The paper 'Judgement and Decision Making' is a great example of a Management Essay. Decision making within organizations is very crucial towards the sustainability of the internal operations as they impact directly on them. Organizations are established in order to achieve a pre-determined purpose as stipulated by the vision and mission statements. Towards achieving this purpose, the organization’ s management has to make a stream of decisions especially towards the optimum allocation of resources. On the other hand, organizations primarily exist as a system comprising of various sub-systems that are inter-dependent. This interdependency arises from the various functions present within the organization that will enable it utilise its resources efficiently.
As a result, decision making activities and processes within the organization are complex since their impacts of the various subsystems varies across the organization. In decision making, the management has to consider multiple angles available within the organization. These angles include individual staff members, technological, socio-economic perspectives among others (Linstone 1984, p40). This consideration ensures that none of the organization’ s operations is negatively impacted by the reached decision(s). The decision making process varies across organizations depending on the complexity of the decision, its type and formal structure of the organization.
This paper aims at analysing crucial strategic decisions made by the Australian government considering the various perspectives, structure of the Australian government and complexity of the issue being addressed. For almost two decades, Australia has enjoyed the stable and average economic performance and has maintained a sustainable 3.3 percent economic growth. This has seen an expansion of the economy and an increase in national output as well as employment levels. However, due to the global recession, the nation has been faced with unprecedented inflation that has seen the prices of products skyrocket making them unaffordable to the lower and middle-class citizens.
Towards curbing the runaway prices, the government has embarked on giving handouts that aim at improving the accessibility of basic products and services to Australian citizens. This move by the government will eventually be productive since it will provide consumers with the price shocks thus shielding them from the increasing commodity prices. The government focuses entirely on the consumer since they are an important pillar within the economy.
Consumers spur investments through savings that are borrowed by corporations for investment purposes. The Australian government considered the organizational and individual elements of decision making and thus decided to implement the policy. According to Linstone, the consideration of all the elements towards decision making does not certainly mean that the decision has a 100 percent positive impact (48). This is because no single solution is applicable to all scenarios since their effect is diverse. In this scenario, the method applied by the Australian government in the past to deal with inflation may not be applicable currently because perspectives are by nature dynamic.
Firstly, the technical perspective towards this monetary policy decision is embedded in the suitability and applicability of the decision. Decisions can be made hurriedly towards arresting a developing situation and therefore their subsequent execution should be addressed. Linstone (1984) notes that decision making an important activity and so is its execution (42). For the policy decision by the Australian government to be effective, it has to evaluate its technical capability and decision impact.
The government has to quantify the impact of its decision by determining the results of its decision both in the long and short term. Through quantification, the government will be able to assess the suitability of the policy towards containing the situation and evaluating it depending on the economic changes. The availability of the appropriate systems required to protect both the consumers and manufacturers have to be put in place to protect them from the negative impacts. Government handouts will increase the internal demand vis-a-vis the available supply of products.
As a result, inflation rates will increase, and thus the Australian government needs to identify structures to mop up the extra money available within the economy hence stabilize the prices.
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