making techniques: the decision matrix and cost-benefit analysis. The report highlights the effectiveness of the decision matrix in evaluating various solutions, such as employing additional workers, offering rewards, and arranging fun activities. The analysis concludes that arranging short fun activities is the most appropriate option to reduce work-related stress and enhance employee performance. The report emphasizes the importance of effective decision-making for business success in a competitive environment and provides references to support its findings.

DECISION THEORY WITHIN THE GLOBAL
MARKET

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................1
Problem within hotel .............................................................................................................1
Decision making theory .........................................................................................................1
Solving the problem of hotel through decision making techniques ......................................3
CONCLUSION ...............................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
A leader will have to make number of decisions about the enterprises. However, an
effective decision of leader leads to the overall success of firm (Yager and Kacprzyk, 2012). In
this context, the report will provide the detailed description regarding the number of decision
making techniques which manager of Ritz Carlton hotel can use in order to resolve the problems
which are occurring within corporation. In addition to this, the report will also state suitable
decision making technique which manager of Ritz Carlton hotel can use with an aim to reach on
to the appropriate solution in an effectual way.
Problem within hotel
The demand of hospitality services totally depends upon the season. Thus, during the
seasonal period, the firms which are associated with the respective industry gains major profits.
But, in the given period majority of the firm like Ritz Carlton faces the issue of decline in the
performance of employees (Gal, Stewart and Hanne, 2013). This is because of high work related
stress. In this context, it has been seen that for the employees it is very difficult to work under
any kind of pressurizing situation. However, if they have to work at that time they feel highly
dissatisfied and demotivated. The impact of same will be seen upon the performance which is
being given by the employees.
Decision making theory
The problem which is mentioned above can be resolved by the manager of Ritz Carlton
hotel by taking help from the number of decision-making theories. In this context, two different
decision making theory assessed which manager of Ritz Carlton could use. The detailed
description of them is depicted in below:
Decision matrix
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Decision matrix also called as Pugh method or Pugh concept selection method. The given
matrix consists of list of stages. Here, at first decision maker will have to list out all the possible
options for decision. The decisions which manager will list out helps in resolving the specific
problem of firm. At first decision maker will create table in which it will state all the possible
solutions or options with regard to the assessed problems (Decision matrix, 2016). These all
options will be presented in column. On doing so, in the next phase the manager will assess the
possible impact of all the assessed decisions or solutions. Accordingly, weighted will be given to
each options. Thus, the options which weigh high will be selected by the manager of enterprises.
It is the simple method which uses mathematical approach with an aim to derive into an effective
decision (Snyder and Diesing, 2015).
Cost benefit analysis
It is being regarded as another decision making technique which manager of cited hotel
can use. In this context, it can be said that cost and benefit analysis is the systematic approach
which identify the strength and weakness of the different alternatives and enables manager in
order to make the selection of an effective option. Here, each selected options are analyzed or
evaluated on the basis of financial aspect. Thus, here decision maker will lead to make the
selection of that specific option which does not raise the cost of organizations in an effectual way
(Etzioni, 2014).
In this context, a comparison is being carried out between both the given decision making
techniques. The decision making theory prepares the list of different options and here ranking
will be given on the basis of option which tend to influence the assessed alternatives. However,
in comparison to this, in cost benefit analysis financial implication of all the possible alternatives
are analyzed by the decision maker. However, the technique such as cost benefit analysis seems
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ineffective in the circumstances when manager of firm will have to analyze such decisions which
possess qualitative aspect.
Hence, with regard to the given problem decision matrix will seem more effective. This is
because, by using this method list of all the possible options will be prepared which helps in
resolving the problem of cited corporation in an effective way (Renfree and et.al., 2014). Finally,
here high weighted will be allotted by the decision maker to that specific option which it thinks
to be more effectual.
Solving the problem of hotel through decision making techniques
Among both given decision making methods, the problem of Ritz Carlton hotel can be
resolved through decision making matrix. In this regard, it is assessed that the firm is facing the
problem of decline in its employees performance due to high work pressure. However, with an
aim to resolve the respective problem manager of firm can take number of decision which are
depicted in below: Employing additional workers: The work pressure among hotel workers can be reduced
by carrying out the recruitment of more employees during the seasonal period. Thus, this
option will help in reducing the work pressure among employees. But, it will lead to raise
the varied cost of organization such as cost of maintaining the recruited additional
employees during non seasonal period, cost of training and recruitment etc. Giving reward: Employees feel highly demotivated and dissatisfied in the high
pressurizing situation. Thus, in the given circumstance sometime worker will require
significant amount of motivation from the side of its employer (Deli and Çağman, 2015).
This does not reduce the work pressure among workers but do help in maintaining the
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satisfaction level of hotel employees during heavy work load. Hence, employees will feel
motivated in giving high performance to the firm in an effectual way.
 Arranging short fun activity: Sometime workers requires some relief from the work
which they are performing on routine basis. Thus, in this circumstance short fun activity
plays very effectual role. This not only reduces the work pressure among workers but
helps in preparing employees for the next day activity.
In all the mentioned alternative, last option will seem more appropriate. This is because,
by using given option performance of the employees will be enhanced. Furthermore, with the
help of respective method significant reduction in the work related stress among workers will
also be carried out (Soroudi and Ehsan, 2013).
CONCLUSION
From the above report, it can be concluded that the success of the firm thoroughly
depends upon right decision. Hence, with an aim to make an appropriate decision manager can
take assistance from different techniques. Thus, through this way only enterprise can mark its
effective presence in highly competitive business environment.
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REFERENCES
Books, journals and online
Decision matrix. (2016). [Online]. Available through:
<http://asq.org/learn-about-quality/decision-making-tools/overview/decision-matrix.html>.
[Accessed on 15th February 2016].
Deli, I. and Çağman, N. (2015). Intuitionistic fuzzy parameterized soft set theory and its decision
making. Applied Soft Computing. 28. pp.109-113.
Etzioni, A., 2014. Humble decision-making theory. Public Management Review. 16(5). pp.611-
619.
Gal, T., Stewart, T. and Hanne, T. (2013). Multicriteria decision making: advances in MCDM
models, algorithms, theory, and applications. Springer Science & Business Media.
Renfree, A. and et.al. (2014). Application of decision-making theory to the regulation of
muscular work rate during self-paced competitive endurance activity. Sports Medicine. 44(2).
pp.147-158.
Snyder, G. H. and Diesing, P. (2015). Conflict among nations: Bargaining, decision making, and
system structure in international crises. Princeton University Press.
Soroudi, A. and Ehsan, M. (2013). IGDT based robust decision making tool for DNOs in load
procurement under severe uncertainty. Smart Grid, IEEE Transactions on. 4(2). pp.886-895.
Yager, R. R. and Kacprzyk, J. (2012). The ordered weighted averaging operators: theory and
applications. Springer Science & Business Media.
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