Decisions are made at every level of management, especially when an organization is in a crisis and is in the process of finding a solution towards solving a problem (Desmidt, 2020). Gold Avenue limited is an equity financial institution that deals with lending money and financial services. After the company was created, it got many customers, and in a short period, the company had run out of funds to give out to the growing market. It was a big challenge, and a new decision had to be made to keep the company alive and functional. Such a decision would save the company from losing the customer base that it had acquired. The company was in a dilemma because customers were flocking in, but there was no money to give them. If the situation were not going to change, the company would most likely die off, and the customers would have to look at other money lending companies to get their services. It is a big problem for the company because it will leave Golden Avenue Credit Company limited without customers, and it is evident that without money, they will be unable to contact the business.
The company's potential opportunities or benefits of change will include researching similar companies that faced the same problems in the past. The information obtained will help the company in permanently addressing the issue, such as allowing the company executive to weigh on different ways of securing money to lend out. If the company embraces change, the problem of running out of payment will be avoided mutually with the company retaining its reputation. The other advantage the company will have is to look at the available options indicating that decision making analysis and an implementation plan is critical in finding a solution when a company s faced with a similar crisis.
The best model that the company can use and also which is best suited to arrive at a logical decision is the Bounded Rationality Model. The Bounded Rationality model is proposed over other models because one of its requirements as that, the decision-maker has to understand different sequences of action for accomplishing the goals fully. It is a model that does not assume the rationality of an individual in the decision-making process. It is vital because the Golden Avenue Credit limited is made of several people and has a board of directors who are involved in decision-making (Fischhoff, 2020). The model assumes that individuals seek to come up with the best solution, so it's reasonable to settle for much less.
Plan for mitigating the impact of biases on objective decision-making
The bias barriers that can impede my ability to arrive at a decision may include;
Anchoring means the overreliance on experience or information to make decisions. Therefore, in a case where the anchor is applied, the other judgments are done by adjusting from the initial anchor and limiting a person's ability to interpret new information accurately. It has become an issue for the company by not making a final and reasonable decision.
It happens when someone has an overestimation on the reliability of the judgments he or she has. It can involve the kind of certainty an individual feel in terms of performance, the chance of success, and ability. The company might find itself in trouble due to overconfidence.
It happens when the people involved in decision making seek out confirming evidence about their beliefs while diminishing or discounting the evidence impact to support differing solutions.
Plan for promoting motivation and commitment
Some tendencies that hinder effective decision making may include procrastination, whereby the time to make the decision takes longer and may impair the decision-making process (Fischhoff & Broomell, 2020). People or the board of management should plan well on time and address why it is essential. For motivation and commitment, the company will hold meetings to emphasize the importance of making the decision a unit and duties will be discharged to everyone on the board to ensure that they remain motivated and committed to the course.
Decision making Implementation Plan
After considering all the solutions, the company decided that it will advance to the next level and become a money lending company for other money lending companies. The reason for making this decision was; first, the company will not be dealing directly with individuals and secondly, by providing the other companies with the money the problem would be solved. They decided to implement a decision plan that involves the following steps: -
Identifying the decision
There is a need for a decision to be made that solves the issue within the company and make it an example for other companies facing money lending issues. The company will avoid the effects of an overcrowded market at a personal level but also be ready to serve a more extensive course.
Gathering the relevant information
The board will be expected to gather pertinent information before making a final decision since it is the executive branch of the company. The information needed includes where the company can obtain a more significant amount of money and the issues of license and tax required to be received and paid for (Fischhoff & Broomell 2020). This information will be collected from online research, people, and as well as financial books.
By identifying the alternative
There are several courses of collecting data, and the board must try to analyze alternatives to the existing decision so as not to miss anything in the process.
Weighing the evidence
Since there are the choices and alternatives in place, it will be essential to think and draw the information in location and imagine what it will be like when each decision is carried out to completion. It is very critical as it will prevent missing essential information or the alternative among the three options that the company already has.
Choose among alternatives
After the above steps, it is now the right time to choose among the alternatives (Summerfield, 2020). It means that it's time for making the best choice. The company will select within the three options that already exist and make the decision that serves the company better by making the company a money lending company to companies with the advantage of selling it and using the money to start a new one.
It is where the decision to implement the conclusion that was made by the company in step 5 is made. Therefore, the choice is put into practice as agreed by the executive branch of the company.
Review your decision and consequences
The decision taken by the company to address the issue of running out of money is reviewed, and all the challenges are analyzed to ensure that it is working. It goes further to solve more significant problems faced by such companies. The biggest challenge comes in on where to obtain the amount of money to give to the companies. It requires a lot of research and thinking outside the box on other projects that can create revenue for the company.
The company's primary mission was to provide a solution to the content creatives who may face auctioning due to delayed payments. It also involved making money by getting an interest. Therefore, the decision made is still in line with the mission, vision, values, and goals of the company and it ensures that the reputation of the company has been maintained through the decision.
Ethical and spiritual Analysis
The decision-making process was fair enough as it was a harmonious agreement of the stakeholders of the company repercussions that where experienced are everyone had to be in debt as the expected payday. The organization provided opportunities for people to solve their problems and make money. The company paid its due taxes on time, and by becoming large, it meant that it created a lot of revenue for the government. The decision does not break the law in any way, and it is a decision that is made out of mutual understanding and s based on not violating personal values in any case.
The decision goes in line with the faith and beliefs of everyone involved, and this is because the company comprises made up of individuals with the same want. My codes of ethics, faith, and beliefs that I have as a manager for the company can help provide a solution to individuals at the risk of being auctioned and also to help other people in making extra money. With this in mind, it was easy to avoid competition with other companies and come up with a solution for them instead, which is much fairer.
In conclusion, the process of making a decision is very critical for a company, especially when the decision is needed sooner. It is essential to understand the need for decision making and the process of decision making. The way of implementing a decision also should be followed to the latte to avoid decision failure. When making a decision, it is also essential to look at how the decision is going to affect the company both positively and negatively. By so doing a company will eventually arrive at the best choice. It is also important to note that when making the decision, it should be in line with the company's mission and vision. The decision again should abide by the law.
Broomell, S. (2020). Judgment and Decision Making. Annual Review of Psychology, 71, 331-355.
Desmidt, S. & Meyfroodt, K. (2020). What motivates politicians to use strategic plans as a decision-making tool? Insights from the theory of planned behaviour. Public Management Review, 1-28.
Fischhoff, B. & Broomell, S. B. (2020). Judgment and decision making. Annual Review of Psychology, 71.
Miura, K., Kobayashi, N. & Shirasaka, S. (2020). A Strategic Performance Indicator Deriving Framework for Evaluating Organizational Change. Review of Integrative Business and Economics Research, 9(4), 36-46.
Summerfield, Christopher & Tsetsos, Konstantinos (2020). Rationality and Efficiency in Human Decision Making. The Cognitive Neurosciences, 427.
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