often wondered whether organizations have rules and regulations related to a process whereby a manager can reach targets , policies and strategies . While there is no single set of rules for any of these functions , all are associated with different forms of decision making it possible to develop a list of steps that apply to all circumstances in which decisions are made. We can then speak of a basic process known as the circuit or steps decisions : There are five
character istics of decisions:
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future effects: It has to do with the extent to which those commitments related to the decision will affect the future. -
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Impact: This refers to the extent that other areas or activities are affected. -
Frequency: This element answers the question of whether a decision is made or unusually frequent.
TYPES OF DECISIONS
Alternative solutions are also available of known and clearly defined the experimental and ambiguous. The bank teller with a mind unbalanced follows a specific and clearly defined: a review of all withdrawals against all deposits and receipts for cash transactions and the new count of all cash.
routine decisions: Decisions are choices standardized routine in response to problems and alternative solutions relatively well defined and known.
adaptive decisions: Decisions are adaptive measures taken in response to a moderately unusual combination of problems and only partially known and their possible solutions.
innovative Decisions: Decisions are innovative choices based on the discovery, identification and diagnosis of unusual and ambiguous problems and develop unique and creative alternatives. These solutions often involve a small number of interrelated decisions.
complex decisions
Other areas of decision theory concerned with the difficulty of making decisions due in part to the "complexity" of calculating expectations, or because of the complexity of the organization that has to make decisions. In such cases the theory does not look much to earn a calculation based on how real decision deviates an optimal, but the extent of the difficulty of determining the optimal behavior when making the decision.
STEPS IN THE PROCESS OF DECISION MAKING
a. Determine the need for a decision: The decision-making process begins with the recognition of the need to make a decision. B.
Identify the decision criteria: Once the need to make a decision, you should identify the criteria that are important to it. C.
Assign weight to the criteria: The criteria listed in the previous step have not greater importance. It is necessary to weigh each and prioritize their importance in the decision. D.
Develop all the alternatives: It is the basis for making decisions and is only deploy alternatives. The decision maker has to make a list of all possible alternatives that could be used to solve the problem. E.
Evaluate the alternatives: After identifying the alternatives, the decision maker must critically evaluate each of them. The advantages and disadvantages of each alternative are obvious when compared. F.
Select the best alternative .. Once you select the best alternative you reach the end of the process decision making, the rational process. The decision maker must be fully objective and logical when you take them, must have a clear goal and all actions in the process
THE IMPORTANCE OF COST A DECISIONS
also must make decisions about resources. The resources are means to achieve goals. The typical experience of an entrepreneur is to have scarce resources. Is due to the scarcity that makes sense to evaluate which is the best use of a resource, with unlimited resources do not need to invest in analysis decide. The time and physical space are scarce resources, four basic and important resources in any company are: Corporate Culture: Making productivity is easier in an environment that fosters. Personal: This is the most valuable resource of the company, through the efforts it made to achieve the objectives. Technology: The technology allows for increased availability of information. The better informed you are, you're in better position to make decisiones.Capital:. Many times by not capitalizing on the resources mentioned above, translates into higher cost of capital resource.
The objectives and functions of costing, we find the following:
- Serves as basis for setting prices sales and to establish policies of marketing .
- Provides decisiones.Permite making the valuation of inventories .
- Controls the efficiency of operations.
- Contributes to the planning, control and management of the company.
- In making this decision should be the alternate use that can be given to resources. - - When using a resource to benefit another benefit is being sacrificed. The analysis is to establish the potential benefits of each alternative.
- What determines the risk of a decision negociosAlgunos factors include:
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Risk Assessment - Amount of transaction
- If we are negotiating with a client or a prospective or current provider
- Exhibition
total bill - State customer's current credit
course, some decisions are more risky than others, requiring different tools to help you make credit decisions based on more information. The key to making the best credit decisions is matching the level of risk for each situation, with the amount of information required to make a proper informed decision based on knowledge.
TYPES OF PROBLEMS
The types of problems faced by managers and other employees ranging from known and clearly defined to the unusual and ambiguous. The bank teller with a mind unbalanced by the end of the day facing a known and clearly defined. In contrast, the problem of women and minorities do not move promptly to management positions is ambiguous. Some people argue that because they are forms of discrimination, both explicit and hidden, while others believe that, ducts Administrative and that gender and racial discrimination has nothing to do with the problem.
The Pareto Principle
The Pareto diagram is a bar graph similar to the histogram that is coupled with a warhead or increasing rate curve, which represents in decreasing the degree of importance or weight that the different factors affecting a process, operation or result.
Wilfredo Pareto (Paris 1848 - Turin 1923) conducted a study on the distribution of wealth, which found that the minority of the population owned most of the wealth and the minority of the population owned the lower part of the wealth. Dr. Juran applied this concept of quality, resulting in what is now known as the 80/20 rule. According to this concept, if you have a problem with many causes, we can say that 20% of cases resolve the problem 80% and 80% of cases resolved only 20% of the problem.
analysis is a technique that separates the "vital few" from the "trivial many."
• A Pareto chart is used to separate graphically the significant aspects of a problem from the trivial, so that a team knows where to direct their efforts to improve.
• Reduce the most significant problems (bars longer a Pareto Chart) will serve for a general improvement to reduce children. Often, one will look like 80% of the problems. In all other cases, between 2 and 3 issues will be responsible for 80% of the problems.
When do you use?
- By identifying a product or service for the analysis to improve quality.
- When there is a need to draw attention to the problems or causes of a systemic way.
- To identify opportunities for improvement.
- When analyzing the different groups of data (eg by product, market segment, geographic area, etc.).
