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Management Decision Making A System Approach - Essay Example

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Management decisions are gaining extraordinary and unprecedented importance in the present changed business situation. Governments and business houses have to think beyond the territories while making a decision. They can make an impact all over the world, and the prevailing world business trend could make immediate impact on them. Management theories have evolved and have been applied mainly to change management and control management1. System approach is another, perhaps highly effective way to apply on a company that is targeting a certain achievement2.
1. Alamarai is a flourishing company, but a system and every work in the company is done as clockwork, without any change at all in the daily routine. It has its hierarchies, branches, transport system, distribution system and works like a well-oiled machine, noiselessly.
2. It has its own performance criteria and system objectives. Its performance criteria is mainly running its huge farm, stocked with yielding cows, cooling and pasteurising this milk, make connected milk products and supply them to the decided outlets along with other food products. Alamarai had been one company who had been performing flawlessly, even though a cooling project in Saudi Arabia is not an easy matter.
3. Alamarai is ruled by its environments, political, social, cultural and religious. It is also ruled by the economic environment of the present day world. These signals, the company is unable to ignore any more.
4. It has its own humanistic and psychosocial subsystems, but till recently controlling the humanistic conditions as they are mainly from foreign countries and hence, were mainly biddable, it had found comfortable, compared to the present psychosocial subsystem, that had been brought into the company through Saudisation.
5. Alamarai's aim had been integrating these subsystems with the whole wider society. The psychosocial subsystems are not only originated from the prevailing society, but also have to be improved and bettered in the same society and Alamarai is trying to integrate them.



It increases options, reduces errors during achievement and the achievement could be anything. It need not be only the highly market victory. It could be connected socially, politically and culturally to the company, for which company is either forced or willingly inspired to work for.4
System approach is one of the decision support systems, that had been in vogue for sometime and had been found unquestionably effective by many organisations and has amply proved its efficiency, mainly because it works along with its subsystems, and hence, more scope for checking, correcting, evolving and finalising5.





a) Company overview:



Almarai (Green Pastures), a very famous company of Saudi Arabia, a household name in diary products was established in 1976, under the direction of the Prince. It is based in Saudi capital Riyadh, with its operations spread not only in Saudi Arabia, but also through the Arabian Peninsula, covering almost all the Gulf countries. It is a pioneer in agricultural, diary processing and food distribution field. It is a well known entity with a ...Show more
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Summary

In today's globalised world where political decisions are taken and changed according to the popular requirement, or sometimes, in Democracies, according to the popular appeal, companies have to work under enormous pressure and caution. Saudi Arabia does not function as an unquestionable monarchy any more and politically, the Royal House is susceptible to the major upheavals created by terrorism in the Gulf Countries…
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