Managerial decision making
In formally, decision is define as the choices that came from appearing alternatives that the decision makers have found. While, decision making is the process of find out the core of problems and opportunities that affected to the organization and how to solve when they occurred. All of the organizations must face with decision making, and then precisely resolve to seek out best outcomes.
The diagram above illustrates the components that involve in making decision. For the circle above, it explains about the situations that lead to DiGen Engineering Co., Ltd to make decision. The type of decision that the organization always faces mostly is non-programmed decision which the organization made to response the situations that never have experience before such as fluctuation price of electric generators and natural disasters that have main characteristic is unique. Moreover, the company also faced with the risk in the situation which the competitors from other parts of Thailand try to develop the company in the southern. In this case, the company has wholly information about the competitors and also knew accurately about the goal that the company need to achieve, but the ratio of possible future outcomes to success and failure is 50:50. Thus, the company always takes this issue and fined the best solutions into account. In addition, the company also faced with uncertainty situations that are more difficult to solve than risk because the company just only knows the goal that they want to be realize in the future, but lack of information and possible outcomes. For the example, the negative impacts from unstable economic health that effected to all business that operated in the region especially SME business (The Small and Medium Enterprise business) that lead to decrease in sale of the company.
Through the paragraph above, the decision making of the DiGen Engineering Co., Ltd is categorized in administrative model because the situations that offer to the organization making decision are risk and uncertainty that led to unclear problems. For uncertainty condition, the company just has a little bit information about unstable economic health because it not has directly experience before to resolve with this problem, Mr.Abhisit might be used the principle of intuition that refer his past experiences which able to apply with the current problems of the company and he also choose the alternative that he most satisfy by using his intuition.
After the company identified the problems and type of situation, then it required to make following specific steps that are:-
1. Determine the decision requirement
In initial, the company was determined whether the situation that appeared are categorized in problem or opportunity, then gathering the information through report such as financial report, performance report and able to find out from others sources such as website, social media, business journals, and others.
2. Analysis of causes
Mr.Abhisit used the information that obtained from the organization’s report and other sources, then analyzed this information and also carefully looking at the situation in different dimension to find any gaps that able to benefit by company.
3. Generating the alternatives
After determined and analyzed the situations, Mr.Abhisit allow to generate possible of alternatives that able to applied to solve the problem effectively.
4. Selected one alternative
Mr.Abhisit selected an alternative that using lower financial resource and assets the key of situation with provide positive consequences throughout the company. Thus, the best alternative is utilized by the company to resolve with the problem.
5. Implementation of chosen alternative
After find out the best alternative, the company implemented the alternative through using the resources, abilities, skills, and other material components that required in the best alternative to determine that the chosen alternative is fulfilled.
6. Apprise and evaluate the feedback
The final part, the company is evaluate about the chosen alternative that they have took, whether was carried out or not by obtained the feedbacks from other people who involve with the company. If it fails, the company is take corrective action on this problem.
For the personal decision making style, Mr.Abhisit is prefer to utilize in the directive style because he use his intuition as the essential role in making decisions that have the advantage to the organization in flexibility adapt with new environment or situation. He found that the past experiences are the most valuable asset that he have because he gained from actual situations, so he prefers to use the past experiences as the guide in making decision with the core that have similar characteristics of problems.
Finally, after the company was combined between the situation and the personal decision style, it will find out the best solution that most properly to resolve the problem and generate some positive effects to the organization as well.