Management Decision -Making Techniques

Management decision -making techniques

Introduction

This essay will show us the decision -making techniques, levels at which decisions are made within a company, the importance of recognizing the difference between a leader and a boss, which is more favorable for the company and types of leaders and thus powerunderstand what kind of leader we would be. The different types of problems that may arise within a company will also be shown and how to face them following the different decision -making techniques for the good of the company.

Developing

A good manager will always go a step further than the entire organization, achieving with this the necessary control to manage. The control, more immediate effect of anticipation, is composed of organization, delegation of authority, account plan, information technology and budget. Although at the management level, creativity, inventiveness and the ability to improvise are very valuable, anarchy must be avoided, which ends affecting the results and managing under crisis. Knowledge should also be considered, such as the true heritage of a company. 

Directive capacity to supervise and give orders

An effective manager is one that:

• Share with your collaborators the objectives and priorities of your department and the organization.
• Use consensus to reach agreements with your collaborators.

To give orders with authority, they should not saturate mandate employees.

Otherwise, there is a danger of achieving the opposite effect to the desired. Learn to delegate and let each employee solve the problems by itself.

The following important points must be taken into account:

1: Leadership. 2: Know how to delegate. 3: Team construction ability. 4: Know how to communicate. 5: problem solving capacity.

Difference between a leader and a boss 

Chief is defined as the person who has authority or power over a group to direct their work or activities and the leader is that person who leads and directs a social, political, religious group or movement. Next, 5 differences between a boss and a leader will be mentioned:

1. The perception of his authority: for a boss the authority is a privilege granted by his command post. For leader, authority is a privilege only if it is a useful tool for the organization. 
2. Impose vs convincing: here the boss bases his influence on the authority that he has the position he has and the leader gains the sympathy and will of those around him. The boss enforces his position within the hierarchy and the leader cultivates and takes care of his leadership daily. 
3. Fear vs trust: in this the boss infuses fear, fear, usually threatens. The leader is a source of trust, empowers people, generates enthusiasm when working.
4. The management of the problems: the boss wants to point to who has made the mistake, punishes and shouts if something does not work out, on the other hand the leader knows how to understand the mistakes and calmly reorient the situation.
5. Technical Organization vs Creative Organization: Here the boss distributes the tasks and orders, and is supervising if his orders are being followed perfectly. The leader stimulates, contributes example, works side by side with his collaborators, is consistent with what he thinks, with what he says and what he does. 

Lider and leaders of leaders 

The leader is a person who has various qualities and skills, with whom he influences other people, for his direction and the realization of one or more purposes and objectives, guide with clear objectives in the organization. Types of leader:

• Spontaneous leader: he is the leader who arises spontaneously, when a certain situation or problem occurs assuming the command of the actions to be carried out, coordinating these actions to reach the common good. 
• Traditional leader: he is the leader who obtains the power to possess a position or for being belonging to a group of established power in the past, regardless of the fact that the individual in question possesses the necessary or not to direct and lead their subordinates.
• Authoritarian leader: It is one who makes decisions authoritatively, without asking advice from other people or giving explanations about their actions and decisions.
• Democratic leader: he is the leader who makes decisions after consulting others, and raises the problems accepting the opinions and advice of others to make decisions.
• Business leader.- The person who has managed to carry out different business projects is understood as a business leader, taking them effectively and accurately, protruding among other entrepreneurs.

Decision making

Decision making is a process that people are going through when they must choose between different options. Solving a problem needs the following concepts:

1. Decision: All possible combinations that include both the actions to be carried out and the situations. 
2. Result: hypothetical situations that would take place if one or another option of the aforementioned decisions is taken.
3. Consequence: Evaluation based on subjectivity, for example gains or loss.
4. Uncertainty: Here are both the probability, as well as trust and possibility, in the face of the unknown, especially when there is no experience in a particular problem.
5. Preferences: Tendency to take an alternative and not another, is conditioned by experience.
6. Decision making: Action to decide. 
7. Judgment: Evaluation.
8. Problem solving model
9. Define the problem: it requires the analysis of the situation that faces.
10. Possible alternatives: are all combinations of actions that can be taken.
11. Provide results: as they are only hypothesis, it is necessary to associate the possible consequences of each of the alternatives.
12. Choose: Opt for some of them.
13. Control: It is always necessary to have everything under control without leaving anything to chance, being monitors, responsible and with a participatory attitude in the process.
14. Evaluation: see the pro and against what has been decided, something essential for learning.

