Business Management
There exist various criteria of determining whether a manager is making good decisions. The first criterion is by determining the purpose of the decision. One should look for the purpose to of the decision that a manager generated. This is the best criterion because its helps one compare the purpose and the underlying issue of the problem. Besides, it is important to have a clear understanding of the problem to help one determine whether the solution given is viable. If the purpose matches with the problem or issue being solved then, it is a clear indication that the manager meant a good decision.
Secondly, evaluation of the decision is another criterion through which one can determine whether a manager is making good decisions or not. Evaluation of a decision comes at the end of a specified period. The evaluation should seek to determine whether the decision provided by the manager helped solve the issue or the underlying problem. It is worth noting that a decision that fails to address the problem at the end of the specified period is bad otherwise it is good. Evaluation should also look at the available alternatives to determine whether the manager picked the best alternative depending on the advantages and disadvantages of each alternative (Marquis & Huston, 1994).
As a manager, there are various ways of enhancing good decision making. Firstly, having a clear understanding of the underlying problem or the issue is very important. Before making a decision, a manager needs to take time and understand the issue and the problem well. This helps one in determining the direction into which he or should take to look for best alternatives for solving the issue.
Besides, it is vital for one to come up with a variety of solutions or alternatives of addressing the problem. After proper analysis of the situation, a manager should strive to identify many alternatives that can solve the same issue. Still, it is good for the manager to list advantages and disadvantages of all the alternatives as a way of determining the best. From the alternatives, the manager should thus look for the best outstanding alternative to offer a solution to the issue. Therefore, a good decision by a manager is that decision that helps solve an issue or a problem (Fitzgerald, 2002).
Also, accessing the available resources for executing a decision by the manager is another way of determining whether a manager makes a good decision. A good decision should factor in the available resources in an organization. It is awkward for a manager to set a decision that requires resources that an organization does not have or cannot afford. If the available resources can support the decision made by a manager then it can be deemed good. Under the same note the decision should take care of organizational members morale and satisfaction if not then it is a bad decision.
Furthermore, a manager should also involve other members of the organization to help in soliciting ideas on how to solve the problem. It is a good way of enhancing teamwork and acceptability of the decision by all the members of the organization. Team thinking can come up with many alternatives through which the management can determine the best alternative for solving the problem.
The assumption that the demand for SUVs would continue due to gas price increase may not be viable. This is because there is no direct relationship existing between the demand for SUVs and gas prices. The demand for a product increases with the decrease in price. Under this situation, the price of the gas may not have any effect on the demand for SUVs.
Studying the relationship between the demand for SUVs and the price of the gas is one way of determining the credibility of the assumption. An organization should seek to understand whether there exists any relationship between the demand for the cars and the price of the gas. If there exists any relationship, the organization should focus on understanding how the two relate. Besides, it is important to monitor the demand for the vehicles and the change in the price of the gas and make a conclusion (Burrow & Kleindl, 2012).
Assumptions and their determination
The assumption that airlines assume that an airline without added amenities is required seems accurate. Consumers are different preferences implying that the preference of one consumer is different to that of the other. Assuming that the entire airlines available offer added amenities, it means that some of the consumer needs are not catered. For example, some of the consumers may not want the added amenities, and it is due to that reason another airline that does not offer such services may be needed.
Determining various consumer preferences regarding service provision in an airline is one way to test the credibility of the assumption. Such exercise would help an organization to determine those employees who are comfortable with an airline with added amenities and those that are uncomfortable with the same. From this analysis, an airline can thus make a suggestion on whether another airline without added amenities should be availed.
References.
Burrow, J. L., & Kleindl, B. (2012). Business Management. Mason, US: Cengage Learning.
Fitzgerald, S. P. (2002). Decision making. Oxford, U.K.: Capstone Pub.
Marquis, B. L., & Huston, C. J. (1994). Management decision making for nurses: 118 case studies. Philadelphia: Lippincott.
