decision making v3

8/8/2019 Decision Making v3

1/33

1

Business EnterpriseBusiness Enterprise

Decision-Making


2/33

2

N

ature of Decisions Decision-making is choosing between

alternative courses of action


3/33

3

O

bjectives Objectives are the goals of the

organisation

Survival

Profit Maximisation

Growth

Image and Social Responsibility


4/33

4

O

bjectives & Strategy Where are we?

Where do we want to be?

How do we get there?

Managers decide business objectives then

organise objectives into targets


5/33

5

Mission Statements A companys raison dtre

Why Define Aims/Objectives?

End result to work to

Goals motivate people Keeps focus and direction


6/33

6

Mission Statements We exist to refresh everyone we touch

We strive to lead in the invention,

development and manufacture of the

industry's most advanced information

technologies


7/33

7

T

ypes of Decision Strategic

Tactical

Operational


8/33

8

Strategic Decisions Long term

Made by Senior

management

More general in

nature

Major policystatements are

strategic

Examples:

What products will

business produce?

Which market sector

will we aim for?

Increase market share To have 100%

customer satisfaction


9/33

9

T

actical Decisions Short term

Made by middle

managers in functionalareas

Based on aims or goalsof organisation

More detailed andspecific

May change due toPEST

Examples

Increase number of

employees to copewith workload

Re-name business

Issue shares to fundnew premises

Instore promotions


10/33

10

O

perational Decisions Day to day, routine

decisions

Mainly made by low-level

managers/supervisors

Respond to usually

regular problems

Examples:

Arranging work rotas

Dealing with

customer complaints

Ordering materials

from suppliers


11/33

11

Policy decisionsLong term

Complex

Non-routine

How to achieve

policy

Medium term

Less complex

Day-to-daydecisions

Simple

Routine

Strategic

(Senior Management)

Tactical

(Middle Management)

Operational

(Junior Management)


12/33

12

Examples of Decisions

Strategic Tactical Operational

Bus

Company

Expand

market share

by

establishing

a new route

Develop

new price

structure to

attract

customers

Extra buses

on due to

increase in

demand

School Increase

attainment

levels by

10%

Make Bus

Mgt

compulsory

Arrange

Please

Takes for

Staff

absences


13/33

13

Strategic Decision Examples

Increase market share

Invest finance into business

Sell off a poor performing part of the

company (Divestment)

Expand and take-over firms


14/33

14

Tactical Decision Examples

Launch new product

Buy/rent premises

Buy/rent machinery

Set up factory/offices

Employ/transfer staff


15/33

15

Operational Decision Examples

Train new members of staff

Decide on layout of office

Where to advertise jobs

Implement production methods

Decide on working hours


16/33

16

What is Management?

Managers are responsible forgetting thingsdone

This involves delegation passingresponsibility onto others

Managers act on behalf of owners and are

accountable to shareholders Managers set objectives for the

organisation, and try to achieve them


17/33

17

Henry Mintzbergs Nature of

Managers Interpersonal role

relationships with others

Informational role

collecting and passing on

information

Decisional role makingdifferent kinds of

decisions


18/33

18

Henri Fayol

(1841-1925)

French Mining

Engineer andManager

First to askWhat ismanagement?


19/33

19

Fayols Role of Manager

Plan examining the future and drawing up aplan of action

Organize building up human and materialresources and putting plan into action

Command maintaining worker activity

Co-ordinate unifying effort between

departments Control checks on efficiency of plan

Implement put into pratice


20/33

20

Functions of Management

Planning

Organising

Commanding

Co-ordinating

Controlling Motivation

Delegation


21/33

21

POCGADSCIE

Identify the problem

Identify objectives of solutionIdentify constraints

Gather informationAnalyse information


22/33

22

POCGADSCIE

Devise possible solutions

Select best possible solutionCommunicate the decision

Plan and implement solution

Evaluate effectiveness of thesolution


23/33

23

Example of POCGADSCIE

Problem Select candidate DeviseSolution

Produce shortlist

Objective Select suitable

candidate

Select

Solution

Make final

choice

Constraints Qualifications,

experience

Communicate Contact

successful

candidate

Gather Info CV, Application

Forms

Implement Appoint &

training

Analyse

Info

Look through

above

documents

Evaluate Monitor new

recruits

progress


24/33

24

Problems with Structured

ModelsTime

Ability to collect all relevantinformation

Lack of creativity of managers

Changes might affect decision


25/33

25

SWOT Analysis

Strengths strong points of business

Weaknesses present problems

Opportunities may arise in future

Threats may arise in future and beavoided

Strengths and Weaknesses are Internal

Opportunities & Threats are External


26/33

26

SWOT Analysis

STRENGTHS WEAK NESSES

OPPORTUNITIES THREATS


27/33

27

SWOT Analysis

STRENGTHS

Talented workers

Merchandising

Back Catalogue

WEAKNESSES

No new movie

blockbusters

Outdated studio

facilities

OPPORTUNITIESDVD

IMAX

Asian Market

THREATSCompetitors

TV

Piracy


28/33

28

Recommendations

Next we try to form a strategy

Use your strengths to:

exploit opportunities

Improve your weaknesses Eliminate/deal with threats


29/33

29

Identify the main internal

influences (strengths andweaknesses) in an organisation


30/33

30

Recommendations

Improve & update studio facilities

Transfer back catalogue onto DVD

Tailor more films for Asian Market and

push merchandising

Tackle TV by creating IMAX spectaculars

Increased copyright security tabs


31/33

31

Conduct a SWOT Analysis for

the school

Include recommendations


32/33

32

Mearns Castle

SWOT AnalysisSTRENGTHS

Good Leadership

Hard working Teachers

High attaining pupils

School Ethos

WEAKNESSES

Outdated facilities

Overcrowding &

congestion

OPPORTUNITIES

ICT

School Extension

New Subjects

THREATS

HMIE

Local Secondary

Schools


33/33

33

Recommendations

Upgrade school facilities

Build extension including pupil ICT area

Revolutionise homework by using e-mail

to send and receive work

Pupil registration via network

Offer unsupported subjects via ICT link

decision making v3

Documents