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HI6005 Management Decision Making Editing and Proof Reading Services
Management decision making is essential process of organizations to establish the quality framework for managing, allocating and monitoring the resources and operation to achieve the goals and objectives more ethical and professional manners. For ethical decision making the management consider the values and codes as well as the personal values of staff members that have significant impact on the framework of development of support services, evaluation of options and factors that can influence the process of managing the outcome. In addition to this, the decision making process involve elements like consideration of past activities, trends and standard of organizational approach and planning which could influence the overall current approach of the ethical decision making. The report will analyze the impact of social influence on the decision making of the organization and the role of behaviour according to social presence. It will include Solomon classic study that based on social conformity on decision making and ethical approach that have been used by organizations. Moreover, report will evaluate the Stanley Milgram study that influence the decision making as well as used for monitoring the process of ethical decision making according to objectives of the management to develop the business. At the end, report will provide the examples and information that need to be considering while making decisions using the current and traditional process of evaluating and applying management decisions.
Models of Social Influence on Decision Making
Social influence refers to change in the behaviour, perception and needs of the individual and groups that have significant impact on the decision making. It could be intentionally or unintentionally according to relationship, cultural change, conformability and external factors. For management decision making different elements need to be consider like socialization, peer pressure, obedience, leadership and need of the individual at workplace. These would have direct and indirect influence on the ethical decision making process of organization or individual for achieving the goals and objectives. However, it is been identified that decision making is strongly influenced by the social factors and changes in the disciplinary approach of organization that consider the attributes like marketing trends, economy, customer perception and community factors. In the current scenario, management decision making process involve the functional process of arranging resources, underlying in-group conformity, benefits for members and outcomes that one organization is looking to achieve (Glimcher and Fehr, 2013). The identification of positive association and benchmarking standards of organizational operation influence the decision making of management.
Decision making refers to cognitive process resulting in the selection of the belief or the course of action among the several alternatives possibilities such as psychological, cognitive and normative functions. However, management decision making is using different approach and theories to as per the objectives and ethical acts but logical decision making is important part of the whole process to meet the desired outcome (Yeager, 2015). Every organization have experts from different parts and sectors that analyze the social changes and provide the direction to top management of organization to make necessary changes in the existing plan to meet the time pressure, higher stakes and ambiguities in decision making.
Solomon Asch’s classic study
For decision making management of organizations are following the different studies and one of them is Solomon Asch conformity experiments that involve the decision making of individual yielded or define a majority group and effect of belief and opinions of others. The study involves the effects of tasks importance, age, gender and culture of the working areas and control groups to make the decisions more professional and ethical manners. Moreover, the control groups of organization handle the situations with no pressure to conform and according to error rate of the past decision making process. According to the study, 75% of decision makers in management gave one incorrect answer out of 12 critical trails. Now to make decision, management needs to consider the facts that will help to minimize the risk in the planning and implementation of study by making ethical decisions. In addition to this, confirm experiments and reason for making the decisions called as informational social influence that required the logical correction methods for achieving the goals and objectives (Saaty and Vargas, 2013). In spite of that, experiments in decision making are one of the major reasons that affect the overall process of management decision making. For example, more ambiguous process of organization for setting the objectives and process for meeting the standard using the resources have significant impact of economy, changes in the behaviour and vision of the top management.
According to study, belief and experiment are the key elements to avoid the social influence that gives the actual idea for conducting research, analysis of certain factors like pressure and size of the group as well as the answers of majority to conformity. Apart from that, decision making is critical process for every organization to maintain the effectiveness and sustain the position in market by making changes as per the requirements. The investigations were guided by certain underlying assumptions, which today are common currency and account for much that is thought and said about the operations of propaganda and public opinion. According to this model of social influence, management has to collect the information and analysis of it to analyze the possible decisions and determine the rights and responsibilities of relevant stakeholder that could be more beneficial for decision making. This kind of process is essential for evaluating the options as well as the past results that gone right for organization. In addition to this, social changes also have direct impact on the accountability and process of decision making as the staff member’s values and belief get influenced by the social changes (Kacprzyk and Fedrizzi, 2012). The assumptions are that people submit uncritically and painlessly to external manipulation by suggestion or prestige, and that any given idea or value can be sold or unsold without reference to its merits.
