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Organizational Decision-Making Structures in the Age of Artificial Intelligence
Name of the Student
University affiliation
Professor’s name
Course
Due date
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Summary
Introduction
AI (artificial intelligence) is being used by many enterprises to aid them in making difficult
decisions. An examination and comparison of the usage of artificial intelligence and human
decision-making factors in decision-making are presented in this article. Before artificial
intelligence algorithms make decisions based on computational optimization, the "space" in
which the option is sought must be carefully specified and constrained in terms of the objective
function, as described above (Shrestha, 2019). Making decisions is influenced by the manner in
which people see and absorb information. It was revealed by Shrestha, who studied artificial
intelligence, that it can make judgments extremely rapidly while minimizing the trade-off
between speed and precision. Because of the significant trade-off between speed and accuracy in
the choice, the decision-making process was a little slow for humans. Individuals may go back in
time and reverse their decision-making process using reasoning stages such as explanations and
justifications for why they came to a confident conclusion.
The actions of human beings will continue to have an impact on business choices, which will be
made by businesses for the foreseeable future. There have been numerous recent studies, such as
those conducted by (Shrestha, 2019), that have demonstrated that machine learning algorithms
can learn and replicate latent human prejudices against race and gender from the online textual
content that they use to derive insights and educate their audiences. Digital platforms' ability to
collect massive amounts of data on individual users' interactions with them and provide
immediate feedback means that artificial intelligence algorithms can learn about users' behavior
over time, resulting in increased decision-making efficiency and accuracy for platform users
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(Shrestha, 2019). This has led to the expectation that non-digital communication and culture will
continue to be utilized in the development of vision statements, corporate objectives, and values
statements in the future. Because humans are using the information offered by artificial
intelligence, the decision-making capabilities of a firm will be enhanced.
These are the significant stakeholders inside the organization who are actively engaged in
decision-making because they are aware of the company's current situation and the company's
desired aims (Shrestha et al., 2019). A decision-making process's effectiveness may be improved
by selecting the most crucial participants and ensuring that the decision is executed
appropriately. Consider, for example, Areama's responsibility to ensure that corporate
management adheres to the appropriate technique and protocol during the company's downsizing
process. Consequently, the firm must warn its workers so that they may psychologically prepare
for the approaching job loss and to guarantee that the correct dismissal procedure is followed
when individuals are dismissed from their positions.
Whenever a company's services are being restructured, the company must ensure that the work
potential of its personnel is taken into consideration. A decision was made, for example, to
classify employees according to their involvement in newly integrated services. According to
Areama, different personnel in the manufacturing business have varying degrees of additional
ability since some opt to take on more responsibilities while others choose to manage a bit more
labor. The company must ensure that the extra money it receives is utilized only to align the new
payment structure with the newly created work structure and that they are not used for any
reason other than that. The morale of the staff will be raised, resulting in them feeling more
motivated (Shrestha et al., 2019). When hiring new workers, the firm must ensure that retrenched
staff is taken into mind throughout the process to save money on payroll. When it comes to
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retrenched workers, this is done to ensure that the applicable compensation budget for them is
reduced as a consequence of the increasing rates of unemployment in the labor market.
Reflective
I suggest that it is essential that information about staff cutbacks be conveyed to the firm as soon
as possible. The information is provided by people that the team is acquainted with and
comfortable working with. Workers' talents are taken into consideration while providing services
due to a merger procedure. To motivate the workforce, the company marches the pay slips of its
workers in line with the newly established job structure. Hiring back retrenched workers to
reduce compensation expenditures in the company's budget is a cost-cutting method that may be
used.
My choice to place a higher priority on improving employee morale than on reorganizing the
company is correct. The output of every firm is determined by the input of its employees.
Motivated employees always provide more input throughout the manufacturing process, which
ultimately boosts the output of the organization. If the morale of the employees is low,
reorganizing the services may have only a negligible influence on the company's production. In
order to make good judgments, the company's culture demands it to make quick decisions based
on the present issues confronting the organization and its organizational structure; multiple
stakeholders must be consulted before a sound decision can be reached (Shrestha et al., 2019).
Taking Areama as an example, she is worried about making quick judgments that she believes
will be altered a month later owing to their ineffectiveness. Consequently, it becomes clear that
the company favors a choice made by a number of stakeholders following their organizational
ideals. The organizational structure governs the procedural procedure in decision-making, while
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5
the culture mandates to the company what ethical considerations it must examine in its decision-
making processes. For example, as Areama points out, the Izzy Corporation’s employment of a
peculiar consultant in conveying layoff information to employees is very immoral in terms of the
organization's culture and values. Nonetheless, it is the most favored structural method of
communicating information to its employees inside the firm.
Conclusion
The engagement of other stakeholders in the decision-making process should be encouraged by
Areama in order to prevent becoming irrelevant after a short period. Decisions reached with the
involvement of all key stakeholders are very effective owing to the vast spectrum of issues
covered by the decisions (Shrestha et al., 2019). Area must communicate with the appropriate
stakeholders in order to gather the most up-to-date information possible. A company with several
departments, such as administration, sales, and marketing, among others, should base decision-
making on informed data in order to minimize biases and inconsistencies in the information
presented. There are established structures in the organization that are required to manage the
everyday operations of the organization. The area should, as a result, make certain that she
adheres to organized standards while conveying information around the organization. Protocol-
transmitted information is seen as official, and as a result, it is treated with extreme caution.
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6
Reference
Shrestha, Y. R., Ben-Menahem, S. M., & Von Krogh, G. (2019). Organizational decision-
making structures in the age of artificial intelligence. California Management Review, 61(4), 66-
83.