Administration Corrientes

1. Operations Research: It is the application of the scientific method to the alternatives of a problematic situation. It is one of the most complete analysis and research methods for decision making. It has a strong mathematical inclination and is increasingly used to apply the methodology of physical science systems to administrative decision making. In most cases, their results cannot be so complete as to define the final decision, but in more specific problems such as production or transport planning that have clear goals and defined data, the conclusions can be functional pointing out the optimal solution. 
2. OPERATION ADMINISTRATION: It is the discipline that studies the planning, organization, management and control of the activities necessary to produce goods or services offered by companies or organizations. Applies mathematical models and objective methodologies, especially is related to operations research and administrative engineering. Operations management is very expensive for the organization, much of the income is spent on it, but it is a great opportunity for the company to improve its profitability and contribution to society. With so many changes so dynamic and frequent, this discipline is transformed day by day, moving from national to international, from the slow to the rapid.
3. Systems theory: part of the identification of variables that define the relations of the company, which lead us to analyze reality globally;that is, the company is defined as a set of interrelated systems that are developed together to achieve a definite purpose or goal. The systems theory has developed greatly in the area of physical and biological science, but it has also been applicable to the administration, who as a system has borders, but also interacts with the external environment, that is, organizations are open systems, this is a great innovation because until then closed systems were considered. 
4. Contingency theory: In the contingency approach, managers for day -to -day practice are based on a set of current circumstances that are influenced by the solutions given in the past. Caution in this administrative practice must be taken, because it requires that managers take into account the realities of the situations, since there is no theory or science that says exactly what should be done in a given situation, or the best way to do thingsin a specific case;Each situation has its characteristics that will require specific decisions, therefore this theory is only a guide that is applied together with the variables of each day and of each company. 
5. The theory of complexity: the application areas include the understanding of how organizations or companies adapt to their environment and how they face situations of uncertainty. The theory treats organizations and companies as collections of strategies and structures. The structure is complex, because they are dynamic interactions networks, and their relationships are not the result of the aggregation of individual static entities. 

Complexity based on occurrence

Complexity is part of the problems of life and living has become a problem of the construction of the future and the search for solutions to contemporary problems that also imply the economic.

Associated with complexity, the uncertainty that is not knowing for sure what will happen in the future is presented. In the economic field is the factor with the greatest complexity facing the decision maker when making the best choice for decision making. In this way, the decision -making process is complex because not only should the options available to which the decision maker be valued, but also the circumstances of the state to which it is desired, which in any case will be generated from the elections, orgood of the natural states that will affect the decision taken.

Problems and priorities

Problem 1: Badly used human resources

Analyze the responsibilities of the employees in your charge and contrast with the functions that your management must fulfill. Are employees few or too many? Are the functions covered? Is there duplicity? Are any employee prepared to fulfill the assigned responsibility?

PROBLEM 2: CUGORROSE PROCESSES

Generally the processes that were planned at a given time lost validity, since they did not adapt to the transformations that the organization has experienced. This retards the natural functioning of work.

Problem 3: Information management

This is organizations’ cancer. The lack of communication of the equipment and among the different management affects significantly in the management of operations.

Problem 4: Change resistance

Do not forget that organizations changes involve change in people themselves.

Problem 5: Clear commitments

It is very easy not to assume responsibility especially when mistakes have been made.

Causes or cause of the problem

• Failure to comply with plans.
• Deviation (decrease, deterioration) of previous results.
• Customer’s complaints.
• Performance of competitors, which can cause losses of customers and markets to the company.
• Concerns about the performance and results of your entity that your superiors, colleagues, including subordinates.
• Changes in the environment that modify technologies, market trends, customer expectations, among other factors.

