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FACULTY OF BUSINESS
ACCOUNTING SCHOOL

ACADEMIC REPORT

MANAGEMENT AND

DECISIONS COURSE:

BUSSINES LAB

AUTHOR:

PAICO GUEVARA, JEAN PIERRE

ALEXANDER

TEACHER:

COLLANTES PALOMINO, HUGO YVAN

Chiclayo - Perú
2023
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INDEX

I. INTRODUCTION..........................................................................................................3

II. DEVELOPMENT..........................................................................................................4

2.1. DEFINITION..........................................................................................................4

2.2. DECISION MAKING............................................................................................4

2.4. FACTORS INFLUENCING DECISION - MAKING.......................................6

2.5. DECISION MAKING IN CRISIS SITUATION..................................................6

2.6. DECISION EVALUATION...................................................................................7

2.7. CASE STUDY.......................................................................................................7

CONCLUSIONS..................................................................................................................9

REFERENCES BIBLIOGRAPHIC.................................................................................10
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I. INTRODUCTION

Management is a key discipline in the business and organizational world, which

focuses on planning, organizing, directing and controlling an organization's resources
to achieve its objectives and goals. In this sense, decision making is one of the main
responsibilities of management, since it involves choosing between different options
and alternatives to achieve the objectives of the organization. Effective decision-
making is essential to an organization's success, as it allows management to identify
and seize opportunities, minimize risks and consequences, and take actions that lead to
positive outcomes. However, making informed and effective decisions can be
challenging in an increasingly complex and competitive business and organizational
environment. In this context, management must have skills, knowledge and resources
that allow it to make informed decisions, considering multiple options and
alternatives, and evaluating the risks and consequences of each. In addition,
collaboration and coordination between different areas of the organization and external
stakeholders can improve the quality of decisions made. This text will address the
importance of decision making in management, types of decisions, factors that
influence decision making, decision making in crisis situations and evaluation of
management decisions. This text is expected to be useful for managers and leaders of
organizations looking to improve their decision-making skills and achieve the long-
term success of their organizations.
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II. DEVELOPMENT

2.1. DEFINITION:

Management refers to a set of activities and processes that aim to coordinate and direct
an organization's resources to achieve its objectives and goals. According to Robbins
and Coulter (2016), "management is the process of planning, organizing, directing,
and controlling the efforts of organizational members and of using all other
organizational resources to achieve set objectives" (p. 5).

The main functions of management are:

• Planning: involves establishing the objectives and goals of the organization,

as well as the plans and strategies to achieve them. Planning is a key function of
management, as it allows the organization to anticipate and prepare for the future.

• Organization: refers to the structuring of the organization and the allocation of

resources, roles and responsibilities to achieve the established objectives. The
organization also includes the creation of systems and processes that allow an
efficient and effective operation of the organization.

• Management: involves the motivation and leadership of the members of the

organization to achieve the established objectives and goals. Management also
involves effective communication and conflict resolution within the organization.

• Control: refers to the evaluation and monitoring of the results of the organization to
ensure that the objectives and goals established are being achieved. The control
function also involves the identification and correction of deviations in the
organization's plans and processes.

2.2. DECISION MAKING

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According to Robbins, S. P., Coulter, M. (2016), "Decision making is a crucial

process for management, as its decisions can have a significant impact on the
effectiveness of the organization and its stakeholders." To make effective
decisions, management uses different processes, models and tools.

One of the most common processes used by management is:

•The rational decision-making process. This process involves identifying the

problem, generating options, evaluating the options, and selecting the best option.

•The intuition-based decision-making process, which is based on the experience

and judgment of management.

In addition, management uses different models and tools to make decisions. For
example:

•Cost-benefit analysis is used to evaluate the costs and benefits of different

options.

•SWOTanalysis is used to assess an organization's strengths, weaknesses,

opportunities, and threats.

Management can also use quantitative analysis tools, such as game theory and
linear programming, to make decisions based on data and mathematical models.

2.3. TYPES OF DECISIONS

According to the BBC, it tells us that "Management makes different types of

decisions, which fall into three main categories: strategic, tactical and operational
decisions. Strategic decisions are high-level decisions that affect the entire
organization and relate to the long-term direction of the company. Tactical decisions
are mid-level decisions that relate to strategy implementation and focus on resource
allocation and coordination of activities. Operational decisions are lower-level
decisions that relate to the day-to-day
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implementation of activities and focus on the efficiency and effectiveness of

operations.

According to Koontz and Weihrich (2018), "Strategic decisions refer to the choice of
long-term goals and action plans for the company as a whole. Tactical decisions refer
to the implementation of short-term strategic plans. Operational decisions refer to the
implementation of short-term tactical plans and relate to the use of available resources
to achieve the stated objectives."

Management makes different types of decisions, which fall into three main categories:
strategic, tactical and operational. Each type of decision relates to a different level of
the organization and focuses on specific goals and timelines.