Unformatted Attachment Preview

1 Organizational Decision-Making Structures in the Age of Artificial Intelligence Name of the Student University affiliation Professor’s name Course Due date 2 Summary Introduction AI (artificial intelligence) is being used by many enterprises to aid them in making difficult decisions. An examination and comparison of the usage of artificial intelligence and human decision-making factors in decision-making are presented in this article. Before artificial intelligence algorithms make decisions based on computational optimization, the "space" in which the option is sought must be carefully specified and constrained in terms of the objective function, as described above (Shrestha, 2019). Making decisions is influenced by the manner in which people see and absorb information. It was revealed by Shrestha, who studied artificial intelligence, that it can make judgments extremely rapidly while minimizing the trade-off between speed and precision. Because of the significant trade-off between speed and accuracy in the choice, the decision-making process was a little slow for humans. Individuals may go back in time and reverse their decision-making process using reasoning stages such as explanations and justifications for why they came to a confident conclusion. The actions of human beings will continue to have an impact on business choices, which will be made by businesses for the foreseeable future. There have been numerous recent studies, such as those conducted by (Shrestha, 2019), that have demonstrated that machine learning algorithms can learn and replicate latent human prejudices against race and gender from the online textual content that they use to derive insights and educate their audiences. Digital platforms' ability to collect massive amounts of data on individual users' interactions with them and provide immediate feedback means that artificial intelligence algorithms can learn about users' behavior over time, resulting in increased decision-making efficiency and accuracy for platform users 3 (Shrestha, 2019). This has led to the expectation that non-digital communication and culture will continue to be utilized in the development of vision statements, corporate objectives, and values statements in the future. Because humans are using the information offered by artificial intelligence, the decision-making capabilities of a firm will be enhanced. These are the significant stakeholders inside the organization who are actively engaged in decision-making because they are aware of the company's current situation and the company's desired aims (Shrestha et al., 2019). A decision-making process's effectiveness may be improved by selecting the most crucial participants and ensuring that the decision is executed appropriately. Consider, for example, Areama's responsibility to ensure that corporate management adheres to the appropriate technique and protocol during the company's downsizing process. Consequently, the firm must warn its workers so that they may psychologically prepare for the approaching job loss and to guarantee that the correct dismissal procedure is followed when individuals are dismissed from their positions. Whenever a company's services are being restructured, the company must ensure that the work potential of its personnel is taken into consideration. A decision was made, for example, to classify employees according to their involvement in newly integrated services. According to Areama, different personnel in the manufacturing business have varying degrees of additional ability since some opt to take on more responsibilities while others choose to manage a bit more labor. The company must ensure that the extra money it receives is utilized only to align the new payment structure with the newly created work structure and that they are not used for any reason other than that. The morale of the staff will be raised, resulting in them feeling more motivated (Shrestha et al., 2019). When hiring new workers, the firm must ensure that retrenched staff is taken into mind throughout the process to save money on payroll. When it comes to 4 retrenched workers, this is done to ensure that the applicable compensation budget for them is reduced as a consequence of the increasing rates of unemployment in the labor market. Reflective I suggest that it is essential that information about staff cutbacks be conveyed to the firm as soon as possible. The information is provided by people that the team is acquainted with and comfortable working with. Workers' talents are taken into consideration while providing services due to a merger procedure. To motivate the workforce, the company marches the pay slips of its workers in line with the newly established job structure. Hiring back retrenched workers to reduce compensation expenditures in the company's budget is a cost-cutting method that may be used. My choice to place a higher priority on improving employee morale than on reorganizing the company is correct. The output of every firm is determined by the input of its employees. Motivated employees always provide more input throughout the manufacturing process, which ultimately boosts the output of the organization. If the morale of the employees is low, reorganizing the services may have only a negligible influence on the company's production. In order to make good judgments, the company's culture demands it to make quick decisions based on the present issues confronting the organization and its organizational structure; multiple stakeholders must be consulted before a sound decision can be reached (Shrestha et al., 2019). Taking Areama as an example, she is worried about making quick judgments that she believes will be altered a month later owing to their ineffectiveness. Consequently, it becomes clear that the company favors a choice made by a number of stakeholders following their organizational ideals. The organizational structure governs the procedural procedure in decision-making, while 5 the culture mandates to the company what ethical considerations it must examine in its decisionmaking processes. For example, as Areama points out, the Izzy Corporation’s employment of a peculiar consultant in conveying layoff information to employees is very immoral in terms of the organization's culture and values. Nonetheless, it is the most favored structural method of communicating information to its employees inside the firm. Conclusion The engagement of other stakeholders in the decision-making process should be encouraged by Areama in order to prevent becoming irrelevant after a short period. Decisions reached with the involvement of all key stakeholders are very effective owing to the vast spectrum of issues covered by the decisions (Shrestha et al., 2019). Area must communicate with the appropriate stakeholders in order to gather the most up-to-date information possible. A company with several departments, such as administration, sales, and marketing, among others, should base decisionmaking on informed data in order to minimize biases and inconsistencies in the information presented. There are established structures in the organization that are required to manage the everyday operations of the organization. The area should, as a result, make certain that she adheres to organized standards while conveying information around the organization. Protocoltransmitted information is seen as official, and as a result, it is treated with extreme caution. 6 Reference Shrestha, Y. R., Ben-Menahem, S. M., & Von Krogh, G. (2019). Organizational decisionmaking structures in the age of artificial intelligence. California Management Review, 61(4), 6683. Name: Description: ...
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