PMI Method as a Decision Making Technique - Coursework Example

DECISION MAKING TECHNIQUE USED FOR THE ORGANIZATION IN THE ISLAND COUNTRY OF KAVA HOW TO MAKE GOOD DECISION? When considering the mater of good decision making, it is an essential skill for career success generally, and effective leadership particularly. As a business manager, if I can learn to make timely and well-considered decisions, then I can often lead my team to spectacular and well-deserved success. However, if I make poor decisions, my team risks failure and my time as a leader will, most likely, be brutally short. (http//www.businessballs.com/problemssolving.html) The techniques in my organization help me to make the best decisions possible with the information I have available. They help me to map out the likely consequences of decisions, work out the importance of individual factors and choose the best course of action to take. Here I start with a simple technique that helps me to make decisions where many factors are claiming my attention. It then moves on to a number of more powerful techniques such as use of Decision Trees, 6 Thinking Hats and Cost/Benefit Analysis , SWOT ANALYSIS and others routinely used in commercial Decision Making in every organization. ( http://www.citehr.com/decision-making-techniques-vt3783.html) Here I look at Decision Making tools that help me to select between different options. These are very useful when I have to take a go/no-go decision.  PMI method as a decision making technique Weighing the Pros and CONS of a decision, PMI method can be used very effectively. By this stage it may already be obvious whether or not I should implement the decision. If it is not, consider each of the points I have written down and assign a positive or negative score to it appropriately. The scores assign may be quite subjective. (https://www.mindtools.com/cgi-bin/sgx2/shop.cgi?page=orderform_sections_ted.htm) I draw up the PMI table below:  PLUS MINUS INTERESTING Languages – Numerous indigenous, as well as English(+6) Tribes and aboriginal(-3) Company has effective work force(+3) The economy: Petroleum, coffee, cocoa, spices, bananas, sugar, tourism, fishing, and natural gas(+6) Terrorism(-4) Governmental Support(-2) Quality labor(+5) Diverse people of African, French, Spanish, (-3) Difficult to establish initially(-2) Helping organizations: Governmental service – local, state, and national levels—including the military Community(+4) Disasters threats: Tidal waves/tsunami Typhoons/Hurricanes, tornadoes/Floods/Fires/Volcanic eruptions/Earthquakes/HIV/AIDS/Petroleum spill/High risk for avian flu(-5) Support from various sides (+1) A lot of opportunities(+7) HIV/AIDS, Terrorism(-4) Support of Govt. and NGOs(+3) Government’s strong support to bring business(+3) Organizational and Environmental Obstacles(-2) Ethical commitment (+1) founder had the ethical commitment to help in addressing the social needs of Kava as a derivative(+3) Over 50% under 15 years of age(-6) Lack of HR(-3) Kava's products and services are strategically useful for our company since these are mainly part of our business operations.(+6) Demographic problems(-4) Emerging Opportunities in the 21st century(+2) I score the table as 40(Plus) - 31 (Minus) - 1 (Interesting) = +3 DECISION MAKING PROCESS: Since our company is considering establishing a greater presence here in Kava, it is the primary thing to list out all plus points her in the PMI method to analyze. Since the plus points-English speaking people, Economy, Quality labor, helping organizations, a lot of opportunities, Governmental Support, Ethical commitment of the founder and the possibility to market Kava’s goods is so vital in the PMI method. All these points are very strong causes for a right organization to excel in the particular field of business. But, if we consider the minus points-Terrorism, Presence of uncivilized aboriginal people, Diverse people of culture, disaster and HIV/AIDS threats, organizational and environmental problems, demographic complexities and the lack of matured work force are the key factors that take the decision making in back foot. But, while considering all these vital aspects, the interest parts significantly turned to be a positive skewed one. Even though there are problematic areas to worry for a new launching firm is concerned, the governmental request and their strong back support, Help of NGOs, Founder’s ethical commitments take the decision making process and the very positive approach to develop the economic backwardness made the decision making process as a matter of socially attached one rather than profit making. While considering all theses plus points it is suggested that the business activities can be done by incorporating Governmental sources. As a result of it, the back support can be better ensured and the supply of human resource will not be a constraint for the company in the future. The company can focus in all other areas as per the ethical commitment of the founder. It is also noted that there is a big market for the island products where the company can utilize in its maximum. Hence considering the aspects of cost and profit, there is no chance of decline even in the initial stage. Hence, it is advisable to the company step in the island of Kava market as per the existing policy of the founder. Through our growth, our company can demonstrate that we can develop and manage a very effective, as well as highly efficient, organizational structure and processes. That includes all aspects of the company; marketing, finance, purchasing, technology, human resources, physical resource, transportation, strategic planning, leadership, etc. Secondly, the goods and services that come from Kava have a significant impact in the global market. Moreover, in the long run, economics drives everything. So the decision making will expand our company's operation in Kava is based on the issue of accountability and commitment to contributing to the development of Kava that will impact into the overall business goal of our company. Part III Recruitment and Retention of Personnel One of the major problems faced by our company in Kava is identification, recruitment