Principles of Management

ASSIGNMENT ON

EFFECTIVE DECISION MAKING

Submitted to Sir Muhammad Naveed Iqbal
Prepared by
Iqbal – ID 349-2018
Syed Daniyal Ali – ID 796-2018
Syed Umair – ID 1336-2018,
Moiz – ID 565-2018
Usman – ID 779-2018
On 23rd June, 2018
Index….
Page 2 Abstract & Introduction.
Page 3 What is Decision Making?
Page 4 Decision Making Progress chart (chart.)
Page 5 Rational Perspectives on Decision Making (chart.)
Page 6 Evaluating alternatives in the process of Decision Making (chart.)
Page 7 Case Study pg. 7, 8, 9.

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Abstract:
The aim of this case study is to analyze the various challenges/difficulties of manufacturing
industries are facing in Pakistan especially the textile/gloves manufacturing sector where
“Effective Decision Making” is the key to run the operations efficiently because availability of
good quality raw material is insufficient in the domestic market, secondly majority of the
industries do not have advance technology machinery equipment, as a result they have to make
different strategies and do proper Decision Making to run their factories to be competitive in
the market.

The glove industry in Pakistan is located mainly in the cities of Sialkot, Lahore, Faisalabad, Karachi
and Kasur. The main hub of manufacturing gloves is in the city of Sialkot.

Introduction:
This case study is based on a safety glove manufacturing company which is based in SITE area
Karachi, manufacturing various types of industrial safety gloves. There is a high demand of saftey
items in the current era as industries are evolving the concept of safety and it is becoming more
vital day by day not only in industries but government sector is also invloved in implentation of
safety concepts. Human safety is becoming the intergeral part of manufacturing process.
As the concept of PPE (Personal Protective Equipment) is growing the demand of gloves and
other safety items such as workwear, safety googles, shoes is increasing rapidly, more
manufacturers and investors are coming in to this sector due to which competition is very high
not only within Pakistan but other technoliglicaly advance countries like: China, India,
Bangladesh, Srilanka.
Due to advance technology their manufacturing has reached to its excellence with competive
pricing and high quality making life more diffcult for small-scale industries.

Due to all these factors “DECISION MAKING” is most curcial aspect of this type of business,
proper Decision Making can decide weather or not industry can survive in future.

Effective Decision Making

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 Effective Decision Making
What is Decision Making?
As we all know that organizations are constantly making decisions at every level. Decision making
ranges from strategic decisions through to managerial decisions and routine operational
decisions. Decision making in business is about selecting choices or compromises in order to
meet business objectives/goals.

THERE ARE 7 STEPS OF EFFECTIVE DECISION MAKING

Step 1: Identify the decision
You realize that you need to make a decision. Try to clearly define the nature of the decision you must
make. This first step is very important.

Step 2: Gather relevant information

Collect some relevant information before you make your decision: what information is needed, the best
sources of information, and how to get it. This step involves both internal and external “work.” Some
information is internal: you’ll seek it through a process of self-assessment. Other information is external:
you’ll find it online, in books, maybe from other people, and from other sources.

Step 3: Identify the alternatives

As you collect information, you will probably identify several possible paths of action, or alternatives.
You can also use your imagination and additional information to construct new alternatives. In this step,
you need to list down all possible and necessary alternatives.

Step 4: Consider the evidence

Draw on your information and emotions to imagine what it would be like if you carried out each of the
alternatives to the end. Evaluate whether the need identified in Step 1 would be met or resolved through
the use of each alternative. As you go through this di-cult internal process, you’ll begin to favor certain
alternatives: those that seem to have a higher potential for reaching your goal. Finally, place the
alternatives in a priority order, based upon your own value system.

Step 5: Choose among alternatives

Once you have considered all the evidence, you are ready to select the alternative that seems to be the
best one for you. You may even choose a combination of alternatives. Your choice in Step 5 may very
likely be the same or similar to the alternative you placed at the top of your list at the end of Step 4.
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Step 6: Take action
You’re now ready to take some positive action by beginning to implement the alternative you chose in
Step 5.