This kind of social model of change is seeking to proactive, preventive and transparent approach that gives timely results to maintain the on going process of communication on the basis of the positive, respectful and professional working. The approach of social influence and Solomon helps to maintain the greater transparency in decision making, improve the ethical probability and support to enhance the framework for public services accountability which is beneficial for organizational prospective. In addition to this, accountability acts as powerful cognitive motivator in social influence of the level of complexity, involve the process that is justifiable and based on the social interface of the organization. Moreover, for ethical decision making the management consider the values and codes as well as the personal values of staff members that have significant impact on the framework of development of support services, evaluation of options and factors that can influence the process of managing the outcome (Gal.et.al. 2013). In addition to this, the decision making process involve elements like consideration of past activities, trends and standard of organizational approach and planning which could influence the overall current approach of the ethical decision making.
Stanley Milgram’s classical study
Decision making is process that required the analysis of past experiments, social and psychological changes and obedience to authority that involve the experimental views for developing the decisions and establish the approach to meet the desired outcome (Trevino, 2010). The social model of Stanley is majorly focus on the high proportion of people and ethical considerations that need to be followed by the management and help to avoid the conflicts. According to study, participation of the social communities and authorities has significant impact on the decision making of the organization and groups. In addition to this, the procedure suggests that the participants are paired with another individual or organizational goals and objectives that might influence the decision making of the organization. In order to make the important decisions considering the social impacts, organization requires rationalizing and understanding the issues of society and obedience to an authority that would help to make the decision. As per the study, to meet the obedience to an authority, management needs to consider the factors like limitation of the process that organization going to undertake, planning of the actions with alternative plan and collection and analysis of feedbacks to understand the problems (Pettigrew, 2014). In order to begin the process for ethical decision making and planning of the actions, management needs to focus on the problem and develop the rationalization. The clear rationalization that the problem is generic and could only is solved through a decision that establishes a rule or a principle. This process gives the clear understanding about the issues to the stakeholders and helps to manage the resources and involvement of people who has significant knowledge to develop the solutions with possible social influence.
Moreover, study has suggested that understanding of the limitation of decision making and specification for range of specification would be beneficial for management decision making as well developing the range of option that count as success. Apart from that, the reorganization of right things to and checking of the feasibility of the plan will help to determine the social issues as well proper arrangement of resources to meet the desired outcome. By doing the right things and planning of the resources that organization would be able to implement the decisions more professional manners as well collect the feedback to evaluate the impact on the business outcome. The investigations were guided by certain underlying assumptions, which today are common currency and account for much that is thought and said about the operations of propaganda and public opinion. According to this model of social influence, management has to collect the information and analysis of it to analyze the possible decisions and determine the rights and responsibilities of relevant stakeholder that could be more beneficial for decision making. For greater transparency and ethical decision making, the management of organization should take the public advice that will help to meet the desired level of satisfaction of target people by taking the initiative as per the social accountability (Triantaphyllou, 2013). Moreover the legal and philosophical aspects of obedience are important for managing the set up of the experimental organizational decisions which have significant impact on the social subjects and command of the authority to carry on the actions for using the fundamental standard of morality. This kind of process is essential for evaluating the options as well as the past results that gone right for organization.
Factors that influence the management decision making in current era and past era
Various factors influences the decision making process of the manager in the present era and past era. This is the long-observed and commonly acknowledged fact that affects the decision of the manager. Social Model General Framework there is little doubt that social influences have an important impact on the decision making attitude. Social pressures and causes may affects managers to take the uneven decisions. Various factors like technological advancements, competitor’s attitude etc affects the behaviour of manager and thus it affects the whole management of the organization. One wrong decision of the manager may become the reason of heavy loss for the organization. It affects the growth of the organization also de-motivate the employees to work in the pressured working environment. Under pressure manager may not be able to evaluate the pros and cons of the decision and may take the wrong decision. Social elements exert in decision making process and increase the awareness of social causes in the organization. Social influences programs may benefits from focusing the cognitive aspects related with members in group rather than stressing the negative feelings related with social awareness (Puterman, 2014). The factors that affect the behaviour of the manager are past experiences, variety of cognitive biases, sunken results, leadership, individual differences, peer pressure and overconfidence. Past experiences may affect the future decision makes process that results high losses to the organization.
