MANAGERIAL DECISION MAKING

GMGM 5033
MANAGERIAL DECISION
MAKING

GROUP ASSIGNMENT
PREPARED FOR
DR. SAKINAH MUSLIM

PREPARED BY
YUHIDA (?)

MUHAMMAD ZULHELMI AIZAT BIN AHMAD MUKHLIS (S829132)

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1.0 INTRODUCTION

Every moment human beings will think to go through daily life no matter who they are, thinking

is a process of solving problems, generating ideas and so on. And without thinking human beings

cannot make any decisions. According to Lopez (1997) has defined as a decision is a judgment,

the final resolution to a conflict of needs, means or goals and a commitment to action made in

the face of various confusions, complexities and irrationality. In addition when making

decisions, environments such as certainty, uncertainty and risk will also influence those

decisions. Decisions can also be made individually or in groups through the methods of Mind

Propagation Technique, Delphi Technique and Nominal Group Technique. Often individuals will

make decisions in a rational manner to get the best results.

1.1 Decision making

According to Hussain, A. A (1991) has stated that a decision is considered good if it is effective

when implemented. In decision making, we need to know the concept of rationality is very

important because this is where the best alternatives will be generated. According to William

(2000) has stated six steps or processes should be passed during the effort to make a decision.

That is, it starts by defining the problems, identifying the decision criteria, allocating weights for

each criterion, generating alternatives, evaluating the alternatives and finally choosing the

optimal decision.

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1.2 Decision Making Environment

According to Higgins, G., & Freedman, J. (2013) have stated decision making, like everything

else humans do, can be improved by following repetitive processes. The process can be as simple

or as complicated as the decision maker has to choose. In general, there are three states of

information in the action to make a decision, namely complete information, no information and

incomplete information. This has created three environments in decision making namely (a.)

Decision making in uncertainty is the best because in this environment of certainty there is

complete information and often decision makers can predict future decisions, (b.) Decision

making in uncertainty it is said risky, it is risky because there is no information to help in the

decision -making process. As such, decision makers are unable to predict events that are likely to

occur in the future. and the last is (c.) decision making in a risky situation is when in decision

making has incomplete information. As such they do not predict with certainty what events are

likely to occur in the future.

1.3 Introduction to group decision making

Usually making decisions in a group can improve a decision for the better. Making decisions in

groups will expand the collection of data or information sought to determine an alternative. In

terms of generating alternatives will provide a variety of information in terms of experience,

expertise and so on. There are 3 types of group decision making, which consists of delphi

technique, nominal group technique and brainstorming (Brainstorming). These three are always

used in large or small organizational situations in making a decision.

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1.3.1 Brainstorming

This process of brainstorming can also be implemented to make a list of problems faced by an

organization. In the method of the process of brainstorming there is a main principle that all

members involved in the group to give ideas will submit opinions or evaluations to the ideas that

have been made. And most importantly, each member of the group is not allowed to criticize

ideas from other members. The purpose is to get as many ideas as possible in this brainstorming

session that is the more quantity of ideas that are submitted then the more selection for ideas to

the group. Often each member will be given the freedom to think and lastly all the ideas

generated can be collected, evaluated, repaired to produce the best alternative in the final

solution.

1.3.2 Delphi technique

In Delphi Technique is one of the methods for forecasting and estimation. In this method of

Delphi technique, the manager will send the problem in the form of post or e-mail to each

individual consisting of experts in related fields i.e. panel members in the form of questionnaire

and then they will resubmit their solution. The manager will collect the feedback in a report and

send it back to the panel members with a second questionnaire. Panelists will re -read the report

and re -complete the second questionnaire. This process will be repeated until a consensus is

agreed upon. Often the technique takes a long time because it is not face to face.