Alternative solutions

1. Relocates employees in other departments.
2. Request support from other management to strengthen yours.
3. Incentives employee training to fulfill their functions.
4. Permanently motivates workers .
5. Talk to employees and ask how they believe that processes can be expedited.
6. Establishes a balance between sections and work stations.

Structured decisions: are those taken to solve problems and situations that occur routinely, systematic. They are established through the definition of policies, procedures, work systems, definition of the authority to approve documents, exceptions, among others.

The unstructured decisions: they are those that are taken to solve problems that do not present constantly and that require unique solutions, such as: acquisition of a new technology, approval of a marketing plan, and so on. These situations demand innovative solutions, which cannot follow traced policies. 

Authoridda level that must take the decision

If something characterizes the management work is decision making. It is the act that initiates work processes in organizations. There are various levels of decision -making within a company:

• Strategic decision making: they are those that determine the goals, purposes and direction of the entire organization. The senior managers have the total vision of all the elements of a complex business company, and must be able to integrate them into a coherent whole. Decisions taken at this level also determine how the company will related to its external environment. 
• Administrative decision making: they are those taken at the levels that are lower than those previously analyzed in strategic decisions. They are taken by managers at the middle level, such as division or department leaders. These refer to the development of tactics to meet the strategic goals that defined the high administrative levels. 
• Operational decision making: These are at the lower levels or supervision of the company, it is the course of daily operations, these operations designed to meet the tactical decisions taken by the Middle Level Executives. 

Tools to be used in the decision -making process

The decision -making process refers to the activities necessary to identify a problem and solve them.

Qualitative techniques:

1. Rain of ideas: effective technique to generate new ideas detecting the problem in a simple way. 
2. SINECTIC: The solution to the problem is obtained with a more structured method. The synemic allows to evaluate a very complex problem because this is studied by segments.
3. Decision by consensus: It is used when knowledge about the problem is distributed among several people, does not require the agreement of all members but the decision must be unanimous. 
4. Delphi Technique: Its objective is to know the opinion of a group of expert or specially interested people about diagnosis, planning a specific situation or topic. It can have a technical duration can range between 45 and 70 days. 

Quantitative techniques: These tools help apply rational thinking to guide and serve the manager to discover the desired solution to the problem in the best way, by division of problems into minor fragments, which facilitates the diagnosis. 

1. The results matrix: it is a widely used instrument that shows the possible results that can be achieved, following strategies in different circumstances. When a situation is given in 2 dimensions, a results matrix can be used.
2. Decision trees: It consists of assigning probabilities to events in risk conditions or uncertainty through graphic representation that illustrates each strategy or alternative through a branch, similar to the branches of a tree. The vertices or nodes represent the decision events using a picture for this. 
3. The inventory system: these help control the total inventory costs and can also reduce the total cost of buying to store, carrying the inventory and running out of it, helps those who make decisions to look for the optimal level when ordering or storinginventories, because it is one of the biggest problems faced by managers.
4. Linear program: The primary objective of linear programming is to maximize or minimize linear functions in different real variables with restrictions, also linear. Linear programming problems correspond to real situations in which it is intended to identify and solve difficulties for the best use of limited and almost always expensive resources.

conclusion

In conclusion, it can be noted that decision -making is essential for day to day from how we decided to dress, to how to improve a situation, in management it is importantThis choosing between the different options and creating a plan where you will be monitored to know if our decision was correct. It is also important to understand that it is better to be a leader than a boss, the leader constantly interacts with his employees, cares about them, allows them to give their opinion and does not punish a situation of error, the affection and trust of their employees are gained by creatinga more harmonious atmosphere. The leader must make decisions of course, we already met the different levels of decision -making that are administrative, operational and strategic, this will help in the internal part of the company in a problem situation such as customer complaints, changes in the environment, ECT, the leader or manager should look.