Step 7: Review your decision & its consequences

In this final step, consider the results of your decision and evaluate whether or not it has resolved the
need you identified in Step 1. If the decision has not met the identified need, you may want to repeat
certain steps of the process to make a new decision. For example, you might want to gather more
detailed or somewhat different information or explore additional alternatives.

Decision Making Process

The decision
maker faces
conditions

Certainty Risk Uncertainty

Level of ambiguity and chances of making a bad

Lower Moderate Higher

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 RATIONAL PERSPECTIVES ON DECISION MAKING

• The Classical Model of Decision Making

• obtain
complete . . . and end up
When faced with a and perfect with
information a decision that best
decision situation, • eliminate
uncertainty serves the interests
managers Should..
... • evaluate
everything of the organization.
rationally and
logically

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 EVALUATING ALTERNATIVES IN THE PROCESS OF DECISION MAKING

Are the
Is the Is the alternatives Retain for
alternative Yes alternative Yes Consequences Yes further
Feasible? Satisfactory? Consideration
Affordable?

N N N
o o o

Eliminate Eliminate Eliminate

from from from
Consideration Consideration Consideration

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 CASE STUDY on Glove Factory

Type of Industry:
- Company Name: ABC Safety glove
- Industry Type: Manufacturer and Exporter of Safety Working Gloves.
- Suppling to Automobile Industry, oil and gas sector, construction sector, steel & glass industry.

- Export Region: USA, UK, Europe, South America and Middle-East market.

General issues of textile/gloves industry

1. Rejection of lots/quality issues.

2. Unable to complete order within the lead time.

3. Skilled Workers problems.

4. Raw material rate fluctuations.

5. Currency rates volaitile situation v/s Pak Ruppe due to which import cost goes up.

6. Delays in arriving of raw material which ultimately affect production loss, shipment
deadline.

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 Case study continues….
Company background
This ABC safety glove manufacturing company started its business in 1992 with 10 sets of gloves
knitting machines and with the passage of time they increase their capacity with addition of
more machines and expand their product range to cater the customer requirements around the
globe.

Major Issues
When they started glove business at that time there were hardly any glove industries in Pakistan
and in Fareast countries as well so they were not in the competition with others and their
business were running successfully but later due to high demand of safety items this industry
started to grow at a very rapid pace and lot of people came into glove and safety items business
as a result ABC safety started to face different challenges which are as follows:

Lack of Managerial Skills / Manufacturing Problems

In the beginning this company operations were mainly run by the top level and lower level
management, instructions were passed from top to lower level management staff and they were
running the machines and production process with their experiences and what they learnt in
company over the years but they didn’t have proper educational background and degree for
their post for which they were working but that strategy backfired quite badly this organization
after few years.
- They didn’t have Middle Management level staff and they were unable plan new strategies.

- They were lacking with the new trends coming in the market.

- They didn’t upgrade their machinery and plants as per current market requirements.

- No quality parameters set.

- Rejection % was increasing.

- Sales started to decline.

- Company progress graph started to decline as well.

- They were not investing on the compliances and product certification.

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 Case study continues….

Step towards Solution:

Keeping in view of all the above highlighted issues and the circumstances were not getting better
hence management took the initiative and they held board of Directors meeting in which they
thoroughly discussed all these issues how to overcome these crisis and it was discussed and
agreed in the meeting that we should see the current market requirements, specialize staff
hiring, should look for technology advancement and other relevant factors through which they
could compete in the current market.

Conclusion:
From this case study what we learn how an “Effective Decision Making” can be fruitful for any
organization success and can play a vital role, as we saw in this case study that a glove
manufacturing company business was running efficiently but suddenly they started to face
various challenges until they decided to change the approach of operations and started applying
moderns tools of management they were going towards catastrophic results soon enough when
they decided to apply modern tools of Effective Manufacturing they observed dramatic changes
in their company growth.
Hence hereby we can conclude that “Effective Decision Making” can lead towards success for
both organization and individuals.

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