The Importance of Analysis and Analytical Skills to the Manager Making Decisions in Business Essay Example
The importance of analysis and analytical skills to the manager making decisions in business
Student Name: Shuotong Gong
Student Number: 21044073
Course: Managing Desicions
Course leader: Mohanty, Sanjeeb
Table of Contents
Introduction 3
Frameworks for structuring decisions 4
Evaluation of decision making methods 7
Use of decision structuring frameworks in organisations 10
Conclusion 12
References 14
Introduction
Decision making in organisations is among the most important function of any manager. Decisions range from simple procedural decisions to complex strategic and operational decisions. Care must be taken to ensure that the decisions made address the problems identified and that they enhance the overall performance of the organisation (Russell, 2006). In management, the suitability of decisions determines the extent to which an organisation can be considered to be effective (Hill, 2000). This calls for an analytical approach that enables the managers to think through the options available carefully before making a decision on which direction is to be taken.
A typical decision making process in organisations comprises of 8 sequential steps which start with the monitoring process. The second stage involves the identification of the problem and is followed by the setting of objectives (Barnes, 2008). After this, efforts are made to better understand the problems and this stage is followed by the generation of options for dealing with the situation. Subsequent stages involve the evaluation of options generated and the selection of the most appropriate option. Various models have been developed in an effort to facilitate a structured approach to decision making with most models requiring some level of analytical competence of the manager (Barnes, 2008). Decision models help in coming up with simulations that help the manager to be better prepared for various situations that may arise from time to time. The
Student Name: Shuotong Gong
Student Number: 21044073
Course: Managing Desicions
Course leader: Mohanty, Sanjeeb
Table of Contents
Introduction 3
Frameworks for structuring decisions 4
Evaluation of decision making methods 7
Use of decision structuring frameworks in organisations 10
Conclusion 12
References 14
Introduction
Decision making in organisations is among the most important function of any manager. Decisions range from simple procedural decisions to complex strategic and operational decisions. Care must be taken to ensure that the decisions made address the problems identified and that they enhance the overall performance of the organisation (Russell, 2006). In management, the suitability of decisions determines the extent to which an organisation can be considered to be effective (Hill, 2000). This calls for an analytical approach that enables the managers to think through the options available carefully before making a decision on which direction is to be taken.
A typical decision making process in organisations comprises of 8 sequential steps which start with the monitoring process. The second stage involves the identification of the problem and is followed by the setting of objectives (Barnes, 2008). After this, efforts are made to better understand the problems and this stage is followed by the generation of options for dealing with the situation. Subsequent stages involve the evaluation of options generated and the selection of the most appropriate option. Various models have been developed in an effort to facilitate a structured approach to decision making with most models requiring some level of analytical competence of the manager (Barnes, 2008). Decision models help in coming up with simulations that help the manager to be better prepared for various situations that may arise from time to time. The