2.4. FACTORS INFLUENCING DECISION - MAKING

Management's decision-making can be influenced by a variety of internal and external

factors. Internal factors include organizational culture, structure, and resources of the
organization, while external factors include competition, economic and political
situation, and changes in the market and technology.

According to Robbins and Coulter (2016), we tell us that "Internal factors that
influence decision-making include organizational culture, organizational structure,
availability of resources, and management experience and skills. External factors
include competition, economic and political situation, changes in market and
technology, and social and cultural forces."

Organizational culture is an important internal factor that influences management's

decision-making, as it can affect how problems are viewed and potential solutions.
Competition is an external factor that can influence management's decision-making, as
it can affect the demand for the organization's products and services. The economic
and political situation can also influence management's decision-making, as it can
affect resource availability and market conditions.
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2.5. DECISION MAKING IN CRISIS SITUATION

Decision making in crisis situations may also require the collaboration and
coordination of different areas of the organization, as well as external stakeholders.
According to González-Herrero and Pratt (2019), "Decision making in crisis situations
must be collaborative and based on coordination between different areas of the
organization, and collaboration with external stakeholders. Management must be
willing to share information and work as a team to make effective decisions in crisis
situations."

Decision-making in crisis situations can be especially challenging for management, as

it requires speed, effectiveness and coordination between different areas of the
organization and external stakeholders. It is important that management is prepared
and willing to make difficult decisions in situations of uncertainty and risk.

2.6. DECISION EVALUATION

Measuring results is a key component of decision evaluation, as it makes it possible to

determine whether desired objectives were achieved and whether the results were
positive or negative. According to Drucker (2020), "The measurement of results is
essential for effective decision making, as it allows to evaluate performance and
determine if the desired objectives are being achieved"

The evaluation of decisions made by management is an important process that

involves measuring results and monitoring decisions over time. It is essential that
management is willing to evaluate its decisions and to make adjustments and changes
in strategy if necessary to achieve the desired objectives.

2.7. CASE STUDY

Let's say you're the manager of a food production company and you've noticed that
demand for a specific product has declined in recent months, leading to a reduction in
sales and a buildup of inventory. After conducting a thorough
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analysis, you discover that the product is being outperformed by the competition due
to its price and quality.

As a manager, you need to make a decision to address this situation and improve
product sales. To do this, you might consider the following options:

• Reduce the price of the product: This option could attract customers looking for
cheaper products, but it could also decrease the profitability of the company.
• Improve product quality: This option could improve the image of the product
and attract customers looking for high-quality products, but it could also increase
production costs.
• Develop an advertising campaign: This option could increase the visibility of
the product and attract more customers, but it could also be expensive and not
guarantee an increase in sales.

After carefully evaluating these options, you decide to opt for option 2, improve the
quality of the product. To do this, you decide to invest in state-of-the-art machinery
and technology to improve the production process and the quality of the final
product. You also decide to increase the price of the product to cover additional
production costs and improve the profitability of the company.

After implementing this strategy, sales of the product increase significantly and the
company regains its position in the market. In addition, investment in state- of-the-art
machinery and technology also improves the company's efficiency and reduces
production costs in the long run.

In short, as a manager, it is important to make informed decisions and consider

multiple options and alternatives to address challenging situations. In this case, the
decision to improve the quality of the product and increase its price turned out to be
effective in improving sales and profitability of the company.
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CONCLUSIONS

• Decision-making is a fundamental process for the management and success of an

organization. Effective decision-making requires a combination of skills,
knowledge and resources that enable management to make informed decisions,
considering multiple options and alternatives, and assessing the risks and
consequences of each. In addition, collaboration and coordination between
different areas of the organization and external stakeholders can improve the
quality of decisions made.
• To improve decision-making in management, it is recommended that the
organization foster a culture of information- and data-driven decision- making,
and that training and resources be provided to enhance management's decision-
making skills. In addition, collaboration and coordination between different areas
of the organization and external stakeholders should be encouraged, and a process
of evaluation and monitoring of the decisions made should be established to
determine their effectiveness and make adjustments and changes if necessary.
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REFERENCES BIBLIOGRAPHIC

• BBC. (n.d.). Types of decisions - Decision making - Higher Business

management ... - BBC.
https://www.bbc.co.uk/bitesize/guides/zkdc7nb/revision/1
• Drucker, P. F. (2020). Management: Tasks, responsibilities, practices.
HarperCollins. https://www.amazon.com/Management-Responsibilities- Practices-
Peter-Drucker/dp/0060878975
• González-Herrero, A., & Pratt, C. B. (2019). La gestión de crisis en las
organizaciones. Revista de Comunicación, 2, 19-30.
https://dialnet.unirioja.es/servlet/articulo?codigo=285986
• Koontz, H., Weihrich, H. (2018). Essentials of Management. Tata McGraw- Hill
Education. https://www.mheducation.co.in/essentials-of-management- 9780070151417-
india
• Robbins, S. P., Coulter, M. (2016). Administración. Pearson.
https://www.pearson.com/us/higher-education/program/Robbins-
Administracion-14th-Edition/PGM335298.html