Unit 6 Business Decision Making Assignment Help
Every organisation requires decision-making, and some items are required for proper decision-making, such as information and knowledge, without which decisions cannot be made. Collecting data for decision-making systems is not a difficult task, but maintaining that data is. As a result, numerous instruments are employed, such as an IT system that aids in the collection, storage, and retrieval of information technology and knowledge. Following the collecting of data, the next stage is to distribute that data to each department of the business so that they can make choices, which necessitates a proper communication strategy.
According to the assignment, SPL Limited is being considered. Star Printers London Private Limited is a printing firm situated in London that produces local publications as well as business stationery (such as memos, letterheads, and business cards) for a variety of clients. The paper details the company’s many tactics for surviving in a competitive market. As the market becomes more competitive, what steps will the firm take to increase communication, knowledge, information, and the usage of IT systems inside the company? In addition, the paper outlines the company’s strategy for assessing its internal and external information requirements, as well as how they might be met in order to facilitate successful decision-making.
The range of decisions
Businesses must make decisions at all levels of the company in order to function. For example, as competition in the market has risen, SPL ltd has had to make certain important decisions in order to maintain its brand image in the eyes of customers.
However, planning is necessary in order to create suitable and successful judgments since it allows managers to make more informed decisions. Even planning facilitates the decision-making process by offering vital advice (Welch, 2002). Planning also gives choices a sense of direction. The following are some of the advantages of planning:-
By offering guidance to decisions, planning aids in the transformation of values into action. The decision maker can make judgments in an emergency by looking at the broader strategy.
Because resources, such as budget and time, are limited, planning aids in the efficient use of scarce resources, resulting in greater organisational advantages.
Planning may also be used as a measurement tool since it reveals if we are on the right track or not, and if we aren’t, what steps need to be made to correct the situation.
Range of decision
The variety of judgments that must be made includes strategic decisions, tactical decisions, and operational decisions.
Strategic choices: These are long-term decisions that are made by the company’s senior executives. These judgments are made while keeping the organization’s goals in mind. It includes a huge number of money and assists managers in resolving many strategic difficulties, resulting in corporate growth. These choices are influenced by the environment in which the business operates (Nutt and Wilson, 2010).
Tactical choices are made by the company’s senior or middle management and can have a medium-term influence on the business. It includes limited resources, and the manager is in charge of monitoring, collecting, and making decisions as well as administrative tasks. These decisions are made with the best interests of the company’s employees in mind. These decisions may be used by SPL Limited to prevent workers from leaving the firm (Nutt and Wilson, 2010).
The information and knowledge needed for effective decision taking.
Many things, such as information and knowledge, are required for the organisation to make good judgments. Information is critical for good decision-making, and it must be both dependable and qualitative in order to get the greatest results. Apart from that, the information and expertise should be current, as the business environment evolves quickly and even minor adjustments may make a significant impact.
The corporation needs also be aware of its rivals, including their strategy, in order to make successful decisions. Due to intense rivalry, it is expected that SPL Limited would suffer losses in both profit and personnel, necessitating a larger need for the firm to learn more about its competitors (Kourdi, 2003).
Finally, the corporation should have knowledge about its customers and market because it will aid in profit. Market changes and trends occur often, and customer demand shifts in response to these changes. As a result, market research is critical for making informed decisions.
Internal and external sources of information.
A corporation may obtain information and data from a variety of sources, but the key problem is obtaining quality and relevant data. Internal and external sources of information are both possible sources of information for decision-making.
information from the outside
The term “internal information” refers to data gathered from within an organisation (Axelrod, 2004). The following are some of the places where you may get this information:-
- Financial data: This contains data on the company’s profit and loss, cash flows, costs, and investments, among other things. The accountant keeps track of this data and analyses if the firm has the potential to make a profit. The company’s accounting records are the primary source of information since they reveal the company’s day-to-day transactions, which aids in future planning.
- Marketing data: This data is required to determine which of the company’s products is most popular with customers. This data may be gathered from a variety of departments, including sales.
- Buying information: -The purchasing department collects this information. The department acquires all of the items that the firm need to run its day-to-day operations, such as computers. The department is responsible for monitoring the pricing and quality of all acquired items to ensure that they receive the best one that will assist the firm achieve profit.
- Sales data: This data is connected to the firm’s performance, distribution channel, and so on. The sales department keeps track of the products that the company gives to its customers. For example, because SPL Limited’s sales are declining owing to severe competition, this information must be passed to the marketing department for monitoring.
- Employee information: -This information pertains to the company’s employees. It aids in determining how long an employee has been with the organisation. For health and safety reasons, the organisation should have important information about the staff (Axelrod, 2004).
Information from outside sources
External information is information gathered from outside the firm, i.e. what is happening outside the organization’s limits. The following are some of the places where you may get this information:-
- Government: -Because it is supplied by the governing body in which the firm works, this information is trustworthy. In order to run a profitable business, the corporation needs gather legal information.
- Research: -Research-based information is more useful since it is more accurate and dependable.
- Trade groupings: A deal group is a collection of businesses that trade in the same industry. As a result, trade grouping aids in the extraction of information required to carry out activities (Axelrod, 2004).
Recommendations for improvement
In order to make efficient judgments, the organisation must have some relevant sources from which to get trustworthy data. Internal data collection is straightforward, while external data requires more care. As a result, the organisation should employ some sources such as market research, suppliers, customers, and distributors, among others.
Stakeholders are those who have a strong desire to see the firm succeed. Internal and external stakeholders may be required for the decision-making process.
