Managerial Decision-Making - Assignment Example

Management Essay Question There are various strategic plans that my could adopt to compete for students in the market place. These plans should be congruent to the institution’s goals, which would enable them explore and utilize diverse tactics that attract more students. A large number of colleges are not selective about the students it attracts, unlike Harvard, Yale, and Princeton. Differentiation is the basic element of a strategic plan that should be adopted. My college’s goal is providing a holistic learning environment governed by social and ethical principles of humanity. Highlighting on the Christ centered atmosphere, showing off the beauty of the campus, and emphasizing on the small student to teacher ratio are some of the basic tactics that could be adopted. The college should try to investigate the tactics employed by other similar colleges, and work on them to come up with a new product. This is the essence of competition. Obtaining knowledge about your competitors’ tactics and differentiating them to achieve a unique outcome that meets the needs of the consumer (students). The college should partner with similar colleges so as to implement exchange programs. Exchange programs foster cultural diversity, besides being a platform for students to interact and exchange skills in their respective fields. I trying to create a holistic learning environment, the college should adopt technically advanced measures that adhere to the current technological requirements. Some colleges issue laptops to students, while others give their students iPads (in China). This is a strategic plan to compete for students in the market place. Such technological advancements aid in providing a holistic learning environment, and would give such a college an edge over other similar colleges. Question 2 Planning in today’s organizations is more advanced as compared to planning 25 years ago. Organizations have become complex with the emergence of various departments that must be incorporated in the business. Twenty five years ago, organizations did not apply effort in planning. This is because, competition was not stiff; most organizations were monopolies, technology had not advanced to levels that are in the present, and skills were not that differentiated. In today’s organizations, planning involves; building on core competencies, building on synergy, and delivering value. There are various measures that evaluate the effectiveness of plans adopted by an organization. The SWOT analysis and cost-benefit analysis are just but the basic measures adopted to measure the effectiveness of adopted plans. In a world where everything is changing quickly and crises are regular in organizational life, failing to plan is planning to fail. Competition, organizational conflicts, and achieving an organization’s objectives are the basic elements which determine an organization’s plans. The world is changing and systems are becoming more complex. Technology, skills, policies, and competition are dynamic. Technological advancements by an organization require an effective plan before they can be utilized. Skills keep on changing as systems become more complicated. Managers need to plan on the strategies of an organization and select the best workers equipped with the necessary skills to steer the set strategies into achievable goals. Plans are also dynamic and require constant evaluation to establish their viability. Question 3 Decision making is choosing an option from a list of alternatives. It is a basic concept in our everyday life. We react differently in various situation; these reactions entail decision making. Some decisions are involuntary; that is, they occur from our usual ways of living life. Others are voluntary; that is we make decisions in response to certain opportunities or threats. These are programmed decisions and non-programmed decisions respectively. With the current economic situation, the rate of involuntary unemployment is high. Most people go through college only to go back home after completing their studies. The main cause of such unemployment is lack of diversity in our skills. We all go to school to study a course due to its aesthetic value instead of considering the loopholes present in the job market. Recently, I decided to embark on a management course. I enrolled in a management accounting course. The job market seemed ‘flooded’ with graduates looking for employment. It was the urge to become unique that prompted me to pursue a course in management accounting. Opportunities came my way and I was able to eliminate the risk of being unemployed. By applying the rational model, I was able to identify the problem inherent in the job market, and came up with a solution; going back to school. This was a non-programmed decision. Majority of college students do not attach any value to food nutrition. With the rising cases of obesity among teenagers and youths, it is necessary for individuals to watch on their diets. I recently decided to embark on a healthy lifestyle. Obtaining knowledge on the nutritional value of the foods that I ate was the best decision towards a healthy lifestyle. This decision was reached by applying the normative model. Instead of hitting the gym or using dietary supplements, I decided on cutting out high-calorie foods. The decision making process was a characteristic of the normative model, whereby I chose a solution that met minimum requirements, and were “good enough.” This was a programmed decision, since healthy eating is what we practice in our everyday lives. Saving is a culture that should be instilled to children as they grow up. I decided to join groups’ savings. We all practice this culture, but few people have the discipline to develop this culture into its advanced stages; such as saving for investments. Group savings were the shortest route to achieving a savings culture. This decision was made by applying the normative model of decision making, whereby I utilized the groups’ savings to simplify the decision making process. The decision was programmed since savings is a daily routine. Question 4 Managerial decision making is usually complex and requires sophisticated measures for an effective process. Computer technology has been adopted by various organizations to assist in the managerial decision making process. This technique has had various implications on the decision making process. Advantages of computer technology in managerial decision making process 1. This system saves time; computers are fast 2. The decision making process is neat; computers eliminate excessive paperwork 3. Computers store data making it easily accessible by authorized personnel 4. Computer software provide relevant models that automatically update the set processes 5. Computers eliminate cases of subjectivity in the decision making process. 