My Role as a Decision Leader in the Global Marketplace
My Role as a Decision Leader in the Global Marketplace
Judgment in Managerial Decision-Making
In business, decision making is a process that requires steady steps. At the initial stage, a leader has a responsibility to recognize the aspects to be considered in decision making. One has to define the type of problems present explicitly (Wood & Williams, 2014). Identifying and defining the problem will allow managers to determine any issues that may arise in applying the final decision, help them identify any other significant or minute issues that exist, and assist in solving the identified problems based on their specifications (Wood & Williams, 2014). During the judgment period, the criterion to be used is based on its relevance to the problem.
Comparison with other criteria may also be valuable to determine the one that is best fit and applicable to the current problem. One has to be careful when searching for alternative means of solving a problem during decision making (Peterson, Galvin & Lange, 2012). If much time is spent on search of alternatives, the problem may be dragged along for long periods without a solution, increasing the cost of decision making and reducing the eventual effectiveness of the decisions made (Clark, Quigley & Stumpf, 2014). Determining the best criteria to be used is paramount as this factor will give the best way of eliminating a problem without necessarily using the most expensive alternative while causing the least side effects. Managers are expected to make the most informed decisions by using an optimal choice. The optimal decision is one with the best-weighted rating in addition to least side effects.
Many techniques can be applied in situation where a manager has to make the most efficient decisions. A director may employ the decision tree method. This framework allows one to identify solution criteria and their effectiveness should they be applied. The technique utilizes models and graphical representations (Tyssen, Wald & Spieth, 2013). When many decisions are to be made by a manager, the Pareto analysis method may be used. This process will allow a manager to plan and prioritize problems based on urgency. The overall impact of a decision to be made will also determine when a decision is made when using this technique (Tyssen, Wald & Spieth, 2013).
AT-chart may also be used during decision making. In this way, the manager is required to list all positive and negative implications of a decision exhaustively. The T-chart technique will show whether a decision has more positive outcomes or more negative ones, and hence, help in making the most efficient decision, with the most positive implications to the marketplace (Staats, 2015). In addition, voting can be used as a technique for making the most informed decision. The manager will require that a group of people vote on the list of possible solutions to a problem. The solution most voted will constitute the final decision of the manager regarding the issue at hand.
Apart from that, a decision matrix can be applied as a technique for decision-making. All possible options for a particular decision are tabulated and evaluated exhaustively. The importance of all the factors likely to affect the choices is weighted and used to determine the most efficient solution. The cost-benefit technique is mostly applicable when the cost implications of a decision are a determining factor (Staats, 2015). In this light, the most cost-effective decision becomes the optimal solution for a problem.
Problem-Solving and Decision-Making
For effective decision making, a structural organization must be considered. Organization will prevent rushed decisions that may end up amplifying the problem rather than solving it. The structure to be used during decision making ought to minimize failure percentage and promote rational, efficient and effective decision making. To address a problem, the manager must first be able to identify and define the issue (Rivkin, Diestel & Schmidt, 2014). Defining will determine the complexity of a problem and help in deciding the best route to be taken when solving it. A decision maker should also make sure they understand the complexity of the problem before decision making begins. Prioritizing issues should be conducted as well since this option enables the manager to make a decision based on the urgency of the problem.
Before making decisions, the manager must be able to identify all the possible causes of the existing problems. Understanding the route cause will help one to device the possible ways to eliminate the causes, and hence, prevent future recurrence of the same problem (Tyssen, Wald & Heidenreich, 2014). The manager can formulate alternative means to be used to resolve the problem. During this stage, input from other sources may be accepted to help determine the best solution (Tyssen, Wald & Heidenreich, 2014). Problem-solving criteria may be chosen after this phase based on the best approach determined. Plans for implementation of the proposed solution can be laid and period of application determined. At this stage, management, resources and communication channel to be used in the solution plan are identified. Provisions for monitoring and verification of the effectiveness of the solution are also laid during the problem-solving stage.
Group Dynamics in Decision-Making
When a group of people is integrated into the decision-making process, the decisions they arrive at are more creative and of a higher quality in comparison with an individuals decision. When conducted correctly, groups provide the most efficient choices in the marketplace due to pooling of ideas (Staats, 2015). They may also take the shortest period to come up with a solution when using division of labor as well as delegation. Some groups, though, may lack effectiveness if they fail to work in harmony with each other and the decision making can be maimed in the process.
