Enterprise Decision Making Approach


By

Dr. Parimalendu Bandyopadhyay
Sr. Lecturer
Dept. of MBA
Bengal College of Engineering & Technology
Durgapur

Joy deep Chowdhury
Former Lecturer
Dept of Computer Application
B.B. College
Asansol
 


What is the Enterprise Decision Making Approach?

Every Enterprise deal with their own solution space or the solution space inherited from client and market research or the combination of both, to get the reliable and robust , optimal and requirement specific solution. But, these solution space itself create conflict some spare. Some time, it leads to the different way of solution, sometimes; it leads to believe different axioms for the same fact. Even some times, it happens that mentioned rule not seems to be valid for certain perspectives.

In this case, to get the optimal solution path with low risk, high assurance and good opportunities; people needs the optimal and clear knowledge of Decision Making. When this process of Decision Making happens inside the organization, its then not being so easy to take a hand hold decision. Several perspectives from solution space and environment as well as from problem space needs o be considered and some time needs to be ignored. The aspects are may be clients'/market need, minimal requirement, clients' environment and believes, people inside the organization and outside the organization, organization policies, work culture, resources and obviously time management and a lots.

From these scenarios the Enterprise Decision Making Approach can be defined as:

"Enterprise Decision Making can be regarded as an outcome of mental processes (cognitive process) leading to the selection of a course of action among several alternatives Considering organization, Market and People perspectives. Every decision making process produces a final choice the output can be an action or an opinion."

But, some time depending on situations some aspects may not be considered or some aspects may be born which even play a key role at the time of Decision Making.   

Following fig. shows the Para diagram of a Enterprise Decision Making System.


Where Enterprise Decision Making Approach work:

Enterprise Decision Making Approach may work with in and outside the organization. Suppose, for e.g. inside organization it helps to take effective decision that may not leads to the risks, proper time frame maintenance, effective utilization of resources and final one following the company culture and policies. Similarly, outside organization first of all, it's satisfying clients/market need and requirement. Make other marketwise aware about the services of the company. And, some internal as well as external matter of company.These is as follows:

Branding of Company: All company likes to represent themselves as a good service provider, developer or want to show their effective participation, knowledge or skill regarding the particulars areas in which they are dealing.

Social Responsibility : It is one of the new concepts that are growing now a day. Every company wants to relate with some social activities. It also affects the branding and resolves political and social issues.


Conceptual steps of Enterprises Decision Making Approach:

According to behavioralist Isabel Briggs Myers, a person's decision making process depends on a significant degree on their cognitive style. Myers developed a set of four bi-polar dimensions, called the Myers-Briggs Type Indicator (MBTI). The terminal points on these dimensions are: thinking and feeling; extroversion and introversion; judgment and perception; and sensing and intuition.

For example, someone who scored near the thinking, extroversion, sensing, and judgment ends of the dimensions would tend to have a logical, analytical, objective, critical, and empirical decision making style.

Some factors that affect the Decision Making Approaches Are as follows. These contain some quality and concerns that help you to take effective decision in Enterprise.

1] Leadership Skill:. The organizational view is that through patience, persistence and hard work, one can be a truly effective leader, just as long as you make the effort needed. The qualities and concerns for leadership skill are Leadership Motivation, Information Gathering and Building Expert Power, Task Allocation, Leadership Styles, Conflict Resolution.

2] Information Management : the successful evaluation of every decision depends upon the collection of effective information, analysis of information, flow of information and finally implementation of fact that the information is conveying. The procedures to gather effective information are Mind Map, SQ3R, Speed Reading, Reading strategies & technique.

3] Problem Solving: By using these techniques you can start to tackle problems which might otherwise seem huge, overwhelming and excessively complex. These tools give you a starting point in problem solving where other people would just feel helpless and intimidated by the situation.

The section starts with some simple complexity skills and then moves on to more powerful, 'industrial strength" techniques like use of Systems Diagrams, SWOT Analysis, Cash Flow Forecasting and Risk Analysis. We conclude with four powerful business strategy tools: Appreciation, Drill-Down, Cause & Effect Diagrams, Systems Diagrams , SWOT , Cash Flow Forecasting with Spreadsheets.


4] Risk Analysis: Risk is the major problem that some time totally or partially uncovered by the decision maker. For these reasons the entire decision in future creates some threat or lead to the failure. These affect all most al sectors inside and outside the organization. But, approaches are available to find out risk. These are:
Porter's Five Forces, PEST Analysis, Value Chain Analysis and USP Analysis.

5] Project Management: By using these techniques you can start to manage a big project and assure that less risk will come and the project will be completed successfully. It will help to schedule the task, track the risk, and find accuracy getting support from environment and resource utilization. The tools are: Estimate time accuracy, Scheduling simple project, Gantt chart, Critical Path Analysis and Stack Holder Analysis.

6] Practical Creativity: This technique though requires but some people considers that it not needed directly to take the effective decision rather it help to built the knowledge, depending upon which one can take decision. The key tools are: Reversal:
Attribute Listing, Brainstorming, Provocation, Reframing Matrix.

7] Time Management: The time is essential factor to make a decision. Every time consideration of time is vital. It's give the decision validity and execution moment. Depending upon the deadline decisions are usually taken. The lack of outflow of activity related to the time some time directly affect the stockholders' mind and lead to risk. Time management tools are: Beating Procrastination, Activity logo and Action Plan.

The decision making approach also contains some tools that act as a way finder for any scenarios. These are as follows.

i]   Decision Tree and Decision Table : Plotting lots of scenarios ad path depending on probable happenings.

ii]  Cost Benefit Analysis: How to recover the cost and gain more benefit for the financial year and in future.

iii] Six thinking hat: Looking at all point of view.

iv] Pareto analysis and Grid Analysis: Choosing which change to make and making a choice balancing many factors respectively.

Conclusion:

Good decision making is an essential skill for career success generally, and effective leadership particularly. If one can learn to make timely and well-considered decisions, then it can often lead the team to spectacular and well-deserved success. However, if organization makes poor decisions, the team risks failure and the time as a leader will, most likely, be brutally short.

The techniques help to make the best decisions possible with the information which has available. They help to map out the likely consequences of decisions, work out the importance of individual factors and choose the best course of action to take.

Finally, this all approaches help us but still effective decision may fail in its approach and all depends on the skill and passion that lead to it success.

Reference:

1. Mind tool news letter

2. Isabel Briggs Myers|Myers, I. (1962) Introduction to Type: A description of the theory and applications of the Myers-Briggs type indicator, Consulting Psychologists Press, Palo Alto Ca., 1962

3.Katsenelinboigen, Aron. The Concept of Indeterminism and Its Applications: Economics, Social Systems, Ethics, Artificial Intelligence, and Aesthetics Praeger: Westport, Connecticut, 1997, p.6)
 


Dr. Parimalendu Bandyopadhyay
Sr. Lecturer
Dept. of MBA
Bengal College of Engineering & Technology
Durgapur

Joy deep Chowdhury
Former Lecturer
Dept of Computer Application
B.B. College
Asansol
 

Source: E-mail August 13, 2008

           

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