MGMT Reflective Analysis: Decision-Making Frameworks and Methods

This reflective analysis report delves into various models, frameworks, taxonomies, and methods employed in decision-making, offering a personal reflection on their application. It explores the retrospective decision-making model, rationality model, ethical decision-making framework, and various decision-making methods like observation and intuition. The report discusses real-life scenarios where these approaches are used, highlighting the importance of logical analysis, ethical considerations, and the balance between intuition and rationality. It also touches upon the challenges and limitations of each method in different situations. This student contributed assignment is available on Desklib, a platform providing study resources for students.

Reflective Analysis
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Table of Contents
Executive Summary.........................................................................................................................3
Introduction......................................................................................................................................3
Framework and models for making a decision................................................................................3
Decision making Methods...............................................................................................................5
Decision making taxonomies.........................................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12
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Executive Summary
This reflective analysis report has provided with the models, framework, taxonomies, and
framework used in decision making. The report has provided with the refection of my own based
on different models, methods, framework, and taxonomies. This report has provided with the
way of utilising this models, methods, taxonomies, and framework in making a correct and
logical decision. From the report, the right tool, method or technique to be used in making a
decision for a different situation of life is clearly understood.
Introduction
Decision making is one of the essential human processes. It is majorly made in the
condition of uncertainty. Decision making required a judgment of a human. Judgement can be
made on the basis of gut feeling and arises on the basis of past experiences. But with the
increase in uncertainty and rising number of independent variables, a decision will become more
complex and will result in less reliability for intuitive judgement. Therefore, at this stage, there is
need to have reliable methods, models, taxonomies and framework to help in making wiser
choices and select the best option for the alternative course of actions. I began to reflect on my
own decision making with the use of framework, methods, model, and taxonomies. This
reflective analysis report will provide the reflection on the various methods, taxonomies, models,
and framework of decision making used by me.
Framework and models for making a decision
Every person is required to take decisions from time to time. Retrospective decision-
making model is one of the effective approaches in selecting the best alternative. The choices as
per this model are rationalize based on the proper analysis and judgment (Gadassi, et. al., 2012).
The justification is made after making choices and after this, the additional alternatives are
searched for ensuring the rational and logical pertaining to the decision making. The decision as
per this model is intuitive and convinced the individual about the rational and logic in making a
decision on the important topic.
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I find Retrospective decision-making model effective when I was in the dilemma of
selecting the right process for my career. I completed my graduation and was required to make a
decision on the doing either business or job. I applied for a job and also accumulate ideas and
needs for starting own business. I identified the implicit favourites in the stage of recruitment
process of job and initial steps for the business set up. I continue searching all the alternative
actions and choices which will allow me to select the best alternative from choosing either Job or
business. I analysed about my own capability and needs in order to do job or business. In the
end, I convinced with the option of doing a job as it was logical. I analysed that doing a job is
more comfortable as I prefer more security rather than taking high risk.
According to Potter (2013), decision making should also enhance the achievement of a
goal. A proper understanding of the alternative course of actions must be developed in order to
understand the goals effectively. Full information must be collected to enhance the ability to
analyse the alternatives in the light of goals. There should also be a desire for selecting the best
solutions which can further satisfy the achievement of a goal.
As per Hwang, et. al., (2012), Rationality model emphasises on having a rationale for
taking a decision considering the objectives and intelligent action. It can further be attributed as a
nexus between means and ends. If one has chosen an appropriate means for reaching the desired
goal then a decision can be said to be rational. Furthermore, a bounded rational model does not
assume individual rationality in the process of decision.
In the words of Appelt, et. al., (2011), Rationality model does not suit to individual
rationality in making a decision as people does not seek enough information and normally settle
for less as the decision they want to take requires greater information.There is further greater
time, responsibility and process capability requires and therefore can be said as bounded
rationality.
