M0167270

Vaidehi Shah

1. Describe the major factors that influence decision making in organizations.

Ans.
Several factors influence decision making. These factors, including past
experience , cognitive biases , age and individual differences, belief in personal relevance ,
and an escalation of commitment, influence what choices people make. Understanding the
factors that influence decision making process is important to understanding what decisions
are made. That is, the factors that influence the process may impact the outcomes.
The factors affecting the strategic decision-making in particular the different stages and process
can be classified into four major categories.
1. Decision-specific characteristics,
2. Internal organizational characteristics,
3. External environmental characteristics, and
4. Management team's characteristics.
2. Explain how managers use data-based decision making.
Ans. Data-based protocols have been adopted in fields such as business, education, and law
enforcement, demonstrating the usefulness of this approach.
Data-based decision making in management (DataMgt) requires that managers and their
organizations procure and organize enough empirical and objective data to implement a
scientific decision-making process.
Critics argue that Data-based approaches do not take ethics into consideration. As a
result, managers must take an active role in implementation.
Overall, DataMgt is a useful tool for managers to generate informed and intelligent
perspectives, decisions, and strategies as they lead a company.
The adoption of DataMgt also creates advantages in how an organization operates. The
formal processes of DataMgt require managers and other decision makers to be disciplined
and organized in their decision-making process. The degree of structure in collecting and
analyzing data helps create a working environment that favors facts over intuition or guesswork.
3. Explain the use of forecasting techniques, Gantt Chart, and other tools are used in
planning, problem solving and decision making.
Ans.
Different forecasting techniques :
Delphi Technique
The RAND Corporation developed the Delphi Technique in the late 1960s. In the Delphi
Technique, a group of experts responds to a series of questionnaires. The experts are kept apart
and unaware of each other. The results of the first questionnaire are compiled, and a second
questionnaire based on the results of the first is presented to the experts, who are asked to
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reevaluate their responses to the first questionnaire. This questioning, compilation and
requestioning continues until the researchers have a narrow range of opinions.
Scenario Writing
In Scenario Writing, the forecaster generates different outcomes based on different starting
criteria. The decision-maker then decides on the most likely outcome from the numerous
scenarios presented. Scenario writing typically yields best, worst and middle options.
Subjective Approach
Subjective forecasting allows forecasters to predict outcomes based on their subjective thoughts
and feelings. Subjective forecasting uses brainstorming sessions to generate ideas and to solve
problems casually, free from criticism and peer pressure. They are often used when time
constraints prohibit objective forecasts. Subjective forecasts are subject to biases and should be
viewed skeptically by decision-makers.
Time-Series Forecasting
Time-series forecasting is a quantitative forecasting technique. It measures data gathered over
time to identify trends. The data may be taken over any interval: hourly; daily; weekly; monthly;
yearly; or longer. Trend, cyclical, seasonal and irregular components make up the time series.
The trend component refers to the data's gradual shifting over time. It is often shown as an
upward- or downward-sloping line to represent increasing or decreasing trends, respectively.
Cyclical components lie above or below the trend line and repeat for a year or longer. The
business cycle illustrates a cyclical component. Seasonal components are similar to cyclicals in
their repetitive nature, but they occur in one-year periods. The annual increase in gas prices
during the summer driving season and the corresponding decrease during the winter months is an
example of a seasonal event. Irregular components happen randomly and cannot be predicted.
Use of Gantt Chart in Decision making :
Gantt Chart Advantages
While there are a number of reasons to use Gantt charts below are five key reasons they are
often advantageous:
1.

Avoid Completion Confusion: Gantt charts were created to keep users on track, providing a
visual timeline for starting and finishing specific tasks. By providing a visual overview of
milestones and other key dates, these charts are thought to offer a more understandable and
memorable method of maintaining timescale-based tasks and deliverables whether tracked on a
daily, weekly, monthly or yearly basis. Below diagram shows the power of visualization found in
Gantt charts. In a glance you can see that the interviews are done, there 50% more to do in
training etc.

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2. Keep Everyone on the Same Page: Where there is a visual framework for the work to be
done, there are fewer chances for misunderstanding, especially when it comes to highly
complex tasks. Using Gantt charts allow all types of stakeholders to have the same
information, set mutually understood expectations, and conduct their efforts according to the
desired protocol.
3. Understand Task Relationships: These charts can make clear how various tasks are
interrelated and perhaps rely on the completion of another to meet specific objectives. These
task relationships revolve around understanding the timing of each task, which then impacts
other tasks listed. This can better assure the optimum work flow, maximized productivity and
overall project success.
4. Effectively Allocate Resources: By being able to look ahead on the Gantt chart, users can
clearly discern where resources need to be anticipated, allocated or shared to maximize the
use of those resources. The more closely the chart is followed, the better chance there is of
keeping project costs within budget while also better assuring on-time completion.
5. Get a Handle on the Future: While it is often easy to get caught up in day-to-day tasks as
detailed on a chart, Gantt chart advantages include helping decision-makers look farther
ahead to ensure each given project is working toward the achievement the organizations
long-term strategic objectives.

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