Business_Mgnt

Running head: PROBLEM FORMULATION AND IDENTIFICATION PAPER Problem Formulation and Identification Paper MGT/350 Problem Formulation and Identification Paper Individuals must make decisions every day in life. Most every decision requires some thought, research, and analysis. Some decisions in life are small like deciding on what to wear. Whereas, some decisions can be a bit more complex like deciding on whether to merge with a large company. Decision-making skills are necessary to have in both an individual’s personal and professional lives. According to Vocabulary.com (2010) “Decision making is the cognitive process of reaching a decision.” Every successful organization has managers that can make sound decisions and can identify with his or her decision-making style. Decision-making styles vary and can be used with other styles to come up with the best course of action. Some of the most common decision-making styles that managers use are rational, intuitive, group, and individual. Each style has strengths and weaknesses in the process but should be identified and described to stakeholders in a manner that is sensitive to their perspectives Identifying Styles Companies and managers can use many different methods and styles of decision-making when they need problems solved. Some styles are more appropriate for certain situations than others. If the incorrect decision making style is used, the same problems can keep occurring in an organization. The level at which the decision is being made also has a profound impact on the ultimate decision. Rational decision-making seems to be the most prevalent style as it combines the collection of information through research, analysis of the research, and drawing a logical conclusion from this information. This style is broadly used in organizations. Intuitive decision-making is another style that can be used in the business world. This style uses more of a gut instinct and the previous experience that one has with similar decisions to be made. Some organizations use the intuitive style for customer service issues that arise when the customer is unhappy. Intuition is not as widely used for business operations decisions because it can be seen as a reckless way of coming to a conclusion and lacks the research and analysis of rational decision-making. Group decision-making is a great way for companies to gather the cumulative response of many people. Multiple viewpoints are represented in the group decision-making style. According to Hall, O’leary, and Williams (1964), “The success of the group decision-making process depends on the combined capacities of those engaged in decision-making to work together with satisfaction and creativity” (p. 43). Individual decision-making is necessary at times. In this style, only one person gathers information, analyzes the data and comes to the ultimate conclusion. This style is used when too many peoples input will cause confusion and delays. One argument that making decisions by an individual is more efficient is that there will be less doubt and that the outcome will be focused and to the point. Strengths of Each Style Rational decision-making has several advantages. Rational decision-making “emphasize facts, details, and rational cause-effect logic” (Robbins, 2004, p. 21). Robbins (2004) states that rational decision-making ‘weighs evidence objectively and unemotionally’ (p. 21). When dealing with any decision, approaching the situation unemotionally leads to better decisions being made. When emotions get involved people sometimes make rash decisions that cloud logic and critical thinking. Rational decision-makers often gather an extensive collection of data, analysis of that data, comparison of competitors, and current regulations so that they can make the best and most-informed decision. Researched decisions are often superior to one’s that are not. Stakeholders often feel more confident when management is taking the time to do the appropriate research and carefully reviewing each step of the process to solve a problem. Intuitive decision-making also has several advantages. Intuitive decision-makers “focus on possibilities and relationships between ideas. They weigh options against their personal values more than rational logic” (Robbins, 2004, p. 21). Intuitive decision-makers, or thinkers can be very value-oriented and may make decisions that are the ‘right’ decision morally rather than what makes the most economical sense. This type of thinker places a great deal of importance on the interpersonal relationships they have with their stakeholders and strive to make their companies values more important than the bottom line. Another advantage to intuitive decision-makers is that they often can make decisions more quickly than a rational decision-maker, thus saving time and energy on trying to research all of the evidence needed. Stakeholders appreciate immediate answers and gratification and the intuitive approach usually is the quickest means to that end. Weakness of Each Style Weaknesses are inherent in decision making styles because not any one style can encompass each unique aspect of each style. The rational decision making style is great for data driven results, however it lacks the ability to formulate a basis for experiences based solutions. Intuitive based decisions are great for decisions that have been made before and there are a few minor tweaks that an experienced intuitive person would be able to change however when problems arise that require specific information gathered to process the solution, the intuitive or gut feeling method lacks the ability to realize this process. The group decision making style lacks the ability to make quick decisions in an environment where this is critical to the success of an operation. The individual decision making style is great at the quick decisions, however it fails to take into account the ability to draw from a large talent pool when the decision is complicated and requires many different disciplines and the input to make the decision. Favorable Aspects of Each Style Rational decision making involves gathering pertinent data and researching the issue, and forming a conclusion to benefit the stakeholders of the organization. Stakeholders will appreciate this decision making process because it is the most prevalent style of critical decision making in business today and can create a win-win for the corporation during the difficult decision making process of growth. Intuitive style decision making involves relying on previous experience and gut instinct. This style works well in organizations that have seasoned personnel that can use similar experience situations to help the corporation. Group decision making is a cumulative effort where many individuals share viewpoints based on the technical talents of each member of a group. This style works well in organizations where there are different disciplines and talent fields under one roof. When all members are valued and engaged the collective group can greatly help the organization succeed with the goals and conclusions drawn from these types of decisions. The individual decision style involves one person gathering the data and making an informed decision. Individual decisions heavily rely on the associate to make clear, rational decisions to help the organization progress. This type of decision style empowers the associate and makes him or her feel valued and appreciated. Rational decision making requires the gathering of facts. All possible factors are taken into account and recorded for the stakeholders review. The information obtained for analysis is visible and easy to follow to observe the progress of the decision making process making gathering and recording data an important aspect of the Rational Decision making style. Intuitive decision making is acting on a gut feeling. Stakeholders who possess a trusting relationship with a specific organization are taking risks with Intuitive decision making. Group decision making calls for more than one person contributing to the final decision. Many minds are better than one. Stakeholders find decision making beneficial due because each member of the group is assigned to a specific area and concentrates on that one specific area. All the members’ time and energy are put into their individual area. Conclusion Decision-making skills are necessary both personally and professionally. Stakeholders should be aware of a company’s decision making style and policy. Some companies depend on rational decision making skills whereas others rely on a more intuitive style. Neither way is incorrect. Each style has strengths and weaknesses. When one style does not solve a problem a business may consider group decision making. The group may incorporate multiple styles and collectively provide a solution. References Hall, J., O'leary, V., & Williams, M. (1964). The decision-making grid: A model of decision-making styles. California Management Review, 7(2), 43-54. Langdon, K. (2001). Smart things to know about decision making [1st Ed]. Retrieved from ecampus.phoenix.edu. Robbins, S.P. (2004). Decide & conquer: make winning decisions and take control of your life. Retrieved from ecampus.phoenix.edu. Vocabulary.com (2010) Decision Making. Retrieved From http://www.vocabulary.com