MGT602 Business Decision Analytics Report Sample
Context:
Workplaces today are changing rapidly in parallel with rapid advances in technology and means of communication with teams separated by distance and time. We need to take into account not only time and space, but other elements of diversity to collaborate effectively for organisational outcomes. In such complex environments much can be learned by observing and analysing the decision-making process of business managers. This task requires you to select a decision you have observed in the work place and using MGT602 theory gained from Modules 1-6 on Blackboard, undertake a comprehensive critical analysis and evaluation of the decision maker and the decision-making process.
This assessment has been designed to:
Critically reflect on the application of key concepts and theories of MGT602 in the analysis of a decision from your current or previous workplace. In doing so, you MUST consider a meaningful work challenge that you observed another person or persons make. If you do not have previous workplace management experience, then you must analyse the group decision-making processes undertaken by your team in Assessment task 2.
In successfully completing this assessment task you are to:
? Evaluate the sources of data, and the use of data analytics to identify trends/ patterns that form the evidence for the decision-maker.
? Show visualisation of the decision-making process, and analytics to support the decision making;
? Select between three decision-making theories and concepts from within the subject modules and show their application in analyzing the decision. Evaluate how the decision would be the same/ different by using different theories or concepts.
? Present the findings of your results in a business style report that includes clear headings to guide the reader and visualisation of the data sources/trends/ patterns, and is underpinned with evidence from relevant contemporary literature.
? Reference according to the APA reference style guide
PLEASE NOTE: It is highly recommended that you discuss the selected decision with your learning facilitator to ensure efficacy of the assessment task.
Solution
Introduction
The study has focused on understanding the decision-making process adopted in case of an issue faced by the organization and how a decision has been reached. There has to be a decision made considering the suggestion and ideas of all the stakeholders involved (Kozio?-Nadolna& Beyer, 2021). As per my opinion, it leads to democratic leadership and decision-making style. University Assignment Help, Various decision-making styles can be adopted and each one has a definite framework. In this context, there is a conceptual style, in which decision is made in long run. On other hand, the directive style is considered in which fast decisions are made and is adapted in the case when there is an emergency (Intezari& Pauleen, 2018). The study presented by me has the ethical decision-making process in a visual style and has analyzed the decision which could have been the outcome of other decision-making styles are adopted. According to me, there has been the use of the economic rationality model to come to a decision instead of abiding by the social model.
Analysis and Discussion
Background of organization and problem context
Super Food Service is the restaurant in which I haveworked as an employee in the logistics department taking care of the procurement services. According to me, the problem that has been encountered is that of conflict between individuals in the operational team as there was no standard for judging the performance and rewarding the employees based on skillset. I have perceived that there was a lack of diversity in the workplace and at times, employees from other cultures or traditional backgrounds are not satisfied with the performance appraisal. This has been raised due to the absence of a standard performance benchmark system in the Super Food Service restaurant and also at times, complaints raised from employees regarding discrimination based on caste or creed.
Research Question
The research questions that I have been addressed in the study are as follows:
• To which extent do decision taken by the HR Manager of Super Food Service abide by a decision-making framework and are ethical?
• What is the decision that could have been taken following various other decision-making theories or models?
• What are how the decision-making process can be improved by the business in the future?
Literature Review
Decision-Making Framework
There are various frameworks within which the decision-making can be continued and this involves a directive style in which low tolerance is exhibited followed by a rational way of thinking. Short-run is focused upon and fast decisions are made along with taking minimal information while taking the decision. There is an analytic style approach in which one has a greater tolerance for ambiguity than directive categories (Kozio?-Nadolna& Beyer, 2021). There is a need for more information before making a decision and also consideration of more alternatives is required. There is a conceptual style framework in which various alternatives are searched and then focus is given on the long run (Intezari& Pauleen, 2018). In addition to this, there is a behavioral style approach in which more concern is shown towards the people around them, and are receptive to suggestions from them (Adikaram&Kailasapathy, 2021). Acceptance of the business decision is more important to them.
Decision-Making (DM) tools and models
Various decision-making frameworks can be used in coming to a conclusive decision and this involves Vroom and Yetton Decision Style. In accordance with this Vroom and Yetton Decision Style, there are three types of decision-making and solving ways. In AI, the manager solves the issues alone and in AII, the manager solves the problem alone after taking necessary information from sub-ordinates (Vignesh, 2019). In CI, the decision is made after taking suggestions from each subordinate and as per CII, ideas are taken from subordinates as a group. GII group is highly democratic and analyses issues along with evaluating alternatives followed by making a decision.
There is another framework known asKahneman’s 12 Questions and it has to be asked before making a big decision. At first, there is a need of checking for self-interested biases followed by checking for the affect heuristic in which it is examined whether the team loves the proposal. In stage 3, the question is asked of whether they were dissenting opinions within the team or not followed by checking for the saliency bias and whether the diagnosis can be overly influenced by the analogy (Kahnemanet al., 2019). In question 5, credible alternatives along with recommendations are checked followed by checking whether the same decision has to be made a year later than what will be the process. In question 7, there is a need of checking for the anchoring bias followed by checking for a halo effect in question 8 (Abatecola, Caputo&Cristofaro, 2018). In question 9, there is a need of checking for sunk-cost fallacy followed by evaluating the overconfidence, planning fallacy, and optimistic biases. In question 11, check for disaster neglect is done along with examining the loss aversion in stage 12.
