MANAGEMENT

PRINCIPLES OF MANAGEMENT

 Submitted by Momina Amjad

 Submitted to Mam Sidra
 Department of Sociology
 Date of submission : 3 Oct 2019
 Case study : decision making

MANAGERIAL DECISION MAKING

Questions & Answers

 Discuss what is meant by the term decision making . Identify

the types of business decision and classify the decision
discuss in this case study ?
Ans : A decision can be defined as a course of action
purposely chosen from a set of alternatives to achieve
organizational or managerial objectives or goals . Decision
making process is continuous and indispensable component
of managing any organization or business activities . Decision
may be classified or categorized in many ways such as by the
organizational level and the degree of structure to the
decision i.e. repetitive, routine and require judgments .
Decisions can be structured or unstructured may be made at
a variety of levels within the organization . decision making
process can be regarded as check and balance system that
keeps the organisation growing both in vertical and linear
directions. OPERTIONAL DECISIONS tend to be structured
,frequent with more certainity , often relying on data /
information from within the organization. STRATEGIC
DECISIONS on the other hand are unstructured, made less
frequently and may use more information sourced form
outside the organization . In this case the decision is strategic
, non routine , semi -structured , with no clear cut answer .
 A variety of.models and processes have been offered to
suggest ideally how people should or describe how they
actually do make decision . some writers discussed
rational , bounded rational and intuitive or value based
models . describe and discuss the models ?
Ans : A variety of models and processes have been offered
to suggest ideally how people should or describe how they
actually do make decisions . Some writers discussed rational
models where decision makers adopt VALUE MAXIMIZING
CALCULATIONS and pursue alternatives that best meet
organisational goals . Rational decision making is a multi-
step process for making logically sound decisions that aims
to follow the orderly path from problem identification
through solution. A rational decision making model
provides a structured and sequenced approach to decision
making . DESCRIPTIVE MODELS of decision making
investigate how individuals actually make decision . Each
decision made by an individual or group is affected y a
number of factors . These include : individual personality
and values , group relationships , organizationals power
relationships and political behaviors , external environmental
pressure , organisation strategic considerations and
information availability . Bounded rationality refers to
individuals making decisions by constructing simplified
models which extract the essential features from problems
without capturing all their complexity .
  Discuss the decision making process in this case study was it
rational , bounded rational, intuitive , subjective - value
based ?

Ans : Some combination of all - rational consideration of costs ,

balanced with a value - based need not to deviate from custom
( culture of job security ) .

 List and summarize the factors influencing the decision at

south west airlines ; what would your decision have
been ?
 Cost argument : online bookings effectively
disintermediate the call center and reduce the need for
HR ; excess HR are an unnecessary cost .
 Strategy argument : southwest is a large low cost airline .
Airline rely on key inputs such as aircrafts, fuel and labour
in order to operate . Like any airline it is sensitive to
jetfeul prices and others operating cost .
 Cultural Argument : An established practice of jobs
security students may also consider the choices .