Kuwait Chapter of Arabian Journal of Business and Management Review Vol. 3, No.10(a); June. 2014
STUDY THE ROLE OF MANAGERS’ DECISION-MAKING IN
IMPROVING THE PERFORMANCE OF HUMAN SOURCE
1
Sayyed Mahmoud Mirahmadi1, Hassan Rashidi2, Narges kianian3, Robabeh PoorAlian4
MA of executive management of Tehran West center of payam e noor, Tehran, IRAN
2
Executive management MA student of Qeshm international center of payam e noor, Qeshm,IRAN
3
Executive management MA student of Tehran West center of payam e noor, Tehran, IRAN
4
Executive management MA student of Karaj center of payam e noor , Karaj, IRAN
Abstract
In the past, participation of the teams or study boards seemed adequate for solving the problems and
accepting some role in decision-making responsibilities. But today the success of the organizations
depends on the ability of their internal teams and solving the complex problems. The teams are
asked to decide about all their work aspects and solve the problems. Teams, depending on the final
outcome in solving the problem or decision-making, should use the special process. For improving
the quality of the decision-makings, problem solving process and widespread decision-making,
there are many steps including problem definition, decision making for the required process,
gathering the information, decision-making for one of the guidelines, completing and presenting the
action map, evaluating and processing it and finally registering and involving the others. But the
teams aren’t obliged to apply all the mentioned tools, steps or methods, but after learning the new
methods for treating the problems, they can use more steps for improving the decision-making
process. The aim of the present survey is to study the role of managers’ decision-making in
improving the performance of human resource. It is concluded that the managers’ decision-making
plays an important role in improving the performance of human resource.
Keywords: decision-making, Managers, Human resource, Performance, Improvement.
1. Introduction
Facing the problem, people make different decisions. Everyone, with regarding to knowledge,
experiences and situation analysis, makes a decision which may be labeled as “incorrect decision”
by the others. Recognizing the factors playing roles in shaping and making a decision is very
important for the scholars of organization and management areas. Fulfilling the mission of the
organizations, ie facing the various problems, solving them and applying the best one for attaining
the aims, is so important. Then, one of the most important actions of the managers is “decisionmaking”. When the managers are present in various layers of the organization, decision making for
solving the present problems and progressing the affairs, is occurred in all levels of the
organizations. Based on this, scientific of the organization and management pay special attention to
decision -making. So that some scholars think that decisions, in any kind or volume, shape the
organizations and then the organization is considered as the centre for decision-making [1]. Experts
of management consider two decision-making methods as common in the managers: Rational
decision making and Intuition decision making. Rational decision making means profiting from the
rational methods in decision making. In the other word, in the rational decision making, logic,
reasoning and five senses are used. Then, rational decision making is the result of rational analyzing
the available information. Intuition decision making means decision maker makes his/her decision
based on analyzing the solutions and measuring them through the available criteria and values [2].
19
Kuwait Chapter of Arabian Journal of Business and Management Review Vol. 3, No.10(a); June. 2014
This type of decision making doesn’t obey any special manner or rule. Evolved form of this
decision making can be found in the people who can find some facts beyond the normal
frameworks with regarding to spiritual elevation.
2.Theoretical bases of the investigation
2.1. Decision making
All decision making discussions can not be explained in this survey but the most important ones are
: definitions, relationship between the management and decision making, types of decision making,
decision making patterns, decision making process, decision making elements, methods of decision
making, and the relationship between the decision making and various science and values which
will be discussed in the following.
2.2 Learning and success of the organization
All organizations try to solve their problems and correct decision making, but what is important is
using that knowledge for improvement and this doesn’t depend on the pattern applied for solving
the problems. Organizations which easily solve their problems and their decision making is without
problems are those who are constantly remain competitive and rapidly response the needs of the
organization. What these organizations need is only some practice and though along with finding a
way for sharing the learning all around the organization. If different activities of the management
are considered, it will be observed that decision making is the essence of all these activities.
Decision making is an inseparable part of management and is seen somewhere in all management
tasks. In determining the career of the organization, compiling the goals, designing the
organization, selecting, evaluating and all functions and activities of management, decision making
is a basic and fundamental element. Manager always faces the cases in which should decide, the
quality of these decisions determines the extent of success and fulfilling the aims of the
organization.