I was once asked to invest 10 million dollars without any hesitation; I started searching
for the market news and also observed the comments of a financial analyst which provided me
the basic information for the investment. But in all that I ignore the other aspects of making an
investment such as the current policy of a government, economic conditions such as a change in
the interest rates and foreign exchange market. I just reached a conclusion of investing in the
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industry on the basis of the market news and suggestion of financial analysts. This led to a small
loss with the decrease in the value of bonds in Australia due to a sudden increase in interest rates
by Fed in the US attracted investors to invest there.
Obviously, the model is useful if one used to take decision cautiously. There is need to
apply the process of rational and reasoning to reach a logical conclusion. In my above case, I
picked small information. The investment can be a profitable option if the proper information
would have collected on the foreign exchange market, a new policy of Company, economic
conditions. So, personally, I started feeling that important decision must be executed after
collecting as much information as required to get into the depth of any action. Now in taking all
my important decisions, rational decision-making model became my first choice.
In the words of Juhnke, et. al., (2011), ethical decision making is one of the major
frameworks for making a decision. Ethical decision making involves listing out all possible
solutions and options available for making any decision. This can be done by brain storming and
any other technique for deriving better solutions. A time scale must be set up for making a
decision. The questions such as availability of time, deadline, consequences of missing deadline,
an advantage of quick decision, a time required for improving the quality of decision must
analysed and considered before taking a decision. With taking a decision, a proper responsibility
must also be identified for who is responsible for what and how much people are willing to take
a risk. Before making a decision, the relevant information required must be gathered for making
a right decision.
The real life issues not always occur in a simple way. As ethical decision-making
framework fails when there is need to take decision individually. One I was asked to put myself
in a situation when driving a car and brake suddenly fails. In this case, I must choose either to
continue driving or turning the steering towards the wall. My decision on driving straight would
result in killing people on the street and turning the wheel towards the wall will kill me. Now in
this case ethical decision making cannot be applied. There is not at all sufficient time to think
about the time scale and listing out possible solutions. I will be requiring knocking my heart and
asking what exactly I value.
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Decision making Methods
One of the simplest decisions for me could be deciding the food and the way to get it
while feeling hungry (Kaner, 2014). There is just need of body signal for making this decision.
But when there is complicated decision required to be taken then one must need to know the
different methods for making an effective decision depending on occasion and decision itself. I
found that most of the decisions are made through intuition, observation and random based. This
allows taking advantage of our cognitive skills and capabilities. Observation methods allow us to
enhance the skills for decision making while taking advantage of intuitions and advice of
experts. Taking decision through this way gives an opportunity to learn via patterns which have
been developed and experienced by experts.
Observation method in decision making process involves utilisation of observation to
mark the problem. Observation can be defined in a wider manner. In this method, there is an
observation of natural phenomena, society, people and any written material to come to the final
conclusion. Observation can also be defined as information searching process and can be said as
a precise process instead of finding out the alternative courses of actions. Observation method
can be best for reducing uncertainty as it says that the decision must be based on login and right
information (Gigerenzer. and Gaissmaier, 2011). This will lead to the correct conclusion. But in
real life and at the time of urgent situation, there is not enough time to find out the logic and
purpose behind any action. A quick decision will be needed at the time of emergency and will
reduce the validity of observation method. Secondly when the information will not be correct
and adequate then the logical analysis would be nothing. We respect truth and reality but
somewhere fails to consider values which are also critical in making a personal decision.
Once upon a time, I was about to arrange for the money to be submitted in getting
registered for graduation program urgently. I was not having enough money at that moment due
to use of all the money in purchasing my personal laptop. Now I was planning to arrange from
saving or investment made in the bonds and banks. Now the question raised at that time was on
the type of investment which is a better option for sale. I decided to analyse the high profits to be
received from the investments and savings available to me. Then it followed with a deductive
process where one or more process of reasoning is involved in reaching logical reasoning. But
after selling the fixed deposits in the bank, the interest rates were increased by a bank and I
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reached a conclusion that banks savings are more promising. I realized that this method found to
be useful when there is sufficient time available as more information and logics can be
determined.
