Organisational Behaviour: Concepts, Controversies, and Applications - Essay Example

?Table of contents 0 Introduction 2 1 Outline of business opportunity 3 2.0 Project management 3 2 Advantages of project planning 4 2 1 Cost effectiveness 4 2.1.2 Documentation of work scope 4 2.1.3 The method is insightful 4 2.2 Disadvantages of project planning 5 3.0 Information management 5 3.1 Advantages of information management 5 3.1.1 Cost reduction 5 3.1.2 Reduction of uncertainty 6 3.1.3 Value creation 6 3.2 Disadvantages of information management 6 4.0 Delegation management 7 4.1 Advantages of delegation management 7 4.1.1 Increase in productivity 7 4.1.2 Development of employee skills 8 4.1.3 Team member involvement 8 4.2 Disadvantages of delegation 9 5.0 How decision making can be improved 9 6.0 Conclusion 11 7.0 Bibliography 12 Title “Select three decision making tools studied in the Managing Decisions Modules and evaluate their advantages and disadvantages. Discuss how you may use these methods to improve decision making in business.” (2860 words) 1.0 Introduction Basically, decision making is regarded as one of the most- if not the most important aspect of all managerial activities (Schultz et al 2004, p.163). Individuals as well as groups make decisions as a reaction to a problem in most cases. Robbins (1993) concurs with this assertion when he states that decision making takes place when there is a discrepancy between some current state of affairs and some desired state requiring consideration of alternative courses of action. Decision making is one of the primary responsibilities of all the employees given that they are somehow affected by the decisions made in the organisation. There are various tools or methods that can be implemented in carrying out the decision making process. Against this background, this report seeks to critically evaluate the approach of decision making through focusing on three methods that can be used in decision making and these include the following: project management, knowledge management as well as delegation management The report will outline the advantages and disadvantages of each decision making tool mentioned above and the third part will focus on how these methods can be combined in order to improve decision making in business. 1.1 Outline of the business opportunity Blue Tavern is an established bar but has recently experienced a decline in profits mainly as a result of lack of coordination among the employees which has resulted in some customers leaving without served. However, the management has underscored to implement a decision implement a new information system in a bid to turn around the fortunes of the company. As such, this report seeks to reflect on the benefits and limitations of the approach used in developing this business opportunity. As going to be shown in the following sections, a critique of the effectiveness of the decision making methods mentioned above will be carried. 2.0 Project management The term project is used to describe a set of linked activities which can be described as a onetime activity with a well defined set of desired results (Burke, 2007). A project is usually comprised of a definite start as well as finishing time and goes according to schedule. Project management plays a pivotal role in order for any project to be a success and it involves the following factors that often affect the full implementation of a project: scheduling, budgeting, communication and estimating. Essentially, the purpose of project management is to provide management with valid data upon which management decisions can be based (http://www.pim.com.pk/faq.htm). A holistic approach is required in order for a project as the one outlined above to be a success given that there are negative implications likely to be encountered during the course of implementing the project. Project management is often seen as a viable method of making decisions which often affect different projects. However, this method may have its shortcomings hence the following section is going to critically evaluate the merits and demerits of this method in making decisions that affect the pursuit of a particular business opportunity. 2.1 Advantages of project planning As going to be illustrated below, there are several advantages of project planning which can positively contribute to improvement of business through implementation of various decision making processes. 2.1.1 Cost effectiveness- The main advantage of this decision making tool is that it is cost effective. Proper project planning ensures that work scheduled, estimated costs as well as resources allocated are balanced such that changes can be accommodated during the implementation process of the project. All the activities are under close guard which entails that informed decisions can be easily made. 2.1.2 Documentation of work scope- according to information obtained from the following website (15 March, 2012, http://www.pim.com.pk/faq.htm), the scope of the work is properly documented such that it is easier for everyone involved to understand the work that has to be accomplished. In as far as decision making is concerned, this method is advantageous in that resources are not wasted while pursuing the actions which are not required to obtain the goals desired. 2.1.3 This method is insightful – this method is insightful given that it allows the management to have an insight about how the project is progressing. Changes can be made accordingly and these are based on informed decisions. Thus, scheduling, budgeting as well as properly defined reporting structure provide a common ground for communication at all levels of the project which is a basic tenet for the success of any give project given that decisions made are based on facts which can be empirically tested (Orr, 2007). Progress with regards to system change in the organisation mentioned above can be easily traced. 2.2 Disadvantages of project planning 2.2.1 Unprecedented changes can derail the initiative- each project is prone to encounter unprecedented changes during the implementation process (Burke, 2007). This can negatively impact on the whole exercise which may also affect the nature of decisions made. The may be economic changes which can affect the budget which in turn affects the scheduled time of completion of the project. This is likely to affect the quality of decisions that are made by the responsible authorities. However, it can be seen that advantages outweigh the disadvantages of utilising this method in making decisions. 