and retention of the right kind of personnel. A new enterprise is generally weak in terms of an established name and ability to offer very attractive terms of employment. Above all, an entrepreneur should recruit the right kind of people who could contribute to the success of the organization. Their, attitude to work, temperament etc. are important considerations for a good company. Here in Kava, recruiting and retention of personnel is the key agenda of the company. Avoid Overtrading In their eagerness to grow fast, some are tend to undertake more work than what they could really do with the available resources, leading to overtrading. Such instances might result in imbalances in the system such as building up of inventories or receivables without leaving enough cash to carry on operations. This results in effective reduction in working capital and could lead to industrial sickness unless rectified in time. Here in Kava we remember that we will bite only what we could chew. Developing Systems Closely linked to strategy is the control system in any enterprise. Although, no formal systems could be noticed in a new enterprise at this phase, the firm will start working on the development of systems of control. It is when systems get established that firm finds more time for developing new strategies. Stabilization strategy Our new stabilization strategies are formulated and implemented to grow fast in the Kava market. Some of the important characteristics of an ideal growth business are given below. 1. A near monopoly that can dominate a market because of patents. 2. A business where the rate of growth in profits is far higher than the rate of growth in sales. 3. A business which can grow relatively independently of economic cycle. 4. A business that has a consistently high rate of inquiries and new and repeated orders. A business that is dependent on management talent. It becomes apparent from the above that only firms providing unique products or services which are highly valued by customers can grow fast. Considering all these points we formulated the right decision to excel in Kava. Flexibility We can be able to change our strategies according to environmental changes in order to register fast growth. a) Inactive: If the firm's flexibility to change either in terms of product, market or technology is low and if the environment is reasonably stable, the firm is likely to get stable returns. Except under monopoly or near monopoly conditions, firms cannot expect to make rapid growth in response to growing demand under such circumstances. b) Reactive: Firms in the second quadrant also have limited flexibility, but have to operate in unstable environment: It is difficult for firms to plan and grow under such situations, and the entrepreneur will be forced to formulate strategies reacting to changes. c) Interactive: In quadrant 3 environment stability is low. Since firm flexibility is high, several small scale activities can grow and flourish. d) Proactive: Firms are most comfortable in quadrant 4 where they have the maximum flexibility to undertake any change in the environment .The environment is stable here. We can anticipate environmental changes clearly and formulate growth plans accordingly. Firms with strong R&D such as the solvent manufacturer can make product innovations for specialized markets and take advantage of premium pricing. We incorporated all these vital points in our decision making process. Quality-cost Link Another strategy which is very successfully followed by several fast growth small scale enterprises is cost leadership. Developing high quality products is certainly a rewarding strategy under normal conditions, but will be counterproductive unless the market is ready to receive it. Networking Developing and maintaining contacts at social and formal levels is found to be extremely useful for business success. Networking should emerge itself as a system to be very effective in the long run. The style and culture of the personnel would influence it. Networks can be built up for both operating and strategic purposes. As we are focusing much on the networking here in Kava our decision making process is designed accordingly. Time Earlier it was briefly mentioned that a fast growth entrepreneur should be able to respond to customer requests fast. In these days of increasing competition, firms can build competitive advantage based on time, shorter the time, better it is. Customer group: Market demand for a product should be measured for the customer group that is of interest to the firm. Geographical area: The geographical boundaries within which market demand is to be measured must be clear. This is particularly true for a small enterprise since its operations are usually confined to small areas. Service establishments also have to define their geographical boundaries while estimating market demand. Marketing environment: Market demand is influenced by many external environmental factors. These include general economic conditions, technological breakthroughs and developments, government policies, political changes, changes in consumer behavior and competitive situation, and even natural phenomena like rainfall and weather conditions. Since we have many geographical problems here in Kava, special care has been taken care of it. ETHICAL IMPLICATION OF THE STAKEHOLDERS Ethical implication are an integral part of any decision making process. Ethics are particularly important in a study as such as this; where the underpinning of the symbolic interactions and grounded theory approaches to decision making and data analysis emphasize stake holders perspectives and the relation ship between our company and the stake holders. Potential stakeholders were given with clear information about the decision making and given assurance by the company. The stake holders are ready to give all back ups in taking the appropriate measures as far as the decision making implementation process is concerned. REFERENCE 1. http//www.businessballs.com/problemssolving.html 2. http://www.citehr.com/decision-making-techniques-vt3783.html 3. https://www.mindtools.com/cgi-bin/sgx2/shop.cgi?page=orderform_sections_ted.htm Read More