The Decision-making model that is of prime significance in making effective business decisions is that of the 'Economic rationality’ model. The model has been derived from classical economist models and this makes the decision-maker entirely rational. In this model, there is a complete as well as a consistent system of preferences allowing choice among alternatives (Bruckmaieret al., 2021). On other hand, there is the social model of decision-making that is drawn from psychology. In this case, Sigmund Freud considered individuals as a pack of feelings, emotions, and instincts. The behavior of human beings is influenced by certain unconscious desires and often results in bias.
Methods
The method that has been selected by meis that of case study analysis of the business in which I have been a part. The business case of Super Food Service is taken into account and the challenges faced by it in managing the employee demand of a fair reward management system. There are various decision-making (DM) frameworks and model that has been used by the HR Manager to come to a justified and ethical performance-based reward system. The decision-making framework has been studied by meand critical analysis of the decision process taken by the HR manager has been done. An observational study is done and ethics are maintained by asking the consent of HRM as well as a business owner to use the decision made as a business case study. Consent from the employees involved and the HR manager is taken before documenting the observation.
Discussion of Findings
Visualization of the decision-making process and analytics
Certain steps have been gone through before making an ethical decision as per my opinionand this starts with identifying the facts. Evidence and contextual features are taken into account. In this case, evidence of employee performance is taken into account, and comparison is made of the rewards given or performance appraisal to individuals. Ethical principles are determined in the second stage in which nature, as well as scope, are interpreted (Cristofaro, 2020). In this case, it is determined whether the decision taken in rewarding the employees is justified or not. It has been seen in two instances that two employees attaining the same performance benchmark have not been awarded the same and hence, the scope of making a just reward system is there. In the third stage, according to meoptions are explored such as 360-degree feedback can be given to employees, and performance appraisal can be given based on it. Other option includes setting a performance benchmark and if employees attained the benchmark consistently, then they will be rewarded. In the fourth stage, recommendations and implementation of the decisions are done.
The steps through which the business decision-making process has gone through can be represented in the following manner:
Figure 1: Decision-Making process- Visualization
(Source: Created by Author)
Application of Decision-making Tool, Theory, and Model
The framework within which the decision has been made is that of conceptual style and the decision-maker takes a broad perspective. This has been done in this case as the decision of rewarding will be made based on 360-degree as well as a real-time feedback system. Various alternatives are thought off as per my opinionand also the decision has been made keeping in consideration the long run. A creative solution to the issue has been identified as it has been observed that the inclusion of everyone giving feedback to determine the performance appraisal will help in identifying the areas where one is lacking (Kourouxous& Bauer, 2019). The economic rationality model has been used as complete awareness of all alternatives are taken into consideration followed by having a rational approach instead of taking an emotional decision (KAMPIK, 2020).
The DM tool that has been applied is that of Kahneman's 12 Questions that have to be asked before making a decision. In the first stage, there is a question asked of whether there is bias involved in making the decision or not (Savur,Provis& Harris, 2018). This is not present as employees are facing issues with not having a well-designed reward management system and the discrimination is done with them. The second question is that whether the team loves the proposal and the affect heuristic is examined. It has been observed that the employees are satisfied with the process of 360-feedback based on which performance appraisal will be given. In the third stage, it is important to consider what the group thinks and whether there is any dissenting opinion (Dittmar, 2021). There were no such opinions and all the employees are on the same page regarding the 360-degree feedback system-based performance appraisal.
The fourth aspect according to me that needs to be examined is that whether there is any saliency bias and it is nullified by drawing analogies. Other business case studies have been identified and all of them suggested that 360-degree feedback helps in bringing transparency in understanding the reward that an employee deserves. In the fifth stage, there is a check of credible alternatives, and additional options such as real-time performance feedback are given to assess the workplace engagement of the individuals. Availability bias is examined in the 6th stage as per my opinionand it is concluded that if the same decision were to be taken a year later, would it be the same or not. The anchor that has been used in making the decision is that of justified performance appraisal and it has to be checked whether such method is biased or not. In the 8th stage, a question is asked regarding the halo effect and it is seen whether the 360-degree feedback-based performance appraisal will be efficient in all scenarios or not.
The sunk-cost fallacy is examined in the 9th stage and it is seen whether the decision introduced is because of past decision only or present condition is examined (Yu-Cheng, Huang, & Yu-Shan,2018). Optimistic biases are evaluated in the 10th stage and this case, there was no such discrimination as 360-degree feedback will be given by every individual and will be judged on basis of 3 months-time periods. In the 11th stage, the disaster effect is identified followed by examining whether the decision-maker is cautious or not. In this case, the risk of doing discrimination is removed as evidence will be taken in with data regarding the performance of the employees.