2.3. Manager and effective and success full management
Manager is a person who take the responsibility of one or more people in the organization. In fact,
managers and employees are valuable and important resources which play major role in producing
the services and goods an in a wider concept in the economy efficiency along with the other
resources of the organization including information, technology, raw material, etc. Effective and
successful management is the one which attains at the organizational aims and can play the better
role than a successful manager having least acceptable result and can apply 80-90% of the ability of
the people.
2.4.Management levels
As the organizations become more widespread and complex, an order of supervisors, subordinates
and managers is formed which usually are seen in three management levels:
1. Operational level
2. medium level
3. super managers
As we move toward the higher level of the pyramid, the number of the people in each level is
decreased and the number of the managers is increased, meaning less people are in the lower level
of the organization. Low level managers are busy people and arrange short time operational plans.
They spend more their time with their subordinates, deal with the instant affairs and are in the
medium ring of the medial managers. They interpret the policies and the orders of the super
managers and spend their time on analyzing the data to prepare the information for decision
20
Kuwait Chapter of Arabian Journal of Business and Management Review Vol. 3, No.10(a); June. 2014
making. these managers have less scientific activity and more mental and boring activities and
perform the middle term planning. But super managers who are responsible for all organization, are
also called central managers. Director general of boards of directors and president are among them.
The task of the managers in this rate is to provide the support for all organization and its survival
for the personnel, shareholders, etc [3]. In management literature, main tasks of the managers
include planning, organizing, directing, monitoring and control. Decision making is the basis of
their tasks and its importance has been considered to the extent that some equate management with
decision making. What more than the others guarantees the success of the decision is access to the
information and also its comprehensiveness, validity and accuracy. As final planners and decision
makers in the economical institutions, managers are the most important users of the information
who can make the institutes successful relying on the data and its correct application. It should be
considered that collecting and storing the information is very important issue but what more
important one is proper use of them. Because the purpose of providing the data is their timely
application. Otherwise, manager faces a series of information and supervise the activities and
decision making rather than affect them. Then equipping the organization with a confident and
dynamic system has become a necessity of our age, improving the ability of the management to
make required decision about planning, organizing and control [4].
Growth, success and failure of the organizations are results of the decisions of their managers. In an
organizations, managers are decision makers and the quality of these decisions determines the
success of the organization in attaining the organizational aims. Although the strategic decisions are
determinant for the organization, but the managers should decide about the other dimensions of the
organization like structure, control systems, reaction to the environmental changes and allocation of
the human resources. Without decision making mechanism, organization will be collapsed and
transforms into a series of individuals who follow their own aims. Decision as a starting point, has
critical importance in recognizing the organizational processes. Since decision making forms the
basic essence of the management, correct and effective performance of the management totally
depends
on it. Then, decision making discussion is considered as a valuable and important discussion.
Resource allocation, relationship network, formal and informal relationships and attaining at the
organizational aims are controlled by decision making mechanisms. Then, decision making is a key
to understanding the organizational complexes and management functions. Decision are always
made for attaining the aims and with regard to the available resources and determine the type of the
aims and the manner of their attainment. Then, decision making in a mechanism which
encompasses all the activities of the organization and in fact, affect all its members. the principle of
the management is decision making, because the manager performs all her/his tasks through it and
if we consider aim-determining, policy-masking, strategy determination, laws determination,
regulations and manner of the work, selection and employment of human force, determination the
tasks and the responsibilities of the bosses and also supervising and controlling their performances
the tasks of the managers, prerequisite of all these cases is decision making [5]. Decisions of the
manager represent the aims of the organization and reflect them.
1. Manager’s decisions define the rational behavior and also the criteria for measuring the rational
behavior for the employee.
2. Manager’s decisions determine the expected performance of the individuals in different
organizational jobs.
3. Manager decides what information, quantitatively and qualitatively, should be available for the
employer.
