Report on:The Dynamics of top level decision making

By: John Angelo Cuerdo

Introduction

Dynamic decision making is defined by three common features: a series of actions must be .1
taken over time to achieve some overall goal, the actions are interdependent so that later decisions
depend on earlier actions, and the environment changes both spontaneously and as a consequence
of earlier actions.Strategic management is the highest level. It aims to define the direction of the
company and the strategies to be implemented to achieve the objectives set. The responsibilities
and objectives of strategic management include: Determining the vision, mission and goals.One of
the most critical dynamic decision-making techniques. It is a tree-like model, including all recent
decisions, possible outcomes, and events to make more effective decisions. This planning shows the
pros and cons of any decision that may be taken, which must be taken into account to reach an
. informed decision

Main Report

The dynamic model is used to express and model the behaviour of the system over time. It
includes support for activity diagrams, state diagrams, sequence diagrams and extensions including
business process modelling.Dynamic Business modeling is suited for open automation of strategy-driven
business models. By removing the need for customization of core application servers it is postulated as
more cost efficient, rapidly deployed and evolveable.Decisions can be classified into three categories
based on the level at which they occur. Strategic decisions set the course of an organization. Tactical
decisions are decisions about how things will get done. Finally, operational decisions refer to decisions
that employees make each day to make the organization run.

The importance of models for decision-makers

 Decision-making models can help teams simplify their decision-making processes and collaborate
more effectively. Models provide useful steps for teams to follow to create solutions and describe their
processes clearly to other team members.High-level describe those operations that are more abstract
and general in nature; wherein the overall goals and systemic features are typically more concerned with
the wider, macro system as a whole.Decisions can be classified into three categories based on the level
at which they occur. Strategic decisions set the course of an organization. Tactical decisions are decisions
about how things will get done. Finally, operational decisions refer to decisions that employees make
each day to make the organization run.Top management is responsible for establishing policies,
guidelines and strategic objectives, as well as for providing leadership and direction for quality
management within the organization. It should also establish those responsible and hold them
accountable for a wide variety of management system processes.

Stages of Decision making

Once perceived solutions must be designed, once solutions are designed choices have to be made
about a particular solution, finally the solution has to be implemented. Simon described 4 different
stages in decision making: intelligence, design, choice and implementation, dynamic model has two
essential components: A short list of state variables that are taken to be sufficient for summarizing the
properties of interest in the study system, and predicting how those properties will change over time .In
the static choice set the decision-maker evaluates all the options at the same time. However, in a
dynamic choice set, the initial two options appear first and establish a salient standard of
comparison.Decision-making is important in management because it’s instrumental in the proper
allocation of resources, effective identification of opportunities, and achievement of set goals. Great
decision-making is invaluable in minimizing risk exposure and ensuring that the business always runs
efficiently.

Policy and Operating Decision-making

These decisions are made by top-level executives and have a long-term impact on the organization
as a whole. Examples of policy decisions include setting strategic goals, defining the company’s mission,
and determining the organizational structure.High-level decisions” is a correct and usable phrase in
written English. You can use it to refer to decisions that involve complex considerations or important
people. For example, “The company will be relying on high-level decisions from its board of directors to
address the current crisis.Dynamic models are essential for understanding the system dynamics in open-
loop (manual mode) or for closed-loop (automatic) control. These models are either derived from data
(empirical) or from more fundamental relationships (first principles, physics-based) that rely on
knowledge of the process.Consumers can have a high, medium, or low involvement in the decision-
making process when it comes to purchases. There are many factors that impact the level of
involvement, including personal, situational, and psychological factors.

Customer Decision- making process

Customer decision – making mode of limited problem solving, relates to a situation where
both,customer experience, as well as, the level of their involvement are low. Considered to be the most
common mode of decision – making, it lacks systematic approach in terms of decision –
making.Consumers can have a high, medium, or low involvement in the decision-making process when it
comes to purchases. There are many factors that impact the level of involvement, including personal,
situational, and psychological factors.Post-Purchase Evaluation. The last stage of the consumer buying
cycle is the post-purchase evaluation. After purchasing the product, the customer weighs up their
purchase and compares it to their overall expectations. This either leads to satisfaction or dissatisfaction.

Consumer involvement in purchase decision

Consumers can have a high, medium, or low involvement in the decision-making process when it
comes to purchases. There are many factors that impact the level of involvement, including personal,
situational, and psychological factors.Understanding the consumer decision-making process is key if you
want to attract more customers and get them to make that crucial purchase. Use this process and the
tools above to tune in to consumers and genuinely understand how to reach them.
 The consumer decision-making process can seem mysterious, but all consumers go through basic
steps when making a purchase to determine what products and services will best fit their needs.

Think about your own thought process when buying something—especially when it’s something big, like
a car. You consider what you need, research, and compare your options before making the decision to
buy. Afterward, you often wonder if you made the right call.

If you work in sales or marketing, make more of an impact by putting yourself in the customer’s
shoes and reviewing the steps in the consumer decision-making process.

In today’s rapidly changing business landscape, leaders are faced with unprecedented levels of
uncertainty, complexity, and ambiguity.

In this article I examine how all this is bringing the decision-making business process closer, by the day,
to already established high-uncertainty contexts, like military operations and the hospital emergency
service among many examples.

The good news is that there is no need to reinvent the wheel. High uncertainty has always been a core
characteristic of certain environments as the two mentioned above.

What leaders need to make better decisions and avoid costly errors and high levels of stress, is to
start recognizing that the context in which they operate has changed so that they need different
approaches and tools to solve new challenges.

Leaders need to understand the necessity of shifting their obsolete static and linear decision-making
process towards a dynamic and non-linear one.

These two concepts are not shiny new or one of today’s buzzwords but simply represent a concrete step
in helping leaders facing these rapidly shifting times by using what has already proved to be effective in
contexts that have traditionally seen uncertainty as a perennial constant.

Dynamic Decision-Making
 Dynamic decision-making refers to the ability to make decisions in real time based on constantly
changing information and feedback. It involves being able to quickly adapt to changing circumstances
and adjust strategies and tactics accordingly.

Getting back to the example of dynamic decision-making in Military operations: commanders often
make decisions under highly stressful and dynamic circumstances. They need to assess the situation
quickly, consider multiple options, and make decisions that can have significant consequences. They also
need to adapt their strategies based on new information and changing circumstances on the battlefield.

To make dynamic decisions, leaders need to be able to gather and analyze data in real time,
collaborate with others to quickly assess the situation, and make decisions quickly based on the best
available information. This requires a shift towards more agile, flexible decision-making processes that
prioritize speed and adaptability over rigidity and control.

Conclusion

When it comes to making decisions, one should always weigh the positive and negative business
consequences and should favour the positive outcomes. This avoids the possible losses to the
organization and keeps the company running with a sustained growth.Values-based decision-making is a
powerful approach that can help managers to make more informed decisions that align with their
organization’s values and principles.No decision comes as end in itself, since it may evolve new problems
to solve. When one problem is solved another arises and so on, such that decision making process, as
said earlier, is a continuous and dynamic. Since decision making process follows the above sequential
steps, a lot of time is spent in this process.Decision making is the process of making choices by
identifying a decision, gathering information, and assessing alternative resolutions. Using a step-by-step
decision-making process can help you make more deliberate, thoughtful decisions by organizing relevant
information and defining alternatives.