Vital roles in decision making

Introduction

In this report here we are discussing about some important decision making theories which plays a vital roles in decision making. As we know any result of a given task or work depends on the decision we made on that how we executed that task or work, that's why we must take some extra care while making a decision. Every person is having his/her own strengths and weakness, one who knows his own strengths and weakness can plan his/her future or take a decision in a proper way which leads to better results, so one should know his own personal strengths and weakness. Here in this report we are also discussing about reflective action.

Reflective action is a very good useful tool for everyone in his/her personal or professional life. With the help of this reflective action one can gain experience from his/her own experience. Here we are also discussing about motivation which is actually not from this module but a very interesting and useful tool. In this report we are also discussing about perception and negotiation.

Decision making theories

Making a decision is a crucial part in the life either it is for a small task or for a big task either for in ones personal life or in an organization or even it is for a nation. There are plenty of approaches are there for making a decision either subjective or objective. In the present life we are having some theories and analysis to make decisions. The one which we choose will depend on the type of the task and the degree of certainty of the event and the personal view of the person who is making the decision.

Decision making under certainty

In the situation under certainty it is fairly easier to make decision as one know what is going to happen if he makes a decision. As the world is uncertain it is very rare to face such certain things in life and even if we face it is easy to make a decision as we know the cause and effect relationship.

Example for a certain thing is like we have a land of 1000 square yards and if we want to sell it as whole we will get £5 per square yard, so for a whole we will get £5000, if we divide the land into 5 parts of 200 each and sell it we will get £6 per square yard, in this way we will get £6000 for whole land and all the prices mention are certain and fixed. So in this given example it is easy to make decision of how we are going to sell our land.

Decision making under uncertainty and risk

Some economists, following the tradition of Frank Knight, make a distinction between risk and uncertainty "Risk exists when a probability based on past experience can be attached to an event, whereas uncertainty exists when there is no objective way to place a probability on an event." Uncertainty is "the difference between the amount of information required to perform the task and the amount of information already possessed by the organisation (J. Galbraith). According to statistician George Chacko (1991), decision making is the "commitment of resources today for results tomorrow." Decision making in this uncertain world is a typical task as it affects ones life with the decision he/she taken. In the present world there is a wide range of methods, theories and assumptions are there for us to help to make decision. For uncertain events one can not assign probabilistic distributions. While making decisions under risk the decision maker is having the probability factor of the choices he have.

In case of uncertainty and risk one can use the tool called forecast to predict the unpredictable future. While making a decision under uncertainty one must be very careful, one also needs to do the scenario planning as well to face the consequences in the uncertain future. Weather, stock market and currency and so on are in the uncertain world for this type of thing to make a decision we can use the future forecast. Decision theory, Subjective expected utility and radical decision making theory like this we are having so many tools to make a decision even though it is quite difficult do make decision which one to use. All the above theories and approaches use probability as a main factor.

Decision matrix

Decision matrix is one of the useful tools to make a decision while having weight age of the options across the chosen criteria. Decision matrix allows decision makers to structure the options and solve their problem by specifying and prioritizing their needs with a list a criteria and evaluating, rating, and comparing the different solutions and selecting the best matching solution. The weighted sum of each option will be the aggregate of the weight multiplied by the corresponding criteria.

Score = Rating x Weight; Total Score = SUM (Scores)

From the above formulae we will get the total sum for each option and from that totals we will go for most weighted option.

Personal analysis

Looking at your own strengths and weakness will helpful for any person to move further. Here I am developing my personal profile using one of the useful strategic tools called SWOT analysis. With the help of SWOT analysis here I am developing my personal profile to look at my own Strengths, Weakness, Opportunities and Threats.

SWOT analysis

SWOT analysis is one of the biggest tools available for any organization or for any person to know about their own Strengths, Weakness, Opportunities and Threats. With the help of SWOT analysis one can mould his own personal life or business in a better manner. It helps to know about them in every aspect to create a better future and also to react for the present situations. Here I am creating my personal profile with the use of SWOT analysis to represent my own Strengths, Weakness, Opportunities and Threats.

