The paper “ Judgment in Managerial Decision Making and Managing under Uncertainty” is a thrilling example of the essay on the management. Decision making plays a very important part of management. I once observed a managerial decision at the firm I was working with. The firm was in a process of expanding and there was an increase in its business. The firm owner was faced with a situation where the demand was more than the supply. To be able to provide a deficit to the market, the owner decided to outsource labor.
This involved partnering with other companies that would produce on behalf of the firm. Being a clothing firm, the owner who acted as the manager acted fast to look for outsourcing partners. He quickly evaluated the capabilities of the outsourcing partners and chose one. In this situation, the firm had to look for the best alternative between hiring more workers and outsourcing the services. The company had previously tried to work overtime in production. This involved engaging the workforce for more hours in order to meet the demands.
The results had been high operating costs and poor quality in some cases. This drove the manager into looking for an alternative way in which he could meet demand. Most of the employees were feeling overworked due to the increase in working hours. This could have led to a demand for higher pay or sabotage. There was also the threat of the major customers canceling their contracts if they could not be supplied in time. This would have led to the loss of business. In such a situation, a decision that would enable an increase in production was needed fast.
The decision was able to help the firm supply their products efficiently. The firm was able to retain its business and increase inefficiency. This was a major breakthrough in the firm as it was able to concentrate on what it could produce best without stretching the available resources. AnalysisFor the manager to make the situation to outsource, he had to undergo a process. This involves recognizing there is a problem and then acting to solve it. The decision has to be made from a number of alternatives.
The final choice among the alternatives is the decision. Whether a decision is made rationally or using heuristic and biases, it has to undergo the five steps. The steps are recognizing the need, diagnosing it, searching for information, evaluating and authorizing the decision (Bazerman & Moore, 14). In this case, the manager detected a crisis. He used information from the firm to search for the outsourcing partners. This is where heuristics played part due to limited time. By evaluating, the management looks at all alternatives to the decision.
In rational decision making, this process is done in an iteration. All the alternatives are deeply investigated. The final stage is where the chosen alternative is authorized. For management decision making is a way of life (Schoenfeld, 14). In the situation of the firm, the manager's decision was affected by several factors. This can be classified as cognitive and environmental factors. When making a decision, human beings are in some instances bounded. Hurdles occur in the decision-making process which hinders its effectiveness. For a leader to make a rational decision, he must be able to come up with a decision that gives the maximum benefits.
This is assisted by having good cognitive skills and methods of processing information. In this case, the manager was faced with a major firm decision. How he handled it would have consequences on the firm performance. He had to look at all the possible solutions that would enhance production and secure the customers (Towler, 29).