Another method is the intuitive method which can be understood as short-circuiting and
cannot be easily described. It can also be said as an inner voice is telling something to do so. I
came to analyse that decision making should hardly be based on intuitions as it can lead to taking
of big decision inappropriately and can result in negative impact on the whole life. It can be
reckless to rely on intuitions when taking a significant decision in life. There must be some logic
and reason behind taking any decision. But sometimes I used in a tricky situation such as facing
the unfamiliar question in an exam. Considering the time is right, I would definitely trust my
intuition as it will be the only possible way. There is high risk in this method in terms of
considering special value.
During the process of mathematical discovery, the stage of intuition comes in long time
struggling, experience and when we seems that there is nothing to gain. In a game of chess, the
total number of possible moves is more than that of a number of seconds and elapsed when big
bang created a universe (David, 2011). Intuitions can be defined as a quality of great player of
chess. Intuitions cannot be said as magical six senses but are based on what is experienced in the
past times. Hence intuition is also an average of the logical analysis.
Multiple criteria method is a method of decision making in relation to my working under
team as a leader and taking right decision suiting the objectives of Company. As per this method,
a systematic framework is required to develop the intuition and analysis. This helps in evaluation
of option with respect to the different set of success criteria including proper adjustment of the
risk. There are many decisions at my workplace which requires a great dealing between the
various options available. I have to choose the best and reliable option based on the Company
needs and goals. Once I was appointed as a leader. I was given 10 projects to be completed
within 6 months. Now the main question comes in setting the sequence of the projects in order to
complete each project timely. I analyse and examine each project and set the projects as per the
priories. This allowed me to accomplish my project within the given deadline and with quality.
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At my workplace, I also prefer multi-voting for taking a less important decision. Multi-
voting method of decision involves choosing fairly among many options available. As a leader, I
required to maintain and follow the concept of equality and fairness in handling my team
members. In making a decision in relation to working requirements and way of dividing
responsibilities I preferred taking advice from my team members. This keeps the employees
happy and motivated towards achieving the goals timely and effectively.
Decision-making tree method is also one of the useful methods in making a decision and
assists in visualizing the multistage of problems in decision making which addresses uncertain
outcomes (Byrnes, 2013). This method is very effective in case of deciding the best strategies. A
better clarity can be achieved with the use of this tree. I make an investment I used to follow the
decision making tree method in order to assure the viability of the decision.
Decision-making tree probably found to be easy in visualising the choices with their
uncertainties and outcomes. A broad range of applications can be made with the use of a simple
structure. The decision tree can be drawn with hand and can help in communicating the critical
element of the decision making. Decision tree structure is also logical and enables to address the
multiple problems with the help of computers.
Figure 1: Decision-making tree
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Source: (Appelt, et. al., 2011)
The above diagram is presenting the three shapes. One is a rectangle, the second one is a
circle and the third one is a triangle. Rectangles are the choices to be made in a decision. Circles
are representing the uncertain outcomes with the follow up of branch determining the outcome
with a specific probability (Byrnes, 2013). Triangles are demonstrating the end of the path via
decision tree. The above diagram is representing the options for decision with results and
uncertain outcomes. I was having an option of investing in 10 different stocks and was also
required to return the amount $13000 and $9000 for the expected return of $11000. I made
decision tree showing with the choice of investing $ 10000. Further, the tree is also representing
the outcomes of the returns associated with the investment which is $13000, $9000 and $10300.
There was a use of a common measure of utility to determine the path of the tree. The impact of
each investment was evaluated with the cost associated. The decision-making tree enabled me to
initialise with the option for decision and move with different choices available. After the
development of the tree, the values of each option determined to move through the tree.
Figure 2: Influence diagram
Source: (Kaner, 2014)
An influence diagram is another method of taking a decision with many more variables.
