Decision-Making and Problem-Solving Strategies - Essay Example

Personal Case Study Reflection Student Name Institutional Affiliation Abstract This paper looks at the techniques of decision making that should have been used at work place in solving a decision issue. The paper notes that there have been better time tested and proven methods that can be utilized in making decisions that will serve for all the stakeholders to that decision and the individual decision maker. Keywords: Decision, issue, objective Personal Case Study Reflection Decision making Decision making is defined as the study of identifying and choosing from the alternatives based on preferences and values of the individual decision maker. In arriving at a decision, it means that several alternatives have been explored and the best alternative settled at that best fits with the desired objectives, goals and values (Adair, 2010). Decision making need to start with the identification of the stakeholders to a decision and the decision maker, then reducing any likely disagreements concerning the problem definition, criteria, goals and the requirements (Anderson, Sweeney & Williams, 2000). I worked as a management accountant in an organization where I was a member of a cross functional team. I had unlimited access to all the information regarding the transactions of the organization and contributed by giving facts and figures objectively towards realizing the objectives of the business. Problems started when I would not be issued with relevant information from the head of the accounting division. I needed relevant, accurate, sufficient and timely information in order to execute my responsibilities within the organization. Without seeking to know what the reasons made the accounting head to exhibit such behaviors to me and try to resolve any differences, I took a step to resign from the organization. I later learned that the accounting head had complained to the management of the organization that I was overlapping his duties that included making major investment decisions. I later learned decision making techniques that I would have utilized in arriving at a better decision that would served the interest of all the stakeholders of the organization that I worked for as discussed below. Step 1. Defining the problem This process identifies the root causes of a problem, the boundaries and interfaces of the system and organization, the limiting assumptions and any stakeholder issues (Adair, 2010).The major aim is to express the issue at hand as a problem statement clearly in one sentence. This will describe the initial conditions and the desired outcome. In defining the problem, there is need that the statement is unambiguous in order to allow all the stake holders and the decision maker both have clear and concise understanding of the issue (Anderson, Sweeney & Williams, 2000).This step is necessary and crucial before proceeding to other steps. Step 2. Determining the requirements The requirements are those conditions needed by any acceptable solution to a problem. The requirements clearly spell out what needs to be done by the solution to a problem (Anderson, Sweeney & Williams, 2000). For example at my work place, the requirements would be to have clear roles spelt out and use different offices with my colleague. Step 3. Establishing the goals Goals are statements of desirable values and intent. Goals are broad and go over and beyond the minimum requirements of the desires (Anderson, Sweeney & Williams, 2000). The goals would be to have a lasting harmonious working relationship within the accounting division and the organization as a whole. Step 4. Identifying alternatives The alternatives offer the various approaches that can be used to alter the initial condition into the one that is desired. The alternative chosen must be the one that meets all the identified requirements. Those alternatives that are not feasible must be eliminated from any further consideration in order to only have an explicit list of alternatives (Cook, Noyes & Masakowski, 2007). Step 5. Defining the criteria The decision Criteria that discriminates among the alternatives should be based on the goals. It is fundamental that the discriminating criteria are defined as objective measures of the goals in order to determine to what extent each of the available alternatives achieve the set goals (Decrop, 2006). It can be very helpful if the criteria are grouped into series of sets that relate to distinguishable and separate components of the overall decision objective. This becomes more helpful in a situation where the structure of the emerging decision has a relatively large number of criteria (Decrop, 2006). Grouping criteria together can help in determining whether the given set of criteria is the most appropriate to the problem. The criteria chosen should be able to; Discriminate among the given alternatives and give support to the comparison of the alternatives performance. Complete with all the goals Meaningful and operational Non redundant Few in number Step 6. Select a decision making tool There are a myriad of tools that are used in solving a decision problem. The choice of an appropriate tool is based on a concrete decision issues and also on the decision maker’s objectives. It is worth noting that the simpler the method the better. Complex decisions issues as require methods that are complex (Decrop, 2006). Step 7. Evaluating the alternatives against criteria Every single correct method of decision making requires, as part of its input data, the evaluation of all the alternatives against the set criteria. Depending on the criterion, it might be established that the assessment is factual with respect to a shared scale of measurement or it might be judgmental and subjective, which might reflect a subjective assessment of the evaluator. After the evaluations, the chosen tool for making the decision can be applied in order to rank the given alternatives or choose the most promising subset of alternatives (Cook, Noyes & Masakowski, 2007). Step 8. Validating solutions against a problem statement The selected alternatives by the applied tools of decision making must be validated against the desired goals and requirements of the decision issue (Cook, Noyes & Masakowski, 2007).There is a possibility that the decision making tool was misapplied. The selected alternatives might further call for the attention of the decision maker and other stakeholders to add to the requirements in the decision model especially in complex decision issues. Single criteria Vs multiple criteria It is quite important to make a distinction between situations whether there is a single or multiple criteria. A decision issue might be having a single criterion. In such a situation, a decision can be arrived at implicitly by establishing that alternative that has the best single criteria. This is an example of an optimization problem whose objective function is represented by the single criterion. The constraints of the function are the requirements of the alternatives (Cook, Noyes & Masakowski, 2007). Having used the above steps in order to arrive at the best decision, then the overall decision made within the accounting division must be accurate and not lead to confusion. The decisions made by the division regarding the investments must be scientific and readily available for verification on accuracy viability. The Division should make use of operations research and other quantitative techniques. Operations research Operations research is defined as the application of scientific methods to