The decision-making process is something that each company must go through if they want to succeed as a business. This is done through four different stages including intelligence, design, choice and implementation. Within the decision-making process, there are three different types of decision. Unstructured decisions are usually made by senior management and can include approving the overall budget and company goals. Structured decisions are usually made by individual employees and usually involve simple and routine decisions. The last are semistructured decisions that are usually made by middle management and can include departmental decisions.
Going back to the decision-making process, we can easily see that making a decision for a company should not be taken lightly. If you are in a management position and have the authority to make decisions, you are not only affecting the bottom line of the company, but also your employees. If a decision is the wrong one, it could cost them their jobs. On the other hand, a good decision made by following the process can help your company become one of the best.
There are a few different systems that support decision-making and each affect the business in a different way. The Management information system (MIS) helps a business by providing imperative reports that affect the bottom line for a company or show how different employees are performing. A decision-support system (DSS) supports more unstructured decisions. It is made up of several components that allow for data information and analysis. Executive support systems help the upper management of a company by realizing what information they need and pulling it together quickly. Lastly, a group decision-support system is interactive and allows decision makers to come together on the computer to discuss options. These are usually web-based.
All of these processes come together to form some of the most successful companies in our world today. I think if you live in the Little Rock area, lately you may have noticed some articles referring to Dillard’s and how some of the shareholders want to oust the current CEO, William Dillard, Jr. From the articles we’ve read, it can be seen that in making his decisions for the company, the shareholders do not believe he has followed the decision making process in because of that, profits have fallen. This mistake has caused the shareholders to ask for his removal and to figure out how they can make the profits of Dillard’s rise again.
One example that comes to mind of good decision making is that of Sam Walton. When he started Wal-Mart, it was not based just on him making money, but on providing for the communities. The decisions that Sam Walton made and that his family has made in the past has brought that company to what it is now. Wal-Mart supercenters are actually now the largest food retailer in the United States and handles 30 percent or more of the total national sales for products. So whether you like to shop at Wal-Mart or not, we have to give credit to Sam Walton for the decisions he made to build such a successful business.
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6 comments:
Group decision making is a good tool to follow if you follow those tools to come to a good decision.
Demechia
Decision making can help you move up in some business. When I worked at the bank, I would make a lot of decision without running to my supervisor all the time. My supervisor and boss both said that was a good thing. There was two ladies that have been there forever and where supervisor but they could not make a major decision. They were scared it would be the wrong decision.
Frances Rowe
I didnt really understand the importance of proper decision making processes until I started working in retail. We make decisions all day long without thinking about it too much. We use a lot of group decision making so we do get things right.
David Camferdam
I have to agree with this post. The Walton's did a great job with their decision making. They provide a service that everyone needs, from tires to food and clothing. They are not only the largest retailer they are also close to being, if not already, the largest employer.
In order to run a successful business like this someone definitely had/has good decision making skills.
I also have to agree with this post. Decesion making is crucial if you want to see a business grow. My husband's dad used to own a store, but because of poor decision making on the generation before his, they had to close down the business. On the other hand, WalMart is soaring because of great decision making.
Decisions are important for growth and must be weighed as the affects can certainly be drastic for decision makers and organizations as emphasized in the post. All decisions should be scrutinized and have alternate choices as well. It is also important to conduct market research to assess similar markets as that information is handy when making deciding to implement change. Most decisions that are geared toward the consumers usually are the best decisions as it’s the customers who generate the bulk of revenue.
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