6. Computers can be used to test various processes; that is, by using simulation models, managers can test the viability of their decisions to the organization. 7. Computers enable online conferencing, whereby managers can meet while in different locations. Online conferencing ensures that no manager is left out in the decision making process. Disadvantages of computer technology in managerial decision making process 1. Computer technology requires numerous updates since the system is dynamic in nature 2. Additional skills are required so as to adopt this technology; such as computerized accounting packages 3. Adopting computer technology leads to unemployment since minimal labor is required 4. Computers require power; cases of power outages may affect managerial activities 5. Data may be accessed by unauthorized personnel; such as hackers 6. Information in the computer systems may be corrupted by viruses rendering it useless. 7. Sophisticated computer technology might be unaffordable for small organizations 8. Employees might abuse computers and the internet for their personal use. Question 5 Organizations utilize various structures for effective management. A matrix structure facilitates horizontal flow of information and skills. Employees report on day-to-day performance to the project manager. The project manager’s authority flows horizontally across departments. The employees also report their overall performance to the head of their departments. In this case, authority flows vertically. These two cases of reporting indicate a dual chain of command. This multiple control and command structure gives rise to different behavior patterns, and an ambiguous organizational culture. Some people argue that the matrix structure should be adopted only as a last resort since the dual chains of control and command create more problems than they solve. Due to the increased complexity in the chain of command, conflicting loyalties of employees arise. A higher manager to worker ratio arises as employees are assigned to both functional and project managers. I disagree to the proposition that the matrix structure should be adopted only as a last resort. Initially, this structure was informal. Organizations sought to coordinate its functions, which lead to dual reporting. The requirement for a horizontal chain of command was compelled by the need to integrate organizational structures. Reasons for adopting a matrix structure; 1. Global customers continually demand for a single point of contact to speak to around the world. 2. Global products and projects require more coordination around the world 3. Common systems become more cost effective, and enable higher levels of coordination and integration when a matrix structure is adopted. Organization structure should be based on the strategies. The need for organizations to become integrated across functions and geographies prompt them to move to the most complex forms of a matrix organization structure. Question 6 Decentralization is a trend that is being followed by majority of managers. It is a process of transferring authority, responsibilities, functions, and the requisite resources from management. This trend will affect what will be required of me as a new manager. A system whereby authority, decision-making responsibility, and accountability are being pushed farther down into the organization might be prone to a number of malicious attacks. These attacks include; impersonation, fraudulent actions, misrepresentation, collusion, denial of service, deciding whom to trust, and out-of-band knowledge. As a new manager, questions may arise on how I would effectively combat the risk of such threats attacking the organization. As a manager, I would be responsible for indicating where the centralization and decentralization line stands. As much as decentralization is critical in an organization’s activities, some centralization is still vital to top management. I should be able to find the correct mix and balance between control and autonomy. Too much of control and autonomy has proved to be a primary reason for the failure of decentralization within organizations. Organizational structures must be continuously redefined. It would be my responsibility as a manager to find an optimal balance between decentralization and centralization. My core objective would be to seek out and install a structure that unifies leadership goals, control, and participation style to develop improved methods of making all responsible leaders of one mind about the organization’s goals and needs. Question 7 Business executives face problems of employee resistance to change. Resistance is, however, mild when these executives suspect that employees fear losing their jobs. Changes are inevitable, and it is these changes that increase our productivity. Changes should not be forced down the throats of resistant people. As a manager, I would employ the following measures to counter resistance: 1. Resistant employees should be involved to “participate” in making the change. This means; asking them for suggestions and incorporating the viable suggestions into the desired change. 2. Communication is a vital element to combat resistance. As a manager, I would communicate the strategic decision and the need for the change both in person and written form. 3. Change should address employee needs to avoid resistance. I would change only what needs to be changed, and not a complete overhaul of the whole structure. This would ensure that friendships and group norms are retained. 