Management Decision Making - Assignment Example

Management decision making of the Question Analogical reasoning involves establishing a common relation between two or more situation and generating a suitable conclusion. Analogy is identified as one of the common features of the human cognitive thinking. It is also identified as a core process of the mind in scientific discovery, problem-solving, categorization and decision making. Analogical reasoning is used by individuals in their normal lives on a routine basis. For instance individual often apply proverbs to describe a situation. Analogical thinking involves relational mapping between current and past situations. Most researchers explain analogical thinking as the process of remembering a situation of the past and abstracting information from the same in order to develop better understanding of the present situation (Foreman & Selly, 2001). The purchasing decisions of individuals are influenced by analogical reasoning. It is considered as a technique which shoppers use to increase the satisfaction regarding the purchased commodity or service (Foreman & Selly, 2001). Last week when I was purchasing a mobile handset, I adhered to the information that was provided to me by the store keeper. Instead, if I had used my own analogical reasoning, perhaps I could have made a better purchase. Through analogical reasoning I could have analyzed my previous experiences with different brands. Analogical reasoning could have also helped me to consider and match my needs with the offerings of the product and chose more wisely. Question 2 Biased behavior is a common issue faced in the daily lives of most individuals. Biasness refers to supporting a particular theory, an individual or to think in a particular manner without being rational. Biasness from others may arise out of different reasons such as lack of knowledge, attachment with particular individuals or the lack of familiarity with certain situations. Biasness may often cause individuals to take wrong decisions (Frame, 2012). Biased thinking may also arise out of individual heuristics. Heuristics is the process of taking decisions quickly without analyzing the same in depth or logically. Such an effect leads to the generation of cognitive biasness. Biased judgment can also arise out of wishful thinking. Wishful thinking and beliefs of individuals may act as suitable motivations for biased decision making. Understanding other people’s biasness is an important aspect while working in teams or while taking decisions collectively. This helps in understanding the motive behind their biased thinking. Once the motive is recognized, it is essential to rationally determine whether such biasness is acceptable or not. If the thinking is considered normal, it is not necessary to make any suggestions. However if the thinking is not logical, it become necessary to provide better understanding (Frame, 2012). While taking decision in a group, not all individuals have similar knowledge, thought processes and familiarity of situations. Under such circumstances it would be quite natural for certain individuals to exhibit biased thinking. The biased thinking would arise out of the personal thinking and experiences of different individuals. If such biased behavior of others is considered to be unethical, then it becomes necessary to inform the individuals regarding their biasness. Biasness may also arise out of the lack of awareness of individuals. To them, the thinking decisions may seem rational. However once they are provided with adequate knowledge, the biased thought process can be removed. Therefore creation of awareness and generating parity of understanding is one of the sole aspects for removing biased behavior in the group decision making process (Frame, 2012). Question 3 In an unstructured interview process the interviewers do not follow any particular format or script while conducting the interview. The interviewer asks questions or discusses matters based their own understanding or what they find relevant to be asked to the candidate. Media interviews with individuals or celebrities are seen to be highly unstructured. The interviewer frames new questions based on the responses provided by the interviewee. The quick and logical thought process of the interviewer plays a crucial part in this type of interview process. The quality of the conversation and the subjects or matters discussed forms the basis for asking further questions and maintaining the continuity of the interview process. Unstructured interview process is not considered suitable during organizational hiring process. It is essential to ask candidates questions which are related to the type of job for which the hiring process is being conducted. Hence the development of a script prior to the interview process becomes essential. A structured interview helps to analyze a candidates profile based upon the needs of the job. Structured interviews have a definite direction and therefore are less time consuming (Anderson, et al., 2011). In unstructured interviews, the employer does not frame any questions in advance. The questions are developed during the interview process itself. The interviewer goes though the profile of the candidate and asks them questions which they consider most suitable. In the unstructured process of interview, there are no pre established objectives and plans. This makes it extremely confusing for the interviewers to scan different profiles and chose the one which is most suitable. Even though there are a number of disadvantages in respect of unstructured interviews, many organizations are seen to follow the same. Work pressure and the lack of availability of time, makes employers undertake such kinds of interview processes. It is also seen that many at times the designated person who are supposed to take the interviews are not present and therefore different people are assigned with the task. The individuals who are required to conduct the interview are not given sufficient time to develop a suitable plan for conducting the interview and therefore are required to adhere to the unstructured interview practices (Anderson, et al., 2011). Question 4 The linear model of decision making can be described as the process of analyzing a given data mathematically. The linear model of decision making includes the use of statistical tools for analyzing data. One of the most commonly adopted tools is the use of regression. Regression helps in estimating the extent to which the independent variables affect the dependent variables. Similarly other tools which are used in linear decision making process are measures of dispersion, co-relation and range analysis. The linear model of decision making is usually undertaken when a given data provides the scope of mathematical analysis. Decisions relating to various types of surveys, revenue and expenses are taken on the basis of linear models of decision making. Linear models present the decision maker with adequate amount of quantifiable information. Quantitative information is considered to be more accurate and reliable for taking decisions (ACM, 2014). In the book Bazerman, Judgment in managerial decision making by Bazerman and Moore (2009), it is described that managers usually undertaken linear decision making model for solving complex issues relating to allocation of important resources. Linear models are also used in taking important decisions related to supply chain. The decision making process for managers involves choosing the profitable option amongst many. Linear Models of decision making is also commonly used in our daily lives for solving different issues. A few days earlier I had chose between two jobs for which I had been shortlisted. Both the job opportunities wanted me to join immediately and therefore I had to take quick decisions. In haste and without much analysis I decided to join the job which had a greater pay. The characteristics of both the jobs were almost the same, so I ignored other aspects. However if I had analyzed the situation by using linear models, I could have taken a stronger and a better decision. The linear model could be used to analyze both the options from the view points of pay, time required for travelling and probability of getting promotion (Bazerman & Moore, 2009). References Bazerman, M.H. & Moore, D.A. (2009). Judgment in managerial decision making. New Jersey: John Wiley & Sons. Foreman, E.H. & Selly, M.A. (2001). Decision by objectives: How to convince other that you are right. New Jersey: World Scientific Publishing Company Frame, J.D. (2012). Decision-making that accounts for irrationality, people and constraints. Somerset, New Jersey: John Wiley & Sons. ACM (2014). Abstract. Retrieved from http://dl.acm.org/citation.cfm?id=1189460 Anderson, D., Sweeney, D., Williams, T., Camm, J. & Martin, R. (2011). An Introduction to Management Science: Quantitative Approaches to Decision Making, Revised. Connecticut: Cengage Learning. Read More