a Decision making ae _— 6 The nature of management decisions 149 « tne decision-making process 156 0 Decision-making techniques 16) This chapter introduces the key elements involved in management decinon making, and describes how this differs from decision making with The process used, along with the techniques that aid in deciuce = a making, ave described nature of management decisi jon making is usually required to solve a problem. To is a relatively straightforwardwithin the Engineering 5 matic winder, which rototype had been on a life , S108 yy stoped working. A decision wag, J er steps in decision making, which he 4 oud mentally (2° recent coure in. That was lear eNOUGh; One of 4 tte Pe ccs entangled in the spring, mecha ative solutions. Mike realized that he , ify the smaller size, he could eliminate the tit ett and pully system: or he could bend the «n= Js, so that it did not obstruct the cog. ' best solution to meet the objectives. The - ‘on test and to limit any redesign. Mike He took a hammer out of his tool box .d outwards, and the machine p a ane? igwas of? into action. rawing board and recorded the change to moved to its new position. Mice smith returned 10 is d the spring mechanism being More dinshers Adrian Elton, the Manufacturing Director, had come under consider at Jake Toppers Executive Staff Meeting for the low output from the Shop. Peter Sell, the Sales Director, had been particularly scathing, his sales targets were being missed because of a shortage of florolls times. ; Returning to his office Adrian asked John McCaully to come to see ‘John’, he said when John McCaully arrived, ‘we have a problem. | took considerable stck at Jake's meeting this morning because we have misse target of florolls again this month. | realize that we have come: eo98 enough, Peter Sell is again making political capital, claiming ¢ olding up his sales. The main problem is the poor output of din ‘at how this can be increased, and let me have your recommendatiorThe nature of management decisions 151 ccaully set to work defining the problem, That was clear enough: to yonn Me suput from the Dinsher Shop, He decided to draw up a decision matrix ae nati 009 emp fer eon on key factors This matrix of jn Table 6.1) OT change would be to introduce overtime working, John estimated that The ST crease OutbUt by 8 per cent although costs would go up by 15 per cent sister and by 20 per cent if overtime working continued, since payments jn the eed to DE increased according to a union agreement. Overtime could be. would ved withi9 ‘a week, but could only be continued for about six months, since ts ime efficiency Would suffer, Overtime payments would be popular with “tors, especially with Christmas approaching, the oPe nd alternative could be to change some of the work practices, which had yr ahs ‘on several occasions with the operators and unions. This would 3 ‘output by about 3 per cent only and put up costs by 5 per cent. It would I out six months before the changed practices became fully effective and i roduced they should be effective for about two years. John knew that he once ace considerable union resistance to the changes. er alteative would be to increase the number of operators and to work arp as to utilize the machines fully. This would give a substantial increase in Poa up to 20 per cent, although the cost would go up by 40 percent in the short: out by 50 per cent longer term, due to increased maintenance of the machines. ter working ould be expected to last one year ony, since after that time it would aoe detrimental effect on the machines, which would need replacing, New have tors would need to be recruited and trained, so shift working would take opt hvee months befor it coud be introduced, it would be popular with the oo since their membership would increase, but would be less popular with existing operators. “te fourth alternative would be to introduce further automation into the Dinsher shop. This would eventually give a 40 per cent increase in output, but it would take fue yeas before this was achieved. Intialy costs would be high, about 70 per cent sich included the cost of new machines and operator redundancy costs. Running ‘costs, however, would fall long-term by about 20 per cent due to the increase etfency. The effectiveness of the automation programme would be expected to lst ten years. As expected there would be considerable resistance from operators and unions when it was realized that redundancies would be involved. Having completed the decision matrix, John McCaully realized that he could not upwithafirm recommendation without further discussions with Adrian Elton si deciion would afect many people. What worried him were the following The criteria for selection were not clear. How important were the considerations: the need to please Jake Topper and Peter Sell? Would Adrian Screw back him up in any confrontation with this to be avoided?1.1 Management decisions The nature of management decisions 153 As illustrated in the two case studies above, the process used for scientific decision making is similar to management decision making. In both the steps are the definition of the problem; gathering facts related to the problem; comparing these with right and wrong criteria based on knowledge