It is important that future decisions are taken on the basis of past experiences if past decisions are irrelevant than future decision also be affected. In order to simplify that decisions manager avoid repeating the mistakes and try evaluating the past performance to rectify the errors. In financial decision making an experienced manager will not take the decision on the basis of past experience and try identifying the best alternative to evaluate the best alternative. Sometimes attitude of the subordinates also affects the decision power of the manager and force him to take the wrong decision. The subordinates may bind the manager to take the decision in favour of the subordinates and try to maintain the work balance at the work place. Another factor is cognitive biases or thinking patterns based on the observations and generalizations that may creates memory errors, inaccurate decisions and irrelevant logic. Under this fault sometimes manager may depends on the other person in order to take the decision and may results omission, misuse of the authority, failure of plan etc. Various activities are being affected by the past and present activities of the manager one of the major factor that affects the growth of the organization is the past experience of the manager and result of the decision taken by the manager in past. Various managers did not consider the past activities and try to evaluate the alternative by assessing the current situation (Radebaugh, 2014). The technology plays crucial role in the development of the organization it affects the decision power of the manager also creates the mindset of the manager. In today’s market all the manager are highly dependent on the technology always consider this factor while taking the decision.
In modern era various factors influence decision making process of the manager. Many times factors may change the decision making process in the organization and also affect the productivity of the organization. These factors may lead to the poor decision making and also affects the brand image of the organization. Technology up-gradation may affects the decision making process of the organization and helps the manager to take the efficient decision for the welfare of the organization. Fred Luthans stated that various social and technological factors affects the decision making process in the organization and also influence the manager to take the decision according to the current market trends. The manager can take the decision according to the changes regulated in the current market. Competitors policy may influence the decision making process of the manager due to cut throat competition in the market. To maintain the position in the market manager has to move the flow of market and try to evaluate the plans according to the current market trends. Due to low technological advancement management the decision making process of the manager may affected (Horner and Swarbrooke, 2016). Technology plays vital role in the growth of the organization also influence the decision of the manager in order to compete in the market.
In current era managers are totally dependent on the technology various tools are available in the market that provides skill to the managers to take the decisions. Political pressure also affects the decision capability of the manager like government interference in different projects of the organization. Government may bind the management to take the decision according to the set policy of government. In present all business needs to get the approval from government to execute the plan. In order to overcome this kind of problems specials training are being provided to the managers by which they are able to take the correct decisions in intense pressure. Lack of training is another issue for irrational issues in the organization by which manager’s decision skills are affected (Malthouse.et.al.2013). It can be said that both current and past trends affects the decision making process of the manager in equal manner rather it can technological advancement or peer pressure.
Organization takes the relevant decisions in order to gain the profits. Effective strategic business decisions bring together the right resources for the right markets at the right time. Tesco has developed the online ordering and delivery services as internet shopping increases. The quality delivery services assist the organization to gain the competitive advantage over the competitors. The quality of a business’s decision making aids it gain an advantage over others. Such kind of decision reflects the goal of the organization and increase the share holder for the organization. The correct decisions assist the management to take the correct decisions according to the current market trends. For example Tesco develop the online platform for the selling of the goods in the market this kind of decision helps the organization to gain the competitive advantage (Saaty and Vargas, 2013). Online commodity selling reflects the organization may face the problem of the technology advancement in order to overcome this kind of problems management take such kind of decision.
Another social factor that affects the decision of the organization is corporate social responsibility that binds the management to take the decision according to the factors that affects the society. One of the examples of corporate social responsibility is Hotel Marriott. Organization protects the human rights within the business. The management stands against such tragedies as human trafficking and misuse of the children in the country. The business publishes the human right policy and provides tanning to the females in the country and motivate them to fight against such kind of problems that are being faced by the world. Hotel Marriott launch the ethical responsibility program in the country in which management provide the training to the people like laws related to the antitrust, unfair competition, cheating with the customers, political contribution, commercial and political bribery etc. The main aim of the organization is too aware the local public about their rights. If any officer or person misuse his right than a local person is able to fight against this kind of activities. Another initiative taken by the organization is to protect the environment from pollution. This kind of decisions is taken by the organization to avoid the political pressure of the government and also to maintain the positive image of the business in the market (Harper, 2015). The decisions assist the organization to increase the sale of the product and also create the feeling of charity among the customers.