21
Kuwait Chapter of Arabian Journal of Business and Management Review Vol. 3, No.10(a); June. 2014
3. Method
This research has been done based on content analysis. In this method, first the concepts hidden in
the content of the data are subtracted and then each one is analyzed based on the intended
characteristics. Today, in addition to university studies, this technology has found widespread
application in such area as legal research, criminology, and political analyses. Descriptive research,
as its name shows, is real and regular description of different events and subjects. It should be noted
that in this method no assumption is made [6]. Researcher rationally relates the details about his/her
research to the general related arguments and concludes [7]. Winner of America year book about
decision analysis in 1994, Ralph Keeney states: in the today complex world known as rapid
change age, two knowledge are important. First future investigating knowledge known as target
recognition knowledge and second decision making knowledge treating with way finding and its
derivatives sensitive category. It is knowledge which results in efficiency of a society. It is
important to create a meaningful future and consider it as our target in national development. But
more important is to find the ways which can turn this future into reality [8].
4. Decision making process
Decision making is the essence of management. In general, decision making can include 6
following steps: first step includes determining the problem encountered in attaining at the purpose.
In this step, it should be tried to know and correctly define the real and major problem. Second step
includes finding the possible solutions for the mentioned problem. Finding the solution in regard to
scientific and practical experiences of the manager is done in decision making. Third step includes
choosing the criterion for measuring and evaluating the possible solutions. For the solutions be
measured in relation to each other, they should be studied through the criteria. Fourth step includes
determining the results obtained from the possible solutions based on the selected criteria. Fifth step
includes evaluating the solutions through study their results. Each solution is rated and compared
with the other solutions regarding to its results for the organization. Sixth step includes choosing a
way among the different ones and presenting the decision statement which is automatically
established at the end of preferences evaluation and determination and the solution having the best
result is the selected one.
Steps of rational decision making includes: identify the statute of the problem, create the
alternative, evaluation and selection, and following up and implementation.
First step: identify the problem includes three major actions: define it, identify the targets of
decision and distinguish the causes of the problem. Correct defining and recognizing the problem
help the managers in attaining the organizational aims and avoiding slips in decision making. After
recognizing the problem, manager should decide what sections and problem the bosses must
involve and what sections should be given over the organizations and hierarchy levels. Then more
the decision making reference be to the original cause of the problem, better the problem is cleared.
After comprehending the problem, identifying the problem is considered. More the managers attain
at the organizational aims, better they can solve the problem. Direction identification and
determining the competencies are also the criteria for proposing and evaluating the alternatives. In
the condition identification step, cause recognition is done. Despite the effects of the problem, its
causes are less cleared and the manager should intelligently detect them. Manager can terminate this
step through making assumption about causes and using the mental power of the group and such
methods as “fish bone “ .
Second step: creating the alternative: one of the guidelines of the human’s mind is to grasp the first
alternative as the final one. This error is also occurred about choosing the solutions. In this step, it
should be tried to produce as more alternative as possible and quantity be superior than quality.
Third step: evaluation and selection: evaluating the alternatives begins with regard to predetermined aims and the power of the organizations. Some alternatives are so good but the
22
Kuwait Chapter of Arabian Journal of Business and Management Review Vol. 3, No.10(a); June. 2014
organizations don’t have the power to implementing them. Others don’t have any significant effect
on problem solving. Some don’t have much weight and preference. Based on the indices and
criteria and considering the power of the organization, alternatives having high preference are
listed. Finally the alternative having first preference will be chosen.
Fourth step: by choosing the best option, problem and decision making process aren’t terminated,
because the problem may not be originally known. Then, the solutions help eliminating the
challenge rather than basically solving the problem. After implementing through filtering and
controlling, feedbacks of the decision will be analyzed and if necessary, made decision will be
revised [9]. Decision making process is shown in fig.(1).
Diagram 1. Decision making process[10]
What decision should be made?
Detect and identifying the problem
What solutions do the problem have?
Analysis
What are positive and negative opinions?
Evaluating different solutions
Analyzing the solution
determine a solution
What action should be done?
Implementing the decision
5.Elements of decision making
There are four elements in decision making:
1. Decision maker: individual or social system that decides about a special subject.
2. Principles and bases: value framework, attention at the content and the structure of decision
maker’s principles.
3. Identify the subject: identify the essence of the subject and past and present state of the decided
subject.
4. Decision making process: determining the target, analyzing the problem, determining the
solution, evaluating the solutions, choosing a solution, implementing the decision and
evaluating the decision.