and experience; and then taking the best course of action. Management decision making, however, is often an art rather than a science. ‘The conventional theories of decision making, such as information collection, information analysis, choice of best alternative and then full steam ahead on the favoured solution, do not always apply (Efzioni, 1989). The main characteristics ‘of management decision making are: ‘The problem is often ill defined or unpredictable. Engineers and scientists work to clearly defined laws of science, whereas most management decisions are related to human behaviour, which cannot be accurately defined or predicted. : Management problems are usually much wider in scope than technical problems, and affect many more people and functions. All of these have their ‘own objectives, requirements and interests, and see the problem differently. Conflicts of interest and political considerations need to be taken into ‘account in the decision making process. © Gathering information on which to base a management decision is often a hazardous process. A vast amount of information is usually available, and ‘one cannot hope to collect it all, let alone only the relevant ones. There is also the difficulty of knowing what is relevant to the problem. The problem is continually changing, due to market or people considerations. Much of the information is usually based on guesswork, rumour, opinion or hearsay. The danger is that those taking part in the management decision-making proce: often forget this and consider the mass of data obtained as being exact anc unchanging, and therefore expect decisions based on it to be accural = The management decision, like the scientific one, is essentially choosing between several alternatives. This is easy to do the consequences of each alternative and they do, Neither of these applies to management situati154 Decision making nd the consequences of each alternative are often difficult to Predict 's also rarely a ‘best’ solution in management problems; they aj} invoie compromises, and usually the manager is reduced to Picking the best 4 compromise and being aware that this may not be the best Choice at so time in the future. It is highly probable that what is Considered to be th Solution today may turn out to be the worst choice in the future Mane “sually aet on part information and lots of gu feeling. They proces at Caution and continually check the consequences of their decision, being ; Prepared to alter it if required by circumstances, Once a decision has been made it requires consensus and commitment fro the people who are affected to implement the solutions. Political z Considerations then become paramount, since different factions effecteg a have different objectives. Following implementation the decision must be continual whether itis still valid in a changing environment, Ily monitored to ye ® The process of management decision making cannot be learned Most of based on experience and judgement and must be acquired, usually in difey Management positions, t Figure 6.1 graphically illustrates the nature of management decision Problem has a set of alternative solutions, and wit! optimum choice, However, the problem itself ch solutions. The problem may get better or worse making The hin these there is probaby anges with time and $0 do ty if left long enough. Even ithe Problem Alternative Problem solutions, Froblem Problem Alternative Alternative Optimum) as | Solution Cotation 2 Alternative Figure 6.1 The problems of management decision analysis.The nature of management decisions 155 roblem does not change the optimum solution probably will. For example, the problem may be defined as the need to sell more product, in order to increase market share. However, in time the market may become saturated, so. this roblem becomes difficult to solve. The problem itself may then change to one of increasing profitability by reducing product costs. Alternatively, the problem may intially be one of increasing profit margins, and the best solution for this may be defined as one of increasing price. In time a competitor may enter the market and make this a bad choice, so the solution may need to be redefined, for example to one of reducing price to maintain market share, but increasing advertising so as to grow the overall market size Decision-making styles are often affected by the organization in which a manager operates. For a strict mechanistic organization the roles and responsibilities of individuals are well defined and decision making is a routine process, where staff respond automatically in a prescribed way (Kay, 1982; Ashford and Fried, 1988), This results in efficient and quick decisions, with unexpected events being fed up the organization for decisions. The problem arises when events change, such as an unexpected change in process forced by circumstances. This would result in a considerable number of new decisions, which would alll need to be handled by executives. The top-level decision-making structure would become overloaded (Burnes and Weeks, 1989) with senior management spending their time on small decisions (fire fighting) rather than on strategic ones, Decisions can be divided into those which are routine and those which occur infrequently. Examples