Introduction Organizations of any type face decisions on a daily basis. Decisions could range from simple ones, like increasing the volume of units produced, to complex ones, like deciding which hedging strategy would yield the best results. In today’s highly competitive business environment, decisions that have long-term positive impacts are not only necessary but are also important. Regardless of the reasons, circumstances, and events, decisions organization make should be objective, thorough, and comprehensive in addressing both the issues and opportunities. Decisions that undergo objective evaluation and assessments of relevant elements, data, information, alternatives, and solutions are strategic in a sense that these decisions have long-term repercussions (Bhushan & Rai, 2004).
The decisions made in organizations must always be aligned with the goals and objectives of the organization (Finkelstein, 2003). Setting goals and objectives would allow organizations to make series of interconnected decisions without getting lost in the process since the organization can easily refer to the framework of their decisions. For example, an organization that wishes to establish strong market presence must increase the budget of its marketing and promotions even though the rest of the organization has to cut cost.
Doing otherwise will be counterproductive and counter-intuitive to the organization’s objectives. However, objective decisions are not very easy to achieve. Decision makers are bound to their subjectivities, personal preferences, and biases (Finkelstein, 2003). In some circumstances, the best options are not readily available and it requires enormous amount of skill, knowledge, experience, and trust to be able to unearth the series of steps leading to the successful decision (Eisenhardt et al, 1997). These elements imply that effective decision-making should be done objectively or at least with little or no subjectivities involved in the process.
An objective decision-making process can be achieved by (a) creating a model to forecast future events, (b) developing learning environments for evolving strategies, (c) objective assessment techniques, and (d) methodology of choosing the best alternatives (Bhushan & Rai, 2004). Case Scenario and ObjectivesCharlie and Cameron from 24/7 are considering the feasibility of hiring a new permanent contractual employee that will report for 48 hours on a four 12- hour shifts per week. The shift schedule for this new employee will be 2 day- and 2 night-shifts.
Charlie and Cameron have two salary schemes in mind for this new employee. In scheme A, the new employee will be paid $18 per hour or a total of $864 per week. In scheme B, the new employee will be paid 50% of the take for the shift. Charlie and Cameron are obliged to pay 9% for this new employee’s superannuation regardless of which scheme is chosen. Cameron submitted their daily take for both night and day shifts for the last three months for analysis.
The main objectives of this report are: To critically analyze the daily take report to help Charlie and Cameron decide whether or not to hire another employee. This will be done by plotting the financial data of the business for the last three months. If the decision is to hire, what will be the most strategic pay scheme to choose? In order to determine the pay scheme, a comparative analysis between the two schemes is done to check which option yields more profitability to the business; If scheme B is chosen, what will be the shift distribution for this new employee?
Ideally, the new employee should be assigned on days where the sales volume is the lowest. However, careful considerations must be made on this particular choice. To evaluate whether there are any more possible options to choose that would yield better outcomes.