1.3.3 Nominal Collection Technique

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The Nominal Group technique is different from the Delphi group technique because the decision

-making method for the nominal group technique is structured in a small group discussion

process or face to face. This method also prevents from one person from dominating the

discussion thus encouraging the involvement of all passive individuals, It will result in a major

proposal or solution decision. For this technique, the manager will usually gather a group and

will describe the problem. Each member will be alone and record their ideas on paper. And then,

when members have finished generating ideas, each member of the group will explain an idea to

all groups and these ideas will be written on a black or white board to be shown and referred to

all group members. Next, a discussion will be made to evaluate the strengths and weaknesses of

each idea. However, in the discussion is allowed to get an explanation, criticism is not allowed.

Once the discussion is over, members will vote in secret on a piece of paper. And the idea that

receives the most votes will be chosen as an alternative to that decision.

2.0 Selected group decision -making methods.

The group decision -making method chosen for this report was mind proliferation. According to

Brainstorming (2005) states the definition in mind proliferation is a problem solving technique

that involves the spontaneous contribution of ideas from all group members. Basically the

technique of this group is that it involves a small group consisting of several individuals. The

main goal in this mind -boggling decision -making is to obtain highly valuable ideas

independently and without limitations that are considered logical in a harmonious and calm

atmosphere. The reflection is that however the main goal is to be able to produce as many as

possible for ideas that do not take long, but these diverse ideas need to be improved, further

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developed and combined all the ideas will be more effective to implement for solution problem.

In the concept of mind proliferation, there are some basic things that need to be applied to

determine the success of this concept of mind proliferation, the first is the concept of decision

making by mind proliferation is should give priority to quantity and not to quality that is the

more members the better the results. Both each member will be allowed to come up with any

idea without any hindrance by allowing all members to mention whatever comes across. The

third is to be able to build and further develop the ideas that have been born that are acquired.

And the last one is the most important one which is not allowed at all to criticize other members

’ideas and initial evaluations.

2.1 Steps in the growth of the mind

In this concept of mind proliferation, there are organized steps to create this mind proliferation.

Although in fact this brainstorming can be done alone but in groups will produce interesting

ideas and produce alternatives to the best solution to a problem:

1.) The first step in the proliferation of this mindset is to create a small group consisting of

various ages and levels of employment, such as managers, assistant managers, subordinates or

the like. Often in a group may consist of 7 or 8 members.

2.) The second is to identify the problems faced. For example, the manager will identify the

problem and will write the problem in a clear, concise and easy to understand to all levels of

employment.

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3.) Thirdly by getting questions - questions to trigger ideas from each group member to trigger

or motivate group members. In this section there is a rule that is not allowed to evaluate the

quality of the question and not allowed to criticize who issued the question and need to explain

for example all ideas or alternatives are correct at the beginning of this process of brainstorming.

With many questions generated then more ideas will be generated.

4.) Fourth is by setting a time because the process of getting questions will take a long time.

Therefore by setting the time for example 30-40 minutes and at intervals with short breaks

between 10-15 minutes after throwing all the questions.

5.) The fifth step is to get ideas for the problems discussed by asking each individual. Every

idea that is released must be accepted without being criticized and evaluated, that is, there will be

no right or wrong for the idea. Question each individual with only one idea in each round for

example in the idea question round, if the individual is not able to give any idea should turn to

another individual. There is no need to wait for those who still have no idea and leave them with

to allow them to think about the idea that will be produced. After that back to those later. In this

case the idea will be written without evaluating the quality because it is possible that a good idea

will be produced after producing a poor idea. Often as normal human beings will stop coming up

with ideas if they have been criticized for example as embarrassed or not appreciated.

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6.) Like the fourth step, it is necessary to set aside time to find ideas. The timing of this

depends on the extent of the importance of the problem. If the level of the problem takes a

relatively long time, more attention should be paid so as not to take risks.

7.) And next is the selection to the ideas that have been generated. By separating the ideas into

groups for example into 3 groups according to priority, namely the first thoughtful ideas, ideas

that can be considered acceptable but less thoughtful, as well as ideas that do not meet the

criteria. Examples of questions used are “Is it effective?”, “Will it be completed on 1 Jan 2014?”