of routine decisions are the purchase of materials, with the decision on the quantity to order so as to obtain the best discounts. Routine decisions can usually be defined by a set of rules and are often automated, for example by computers. They can be taken at much lower levels in the organization, although in many cases they may have a major financial impact on the company. Decisions of an infrequent nature, which also usually have a major impact on the organization, need to be taken by senior management, Figure 6.2 shows a simple flow diagram of the choices facing management when a problem arises. If the decision is not critical to the business, and it is of a routine nature, it can be delegated. If it is a critical decision, or if it is not of a routine nature, then it usually needs the manager's involvement. If managers do not feel that they have all the relevant information on which to base a decision, they would usually involve others. If they have all the relevant information then they might still wish to involve others, for example in order to gain commitment for implementing the solution, or as a training exercise for their staff. Itis often said that in management any decision, good or bad, is better than no decision at all. This is probably due to the fact that some managers, faced with the bewildering array of choices within an uncertain environment, are paralyzed and cannot act. However, the first question a manager needs to ask is: ‘Is this decision necessary”. If the decision can be deferred without detrimental effect then it should be. Not all decisions need to be made on the spur of the moment, with managers throwing their full weight behind it to see that they are implemented immediately.156 Decision making Decision routine? Yes Manager have sufficient information? No Involve others? Involve others Make decision Figure 6.2 Management decision flow diagram Most decisions made in this manner are incorrect and only strive to maintain status quo; that is, they correct the immediate problem and retum circumstances as they were before the problem occurred. The problem ma however, only be a symptom. What may be required is an entirely new statp and direction for the organization, and managers need to buy time to ensure ts they can reflect on the best way forward. [— The decision-making process The basic decision-making process has already been mentioned, and illustrated in Figure 6.3. The first task is to identify whether a decision !S required. Every decision introduces a change and, depending on the ext change, can result in a shock to the organization. Often this shock beneficial, but sometimes it can be disrupting.is needed 7 joutine or unique? Detine problem 1 tse or mptom? + own or team? T Facts or opinions? 1 Short or exhaustive list? solutions ' Extent of compromise? "pounder conditions met? | Easy or difficult? 1 Commitment needed? i 1 Impact on others? Figure 6.3 The decision-making process. Identify if a decision Decide on method for arriving at decision Define alternative Select best solution ‘Modify based on compromise factors Build implementation factors into decision Carry out decision The decision-making process Feedback Monitor results 157158, Decision making IP things are going well then they should be left alone. No ecisi ormaly be taken ifthe problem is likely f© go away on its own co ifthe pro uy relatively insignificant, even if itis annoying. It is important, however, to ncbleny decision on whether to act or not to act. Nothing can ‘be worse (ninth indecisively on the fence. Hala decision is much worse than no decision ats Having decided that a decision is needed, the next step is to define the lish? This definition must neta My a what does the decision have to accom; Srafement of the boundary conditions: those factors that must be satin isi oy order for the decision to be successful The problem needs to be broken down into understandable terms ang rT units. The true cause of the problem should be sought. Fe example, (ul sales are low this may be due to the product costs being too hight ie! te force being poorly trained; insufficient advertising used, co 10° demand 4, Product. One of the key questions is whether corrective action of Strategy is needed, Usually most managers settle for correc Ve action, 1. the symptoms of the problem, rather than getting at the cause, which require a new strategy may, Problems are usually of two type those for which a generic solution c the symptoms and not the cause of the underlying defect. (See the case study ty Saxe of the missing filters’.) Routine problems usually reveal the Ure cause of defect, and for these there is a generic solution, In defining the problem the manager should always first ASSUME that the Problem is routine and look for a generic solution. Once such a Solution has beep found it can be applied to many similar problems Unique problems require « solution and a decision every time they occur; it is better if one is able to colle, several unique problems into a few generic ones, so requiring fewer Solutions to be implemented. Note that, once the problem has been clearly defined, it is possible that the manager may reverse the original decision and decide that no decision ig requited in the present circumstances. Manager