This method allows assessing the reliability of human and evaluation of the probability of an
error occurring through the accomplishing of any task. Influence diagram will reduce the
likelihood of the error which is taking place via the system and leading to the improvement of
the level of safety (Potter, 2013). This will enable to identify the error, quantify and reduce the
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same. The interdependence of each option available will be determined. But this method is more
useful than the decision making the tree as it provides more understanding of the different
components. It works further as an open windows system instead of black boxes. I used
influence diagram in case of taking decision on the type of Company suitable for my jobs. This
supports me in analysing the different components associated with each Company. After
analysing all the factors based on influence diagram I selected the best Company and still
working with full happiness.
Decision making taxonomies
Taxonomy in decision making assists in understanding the fundamental problems in
decision making. MAS’ taxonomy identifies the classes of the problems in decision making.
When it is proved that an optimal solution exists and further the other classes will be resolved
with the use of heuristics (Gigerenzer and Gaissmaier, 2011). This aids in making a decision and
avoid any pitfalls. The first step involved in the formulating of the issue and then identifying the
alternative course of actions. It provides the general laws and principles for defining any specific
problem. I tried this method once at my workplace.
A common decision-making framework was provided by David Snowden. He described
four types of business situations (Turban, et. al., 2011). The situation such as a breakdown in the
breaking of team information can be solved with the use of effective taxonomy. I determined the
situation in terms of complex, known, knowable and chaotic. On the basis of a situation, one can
apply the procedure and policy required to follow and figure out the cause and the effect
relationship. Some situation of business will be required quick action make and in that situation,
there is need to analyse the patterns in the processes and avoiding patterns looking bad and
worst.
The purpose of taxonomy is basically on the providing structure to an organization,
establishment of common ground, spanning of boundaries, improvement of understanding and
discovery. The type of taxonomy to be selected will be dependent on the size and need of the
business. There can be used of brainstorm maps for creating taxonomy structure.
I analysed that the taxonomies were found to be a very complex process in assessing the
problems associated with different situations. In reality, the taxonomy does not found so useful.
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Although, it involves many types such as tree structure, facet, frameworks, matrices, and maps
but does not give the right direction to the many problems in business such as taking decision for
financing, type of leadership to be adopted and distribution of roles and responsibilities.
Conclusion
To sum up, all the above decision-making methods, frameworks, models, and taxonomies
are significant in different stages and situation of life. My decision making was not correct in
many situations as I described above. Therefore, there is a requirement to make some
modification in making a decision which can inspire others. And hopefully, with having an
understanding of the models, framework, and methods of decision making, I could be a wise
decision maker in future.
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References
Ahmed A., 2014.Strategic Decision Making: Process, Models, and Theories.Business
Management and Strategy. Vol. 5, No. 1. Pp-78-104.
Appelt, K.C., Milch, K.F., Handgraaf, M.J. and Weber, E.U., 2011. The decision making
individual differences inventory and guidelines for the study of individual differences in
judgment and decision-making research. Judgment and Decision Making.
Byrnes, J.P., 2013. The nature and development of decision-making: A self-regulation model.
Psychology Press.
David, F.R., 2011. Strategic management: Concepts and cases. Peaeson/Prentice Hall.
Elwyn, G., Frosch, D., Thomson, R., Joseph-Williams, N., Lloyd, A., Kinnersley, P., Cording,
E., Tomson, D., Dodd, C., Rollnick, S. and Edwards, A., 2012. Shared decision making: a
model for clinical practice. Journal of general internal medicine, 27(10), pp.1361-1367.
Gadassi, R., Gati, I. and Dayan, A., 2012. The adaptability of career decision-making
profiles. Journal of counseling psychology, 59(4), p.612.
Gigerenzer, G. and Gaissmaier, W., 2011. Heuristic decision making. Annual review of
psychology, 62, pp.451-482.
Hesterly, W. and Barney, J., 2010. Strategic management and competitive advantage. Pearson,
ed., Pearson Prentice-Hall.
Hwang, C.L. and Lin, M.J., 2012. Group decision making under multiple criteria: methods and
applications (Vol. 281). Springer Science & Business Media.
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