8.) And the last one is assessment. For example, by giving praise to a more thoughtful idea

such as 0 -5 marks such as 5 marks to the best and thoughtful idea. And re -evaluating by looking

at a high score means that’s the solution. But keep in mind that thoughtful ideas sometimes do

not promise the best solution to a problem. It is therefore necessary to be flexible in making a

decision in the selection of alternatives to solutions.

3.0 Application of selected group decision -making methods in real situations.

3.1 Background problem

In solving this problem, group decision making by brainstorming has been selected in the

workplace at Telekom Malaysia Berhad in the Complaint General Management (CGM) unit

which is responsible for answering customer e-mails and resolving TM customer problems

related to customer Streamyx billing problems. For this unit consists of a manager and is assisted

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by two assistant managers and ten subordinate employees to solve customer problems. The

assignment description for this unit is as follows:

1.) Every day this unit will receive an estimated 200-300 e-mails from customers.

2.) Key performance indicators (KPIs) are 25 cases per day for each subordinate employee.

3.) Each e-mail from customers must be completed before 15 days according to the set date

in accordance with the instructions from the Malaysian Communications And Multimedia

Commission (MCMC).

3.2 Identify the Problem

The problem has been identified that this unit has received a surge of e-mails from 200-300 per

day to 1500. When re-identified as a result of system failure caused many customers e-mails on

October 15, 2013. This caused this unit to have to resolve this problem in time designated.

3.3 Decision Making in groups

1.) To solve the problem of this unit, the manager has announced to the assistant manager to

make a meeting to all subordinate employees to solve the problem in the unit. Therefore the

meeting was held consisting of one manager, two assistant managers and ten subordinate

employees.

2.) In the meeting, the manager explained the real problem of the unit, namely "How to resolve

1500 customer e-mails before 30 October 2013?

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3.) So each member in the meeting is required to give ideas - ideas or alternatives to solve the

problem without having to discuss with each other and one member will write all the ideas. Time

allotted to write this idea for 15-30 minutes. After writing all the ideas, the manager asks for a

member to read the ideas and all members are told not to criticize the ideas of other members to

prevent members from throwing ideas.

Among the ideas proposed are:

a.) Allocate overtime.

b.) Suggest that there be additional e-mails after working hours.

c.) Find the real problem and how to prevent this from happening again for the long term

d.) Identify the actual e-mail from the customer or spam and if there are overlapping e-mails

need to cancel the e-mail, so one must monitor the e-mail from the customer.

e.) Encourage everyone to be involved including managers and assistant managers.

f.) Mandating everyone to work overtime after working hours.

g.) Encourage the assistant manager to always be with subordinates for support as an example

to

ask customer problems directly.

h.) What if one of the subordinate employees is unable to attend.

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4.) The manager allows for a short break for 10 minutes.

5.) After that, the manager will discuss with the assistant manager about the ideas - the

proposed ideas according to the most important and accurate criteria. The criteria for this issue

should be effective and achieve the goal that the customer's e-mail dated 15 October 2013 must

be completed before 30 October 2013. Therefore, after discussion between all the ideas

submitted the most effective idea by combining all the ideas given by all members of the

previous meeting, namely:

a.) Mandating all subordinate employees to work overtime that is every day employees will be

given 25 e-mails to be resolved so additional cases are 10 cases for 10 subordinate employees

that is a day as many as 100 additional e-mails need to be resolved.

b.) The customer's e-mail will be completed according to the old date, that is, it is necessary to

complete the new initial e-mail followed by the new customer's e-mail.

c.) If there is a problem for the arrival of subordinate employees if there is a problem, for

example if one of the subordinate employees is unable to attend then 10 customer e-mails for one

subordinate employee will be divided to 9 employees present to the office and so on if 2 or 3

workers are not present.