next needs to decide on the bes Having defined the problem the a decision on its solution, Usually the choie a between making the decision on one’s own or involving others, and a simple Scheme for deciding on this was introduced in Figure 6.2. This will be elaborated on in the next section. It is Important to note, however, that there IS no evidence to suggest that groups arrive at better decisions than individuals in all cases, Groups can ensure that all the facts have been considered, and the solution is more likely to be accepted by those taking part in the decision-making process. Individual decisions are quicker to implement and may sometimes be better, since they do not need to involve a compro! between those taking part, Problems now need to be defined. These may be as Alternative solutions to the . Ff fact collection or may be based on opinion (hypothesis), It is the method for arriving atThe decision-making process 159 Intuitive Ins are tested by facts, and those voicing the opinions task of determining how best they can be tested. the manager may decide to produce an exhaustive likely ones. Having several alternatives is usually fall-back if the chosen solution cannot be used for organized conflict’ exists during this stage of the members taking part in the decision making is that all the facts are aired and considered, so ing made based on a preconceived idea of rs must see things from other’s perspective, n is right wwe defined the cognitive style of a manager, and analyzed in arriving at a decision. Most on a scale, as shown in Figure 6.4, and they receptive information gathering, and between ation analysis. gathering the manager builds up a picture of what ht as the data are obtained, being guided by this is partly done as the data collection progresses, so the may be shorter. However, the danger is that much of the be overlooked if it does not fit the manager’s perception of ted formation gathering the manager first collects all the data and relevant information. At this stage no attempt is made to see fit a perceived solution. After all the data have been coll before a solution is formulated information analysis the manager sets a plan for analysis of160 Decision making data and sticks to it, being well organized and checking progress the other hand, prefers to start with one or more hypothesis and to mary O8 data against these, Any data not matching the solution are discardey na manager will often rely on hunches rather than on a strict interpretation information ; There is no one ‘best’ cognitive style, and usually if a team is working on 4 Problem itis better to have members with a mix of styles, The best solution from the array of alternative solutions is now selecte ne selection process should be such as to pick the best solution and not be e solution. It is important to know what the Solution is so that the impact of any compromises, introduced at the next ‘tg are known, Often there is no one unique ‘quality’ solution which is much bette. than any other, and in this case several solutions can go forward to the oat picking the most accept Promises, such ag stage. The solution can now be modified to Incorporate any com) ted. The extent of the need to gain commitment from people to have it implement ompromise needs to be clearly defined. Although it is generally true ap ‘something is better than nothing’, it is essential that the solution, after the still meets the boundary conditions set when defining the problem compromisi since these were the minimum conditions that any acceptable solution needed fulfil The implementation factors now need to be built into the decision. This i one of the most important stages in the decision-making process and often takes he longest time. A decision is worthless if it cannot be implemented, and the action needed to carry it out must be part of the decision and not added later. One of the key considerations at this stage is the level of commitment needed from othen in order to carry through the decision. It ts possible that considerations of implementation factors may require that the original selection of the best solution be re-examined, and this process will be repeated, as shown in Figure 6.3. The final stage in the decision-making process is carrying out the actions Often a manager will need to live a long time with the consequences of decisions, and it must not be assumed that changes can be introduced rapidly 4 bad decision has been made. Therefore managers must ensure that they are happy with their decisions, and if they feel uncomfortable they should Pause momentarily to reflect on the implications, and whether any factors were overlooked when arriving at the decision However, this reflection period must be short, and if managers still believe that it is the right decision, they must ensure that it is followed through with commitment, even though it may not be a popular decision Once a decision is implemented the results from it must be constantly monitored. This will provide feedback on the original problem, which may need to be redefined.Decision-making techniques 161 (Case study } the case of the missing filter winding machine, designed by the Engineering Department, was extremely te new yas sed within the Dinsher Shop and