Impact on the decision-making process and outcome if other theories are applied
Earlier in the organization, there was a performance appraisal decision taken based on the social model of Freud. In that case, the reward is given based on emotional association with employees belonging to the same hometown or culture, tradition. This social model if followed then the 360-degree feedback system would not have been introduced and the performance appraisal system would have been biased. If the decision would have been taken following a directive style, then, the focus would have been on the short-run. The decision that could have been taken then will follow only by advising the team leaders to give daily feedback and give performance appraisals accordingly (Pierfrancesco& Barbara, 2021). Minimal information has not been used in making the decision which could have been the case. In analytic style, there is much more tolerance as well as ambiguity and the decision taken is with more care. If such a process would have been followed then a 360-degree feedback system would not be introduced as it might dissatisfy some employees. The achievements of specific individuals are not considered as would have been the case with behavioral style decision making. A justified path is selected in which overall organizational benefit is selected.
Recommendations
The following recommendation as per my opinioncan be given to the decision-maker of the company in the HR team to have a more effective solution to the issue:
• There is a need of having an IoT integrated process so that real-time feedback can be obtained as well as assessment of the employee performance based on the set benchmark.
• There is a need of having a performance management system within the company so that every individual gets a chance of improvement and accordingly the skill improves
Conclusion
From the study done, it can be concluded according to methat the fast-food outlet, Super Food Service is having an issue regarding the operational managers do not give just rewards and promotions. This has made the HR body of the company make decisions through which business ethics are upheld and employees receive performance appraisals accordingly. There has been the use of Kahneman’s 12 Questions through which the decision-maker has concluded that the 360-degree and everyday feedback is justified to give performance appraisal to the employees. The performance benchmark that needs to be achieved on monthly basis is defined, however, it has to be improved and made on weekly basis. In addition to this, the conceptual style of decision-making has been applied by the HR manager while making the decision. Long-run is focused upon and it has helped in finding a creative solution to the problem of discrimination done in performance appraisal.
Reference List
Abatecola, G., Caputo, A., &Cristofaro, M. (2018). Reviewing cognitive distortions in managerial decision making: Toward an integrative co-evolutionary framework. Journal of Management Development.https://www.emerald.com/insight/content/doi/10.1108/JMD-08-2017-0263/full/html
Adikaram, A. S., &Kailasapathy, P. (2021). Evidence, empathy and emotions: decision-making styles of human resource professionals and their effectiveness in resolving complaints of sexual harassment. Employee Relations: The International Journal, 43(5), 1083–1103. https://doi.org/10.1108/ER-06-2020-0261
Bruckmaier, G., Krauss, S., Binder, K., Hilbert, S., & Brunner, M. (2021). Tversky and kahneman's cognitive illusions: who can solve them, and why? Frontiers in Psychology, 12, 584689–584689. https://doi.org/10.3389/fpsyg.2021.584689
Cristofaro, M. (2020). “I feel and think, therefore I am”: An Affect-Cognitive Theory of management decisions. European Management Journal, 38(2), 344-355.https://www.sciencedirect.com/science/article/pii/S0263237319301094
Dittmar, J. K. (2021). Ethical decision?making: getting better at doing right. Leader to Leader, 2021(101), 40–45. https://doi.org/10.1002/ltl.20590
Intezari, A., & Pauleen, D. J. (2018). Conceptualizing wise management decision-making: a grounded theory approach. Decision Sciences, 49(2), 335–400. https://doi.org/10.1111/deci.12267
Kahneman, D., Lovallo, D., Sibony, O., Torrance, A., & Von Hippel, C. (2019). A structured approach to strategic decisions. MIT Sloan Management Review.https://omegaleadership.com/media/Structured_Approach_to_Strategic_Decisions.pdf
KAMPIK, T. (2020). Economic Rationality as an Argumentation Principle. Stefano Bistarelli, Massimiliano Giacomin (Eds.), 7.https://ssa2020.dmi.unipg.it/res/ProceedingsSSA2020.pdf#page=13
Kourouxous, T., & Bauer, T. (2019). Violations of dominance in decision-making. Business Research, 12(1), 209–239. https://doi.org/10.1007/s40685-019-0093-7
Kozio?-Nadolna, K., & Beyer, K. (2021). Determinants of the decision-making process in organizations. Procedia Computer Science, 192, 2375–2384. https://doi.org/10.1016/j.procs.2021.09.006
Pierfrancesco, B., & Barbara, de M. (2021). The ethical matrix as a tool for decision-making process in conservation, 9. https://doi.org/10.3389/fenvs.2021.584636
Savur, S., Provis, C., & Harris, H. (2018). Ethical decision-making in australiansmes: a field study. Small Enterprise Research, 25(2), 114–136. https://doi.org/10.1080/13215906.2018.1480414
Yu-Cheng, L., Huang, C.-Y., & Yu-Shan, W. (2018). Perfectionist decision-making style and ethical investment willingness. Management Decision, 56(3), 534–549. https://doi.org/10.1108/MD-05-2017-0492
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