4.0 Advantages of group decision-making methods: Thought Proliferation

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a.) The most important advantage is being able to generate more ideas and alternatives

compared to making decisions individually. For example if an individual makes a decision

individually this may produce less ideas or alternatives because it is only focused on the

individual, for example the above study has made a group decision between managers and

subordinates as well as this assistant manager may give more ideas that thrown from meeting

members rather than individually.

b.) If making decisions in groups this will increase the chances of generating more creative

ideas from a variety of angles that may be different. For example the above problem study by

group decision making between managers and subordinates as well as assistant managers will

give creative ideas from the point of view as a manager, assistant managers as well as these

managers because the ideas may follow their experience in their assignments.

c.) The advantage will make members more motivated and committed to succeed in a decision.

For example, the study of the above problem by making decisions en masse will make the

members feel more motivated because of the support from other members and will produce a

sense of commitment to solve a problem because they themselves give the idea to the problem.

d.) Able to improve the quality of the ideas that will be produced because all aspects of

uncertainty will be discussed. For example, a problem study on an uncertainty in the idea will be

discussed with all members to produce quality to a decision.

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5.0 Disadvantages of group decision-making methods: Thought Proliferation

a.) The main disadvantage of this decision making is that it will take a long time to reach an

idea or decision compared to individuals. For example, the study of the problem above takes the

appropriate time to make a decision in a group that the manager needs to find a time when the

right time to meet all the employees that he.

b.) Next it is likely that there will be a handful of group members who will dominate a

discussion that will likely affect members ’engagement to generate ideas. As an example of the

above problem study i.e. which always dominates the discussion session consists of experienced

senior members and will cause new members to be embarrassed to throw ideas.

c.) Conflict is the biggest weakness for this decision-making, members of the group have to

accept or tolerate to avoid conflict that will cause the results are not achieved optimally. As an

example of the above problem study there are among the members have conflicts in the

workplace and when the ideas given are not accepted, the member will cause dissatisfaction

there is the issue. So to avoid further conflict, other members had to accept the ideas and this

caused the quality of the ideas to decrease.

d.) The next disadvantage is that it will involve relatively high costs if the meeting consists of

many group members. For example the study of the above problem with the involvement of

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many members in the meeting will then result in high costs such as costs for food and beverages,

printed materials and so on.

6.0 Conclusion.

Making a decision is not easy for an individual but by making a decision in a group will

make it easier for a solution to be made. So in the group decision -making method that is the

proliferation of minds is the most popular method used in business, education and so on. The

proliferation of minds can generate more ideas and alternatives to a solution that requires the

generation of several people. This decision -making method was chosen because it is very

suitable for problem solving in the office in a medium unit such as the Complaint General

Management (CGM) unit. This method can be applied directly if the solution occurs such as

meeting and the generation of alternatives can be produced directly through this method.

Although there are shortcomings in this method but the advantages prove that this method is very

suitable in solving a problem successfully.

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7.0 References.

Aminudin Moh. Yusof (1990). Decision Making. Kuala Lumpur: Dewan Bahasa dan

Pustaka.

Teori pembuatan keputusan, Fachmi Basyaib. https://books.google.com.my/books?

id=1oX1gq9ofjYC&printsec=frontcover#v=onepage&q&f=false

https://www.oxfordfajar.com.my/schools/ace-ahead-teks-stpm-pengajian-perniagaan-

pengurusan-penggal-2-/1638

Dr. Robiah Sidin (1988). Fundamentals of Educational Administration. Kuala Lumpur:

Dewan Bahasa & Putaka.

Fatimah Wati Halim & Iran Herman, (1997). The Relationship between Work Values, Work

Performance and Quality of Working Life Among Public & Private Sector Employees.

Journal of Human Psychology. Num 11: 97-114.

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Global Editon, Fundamentals of Management, Stephen p. robbins, Mary

Coulter, David A. DeCenzo

https://www.academia.edu/34769562/Management_11th_edn_by_stephen_p_

robbins_mary_coulter_pdf_qwerty80

https://www.slideshare.net/AshishGupta21/book-principles-of-management

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