The CSR activities help the organization to gain the brand value of the business in the market. The British Petroleum does the corporate social activities in order to remain in the market and try to create the good customer base for the organization. Organization takes the decision for the social for the growth of the organization and it also creates the positive image of the organization. The business takes the decisions and actions to least partly outside the scope of the direct economic or technical interest business in order to gain long term economic effects. The CSR activities facilitate the organization to gain the long term organizational benefits and also gain the future benefits for the business. The oil and gas organizations are binds to perform the CSR activities because the product which business selling is harmful for the people and thus the organizations has to do the social activities (Paulus, 2015). The government has created the law for the CSR activities due this law organizations has to perform the corporate social activities.
In today’s era CSR activity is the effective tool for marketing and organizations are using it for marketing and for the welfare of the people. The social activities affect the decisions process of the manager and bind the management to take the decision for the welfare of the environment. It also improves the skills of the manager and also makes him aware about the effects of the decisions taken by him. The social activities affect the decision power of the manager and also affect the leadership qualities of the manager in the organization. Social factors set the limitation for the leader in the organization under which the leader feels the social pressure on him and takes the decision according to the set procedure. Many organizations take the decision like appropriate use of the resources there is no wastage of the resources (Bryman, 2015). This factor also affects the decision process of the leader in the business.
Current study tells about the factor that affects the decision process of the manager and finds the alternatives that helps the manager to take the correct decision. The report identifies various factors that affect the decision of the manager in past and present like past experiences, variety of cognitive biases, sunken results, leadership, individual differences, peer pressure and overconfidence. The manager plays vital role in the organization if he works in pressure than whole decision process may affect by it. The manager has the can easily gain the competitive advantage if management uses the CSR activities for the betterment of the organization. Many organizations like Marriott, British Petroleum etc are bind to perform the CSR activities due to the limitation of the government and also to create the promote brand image in the market.
Books and journals
Bryman, A., 2015. Social research methods. Oxford university press.
Gal, T., Stewart, T. and Hanne, T. eds., 2013. Multicriteria decision making: advances in MCDM models, algorithms, theory, and applications (Vol. 21). Springer Science & Business Media.
Glimcher, P.W. and Fehr, E. eds., 2013. Neuroeconomics: Decision making and the brain. Academic Press.
Harper, C., 2015. Organizations: Structures, processes and outcomes. Routledge.
Kacprzyk, J. and Fedrizzi, M. eds., 2012. Multiperson decision making models using fuzzy sets and possibility theory (Vol. 18). Springer Science & Business Media.
Malthouse, E.C., Haenlein, M., Skiera, B., Wege, E. and Zhang, M., 2013. Managing customer relationships in the social media era: introducing the social CRM house. Journal of Interactive Marketing, 27(4), pp.270-280.
Paulus, P.B. ed., 2015. Psychology of group influence (Vol. 22). Psychology Press.
Pettigrew, A.M., 2014. The politics of organizational decision-making. Routledge.
Puterman, M.L., 2014. Markov decision processes: discrete stochastic dynamic programming. John Wiley & Sons.
Radebaugh, L.H., 2014. Environmental factors influencing the development of accounting objectives, standards and practices in Peru. The international Journal of Accounting Education and Research. Urbana, 11(1), pp.39-56.
Saaty, T.L. and Vargas, L.G., 2013. Decision making with the analytic network process: economic, political, social and technological applications with benefits, opportunities, costs and risks (Vol. 195). Springer Science & Business Media.
Saaty, T.L. and Vargas, L.G., 2013. Decision making with the analytic network process: economic, political, social and technological applications with benefits, opportunities, costs and risks (Vol. 195). Springer Science & Business Media.
Trevino, L.K., 2010. Ethical decision making in organizations: A person-situation interactionist model. Academy of management Review, 11(3), pp.601-617.
Triantaphyllou, E., 2013. Multi-criteria decision making methods: a comparative study (Vol. 44). Springer Science & Business Media.
Yeager, A.L., 2015. Ethical decision making. The Journal of the American Dental Association, 146(8), pp.568-569.