A group of people may use divergent or convergent thinking in arriving at the final determination. In convergent thinking, the team members are expected to assemble resources from all relevant sources. The information from the resources is then applied to the problem and the best means of eliminating it (West-Burnham & Koren, 2014). Each member of the group presents a piece of the solution based on the part of the problem assigned to them. The team may also use divergent thinking for the same purpose. Each group member is required to tackle the entire problem as they see fit and provide solutions for the problem. Afterwards, the group as a whole can determine the most suitable solution among the regular ones. Crowdsourcing in the modern marketplace has gained much popularity (Owen, Scott, Adams & Rarsons, 2015). A company may decide to refer to its customers, mostly through the Internet, to help in decision making. Customers are mostly used to place input regarding new products, and hence, assist in resolving problems regarding the wants of a consumer.
Managing Biases and Emotional Influences in Decision-Making
Allowing biases and emotions to rule the decision-making process leads to failure to make informed and reliable decisions. For example, in having a confirmation bias, one may wish only to make decisions that confirm their initial speculations or only seek evidence that proves the existence of an initially speculated problem (Owen, Scott, Adams& Rarsons, 2015). Emotions have a tendency of clouding ones judgment as one will be inclined to judge based on feelings rather than reasoned evidence. If bias and emotions are not eliminated or minimized in the decision-making process, the decisions made will fail to be the most reliable ones (Owen, Scott, Adams& Rarsons, 2015).
Conflict Management and Decision-Making
Conflicts are bound to arise within any group during decision making. Some members may show cognitive conflicts. A team may suggest different ideas that oppose those of others. Some members may also show hostility toward other members of the group and fail to recognize the importance of their suggestions (West-Burnham & Koren, 2014). Some team members may fail to vocalize their ideas openly to the group, even though those may be better that the suggested ones. Additionally, different group members may have distinct motives regarding the decisions made other than to solve an existing one (West-Burnham & Koren, 2014). The motives can be self-serving. Such conflict may hinder effective decision making or delay decision-making within the stipulated period. The conflicts may also exclude better suggestions made by other members or those not made by other members. Conflicts, therefore, will hinder effective decision making.
Cultural Differences and Ethics in Decision-Making
Ethical decisions are those that uphold respect, fairness and show responsibility in the marketplace. They are consistent with the ethical principles that define the particular market. To make ethical decisions, one is required to demonstrate competency in understanding the existing problem, consciousness concerning current moral restrictions, and commitment to upholding the ethics even in making the decisions (Jacques, 2012). Many a time, the decision-making board may be created from people from different cultural settings. The cultural differences may cause a significant effect on the view of an individual towards a problem. The cultural differences may sway the decisions made by individuals toward solving the problem (Jacques, 2012). This circumstance may not be advisable since the decisions will be biased for an individuals culture. It is desirable that decisions be made based on facts rather than opinions that fit their culture. By following this rule, the credibility and reliability of the decision will be ensured.
A Decision Leader
Leadership plays an essential role decision making. According to the transformational leadership theory, people are more likely to follow a leader who inspires them the most. This phenomenon also implies that passion and vision play a significant role in ensuring a person achieves their goals (Tyssen, & Heidenreich, 2014). Based on the theory, when a leader shows enthusiasm and positive energy in the marketplace, they are more likely to accomplish most of the tasks they set (Vondey, 2014). Transformational leaders encourage better workplace conditions and, in the process, help the people they lead to work better and more enthusiastically. Such leaders also make better decisions since they run a more positive marketplace and have better relations with other members of the marketplace.
Sound judgment is critical in decision making, especially in turbulent moments. A manager must carefully weigh the consequences of their judgment before making a final decision. Similarly, there are many decision making techniques available to management. Decision making techniques offer the guidance to a manager and help a company avoid the pitfalls of making disastrous decisions that can halt the operations of a business. Correspondingly, efficient problems solving skills would ensure that the business is able to mitigate minor issues before they degenerate into devastating problems. Sound decision making techniques must assist a leader in recognizing the group dynamics that shapes organizations. If not handled well, group dynamics within the organization may hamper the smooth work of a business. Therefore, a good manager must be able to ensure that the flow of command is devoid of any biases and emotions. Apart from that, decisions have to be guided by the cultural and ethical factors as underpinning of the business and the environment in which the business operates. However, above all, in the current global market place, a good leader must take charge and make decisions in a manner that guides an organization to achieve its strategic objectives.