solve complex decision issues that are concerned with the management and direction of systems of machines, materials, money in the industry, government and defense, men and business. Operations research aids the decision maker to arrive on objective decisions. This is enhanced by offering factual basis that will guide and give support to the judgment arrived at. This will greatly ease on the burden on the amount of effort time spent by the decision maker (Fitzgerald, 2002). Operation research offers a particular way of looking at the problem, forming a task force and with a mathematical reasoning arriving at a solution. The most common approach in an operation research is the construction and keen study of model (Fitzgerald, 2002). The major problems that operations research can readily be utilized in arriving at solutions are inventory control, production scheduling, plant expansion and sales policies. It is worth noting that the managerial accountant in the accounting division to great extent determines the success or failure of a successful use of operations research in arriving at a solution. The quality of a decision arrived at will have improved after applying the mathematical model. The feasibility of the model applied will depend on the accuracy and the adequacy of the accounting information (Rao, 2007). Models Model buildings are the key pillar in applying the operations research in the use of quantifying models. The models are relatively simple and convenient and a cheap means of hypothesis testing. Mathematical models help in dealing with the optimization concept in arriving at a decision. They are very important when calculating and choosing the best possible choice of alternative for a given decision issue (Cook, Noyes & Masakowski, 2007). Simulation This technique is used when testing the feasibility and the possible results of a various decisions available. Simulation as a quantitative technique is used in the evaluation of the alternative causes of action that is based upon assumptions and facts. Simulation is carried out through a mathematical model that is computerized (Rao, 2007).This helps in making decisions under conditions of uncertainty. Linear Programming Linear programming can be defined as a method that seeks to find the optimal resource utilization of a company in order to attain the desired goals and objectives. A straight line or linear relationship exists between various variables. This makes it possible for the limits of variation to be determined. This technique adopts an analytical approach towards decision making. There are also concerns of problem planning with linear programming (Fitzgerald, 2002). Games Theory Game theory attempts to offer an optimum solution whereby an individual in a certain situation can be able to develop a strategy without paying regard to what the competitor does with minimizing losses or maximizing profits. The technique makes use of mathematical tactics study under uncertainty conditions. PERT and CPM The Program Evaluation and Review Technique are fundamental in analyzing and controlling the timing aspects of a project. In program planning, development and controlling, PERT helps in obtaining less costs and reducing the total time spent to complete a program. This will bring about better utilization of both human and physical resources (Rao, 2007). Critical Path Method (CPM) is used for all the Project analysis together with the Program Evaluation and Review Technique. PERT is based on three estimates. That is pessimistic, most likely and optimistic. CPM bases its reliance only on most likely (Rao, 2007). Probability Theory Analysis Probability is a chance that a certain event will occur. The events in this case must be random such that they are not affected by design but by chance. The probability of success is given by the successful outcomes divided by the total number of outcomes (McIntyre, Stiegman, & Eiseman, 2004). I have also realized there are values that I would rely on in arriving in an amicable solution and other than resigning from my work place. Organizational Values Most decision makers in organizations are greatly influenced by the values of the organization in making decisions. Most often, the agencies utilize sanction sand rewards in trying to induce their members and stakeholders to act in accordance to the values with which the organization is identified with. Organizations always try to build certain common values among their workers. This can be done by using labeled offices, using employee badges or even uniforms, those with different responsibilities wear different badges or uniforms. This reminds the members of the organization that they play different roles with different responsibilities but with a common goal (Kourdi, 2011). Professional Values There are values that are instilled into an individual which are critical in decision making courtesy of the norms of the particular profession of that person. As an accountant, the professional code of conduct and ethics would have guided my conduct (Kourdi, 2011). Personal values Personal values involve individual ambitions, self interest and reputation. It is worth noting that rational individual consider self interest in arriving at decisions (Kourdi, 2011). This is understandable given that self interest is largely tied to economic gain that an individual decision maker receives. Quitting a job on grounds of misunderstanding was not a rational decision given that there was no any economic gain to be achieved. Policy Values This is construed to refer to acting on the basis of the interest of the public good or acting in accordance to what is perceived to be proper, necessary, ethical or morally correct (Gladwell, 2005). Ideological Values This means legitimizing and rationalizing actions on the basis of the belief system. This is fundamental in making decisions that affect an organization. Most organizations believe in open communication and flow of information that is key in solving any form of problem at the earliest opportune moment (Gladwell, 2005). Conclusion In conclusion, it has been noted that a careful decision need to be made that will serve the interests of the concerned stakeholders. References Adair, J. E. (2010). Decision making and problem solving strategies. London: Kogan Page. Anderson, D. R., Sweeney, D. J., & Williams, T. A. (2000). An introduction to management science: Quantitative approaches to decision making. Cincinnati, Ohio: South-Western College Pub. Cook, M., Noyes, J. M., & Masakowski, Y. (2007). Decision making in complex environments. Aldershot, England: Ashgate. Decrop, A. (2006). Vacation decision making. Wallingford, UK: CABI Pub. Fitzgerald, S. P. (2002). Decision making. Oxford, U.K: Capstone Pub. Gladwell, M. (2005). Blink: The power of thinking without thinking. New York: Little, Brown and Co. International Conference on Multiple Criteria Decision Making, & Ehrgott, M. (2010). Multiple criteria decision making for sustainable energy and transportation systems: Proceedings of the 19th International Conference on Multiple Criteria Decision Making, Auckland, New Zealand, 7th-12th January 2008. Berlin: Springer. Kourdi, J. (2011). Effective decision making: 10 steps to better decision making and problem solving. London: Marshall Cavendish Business. McIntyre, R. C., Stiegmann, G. V., & Eiseman, B. (2004). Surgical decision making. Philadelphia, Pa: Saunders. Rao, R. V. (2007). Decision making in the manufacturing environment: Using graph theory and fuzzy multiple attribute decision making methods. Berlin: Springer. Read More