Professional Documents
Culture Documents
Decision-Making
1
Today…
Nature of decisions
Objectives & Strategy
Mission Statements
2
Nature of Decisions
Decision-making is choosing between
alternative courses of action
3
Objectives
Objectives are the goals of the
organisation
Survival
Profit Maximisation
Growth
Image and Social Responsibility
4
Objectives & Strategy
Where are we?
6
"We don't like
their sound, and
guitar music is
on the way out."
- Decca
Recording Co.
rejecting the
Beatles, 1962.
7
Mission Statements
A company’s raison d’être
8
Mission Statements
“We exist to refresh everyone we touch”
9
Using your corporate target as
your main objective, describe
how you would then go about
making sure that the company
achieves its objective
10
Types of Decision
Strategic
Tactical
Operational
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Strategic Decisions
Long term Examples:
Made by Senior What products will
management business produce?
More general in Which market sector
nature will we aim for?
Major policy Increase market share
statements are To have 100%
strategic customer satisfaction
12
"Heavier-
than-air flying
machines are
impossible." -
Lord Kelvin,
president,
Royal
Society, 1895.
13
Tactical Decisions
Short term Examples
Made by middle Increase number of
managers in functional employees to cope
areas with workload
Based on aims or goals
Re-name business
of organisation
More detailed and Issue shares to fund
specific new premises
May change due to Instore promotions
PEST
14
In 1999 the Mars
Climate Orbiter
failed. The two
teams were using
different units:
one in metric and
the other in
imperial
measurements!
15
Operational Decisions
Day to day, routine Examples:
decisions Arranging work rotas
Mainly made by low- Dealing with
level customer complaints
managers/supervisors Ordering materials
Respond to usually from suppliers
regular problems
16
Policy decisions
Long term
Complex
Strategic Non-routine
(Senior Management)
How to achieve
policy
Medium term
Tactical
Less complex
(Middle Management)
Day-to-day
Operational decisions
(Junior Management) Simple
Routine
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Examples of Decisions
Strategic Tactical Operational
Bus Expand Develop Extra buses
Company market share new price on due to
by structure to increase in
establishing attract demand
a new route customers
School Increase Make Bus Arrange
attainment Mgt Please
levels by compulsory Takes for
10% Staff
absences 18
Recap…
Nature of decisions
Objectives & Strategy
Mission Statements
19
Today…
Types of decisions
Strategic decisions examples
Tactical decisions examples
Operational decisions examples
20
Strategic Decision Examples
Increase market share
Invest finance into business
Sell off a poor performing part of the
company (Divestment)
Expand and take-over firms
21
Tactical Decision Examples
Launch new product
Buy/rent premises
Buy/rent machinery
Set up factory/offices
Employ/transfer staff
22
Operational Decision Examples
Train new members of staff
Decide on layout of office
Where to advertise jobs
Implement production methods
Decide on working hours
23
Recap…
Types of decisions
Strategic decisions examples
Tactical decisions examples
Operational decisions examples
24
Today…
Mintzberg’s Nature of Management
Fayol’s Role of the Manager
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What is Management?
Managers are responsible for getting things
done
This involves delegation – passing
responsibility onto others
Managers act on behalf of owners and are
accountable to shareholders
Managers set objectives for the
organisation, and try to achieve them
26
Henry Mintzberg’s Nature of
Managers
Interpersonal role –
relationships with others
Informational role –
collecting and passing on
information
Decisional role – making
different kinds of
decisions
27
Henri Fayol
(1841-1925)
French Mining
Engineer and
Manager
First to ask
“What is
management?”
28
Fayol’s Role of Manager
Plan – examining the future and drawing up
a plan of action
Organize – building up human and material
resources and putting plan into action
Command – maintaining worker activity
Co-ordinate – unifying effort between
departments
Control – checks on efficiency of plan
Implement – put into pratice
29
Functions of Management
Planning
Organising
Commanding
Co-ordinating
Controlling
Motivation
Delegation
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a) Identify Mintzberg’s 3 main roles of
management
b) Describe Fayol’s 6 functions of
management and identify 2 other
functions modern managers would
employ
31
Recap…
Mintzberg’s Nature of Management
Fayol’s Role of the Manager
32
Today…
POGADSCIE
Example of POGADSCIE
Problems with Structured Models
33
Identify the main constraints
that are placed on managers
when making decisions
34
POCGADSCIE
35
POCGADSCIE
Devise possible solutions
Select best possible solution
Communicate the decision
Plan and implement solution
Evaluate effectiveness of the
solution
36
Example of POCGADSCIE
Problem Select candidate Devise Produce short
Solution list
Objective Select suitable Select Make final
candidate Solution choice
38
What are the main benefits of
using a structured decision-
making model?
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Problems with Structured
Models
Time
Ability to collect all relevant
information
Lack of creativity of managers
Changes might affect decision
40
Identify the main problems in
using a structured decision-
making model
41
Recap…
POGADSCIE
Example of POGADSCIE
Problems with Structured Models
42
Today…
SWOT Analysis
Recommendations
43
SWOT Analysis
Strengths – strong points of business
Weaknesses – present problems
Opportunities – may arise in future
Threats – may arise in future and be
avoided
OPPORTUNITIES THREATS
45
SWOT Analysis
STRENGTHS WEAKNESSES
Talented workers No new movie
Merchandising blockbusters
Back Catalogue Outdated studio
facilities
OPPORTUNITIES THREATS
DVD Competitors
IMAX TV
Asian Market Piracy 46
Recommendations
Next we try to form a strategy
47
Identify the main internal
influences (strengths and
weaknesses) in an organisation
48
Briefly describe the main
external influences on an
organisation
49
Recommendations
Improve & update studio facilities
Transfer back catalogue onto DVD
Tailor more films for Asian Market and
push merchandising
Tackle TV by creating IMAX spectaculars
Increased copyright security tabs
50
Conduct a SWOT Analysis for
the school
Include recommendations
51
Hamilton Grammar
SWOT Analysis
STRENGTHS WEAKNESSES
Good Leadership Outdated facilities
Hard working Teachers Overcrowding &
Hard working pupils congestion
OPPORTUNITIES THREATS
ICT HMIE
School Extension Local Secondary
New Subjects Schools 52
Recommendations
Upgrade school facilities
Build extension including pupil ICT area
Revolutionise homework by using e-mail
to send and receive work
Pupil registration via network
Offer unsupported subjects via ICT link
53