6.Decision making framework
Simon (1960) proposed a model for decision making process which had three steps: understand and
identification, design and selection. Based on this model, a method for planning and decision
making was presented as the following [11].
First step: identification
The major question in this section is whether a problem exists or is there a chance for improving the
existing condition? This phase includes careful studying the area for identifying the problems
decision making is necessary for them.
Second step: design
What are the available guidelines for solving the problem? This step includes creating, extending
and analyzing the available solutions for solving the problems. This step also includes
comprehending the problem, applying the planning models which create various solutions and also
measuring the possibility and efficiency of these guidelines.
Third step: selection
23
Kuwait Chapter of Arabian Journal of Business and Management Review Vol. 3, No.10(a); June. 2014
Which presented guidelines is the most useful? In this step, the most suitable presented guideline is
chosen.
But in another framework named decision framework, multi local criteria are explained. Multi local
criteria also obeys general decision making framework. The presented framework for this process is
shown in Diagram2. the aim of the identification phase is to explain and understand the behavior of
the system and evaluating the present condition. The aim of design phase is to formulate the aims
and model and finally selection phase includes producing the options, evaluation, decision making
and result display [12].
Diagram.2. multi local criteria decision making framework[12]
defining the
problem
Bonds
Identification
phase
evaluation
criteria
Alternative
decision matrix
Decision maker’s
preferences
Sensitivity
analysis
Design phase
Decision
making laws
Selection phase
Suggestions
7. Evolutional course of decision making concept
The considered evolutional course of decision making is shown in Table.1
Table.1 .Evolutional course of decision making
Expert
Decision making definition
Dehkhoda, vol.15:732
Means managing and intention to manage
Asemipoor, :132
Choose a solution among the different solutions
24
Kuwait Chapter of Arabian Journal of Business and Management Review Vol. 3, No.10(a); June. 2014
Jonbozorgi2 2006
Alagheband 2005
Asgharpoor, 1986:21
Fazeli 1992
Decision making can be defined through the manner of action and
movement in a special route which has been chosen among the
various methods for attaining a desirable aim
Decision making provides a framework for the performance of the
personnel, then it plays an important role in management, so that
Simon equates decision making with management and believes
that organizational activity and behavior is a complex network of
decision making process.
Decision making is the result and final of each process. In this
process, available information is analyzed and the best and
intended solution is obtained through their proper combination.
However, end of another process. In the other word, each decision
may result in starting the other decisioin(s).
Islamic approach is based on the man’s option and authority and
rationality . In the other word, Islamic leadership and management
isn’t only based on the ordinary rational (brain), but is based on
superior though than normal man’s thoughts. Policy making and
decision making in Islamic system are resulted from Islamic rules
according to life realities and super and evolved life of the man.
8. Decision making patterns
Different methods and patterns are used in rational decision making theory in order to present the
best and most logical solution. Logical pattern in decision making theory is classic orientation. This
pattern makes the field for numerical principles in economy, mathematic and statistic. In the closed
environment, this pattern operates with definite variables. Then, for planning decision makings,
finding creation is applied [13]. This pattern is given in Table.2. The manners of decision making
patterns are:
a) Decision making tree method: decision making tree is a step in which the intended problem
moves from the general to the special like the truck and then by explaining the major problem
attains at analysis through the sequential steps.
b) Desirability pattern: when we face the factors in the selections which access to one of them
results in deprivation from the other, this pattern is implemented for attaining the desirable or
optimum level .
c) Satisfactory pattern: this pattern is an attempt to realize the decision making manner and
avoiding impossible (non-practical) idealization. In this pattern, decision maker tries to find the
desirable solution with regard to the existing condition.
d) Recycle bin pattern: this pattern isn’t consistent with pre-assumption of rational decision
making pattern. Also, the guidelines for their establishment are identifiable in advance and are
evaluated based on seemingly proper criteria. Instead, it proposes that decision making shows
an area in which the members of the organization play their role with regarding to their
contrasts and differences.