- The search for root causes of problems and prioritize solutions.
- When evaluating the results of changes to a process (before and after.)
- When the data are grouped into categories.
- When the rank of each category is important.
A team can use the Pareto chart for various purposes during a project for improvement: To analyze the causes
To study the results.
To plan for continuous improvement.
as photos of "before and after" to show that progress has been achieved.
GROUP CONTRIBUTIONS
Decision making is the process of selecting a course of action among alternatives, is hardly feasible to imagine a field of major importance for human than making decisions. The right decisions can live better. Gives us some control over our lives.
The following newspaper article is a good example of a complex decision. Not related to a company, however, shows us how we make these complex decisions, and how our decisions can change dramatically, if for a moment step back and put ourselves in the shoes of others.
Source: http://www.umich.edu/news/Es/may06/pr053106.html
University of Michigan, USA, May 31, 2006 by Kara Gavin
"Vaccinate or not to vaccinate? Research evaluates the way we make complex decisions about health.
If bird flu came to the U.S., what would your choice: opt for a risky experimental vaccine now, or face and avoid an even greater risk and the possibility of dying during the epidemic? What would you choose for your child? What do you decide whether you were in charge of public health in your community?
In the June issue of the Journal of General Internal Medicine, which was distributed recently, a team from the School of Medicine, University of Michigan Health System and the Office of Veterans Affairs published a study involving 2,400 people of all ages and backgrounds who completed extensive questionnaires. People in a group of participants were asked to imagine that they were patients at two different medical scenarios - in an experimental vaccine against a deadly flu and chemotherapy for a slow-growing cancer and were asked to choose a medical option or without risk. Each of the options have risks and benefits, even though statistically, the best option in each of the scenarios was shot and undergoing chemotherapy.
For the remaining three groups were given los mismos escenarios médicos, pero se les pidió imaginarse el problema desde perspectivas diferentes, como un mèdico médico aconsejando a un paciente, un padre decidiendo por un niño, y un tercer grupo en el de director médico de un hospital que elaboraba las directivas para tratar a numerosos pacientes. Los cuatro grupos realizaron decisiones de tratamientos y también informaron sobre las emociones que les provocó cada una de esas decisiones.
Los resultados fueron notables. Sólo un 48 por ciento de las personas que estaban en el papel de pacientes aseguraron que elegirían la vacuna contra la gripe para sí mismos, pero un 57 por ciento de los que hacían de padres dijeron que decidirían por vacunas para los children, 63 percent of those who played the role doctors said they would advise their patients to get vaccinated and 73 percent of those acting as medical directors would choose to vaccinate a large number of patients
With this we have learned that before taking decisions need to assess the risks, benefits and all the factors in general. With luck, one might come out ahead, and sometimes not.
Internet The following article shows how decisions affect future events, as it is sometimes necessary to take risks, without taking risks you will not get many things, and successes or failures. Successes and failures you learn ... you learn to improve.
Linking Business Risk With The Right Information, source http://www.dnbperu.com.pe/ As the domestic markets shrink, foreign markets appear limitless opportunities for expansion and growth. Along with opportunity comes risk. The more complex the business decisions and investments, the greater the risk.
This combination, added some specific risks of International Trade. For example, how to identify the right trading partners? Choosing a reliable supplier in another country? Determining likelihood of getting paid? What economic factors should be considered in a business environment different from yours? While risk can not be avoided, can be reduced. Dun & Bradstreet for over 150 years has been helping customers better manage their business risks in different markets around the world. The efforts of D & B to be your solutions provider, resulted in the launch of a range of tools for the U.S. and Europe who will serve as a support in decision making and help you expand and grow their business by better managing their commercial risks.
CONCLUSION Upon completion of this research on decision making, we can conclude that to undertake any business, it is vital that you first get involved with issues of this nature because it gives us an overall view of what to expect. We understand how we make a decision and must be analyzed before implementing their execution and do during the process too, in order to achieve the desired goal. The decision is effective or efficient when it meets in full or at least a large percentage of the target or desired end and at the right time that the decision should be taken.
We have also learned that the costs greatly influence as to the decisions are taken in some organizations, since it depends on the success of a product or obtaining the goal of a company's sales.
In conclusion we can say that decision making is to find appropriate behavior to solve a problem situation, which, in addition, a number of uncertain events. Once a threat is detected, real, imaginary, probable or not, and has decided to make a plan to deal with it, we must analyze the situation: we must determine which items are relevant and ignore those who are not and the relationships between them and the way we influence them. This step can lead to problems, when taking into account ignore irrelevant aspects and elements of the problem. After determining what the situation is problematic and analyzed in depth, to make decisions, it is necessary to develop models of alternative actions to imagine the end result and evaluate this, taking into account the uncertainty of each event giving up and the value subjectively assigned, either consciously or automatically. This gives an idea of \u200b\u200bthe consequences of each alternative actions have been defined and can help choose the most appropriate behavior and the course of action that will resolve the threat. We demonstrate our intelligence in this process at work. Another important factor of any organization (profit or not), is to have a good control of costs and available resources. This is done as an effort to try to get a production or service quality, spending as little money as possible. This will lead the company to offer its customers affordable and perhaps better than the competition. As the Pareto principle, we have learned that it is a data analysis tool widely used and is therefore useful in determining the root cause for a problem-solving effort. This lets you see through a bar graph, what are the biggest problems, allowing the groups to analyze the causes, study results and plan for continuous improvement and set priorities. In typical cases, the vital few (steps, services, items, problems, causes) are responsible for most of the negative impact on quality.
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