4. I would implement the desired change by phases. Gradual implementation would allow employees to assimilate new behavior and redefine their roles in the course of implementing change. 5. I would ensure that the managerial team is ready to commit itself to the change. Lack of commitment from the management team would create loopholes for employees to return to the status quo. 6. As a manager, I would focus on the positive aspects of the change. Managers make decisions which might be faulty. This can contribute to resistance from the employees. To mitigate this effect, they should continually focus on the positive aspects of the desired change. 7. I would deliver training programs that build basic skills. Processes such as; teambuilding, communication, conducting meetings, and coaching would offer a great solution to mitigate resistance to change by employees. Question 8 Driving forces facilitate change whereas restraining forces hinder the change process. These two forces need to be taken into account when dealing with change. Developing a savings culture is a major change I would like to adopt in my life. Driving forces include; developing a savings culture, managing money, enhancing discipline on how I interact with money, owning a bank account, and accessing loans. Restraining factors include; high interest rates on bank loans as opposed to loans from friends, bank charges on withdrawal, a reduction in spending power, and accessibility of money saved. A force field analysis describes any current level of performance as a state of equilibrium between driving forces and restraining forces. According to Kurt Lewin’s model of force field analysis, there exists equilibrium since the forces acting for change are balanced by the forces acting against change. I do not believe that understanding this analysis would help me to effectively implement a significant change. In my quest to develop a savings culture, increasing the driving forces would not promote the implementation of such a change. Driving forces might increase, but restraining forces would remain in place; it becomes harder to use the driving forces. A balance of these forces would give rise to a “yo-yo effect” whereby the change is countered by a reversion effect, and an individual would remain on the original position; that is, no change is achieved. Dwelling on the force field analysis would not help in developing a savings culture. Change begins with the mental state. We should weigh the costs versus benefits of implementing a particular change. If benefits outweigh costs, the desired change should be viable. Question 9 Emotional intelligence is about recognizing and managing one’s emotions and those of others. Components of emotional intelligence include; social awareness, self-awareness, self-management, and relationship management. In today’s world, a manager should adopt relationship management as the basic elements of emotional intelligence. Managers strive to; develop others, serve as inspiring leaders, act as catalysts for change, managing conflict, and collaborate with a high-performance team. Managers are deemed as likeable and have the ability to work well with diverse groups. They are able to face and manage stress and conflicts. Managers should be able to improve an organization’s relationship between both partner firms and clients. Management systems should incorporate relationship management, which should be documented both in policy and practice. The characteristics of relationship management were the reason why I thought that this is the most important component of emotional intelligence in a manager. Managers are perceived as likeable among employees. The ability to work with diverse groups indicates that managers strive to develop others by collaborating with a high-performing team. Conflicts are inherent among employees in organizations. Managers integrate common knowledge with their technical know-how to manage such conflicts. Question 10 We all tailor our behavior to different situations based on the natural rules and norms that govern those situations. Apart from being an important skill, self-management is a tool that teaches important skills in life. Self regulation assists learners to; discriminate between appropriate and inappropriate behaviors, monitor and record behavior, and to reward themselves for behaving appropriately. A system of self management provides a platform for making and correcting errors. As a student, self management has greatly improved my performance. Once I discovered that change is inherent in me, I realized that implementing that change had positive results in my overall performance. Self-monitoring, self-reflection, and adapting are the major components of self-management. People can either be high self-monitors or low self-monitors. High self-monitors are concerned about how others view them. Their behavior is not consistent as they tend to change it in order to fit different situations. On the other hand, low self-monitors are less concerned of what others think about them. Their behavior is relatively consistent. Self-management is made possible when individuals establish themselves through self-monitoring. We should not behave in a manner that pleases others. By a complete definition of one’s inner self, behavior is automatically molded; hence consistent. Self-reflection involves looking back at achievements and/or failures so as to formulate a way forward. Self-management is possible only after individuals establish their turning point. We all have turning points, whereby we can no longer persevere in a certain situation. We ought to look back, analyze our achievements and failures and decide whether we have lived as we desire. After self-reflection, people are able to manage their behavior and their general perception about life. Nature is unpredictable. Effective self-management involves adapting to situations as they come. We cannot control nature, but we can control how we behave under different circumstances. Adapting is virtue for an effective self-management process. Reference Helms, Marilyn M.. Encyclopedia of management. 5th ed. Detroit, Mich.: Thomson Gale, 2006. Print. Read More