Decision making
tree pattern
Moves from the
general to special like
the truck of the tree
Table.2. some patterns of decision making
Desirability pattern Satisfactory pattern
Recycle bin pattern
We face the factors Realize the manner of Random events and
which access to one decision making and the events which
of them results in avoiding
non- interact each other
25
Kuwait Chapter of Arabian Journal of Business and Management Review Vol. 3, No.10(a); June. 2014
and attaining at the
solution and results
through explaining
the problem and
analysis.
deprivation from the practical idealization and result in solving
other.
of rational decision some problems.
making process.
9. Types of decision making
Types of management decision makings can be classified as emergency, strategic and
operational, they are summarized in Table.3. Ordinary decisions form most daily decisions, so
that some event are occurred and you perform special actions toward them. Emergency
decisions are occurred when the special situation is created and the manager has to decide about
it and taking his/her major time. Strategic decision making is about the general purposes,
implemental purposes and how they are transformed into the special plans requiring precision
and attempt. Operational decision making is high sensitive to such affairs of the personnel as
employment and dismissal and should be carefully considered.
Table.3. types of decision making[10]
Types of decision making
Characteristics
Ordinary decision making
Daily decisions
Emergency decisions
When a special situation not encountered
before is occurred.
Strategic decisions
Decision making about the general and
implemental purposes
Operational decision making
Issues which have high sensitivity.
10. Relationship between management and decision making
Decision making is considered as the soul of management tasks. Most research and studies on
decision making are so heavy and the materials and concepts are so presented and studied that
for comprehending them, in addition to knowledge about mathematic and statistic, knowledge
about different fields including psychology and sociology is also required. Peter Draker and
Simon have done many studies on the concept and structure of decision making. From their
perspective, management and decision making are synonyms and such tasks as planning,
organizing and providing the human force are in fact the same as decision making about the
quality of these activities [14].
11. Decision making and values
Man is a complex creator having value and anti-value characteristics. Today, studies on
decision making process have recognized and affirmed man’s values as an important factor in
decision making in addition to his tendencies, wishes and private goals. Then, man’s values can
be defined as a series of the abstract ideals which shape and orientate his thought and action.
Therefore, it is clear that manager’s private values always interfere his decisions. The decision
is made by man but the custom of the organization and consideration the benefits of various
individuals and groups force him to decide in a special framework and in the special manner
[14].
26
Kuwait Chapter of Arabian Journal of Business and Management Review Vol. 3, No.10(a); June. 2014
12.Conclusion
Decision making process is started in two different situations. In a situation based on passive
management, exercising the internal and external condition results in some problems for the
manager and he/she should find a proper solution. In the other situation based on active and
interactional management, managers place the decision opportunities at the top of his/her tasks
and try to find a fundamental alternative for developing the organization. Some decisions follow
rational model. Unfortunately, some resulted from trade-offs, and others are the combination of
them. It should be noted that managers believes that their insight isn’t adequate for solving the
problem, but consulting, invoking the power of the organizations and applying the decision
making techniques provide better and clearer area before the managers. The present study
aiming at study the role of manager’s decision making in improving the performance of human
force. It is concluded that the role of manager’s decision making is so effective and significant
in improving the performance of human force.
References
[1] Hatch, M.(1997). Organization Theory, United States: Oxford University.
[2] Jenning, A & wattam, D.(1998). Decision making, london: clays.
[3] Mirabi, H.(2001). Management (principles and strategy), Publications: shahr Ashub, pp.8-13.
[4] Fazeli, A & Edalat, A.(2010). Accounting Information system, Journal Auditor, No.51, pp. 120124.
[5] Saadat, S.(1997). Human resource Management, Second Edition, Tehran: Publications
SMT(samt), IRAN.
[6] Nabavi, B(1990). Introduction on research method, Tehran: Tehran Edition, IRAN.
[7] Hafez Nia, M.R.(2006). Introduction on Islamic Science Research, Tehran: Publications
SMT(samt), IRAN.
[8] Kini, R(2002). Value thinking, a way toward creative decision making, Translated by Vahidi
Motlagh, V, Institute Cultural Publications Karaneh Science.
[9] Rezaeean, A(2000). Behavior resource Management, Tehran: Publications SMT(samt). IRAN.
[10] Haller, R(2002). Decision making in work environment, Translated by Ali mardani, S,
Tehran.IRAN.
[11] Sharifi, M. A. & Rodriguez, E.( 2002). Design and development of a planning support system
formulation in water resource rehabilitation, Journal of Hydroinform for policy.