performed very well except for ct that it seemed to break down regularly, once a week, ‘ces like it has a clock inside it, joked Sam File, the maintenance engineer. ‘gery week, come f2in oF shine, it stops could almost set my watch by it. Mind you, Moen’ take long to fix, just a quick clean out inside, but it is a nuisance. ‘The problem remained a nuisance for some time. tt was clearly a unique problem and te decison had been taken to treat it as such and to repair it whenever the need arose. The symptoms were being treated. it was many months later that Sam met his counterpart in the Floroll Assembly shop and discovered that they had the same problem with their new winding machine. “Must be a time bomb in these new machines’, muttered Sam, when he told ‘pg’ Joe Bul the story that afternoon, vail at once the unique problem was no longer unique. Joe contacted the Engineering Department. They surveyed all the ten users of their new machine and found identical symptoms. An investigation was started into the routine problem; the cause and not the symptom was about to be treated. it was discovered that dust was getting into the delicate balance mechanism and upsetting it. The generic problem was rectified; a filter was introduced into the design which cured the problem. it Decision-making techniques Several mathematical tools are introduced in Chapters 7 and 8 for making decisions in specific situations, Examples of these are inventory control decisions; queue analysis for waiting time problems; and competitive strategy decisions in the theory of games. Other techniques include decision trees and tables. Table 6.2, for example, shows a simple decision table which may be drawn up by the FloRoll Manufacturing Company to define the conditions under which a customer will be ranted credit. The three considerations are: whether the customer has done business with the company before; whether it is a large organization, having a umover above a prescribed value; and whether the customer has been ‘ecommended by an existing client which credit facilities, The accept or reject row Sa the combinations under which the customer's application for credit nea be accepted. Routine problems, such as this one, can be programmed into Puter, $0 that the solution is rapidly obtained.162 Decision making Table 6.2 Decision matrix on the criteria for credit Question Done business before? Turnover exceeds defined value? Recommended by an existing client? Acceptreject? >| << <|4) zzz2\n plz <<|w Decision-making techniques usually adopt a two-stage process: Determining the method for arriving at a decision, such as whether tg others or not. Vole 2. Arriving at the decision. It was Maier (1963) who first defined the decision-making process in tems gp quality of the decision and the acceptability of the results to affected partes have to carry out the actions resulting from the decision. Who Vroom and Yetton (1973) developed this quality-acceptabilty mode! ute a "Making and defined a method for deciding when to involve others in the decision, 1 process. Kepner and Tregoe (1965) developed a method for the actual decision, -Malig and problem analysis process. 6.3.1 The Vroom-Yetton model Vroom and Yetton proposed a set of possible management decision-making as shown in Table 6.3. These styles range from very autocratic (Al) to democraiy (GII). Most managers use a variety of styles, depending on the circumstances an} the Vroom-Yetton model proposes a set of seven questions, which provide a gue of the type of style to be used. These questions are given in Table 6.4 Table 6.3 Management decision-making styles (Vroom and Yetton, 1973) Style Description AL The manager makes the decision entirely on his or her own All The manager first collects information from others (possibly telling them why the information is needed)) and then makes the decision on his or her own c The manager discusses the problem individually with others and gets their input before making the decision on his or her own. cn The manager discusses the problem with a group of people (usually the most affected) and gets their collective input before making the decision on hist her own Gu The manager discusses the problem with a group of people (usually the mos affected) and lets the group make the decision, The manager does not ty! influence the group to accept his or her solutionDecision-making techniques 163 Je 6.4 Questions involved in the Vroom-Yetton method wn een gue ——“‘s one solution llkely to be much better than any other that \s, is there a 1 ‘quality’ solution? Does the manager have enough information to make a quality decision? 