3.0 Information management Information management (IM) is another effective decision making tool that can be implemented in the business opportunity identified. According to Yeates & Cadle (1996), IM is particularly concerned with taking into consideration the resources as well as capabilities of the organisation to process information that can be effectively used in making decisions which can affect the operations of the organisation as a whole. All decisions about changes that can be implemented are based on information available about that particular initiative. Given that all decisions are influenced by the quality of information available, the following section of this reports critically evaluates the benefits as well as disadvantages of utilising the information management as a viable tool for making decisions. 3.1 Advantages of information management 3.1.1 Cost reduction- costs related to decision making are likely to be lowered if quality information is gathered before implementing the initiative. Any strategic change decision is based on available information which makes it relatively easy to avoid unnecessary costs to the company. Costs likely to be incurred are also calculated using the available data which is another advantage of this technique in decision making. 3.1.2 Reduction of uncertainty – Risk or uncertainty in any given project constitutes a major threat which ought to be eliminated in as far as decision making is concerned (Orr, 2007). Thus, the main advantage of this decision making tool is that risks are lowered as a result of the fact that all necessary information would be readily available which play a significant role in determining the outcome of the expected goals of a particular project. If the leaders have necessary information, they are in a better position to establish the subordinates’ level of commitment as well as their wish to be part of the problem which is vital in decision making (Vroom & Jago, 1988). 3.1.3 Value creation- value is likely to be added to the existing services and products as a result of the utilisation of this decision making tool. The management will be in a position to decisively act on improving the products or services already existing as these will be based on factual information. 3.2 Disadvantages of information management Though rare in nature, the main advantage of information management can be encountered when the information is based on falsehoods. In some case, the information available may be false which may affect the quality of decisions made. Given such a scenario, there would be need to verify all the information before making a decision in order to avoid such an unfortunate scenario. The other disadvantage of relying on this method is that in some instances, the sources of information will not be credible such that it would be difficult to verify their credibility. As it stands, this method should not be overly relied on as the sole source of information in as far as informed decision making is concerned. 4.0 Delegation management Delegation management is one viable tool that can be effectively used in order to implement a decision. Basically, delegation of roles is concerned with giving responsibilities to other people in the organisation to complete tasks which are often regarded as the prerogative of the manager (Robbinson, 1993). Delegation of roles in an organisation plays a big role given that it enables the responsible people to make effective decisions and the organisation is likely to respond in a prompt manner to the changes that may take place in the environment in which the organisation operates. People who are closer to the problem are given the opportunity to make decisions that are likely to affect their operations. These people possess the required information in dealing with certain problems which makes decision making relatively easier given that all team members will be part of the decision making process. As going to be explained below, it can be noted that there are various advantages and benefits of utilising this particular strategy in as far as decision making is concerned. 4.1 Advantages of delegation management- according to information obtained from the following website http://www.pim.com.pk/faq.htm (15 March, 2012), there are many benefits that are likely to be derived if the team members are given the opportunity to participate in the decision making process of the organisation. Both the manager as well as the employees are set to benefit if the decision making process is delegated. 4.1.1 Productivity is increased If the members of the team are given the opportunity to be part of the decision making process, they are likely to be motivated which in turn increases their morale as well as commitment to the job. Performance is poised to improve which translates into an increase in productivity. Decision making should not be a preserve for the senior management alone given that the other members of the organisation can positively contribute to the growth and development of the organisation if they are given the opportunity to contribute towards the decision making process. The best out of the available human resources is likely to be achieved given that every member would be part of the decision making process which further limits the chances of conflicts in an organisation. 4.1.2 Development of employee skills If the employees are given the opportunity to carry out certain tasks on their own, there are likely chances that their skills will be greatly improved which is an added advantage to the organisation as a whole. This entails that they can meaningfully contribute to the overall performance of the organisation as a whole through improved productivity. Decision making is likely to be enhanced given that the majority of the employees will possess vital information required in turning around the fortunes of the company since they are the ones who perform most of the tasks in the organisation. Another advantage of this delegating method is that employees are likely to stay longer in the organisation given that a sense of belonging to it would be created among them http://www.pim.com.pk/faq.htm (15 March, 2012). 4.1.3 Team member involvement is increased If the delegation method is properly implemented, team members are encouraged to have a better understanding of the tasks expected of them and they are likely to influence the functions of their respective departments. This positively contributes to their effectiveness in the organisation since they will be working on activities that are of interest to them. If the mangers as well as the employees benefit from the delegation exercise, then the organisation as a whole will also benefit since the efforts of people involved will be directed towards the achievement of the same goals and objectives. Essentially, if all members of the organisation have a positive sense of belonging to the organisation, they will put positively contribute towards decision making in the organisation which is an added advantage of this method. 