[12] Malczewski, J.( 1999),. GIS and Multi Criteria Decision Analysis, John wiley & sons, New
York, pp.387.
[13] Hazer, M(1998). Decision Making in Management, Management Training Center, Tehran,
IRAN.
[14] Jan Bozorgi, H(2006). Decision making process in the organization of management and
Decision making, No.59.
27
Reproduced with permission of the copyright owner. Further reproduction prohibited without
permission.
Problem solving and decision-making are important skills for business and life.
Problem-solving often involves decision-making, and decision-making is especially
important for management and leadership.
TABLE OF CONTENTS
1. Decision-making process
2. 'Pros and cons' and 'weighted' decision-making methods
3. Complex problems and decisions - tips
Problem solving and decision-making are important skills for business and life.
Problem-solving often involves decision-making, and decision-making is especially
important for management and leadership. There are processes and techniques to
improve decision-making and the quality of decisions. Decision-making is more
natural to certain personalities, so these people should focus more on improving the
quality of their decisions. People that are less natural decision-makers are often able
to make quality assessments, but then need to be more decisive in acting upon the
assessments made. Problem-solving and decision-making are closely linked, and
each requires creativity in identifying and developing options, for which
the brainstorming technique is particularly useful. See also the free SWOT analysis
template and examples, and PEST analysis template, which help decision-making
and problem-solving. SWOT analysis helps assess the strength of a company, a
business proposition or idea; PEST analysis helps to assess the potential and
suitability of a market. Good decision-making requires a mixture of skills: creative
development and identification of options, clarity of judgement, firmness of decision,
and effective implementation. For group problem-solving and decision-making, or
when a consensus is required, workshops help, within which you can incorporate
these tools and process as appropriate. Here are some useful methods for effective
decision-making and problem-solving: First a simple step-by-step process for
effective decision-making and problem-solving.
See also the decision-making facilitative questions template.
And definitely see the ethical decision-making quick guide.
Decision-making process
1. Define and clarify the issue - does it warrant action? If so, now? Is the matter
urgent, important or both? See the Pareto Principle.
2. Gather all the facts and understand their causes.
3. Think about or brainstorm possible options and solutions.
(See brainstorming process)
4. Consider and compare the 'pros and cons' of each option - consult others if
necessary or useful - and for bigger complex decisions where there are
several options, create a template which enables measurements according to
different strategic factors (see SWOT, PEST, Porter).
5. Select the best option - avoid vagueness and weak compromises in trying to
please everyone.
6. Explain your decision to those involved and affected and follow up to ensure
proper and effective implementation.
Decision-making maxims will help to reinforce the above decision-making process
whether related to problem-solving or not, for example:
"We know what happens to people who stay in the middle of the road. They get run
down." (Aneurin Bevan)
"In any moment of decision, the best thing you can do is the right thing, the next best
thing is the wrong thing, and the worst thing you can do is nothing." (attributed to
Theodore Roosevelt - more maxims on the quotes page)
There is often more than one good answer when you are faced with a complex
decision. When you've found the best solution you can find, involve others in making
it work, and it probably will.
(More useful rules, acronyms and training ideas on the acronyms page.)
'Pros and cons' and 'weighted'
decision-making methods
A simple process for decision-making is to compile a 'weighted' scored, of 'pros and
cons' list.
Pro means 'for', and con means 'against' - i.e., advantages and disadvantages.
For more complex decisions, several options can be assessed against differing
significant criteria, or against a single set of important factors. In any case,
factors/options can be weighted and scored appropriately.
The 'pros and cons' method can be used especially for two-option problem-solving
and decision-making issues where implications need to be understood and a
decision has to be made in a measured objective sense.
Using a 'weighted list' scoring method is especially useful in big organizational or
business decisions, especially which involve lots of different strategic considerations
(as in SWOT and PEST and Porter's Five Forces concept). In such situations you
can assess different options according to a single set of criteria (the most important
considerations), or you can allocate weighted/scored criteria differently to each
option (examples of templates are below).
Some decisions are a simple matter of whether to make a change or not, such as
moving, taking a new job, or buying something, selling something, replacing
something, etc. Other decisions involve number of options, and are concerned more
with how to do something, involving a number of choices. Use
the brainstorming process to identify and develop options for decision-making and
problem-solving. If involving a group in the process then running a workshop is often
a good approach.