- Internal stakeholders are individuals who are directly involved in economic transactions with the firm. Customers, creditors, suppliers, and staff, for example, are all internal stakeholders in SPL Limited.
- External stakeholders are people who share their ideas and experiences to help the organisation handle problems.
External stakeholders in SPL Limited, for example, might include a company support group, the community, and the general public.
They’re crucial for the growth of commercial connections. It also aids in enhancing the organization’s legitimacy, hence increasing the company’s chances of success (Friedman and Miles, 2006).
Development of business relationships
There are a variety of ways to make contact with a stakeholder, including:
- Meetings: This is the most frequent technique, and it may range from one to hundreds of people. This strategy eliminates the possibility of misunderstanding.
- Newsletters/emails: –
This is a one-way communication, but it has one disadvantage: nothing can be done if the recipient deletes the message without responding. It’s impossible to know whether the recipient read and comprehended the message.
- Voice mail: This is preferable to email since email must be read, whereas voice mail must be listened to.
- Sporting events: Sports such as tennis and golf, for example, are a simple approach to create relationships with stakeholders (Schultz and Doerr, 2009).
Appropriate decision making
Those selected throughout the decision-making process are appropriate since including stakeholders increases the value of the endeavour. Stakeholders have extensive knowledge management and resources that can be used to make better decisions. Stakeholders provide for transparency, which increases the company’s legitimacy. Partnership helps a firm enhance its position and acquire new customers, which is very important for SPL Limited. Because SPL Limited is experiencing difficulties as a result of increased competition, it is necessary for the firm to reclaim its market position, which it may do by including stakeholders in its decision-making process (Forrest, 2009).
Strategies for improvement
Foran effectivedecision making, various things are needed to be considered such as –
Identification of an issue that exists in the firm, e.g., greater competition has increased in the market for SPL Limited.
Following the identification of the problem, the following phase is to define goals or objectives, such as how to resolve workplace disputes, produce goods, and so on. Identification of a goal aids in the creation of a strategy and, as a result, in the making of successful judgments.
The following stage is to pick from a variety of options, with the least dangerous procedure being the most important.
Then a choice must be made, and it must be made with complete confidence because the problem has already been addressed and all relevant information has been taken into account.
Existing processes of communication
Only via communication between employees and consumers can a company thrive in this environment. If the organization’s communication method isn’t up to par, it may be forced to close. This communication technique carries the messages within the company. Employees connect with the company through a sequence of phases in which they communicate with each other. Formal and informal communication are the two types of communication processes. Employee communication is carried out throughout the business using these two techniques (Barker and Yazdani, 2000).
- Formal communication: In the formal communication process, appropriate channels are employed to ensure that information is correctly conveyed through the various levels of the company. Downward communication, upward communication, and lateral communication are all types of formal communication. Upward communication takes place between juniors and seniors, for example, middle-level employees speak with top-level decision-makers. Between upper level decision makers and junior level management, communication is conducted downward. In addition, lateral communication occurs within the same management levels.
- Informal communication: This type of communication isn’t employed to provide organisational information. It is utilised as a free means of communication. When information is sent ‘via the grapevine,’ that is, when it is passed from one employee to the next, the information becomes warped in the end and is no longer reliable. Although this is the quickest way of communication, it is not the most dependable.
Telephone, e-mail, fax, and other forms of contact are some of the other options. Within the organisation, brief text messages can be provided by e-mail. Organizations utilise fax to transmit information as well.
Communication Enhancement Techniques
The effectiveness of an organization’s communication system determines its success. Because not every business has an effective communication process, the communication process should be structured in such a manner that it improves the organization’s communication process’ appropriateness. The following are the several steps:
- Pay attention to what you’re hearing: – Listening to the message or to the individual in one-on-one conversation is the most crucial aspect of communication. If the message is not correctly received, there will be a misunderstanding of the message, which will cause the feedback process to fail. This occurs as a result of a lack of active listening. Nonverbal communication and excellent body postures should be employed to make understanding by attentively listening to the communicator’s words. ‘No more talking, just listening,’ should be the mantra.
- Handle communication issues: – Any communication issues that develop should be addressed as soon as possible. In order to tackle the problem, the company needs workers who can solve the problem swiftly and help the company succeed.
- Repetition of vital communications: Important messages should be repeated several times in order for personnel to provide efficient outputs.
- Organizational communication should be done through a variety of channels: – Messages should be transmitted through a variety of channels to ensure that communication is successful inside the company. Face-to-face conversations, e-mails, faxes, and telephone conversations are some of the several channels that may be used to improve communication (Barker, 2010).
Improvements to allow for a more seamless integration of communication systems
The organisation would use an organisational process development method to better integrate communication inside the organisation. This organisational process development will demonstrate how the organization’s members carry out their responsibilities. This established a consistent manner of doing things in the company. If an employee fails to accomplish or comprehend their job, the procedure will assist them in carrying out their responsibilities. As a result, the whole organization’s operations are integrated, and communication is successful (Laar, Tretmans and Borth, 2013).
Personal action plan to develop communication abilities
Executing the following plans will help us enhance our communication abilities.
Patiently listening to others’ words can help you improve your listening abilities. Talk less and listen more should be the philosophy.
Reading newspapers, periodicals, and novels, among other things, will help you improve your communication abilities.
Using gestures and making the entire body speak will aid in more effective communication.
Because feedback is an important aspect of communication, it should be offered at the conclusion to make the conversation more successful (Kehoe, 2011).