4.2 Disadvantages of delegation method If people are given too much autonomy to deal with various tasks on their own, there is a danger that they are likely to misuse this privilege to the extent of making subjective decisions which may be counterproductive. In some cases, members of the organisation may be overexcited to the extent that they will end up making subjective decisions which are meant to fulfil their personal interests at the expense of the organisation as a whole. Delegation of different tasks can also diminish the line of authority whereby it may end up being difficult for the responsible people implement decisions in the organisation. Therefore, it can be noted that a holistic approach has to be taken when delegating tasks to the other members of the organisation given that this method has got its pros and cons. 5.0 How decision making in business can be improved by the use of these methods Decision making in business is a process that can only succeed if a combination of methods are implemented as going to be illustrated in this section of the report. According to Burke (2007), proper implementation of a project plan can positively contribute to improve decision making process in an organisation. A project plan is carefully designed after realising the existence of a problem. Thus, there would be a discrepancy between the current state of affairs and the desired state requiring consideration of alternative courses of action (Robbins, 1993). If a problem has been identified, a properly set course of action in the form of project management is likely to positively contribute to the improvement of business given that a step-by-step approach will be put in place and this will be primarily concerned with achievement of the set goals. In most cases, proper planning is often regarded as a recipe for success in as much as the improvement of a business is concerned. This is also influenced by the nature of decisions made which have a bearing on the performance of the organisation. It follows that the success of a project ought to be carefully designed so that all the decisions made are based on meaningful facts. Various steps are involved in management of process and these ought to be carefully taken into consideration as they can positively contribute to the success of business. All the steps in decision making through the utilisation of this method can be closely monitored which makes it possible for the responsible people implementing the project to make necessary amendments to the set goals and objectives. The major benefit of this method is that it is flexible as it can be constantly reviewed to make sure that all plans are going according to schedule. Should there be any problem encountered, changes can be made before the final implementation of the decision. Given such a scenario, it can be noted that there will be high chances of improvement of business given that all decisions made will be based on credible decision methods. The method of information management can greatly contribute to improved decision making in business given that the success of every business is wholly dependent on the quality of information used with regards to making important decisions. Kritzinger, Bowler and Goliath (2003) posit to the effect that without correct information, no business can properly function. Information is used to solve problems as well as conflicts that may exist in the organisation. More importantly, information management can also be used to improve decision making process in business through persuading the stakeholders as well as motivating the employees to meaningfully contribute towards the decisions that are likely to turn around the fortunes of the company. For instance, the need for a new system for blue Tavern mentioned above can only be successful if information is properly managed such that it can be fully utilised to come up with informed decisions. The method of delegation can also positively contribute towards improvement of decisions made in any given business. This is an effective method given that it allows all members of the team to be part of the decision making process. Given such a scenario, it can be noted that a sense of belonging to the organisation is created among all members which makes it possible for them to meaningfully contribute to the decisions fully knowing that they will also benefit from the initiative. People who are motivated are likely to identify with the organisation which can positively contribute to the success of business (Robbins, 1993). There are likely chances of an improvement of business through the adoption of the delegation method given that the members entrusted with the responsibility of dealing with particular tasks are aware of the actual problems taking place on the ground hence they are likely to possess the right information in dealing with such situations. 6.0 Conclusion Over and above, it can be observed that decision making is one of the primary responsibilities of all the employees in an organisation since they are affected by the decisions made in various ways. As discussed above, there are various tools that can be implemented in making decisions. For instance, project management, information management as well as delegation management are some of the important decision making tools that can positively contributed to the improvement of business as discussed above. It has also been observed that the advantages for using the three methods mentioned above outweigh their disadvantages hence they are likely to contribute towards the improvement of business if carefully implemented. 7.0 Bibliography Burke, R 2007, Introduction to project management: one small step for the project manager, Burke Publishing, London. Foster, TRV 1992, 101 ways to generate great ideas, Kogan Page, London. Fox, W 2008, A Guide to Project Management, JUTA, CT. Kritzinger E, Bowler, A & Goliath, D 2003, Effective Communication: Getting the message across in business, Afritech. Management, 15 March, 2012, viewed 15 March, 2012 . Orr D. A 2007, Advanced Project Management: A complete guide to the key processes, models and techniques, Kogan Page, NJ. Robbins, SP 1993, Organisational behaviour: Concepts, controversies and Applications, 6th Edition, Prentice Hall, NJ. Schultz, S et al 2003, Organisational behaviour, Van Schaik Publishers, CT. Vroom, VH, & Jago, AG 1988, The new leadership: Managing participation in organizations, Englewood Cliffs, Prentice Hall, NJ. Yeates, D & Cadle, J 1996, Project management for information systems, Pitman Publishing, London. Read More