Abstract
This memo describes the understanding of how to make important decisions. First it addresses the description of three criteria in detail that determine whether the manager is making good decisions and what should be done to better assure that the manager making a good decision. Then there will be given one of the Big Four Company’s project manager example as a good decision-maker. In conclusion there will be discussed the accuracy of business assumptions of automobile manufacturer and airline company.
How To Make Important Decision
There are managers with different levels and functions in every organization. However not every manager is a good decision maker. Let’s consider three criteria that determine whether the manager is making a good decision. First of all, a manager should have decision-making skills to solve problems by selecting one course of action from several possible alternatives. Second, the decision making of the manager should align with the vision, mission and values of the company. Third, the manager should be able to use different tools to facilitate better decisions (SWOT analysis, Decision Matrix, etc.).
Peter Drucker said: “Making good decisions is crucial skill at every level” (Drucker Institute, 2013). Decision-making skills are a key component of business success. The manager spends most of the work time with employees. The manager has to think about the effect of the decision made on the job aspect keeping in mind ethical and kind treatment of workers. The manager has to weigh out the “pros and cons’ of different options before making the last decision. When the options are determined it is time to think about the advantages of outcomes of each decision for the short and long terms. Employers are always looking to managers making the best decisions. However, sometimes opinions of leaders’ and employees’ vary and the evidence is not clear. In such cases, managers need to be prepared to listen concerns of employees and try to make them feel better about the decision made (Johnson, 2013).
Managers are leaders of the companies that is why they have to work in the interests of the company. For this managers should have a clear understanding of mission, vision, and values of the company. As the result, they will inspire employees to work more productively by providing focus and common goals and it will guide employee decision making (Rigby, 2015).
Every good decision-maker considers and compares ‘pros and cons’ of each option. For this manager can do, for example, SWOT analysis to identify the key internal and external factors that are important to achieve the objectives. Also, the manager can conduct a cost-benefit analysis to decide whether to hire new team members, evaluate a new project or change initiative, determine the feasibility of a capital purchase (Mind Tools Editorial Team, 2016).
Let me give an example from one of the Big Four companies in Kazakhstan where I have worked one year ago. In consulting project managers with good decision-making skills play the key role since the result of the project affects the authority and cost benefits of the company. My project manager had several good skills which described him as a good decision maker: attention to both detail and the big picture, organized approach to problem –solving, out-of-the-box thinking, strong time management, and excellent team communication skills. The last two skills helped him to have several decision options and chance to manage several projects at a time. His job was demonstrated by positive feedback from satisfied clients, including: “Company provided Nazarbayev University a Senior Project Manager who has brought the professionalism, integrity and experience that we required.” – Vice President of the Nazarbayev University.
Let’s consider two major assumptions for two different firms and assess their accuracy. First, an automobile manufacturer’s assumption is that the demand for SUVs would continue because gas prices would continue to rise. Since gas prices are belong to operating costs of vehicles it is expected that people will buy less SUVs. Therefore, the given assumption is wrong. Second, an airline’s assumption is that there was the need for an airline that provided no added amenities. Since airlines offer charter flights and hopes there is the need for airlines with no amenities, especially for modern budget conscious people. Today there are lots of low-cost airlines such as EasyJet, Skyscanner, Air Arabia, etc. based on “making flying as affordable as the pair of jeans” and urged travelers to “cut out on travel agent” (EasyJet Press Office, 2010). These companies use airlines with no amenities and are successful in the world market.
References
Drucker Institute (2013, April 22). The Best Decision You’ll Make Today: Read This Post. Retrieved May 12, 2016, from http://www.druckerinstitute.com/2013/04/best-decision-youll-make-today/
EasyJet Press Office (2010, November 10). Latest new – EasyJet plc. Retrieved May 12, 2016, from http://corporate.easyjet.com/latest-news-archive/news-year-2010/10-11-2010.aspx?sc_lang=en
Johnson, P. (2013, January 28). Three skills managers need for effective decision making. Retrieved May 12, 2016 from https://princetonchamber.wordpress.com/2013/01/28/three-skills-managers-need-for-effective-decision-making/
Mind Tools Editorial Team (2016). Cost-Benefit Analysis: Deciding, Quantitatively, Whether to go Ahead. Retrieved May 12, 2016 from https://www.mindtools.com/pages/article/newTED_08.htm
Rigby, D. K. (2015, June 10). Management Tools – Mission and Vision Statements. Retrieved May 12, 2016, from http://www.bain.com/publications/articles/management-tools-mission-and-vision-statements.aspx