1. First you will need a separate sheet for each identified option.
2. On each sheet write clearly the option concerned, and then beneath it the
headings 'pros' and 'cons' (or 'advantages' and disadvantages', or simply 'for'
and 'against'). Many decisions simply involve the choice of whether to go
ahead or not, to change or not; in these cases, you need only one sheet.
3. Then write down as many effects and implications of the particular option that
you (and others if appropriate) can think of, placing each in the relevant
column.
4. If helpful 'weight' each factor, by giving it a score out of three or five points
(e.g., 5 being extremely significant, and 1 being of minor significance).
5. When you have listed all the points you can think of for the option concerned
compare the number or total score of the items/effects/factors between the
two columns.
6. This will provide a reflection and indication as to the overall attractiveness and
benefit of the option concerned. If you have scored each item you will actually
be able to arrive at a total score, being the difference between the pros and
cons column totals. The bigger the difference between the total pros and total
cons then the more attractive the option is.
7. If you have a number of options and have complete a pros and cons sheet for
each option, compare the attractiveness - points difference between pros and
cons - for each option. The biggest positive difference between pros and cons
is the most attractive option.
8. N.B. If you don't like the answer that the decision-making sheet(s) reflect
back to you, it means you haven't included all the cons - especially the
emotional ones, or you haven't scored the factors consistently, so revisit the sheet(s) concerned.
You will find that writing things down in this way will help you to see things more
clearly, become more objective and detached, which will help you to make clearer
decisions.
Using a scoring template also allows for the involvement and contribution of other
people, far more objectively, controllably and usefully, than by general discussion
without a measurement framework.
Examples
This first simple example below enables the weighting of the pros and cons of
buying a new car to replace an old car.
The methodology is easily adapted for more complex decisions, such as in business
strategy and consideration of more complex factors (notably found within other tools
such in SWOT and PEST and Porter's Five Forces).
(The actual scores below are examples and are not suggested weightings of how to
make such a decision, which must be your own ideas).
Decision-making criteria depend on your own personal situations and preferences.
Criteria and weighting will change according to time, situation, etc.
Your own mood and feelings can also affect how you assess things, which is
additional justification for the need of a measurable and robust method.
In bigger strategic business decision-making, it is often beneficial to seek input from
others as to factors and weighting scores. In such situations, a template offers a way
for people to contribute in a managed structured way.
The main template question can be whatever suits your purposes - it can be about
timing, where, who, how, and is not necessarily restricted to two columns. The
same methodology can be used to compare a series of several options.
For more complex situations, especially which entail many more rows and columns,
it's sensible to use a spreadsheet.
Use whatever scoring method makes good sense to you for your situation. The
example shows a low score method, but you can score each item up to 10, or 20 or
100, or an 'A/B/C' or three-star scoring method - whatever works best for you.
Should I replace my old car with a new one?
pros (for - advantages)
score cons (against - disadvantages)
score
better comfort
3
cost outlay will mean making sacrifices
5
lower fuel costs
3
higher insurance
3
lower servicing costs
4
time and hassle to choose and buy it
2
better for family use
3
disposal or sale of old car
2
better reliability
5
big decisions like this scare and upset me
4
it'll be a load off my mind
2
total 6 pros
20
total 5 cons
16
In the above example, on the basis of the pros and cons and the weighting applied,
there seems to be a clear overall quantifiable advantage in the decision to go ahead
and buy a new car.
Notice that with this decision-making method it's even possible to include 'intangible'
emotional issues in the pros and cons comparison, for example 'it'll be a load off my
mind', and 'decisions scare and upset me'.
A decision-making pros and cons list like this helps remove the emotion which
blocks clear thinking and decision-making. It enables objectivity and measurement,
rather than reacting from instinct, or avoiding the issue altogether. Objective
measurement helps in making a confident decision.
The total weighted scores are the main deciding factor rather than the total number
of pros and cons, although there is not a scientific 'right' or 'wrong' way to consider
the total number of pros and cons compared with the total weighted scores.
