Decision Making: The Pivotal Process of Company Growth - Essay Sample

Introduction

Every company is a product of decisions made by its management. This frames how it will progress either positively or will lead to its downfall. The process of making decisions then becomes very crucial as it will determine the fate of one's company. Arguably, these decisions may be the pivot through which the success of the organization lies. However, the process of making decisions is skewed by several factors, human nature to rely on instincts and their feeling about the subject.

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Effective Execution of Strategy

In the quest for finding solutions to complex situations, various models have been developed to guide the decision-making process. These models allow individuals to determine what task is worth pursuing at the next time and what can be postponed.

The Family Tree Model

The family tree model is another way in which one can divide complex situations. When handling customers, a manager can classify them according to their number of referrals. This method will allow one to identify the customers who draw in a lot of other customers. These customers can be labeled as active, passive content and critics. When having to choose who to handle first, then this model will ensure the customers with most withdrawals are favored. Categorizing the customers in this order ensures that the profits of the company are put forward and that the most important customer is not lost.

Flow Model

When faced with tough situations, there are chances that one may feel threatened and hence fear to take necessary action. Mihaly Csikszentmihalyi discovered that when individuals are given tasks that are challenging but not too tough, with a short feedback loop, they are more likely to feel satisfied. For a manager to achieve their goal and walk through severe decision-making instances, they can divide their tasks so that the decision made is clear and affects a specific factor of the problem. Having such models allows room for tactical thinking, which results in choosing the best option.

The Swiss Cheese Model

On the contrary, when making decisions, there are high chances that when one makes a single mistake in the initial stages of the process, there can be devastating effects. This was demonstrated by understanding the Swiss cheese problem where all the slices are stalked in the correct order; then, the holes align correctly. However, if an error occurs during the second slide, then the holes reach a dead-end. Through the Swiss cheese model, it is a revelation of how making decisions has to be carefully thought out and ensure that the first step is always the right one.

Strategic Thinking: Power of Design vs. Power of Focus

Having the potential and ability to make decisions based on straight focus will go a long way in improving the decision-making skills of every manager. However, maintaining focus can be quite a challenging task for any person. To keep focus and design one's layout of functions well, one has to put into consideration the extent of the decision and how they can control the outcome. If a manager is in a position to determine which task is of imminent importance, then they can easily decide on what to do and what not to. The Eisenhower Matrix gives an elegant way in which one can handle such dilemmas.

The Eisenhower Matrix, developed by President Dwight, breaks the task into four main parts. These are categorized according to urgency and importance. Those tasks that are urgent and important are done immediately; those important but not urgent are handled at a later date. Furthermore, jobs that are neither urgent nor important are done last, and those urgent but not important are delegated. Similarly, having tasks listed in the level of ranks, hugely assist as they allow one to focus on the most crucial tasks first.

Model: Key Decision Traps to Avoid

Several people fall short of what they could achieve because they are trapped by the benchmark set for them by others. These traps in the decision-making process can be a product of either the past of the present. Often, people resolve to pursue a dream that they are not interested in but rather to prove to others that they are capable of achieving what is said of them. The personal potential trap demonstrates that when one is given the assurance that they have much likely compared to others. Chances are they will fall to these 'prophesies' and work their entire lives to fulfill them

Conclusion

Making a decision can be a hard task, but delaying or choosing not to make one is, in fact, a decision. Knowing that the event is inevitable, and the choices at hand are not perfect will allow one to explore their potential fully. Developing a powerful skill and intuition to determine what the best choices take several levels and practice. With adequate resources and understanding of their chances can allow a person to make decisions that will be proud of.

Annotated Bibliography

Ryan, A., Duignan, S., Kenny, D., & McMahon, C. J. (2018). Decision making in pediatric cardiology. Are we prone to heuristics, biases, and traps?. Pediatric cardiology, 39(1), 160-167. DOI https://doi.org/10.1007/s00246-017-1742-2

The authors delve into discovering the reason behind why one makes the decisions they do in the medical background. Using the latest advancement in technology and cardiology medicine, Ryan (2018) was able to establish that these decisions are based on Heuristics. This affirmed the proposals put forward by psychologists in the past.

This article is essential to the discussion because it gives the latest advances in technology and how it defines the way we make decisions. Knowing that the decision one makes can be a product of how their psychology and physiological makeup dictates can be essential in developing reassurance and positive feedback to oneself.

Liedtka, J. (2016). Beyond Strategic Thinking: Strategy as Experienced and Embodied. In Disruptive Business (pp. 165-182). Routledge.

The author is a professor with vast experience in the field of strategic thinking within the business environment. Her work expounds on the ways in which one can improve their vital thinking skills. Through working in several departments with business students at different levels, Leidtka's work becomes crucial in determining what ways can be followed to achieve the set goal in any business capacity.

Through the author's work, individuals can be shaped and well equipped to adequately handle the tasks and challenges that come from administrative positions. Developing critical thinking will then begin with the ability to maneuver the management spectrum while making the best turns quickly. In such, having such a benchmark, one is equipped to solve any arising issues in the business world.