Strengths

Every person is having some own talent in him which others might don't have, that is one of the biggest strengths for every person when compared to others around him. Starting from my personal strengths I am having a very good supporting parents, friends, professors and colleagues surrounding me. I am having enough strength and courage to face any situation. I am always self motivate my self to prepare myself for facing any new challenges. I never disappoint and put myself down, I always feel like whatever happens that's for good. I always enjoy the result in positive manner weather it is good or bad.

Coming to my educational and professional life I have a very good basement from my educational aspect and I am still building it in a much a better manner for getting ready my professional life. I have done my Bachelors from Kakatiya University in Computers, and my Masters from Liverpool Hope University in Computers and I am doing my Masters in Business Administration from Leyton College. To compete in the current job world I think I am having enough skills and I have a better confidence about myself.

Coming to my financial side, I am not a Millionaire but I am having enough funds to live happily and also I am having a good backup from my parents and friends. As I am having a good knowledge on computers and management I can compete with others in the present world. Under the circumstances like achieving my goals either it is shot term or long term, and doing good at my work or studies I felt most happiest and most fulfilled.

Weakness

Every person will have some sort of weakness within him which he doesn't want to reflect and make the people around him to point those weaknesses. One of the biggest weakness that I have got is I don't feel comfortable with new people whom I meat. My present visa status also became a weakness for me as I can not able go for professional jobs. Another countable weakness that I got is that I don't take any issue as serious even it is a really serious issue I always face it is a normal one. I am not too spontaneous to react for the situation that I face ion my life.

Coming to my financial side, I am not a Millionaire I always dream like "If I am a Millionaire" really speaking with my dreams I can write a book but I am not a Millionaire to make my dreams true. Another weakness that I got is I am a Lazy man as I told before that's why I don't take things in serious manner. And also I face every situation as same I can't able to differentiate serious issues and normal issues.

Opportunities

Every person will have some sort of opportunities waiting for him the only thing is how he utilizes those opportunities, one who utilizes those opportunities will be a successful person. As a person I am also having some opportunities in front of me the only thing is that I am waiting for time to grab those opportunities, as we know that one who does the right thing in right time will be a successful person in his/her life. After the recession as the software industry regaining its boom I can see opportunity in that market as I have a strong basement in the software industry. As I am also learning the new technologies like networking and other I can see some opportunities in that evergreen industry.

I am also having a good strategic plan about my future to use my opportunities in a right manner. My management background will help me to be a step ahead from my competitors. As the present job market looking for fresh talent, fresh skills and new technologies I can grab that opportunity. My leadership skills will be helpful for me in my new career. Moreover I have got sponsor who is offering me a government sector job which is better than anything the only thing is that is not a challenging one. As I always show interest to face new challenge that behaviour will be a plus point for my future. With all the above stated opportunities I will grab the right one in the right time.

Threats

Every person will be having some sort of threats either they from their weakness or competitors but one who handles those threats in a right manner will be successful. As the world is changing in regular basis we can't expect what will happen tomorrow. As we know that "Change is Constant" one of the biggest threat is can I able to cop up to that changes or not. The software industry is changing regularly with the new technologies I can't estimate how long my talent and skills will perish in this complex world.

Gibbs reflective cycle takes the reflective practitioner through six stages. At each stage the practitioner consider a cue to help them to reflect on experience. From the very outset, practitioners need to be encouraged to write vivid and spontaneous descriptions of their experiences. The emphasis on feelings is very significant because most reflection is triggered by feelings and decision is influenced by feelings. Gibb's stages of What was good or Bad about the experience and making sense confront the practitioner to consider their normal way of thinking and responding within the situation toward gaining insights into self and practice. Gibb's stages of what else could you have done? And if it arose again what would you do? focuses the practitioner on anticipating, fantasising and rehearsing other ways of responding with a view on future practice.