2 Does the manager know what information is missing and where to find it? , 's commitment to the decision by others important for its implementation? ‘ will others accept the solution if they are not involved in the decision-making process? , Do all the affected people share in the same goals? Will there be a conflict between the affected people regarding alternative solutions? ——— Te The questions are supposed to be asked for any situation in which the manager needs to decide on whether to involve others in the decision-making. process. They provide a guide through a decision tree (a part of which is shown in Figure 6.5) which leads to the correct style ; If several alternatives are equally good then the choice is usually made on the basis of the least amount of effort (person-hours) involved, A simple example of the use of the Vroom-Yetton technique is illustrated in the case study ‘Feeding the line’ Feeding the line : To ensure that the minimum of raw material is kept on the shop floor, Fred Shrew has recently been appointed Materials Handler for the dinsher line. His task is to keep the operators continually fed with raw material, so that operators have up to four hours of material at their stations. No further stock is to be held on the shop floor. eee When Fred started his job one of the first decisions he had tomake washowto determine the quantity of material to order, on a daily basis. He decided to use the _ \Vroom-Yetton method, and started answering the seven questions given in Table 6.4. To the first question Fred answered ‘yes’, since obviously there was one the one which gave minimum stockholding. He ther re decision tree of Figure 6.5. To the second. he had all the relevant information. The Predictable rate, so he could tell exactly how to point B on the decision model o answered ‘no’. All the operator: it affected their group bonus, and the lines fully fed, This.164 Decision making Figure 6.5 Example of part of the Vroom-Yetton decision model, 6.3.2 The Kepner-Tregoe method The Kepner-Tregoe method for decision making and problem analysis sp Series of steps to be followed when analysing a problem, as follows: 1. Specify the problem both in terms of what it is and what it is not. For example if the problem is only found to occur between the hours 10:00pm and 2:00a.m., then it does not occur at other times between 2:00a. m. and 10:00 p.m. 2. Identify the differences (distinctions it is not. For example, what ha does not occur at other times? 3. Look for the causes (solutions) that explain these differences (dis }) between what the problem is and Ppens between 10:00 p.m. and 2:00Decision-making techniques 165 cause (solution). Compare what actually happened with what would appened if the proposed cause (solution) had been in action. If the use (solution) explains what actually happened and did not ut requiring too many assumptions, then it is correct. Ahot stand yes ater the new fiters were fitted to the winding machines another problem ‘nas decovered: the machine in the Dinsher Shop kept breaking down at regular mes Sam File, the maintenance engineer, checked on the other winding machines ong used within the plant and discovered that his problem was unique ths time; all the other machines showed no problems. Sem called in the Engineering Department. After extensive testing they could not. {find eny cause for the regular breakdowns. The problem got to John McCaully, manager of the Dinsher Shop, who decided to try the Kepner-Tregoe method for tracking down the problem. First John specified the problem in terms of what it was and what it was not, as in Table 6.5. Table 6.5 Specification of the problem for the case study ‘A hot stand’ stra What is it not? iWaciine breaks down between Z00pm. and Machine does not break down at other 200p-m. a e ‘Machine breaks down in the Dinsher Shop Machine does not break down in any Machine breaks dowm on Friday Machine breaks down only after it has been making ‘shewers’166 Decision making Table 6.6 Differences between ‘is’ and ‘is not’ (from Table 65) jpim and Ifollows the start ofa nay ‘What is the Gifference between 2:00 | ps ind other times? Whar isthe difference between the Dinsher The Dinsher Shop isthe Shop and other areas? apprentices on the ass What is the difference between Friday and Apprentices work a short other days? college at 2:00 pm, What i the difference between the ‘Only a few ‘shewers’ are negg manufacture of ‘shewers’ and other products? _are all made by apprentice m To test the cause John went out onto the shop floor and placed a ho the same position. Sure enough, the machine broke down half an hour Engineering were informed and traced the problem to the heat from ¢ vaporizing the drive fuel, which was stored in a small tank under th vapour affected the electronics within the machine and caused it to stg ‘about half an hour for the vapour to affect the electronics. John decided to ban the consumption of food and drink from the ‘shoy provided a special area for this, a practice which was soon followed th plant. Summary neering and management decision ma The basic steps used for engi t decision making is much mote ¢ similar, although managemen because: ¢ often ill defined or unpredictable, Management problems ar relate to human behaviour, which cannot be accurately pred = Management problems are wide in scope and affect many p whom have their own objectives, problem different! ® Gathering information on which to base a solution to aman problem is difficult, since the amount of data is continually changing as market conditions change. 