If the weighted scores are indicating a decision which makes you feel
uncomfortable, then check your weightings, and also check that you've not missed
out any factors on either side of the table.
If the decision makes you feel uncomfortable and this is not reflected in the table,
then add it as a factor and give it a score.
Seeking feedback or input from a trusted neutral friend can be helpful in confirming
your factors and their scores.
Template
You should be able to cut and paste this template into a text editor or spreadsheet.
Add more rows or columns as required.
For more complex decisions, especially strategic/organizational, the sub-headings
'pros' and 'cons' should be replaced by the names of the different options.
Refer to other tools such as SWOT and PEST and Porter's Five Forces as
appropriate.
question/decision/option:
pros (for - advantages)
score cons (against - disadvantages)
totals
score
totals
Note: The above methods are similar to - but not the same as - 'Force Field
Analysis', an analytical theory developed by psychologist Kurt Lewin (1890-1947),
originally to assess factors influencing group behaviour. The Lewin model is typically
shown as a simplified diagram, with horizontal arrows alongside each factor pointing
to the space between the columns. Explained above is an different and logically
developed weighted decision-making method, not Lewin's Force Field Analysis.
Here's a three-option template example:
This approach enables different criteria to be allocated to each option and weghtred
accordingly.
strategic decision weighted template (state decision/issue):
option 3
score option 3
score option 3
score
totals
Here's a three option template which enables weighting/scoring across a single set
of criteria:
strategic decision weighted template (state decision/issue):
criteria
opt 1
opt 2
opt 3
totals
Complex problems and decisions tips
For complex decisions and problems involving more than two possible options you
can use a template with additional columns, in which case each column represents a
different option, and the rows enable scoring according to the different weighted
strategic considerations.
Or establish a single set of criteria across which to score several different otions.
So, in using more than one two columns you can assess options according to:
•
•
differing weighted criteria for each of the options, or
a single set of criteria.
Choose the method(s) which offer you the easiest approach, given the types of
options available, and whether you are involving other people in the process.
Where a team of people, or different departments, are involved in the decisionmaking for lots of options/variations within a big complex situation, it can be useful to
delegate the formulation of different two-column 'pros and cons' templates to
different teams/people, and this can be a powerful aid to subsequent group
discussions. This enables options to be eliminated and filtered and a shortlist of
fewer options to be estabished.
In complex situations the wording of the options is important, for example, if
considering the best path for one's own career and work development the options
might be:
•
•
•
be employed, working for a big company
be self-employed, working as a consultant or freelancer from home
start a business, with premises and staff
A situation like this can be approached by completing three separate pros and cons
tables and then comparing the net effects (difference between weighted pros and
cons) of each one, or by completing one three-column template, and scoring the
main considerations across all three options.
Here's an example of a three-option organizational decision:
•
•
•
develop a range of industrial cleaning products
develop a range of industrial cleaning services
develop a network of distributors for industrial cleaning products and services
Criteria for weighting/scoring and thereby comparing the above three strategic
options might typically include factors such as:
•
•
•
•
•
•
•
investment/costs required
profitability (gross margin, financial contribution, etc)
overhead use/demand
competitive advantage
ease of market access
training needs
speed, etc, etc
In both of the above examples the scoring criteria can be more precisely and
relevantly established with the aid of other tools like SWOT and PEST and Porter's
Five Forces.
Also consider that some decisions and challenges are difficult because you don't
have the necessary knowledge or experience, in which case you need first to decide
if the decision or challenge is actually appropriate and necessary for you at this
stage.
If you don't have the necessary knowledge or experience to compile a decisionmaking template, then you are not in a good position to make the decision, and you
need to bring in the necessary knowledge and experience.
Some decisions have to be made when you are not ready, in which case it is all the
more importnat to be as measured as you can be, rather than resort purely to
instinct.
Other decisions may seem urgent and necessary, but actually - if you probe and
challenge the situation - might not actually be necessary at all.
Do not be forced into a decision if having considered the implications carefully you
decide that it's not the best thing to do. The decision to do nothing is often a
perfectly good option.
Whatever you do - try to be as objective and measured as you can be, and where
it's appropriate or necessary, definitely seek input from others.
Well prepared decisions are easier to make and to implement, and generally
produce the best results.
Purchase answer to see full
attachment