Reflective practice

Reflective practice involves thoughtfully considering one's own experiences in applying knowledge to practice while being coached by professionals in the discipline. It has been described as an unstructured approach directing understanding and learning, a self regulated process. (R.Gregory). Reflective practice is one of the biggest useful tools for learning yourself from your own experiences. With the help of reflective practice one can act in a more accurate way in his/her future if that type situation arose what he already faced. Reflective practice helps a person not to do the same mistake what he/she made it before.

Goal setting

Goal setting is one of the power full tools for motivating yourself and people around you. Setting up goals will increase performance of you and people around you. The critical stage in goal setting is setting up the goal, in this stage we must think SMART a goal must be

  • Specific
  • Measurable
  • Attainable
  • Relevant
  • Time bound

If you are SMART in setting your goal then only one can gain the benefits from the goal setting theory. One who fails to setting up a right goal may end up in losing his confidence. Goal setting theory helps a person or a group of people to improve their performance towards attaining their goals. Goals are mainly two types Short term and Long term.

Perception

Perception is a process which involves the reorganisation and interpretation of stimuli which register on our senses. In simpler words perception is nothing but perceiving things from your mind when you look at an object. For example if you look at fire you can feel in your mind like it is hot if you touch it will burn your hand. And the visual appearance is filled out with feeling of what the object would be like to touch, and so on.

Post office wild cats strike

Royal mail is one of the biggest postal services operating in Europe; we can imagine that how the day will be without postal services. Tons of letters, parcels, bills and many more will be lying back in the office which may be delay the life some times. As the electronic media advances lot of people stop using postal services which affected the royal mail to 10% reduction of their revenue comparing to previous year (Financial Times Oct 14, 2009). In one hand royal mail is fighting against survival among the rival companies like UPS and DHL and many more companies to offer better services and to attain better efficiency. In this kind of situations if the employees are going for a strike it will be more miserable for the company that to on the busiest time of the year like in the last quarter of the year which is having Christmas in it.

The royal mail employees are struggling for the pay rise, job cuts and modernisations from long time. They are asking the company to provide them to attain more efficiency and to beat rival postal services. Royal mail employees were waiting for the situation which is more effective to move the down the top heads by showing their negotiation. In the recent postal strike we can see the situation when the employees are called for the strike which we can say is an effective as it affects the whole royal mail system and the thinking of the unions are perfectly good as they have chosen the perfect situation which shows their behaviour to us. As a result of their two day strike and negotiation the royal mail came down and satisfied their demands in most of the accepts like pay rise (7.6% over next three years) and job cuts and working hours. The royal mail has postponed the process of modernisation as it costs them much more. Here we can see the thinking of the bosses as they thought that giving pay rise and better working hours will work to stop the strike and it gives motivation as well for the employee which in result improves the efficiency. So they postponed the modernisation for later years.

Conclusion

Every one makes a decision either it is big or small at some point of their life or even in daily life. We can feel that how important is that in our life to make a decision. We know that one who does the right decision at right time will be always successful. In this report we have studied how important is decision making and types of situations for making a decision and decision making process and theories. In this report we studied how important is to make a personal profile to every ones life, here I created my personal profile stating all my Strengths, Weakness, Opportunities and Threats. In this report we came to know how important is reflective action is and how to practice it to make life error free and to learn thing from our own experiences. In this report we also studied about goal setting theory which is one of the best theories to set a goal and work for it. Learning by doing work and discussing among people is very important as we cannot learn every thing by our own and by our own experiences action learning is an important activity to learn good things and to implement them in real life. In this report we also studied about perception understanding and negotiation techniques which help us to understand the human behaviour. We have also gone through a real time example of post office strike 2009 and we examined the negotiation techniques and results of a good thinking and behaviour.

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