7] information is based on guesswork, rumour, opinion « The consequences of management decisions are © it ‘and the ‘best’ solution will change as circumstances ® Management decisions require consensus c number of people affected, for successful imp! political agendas may make this difficult to do. requirements and interests,Case study exercises 167 Gost circumstances the decisions taken must be sitored and changed, if circumstances require it. first step in the decision-making process is identifying whether a aon is required; if not it should be postponed until later, when more emation willbe available {0 help in decision making. Ifa decision is needed imfpust be clearly defined. Managers need to decide whether to take decisions ‘on their own OF involve others. If it is a critical, non-routine decision, and rs have sufficient information to make the decision, and do not need spuy-in’ to get it implemented, then they should make the decisions on their gun. Alternative solutions to the problem then need to be determined and the fest solution chosen. This may subsequently be modified based on other factors, such as the need to meet political considerations, but the boundary conditions needed to satisfy the original problem should still be met. The smplementation factors then need to be built into the decision and these acted tipon. The results from these actions should be continually monitored to esure that they meet the original problem, which may change with time. Several techniques have been developed to assist in making management decisions. A simple technique is to draw up a decision matrix of the critical factors snd to weight these to arrive at a solution. The method asks a series of questions ‘and based on the replies to these it enables the manager to decide on the style to be ‘ised in solving the problem, the style varying from autocratic to democratic. The Kepner-Tregoe method for decision making and problem analysis specifies a series of steps to be followed: specify the problem in terms of what itis and what it is not; identify the differences between these two; look for the causes that explain the differences; and test the cause (solution). continually Case study exercises 6.1. Jane Furley, manager of the hardware design section, realized that her team would be needing a second workstation within the next twelve weeks if they were to complete the new design on schedule. The key decision required was whether the workstation should be rented or bought outright. Should Jane make the decision on her own or ask the design engineers? Jane believes she knows what type of equipment is best for the team and also has a good view of the team’s forward workload 62 Micro Dowling has been asked by Jake Topper to send one of his engineers to Australia for a month, to help with a floroll installation problem. Micro shortlists three members of his staff who he knows could do the job. He is certain that all three would jump at the chance of going abroad. However, they work for three different managers within his organization and Micro knows that these managers would be loath to lose their staff, especially as the projects are all at a critical Phase. How should Micro Dowling make the choice?168 Decision making in a gr of 6.3 On the recommendations of Jake Topper, Peter Sell has called i i anize his management consultants, to advise him on the best way to org, for maximum effectiveness. The consultants have made their and Peter realizes that it affects several of his staff, who may oppose any ave been ma Peter is not completely convinced that the proposals which f the most effective, but he fel that they should be implemented tla Ba, How should he proceed? 6.4 James silver, Materials Manager, has received Several complaints from hy regarding the poor conditions within the procurement office. He har it Sa Adrian Elton’s approval to spend a limited amount of maney on retugrattt area, He has asked his staff for written recommendations on the change athe they consider to be high priority, and has received conflicting inputs. net believes he knows which changes are most urgently required and he ag that he can get them done at a very economic price by a local firm HOW sou proceed? References Ashford, B.E. and Fried, Y. (1988) The mindlessness of organizational behaviow Relations, 41(4), 305-29. 8, Hany Bierman, HJ. fal. (1973) Quantitative Analysis for Business Decisions, Richard D, tig In, Homewood, IL. Brown, R.V. et af (1974) Decision Analysis for the Manager, Holt, Reinhart & Winston, Ney Ewzioni, A. (1989) Humble decision making, Harvard Business Review, July-August, pp. 12M Kay, N. (1982) The Evolving Firm: Strategy and Structure in Industrial Organization, Masi York. Burnes, B. and Weeks, D. (1989) AMT: A Strategy for Success?, NEDO, London London. Kepner, C.H. and Tregoe, B.B. (1965) The Rational Manager, McGraw-Hill, New York MacArmman, K, (1974) Managerial decision making. In Contemporary Management, Jue McGuire (ed.), Prentice-Hall, Englewood Clifls NJ, Maier, N. (1963) Problem-Solving Discussions and Conferences, McGraw-Hill, New York, McKenney, J. and Keen, P. (1974) How manager’s minds work, Harvard Business Review, May June, pp. 79-90. Patz, A.L. and Rowe, A.J. (1977) Management Control and Decision Systems, John Wikj & Sons, New York Radford, K.J. (1975) Managerial Decision Making, Reston Publishing Co., Reston VA. Sanford, E. and Adelman, H. (1977) Management Decisions: A Behavioural Approach, Wilhitp Publishers, Cambridge MA. Vroom, V. and Yetton, P. (1973) Leadership and Decision Making, University of Pitsburt Press, Pittsburgh