Management Decision Making and Insight
Among the crucial roles played by mangers in an organization is decision making. The quality of decisions made by the individuals determines the direction that the company takes and most importantly, its competitive advantage. A company whose structure affects the pace at which decisions are made operates inefficiently and this may affect its profitability. The management is socially responsible to the stakeholders and thus it is important that it makes decisions that favor the success of the company. The efficiency of the decisions made by the managers depends on the nature of work they are involved in as well as the extent of which the tasks involved are complex.
Every manager is faced by unique circumstances in the working environment and they are expected to make decisions that do not affect any parties involved negatively. Balancing the interests of the company with those of other parties such as the community and the government may prove managerial decision making and insight difficult. The most important aspect is to consider one’s capabilities as a manager and work towards enhancing strong areas and reducing the weaknesses that may lead to poor decisions. This paper is a reflection of my capabilities as a decision-maker. It highlights the levels of complexity where I can be able to make the best decisions for the company, as well as personal development goals that I should prioritize to make the most suitable decisions at high levels of complexity.
Complexity of the corporate world
Today, most companies focus on attaining a competitive advantage through various methods including product development and expanding to new markets. Although the strategies result in increased profitability for the company, there is increased level of complexity that may lead the company to fail. It is important for managers to be develop skills required to handle complex situations that may face the company. Among the complexities that a company may face include increased costs of operation, poor financial management as well as cultural shifts. These variables affect the operation of the company because it has to adjust accordingly for it to continue making considerable profits. It is thus crucial for the management to have the capability to handle the complexities in the best way possible.
In an organizational setting, the nature of work performed by the employees at different levels has varying levels of complexity. The jobs performed by lower cadre employees are less complex compared to the ones performed by the employees working at high levels of the organization’s hierarchy. Complexity in the business setting is mainly determined by the effect of decisions made by the personnel on the success of the company. The senior management has the most complex jobs because their decisions have a direct influence on the company’s performance. For example, a decision on whether to expand to new markets is complex due to the high level of uncertainty in the market.
Levels of complexity in business
The levels of complexity in an organization increase as one advance up the hierarchy of leadership. There are five primary levels of management that have varying levels of risks, which are determined by the nature of tasks performed. The least complex level is the operations as the employees at this level work on predefined procedures. When faced with challenges, they have the option of consulting a higher authority thus making their decision making process less involving. The second level that is less complex is the supervisory level as the employees are able to detect problems before they occur using the information collected. This reduces the high uncertainty level associated with business operations. The third level is the unit management, which involves making company decisions by choosing the most suitable alternative. The level is relatively complex because the decisions made by the managers have a direct impact on the company’s performance.
The fourth level is the general management that is involved in the allocation of resources across all the departments. The level is complex because the decisions made affect the efficiency of different departments and consequently the entire organization. The fifth and the most complex level is the corporate CEO level that is concerned with the overall success of the company, both locally and internationally. This is the level of complexity that is greatly affected by the external forces of business such as economic forces that are beyond the company’s control. The decisions made at this level also involve greater financial commitment compared to the other levels thus making the level of financial risks high.
My preferred level of complexity
Due to the nature of tasks involved in all the levels of complexity, it is important for employees to select a level that they are comfortable with while making decisions. The nature of decisions made affect the success of an organization thus it is important for the managers to operate at a comfortable level of complexity. Based on my capabilities and experience in leadership, I prefer working in a challenging environment. The level of complexity that I would be comfortable working with is the corporate CEO. I am aware of the high complexity associated with the tasks performed at this level, but I strongly believe that my capabilities can help me make it through. As a manager, I have learnt the importance of perseverance thus I believe in my capability to handle the uncertainties associated with external business environment. My position as a manger has also helped me develop the ability to anticipate problems before they occur by the use of available information from the company departments as well as the economic predictions. Therefore, working at the corporate CEO level of complexity will not be a hard task for me as a I will always base my decisions on accurate predictions.
Apart from my experience as a manager, the fact that I have learnt a master’s degree in Business Administration also boosts my confidence in the level of complexity. I fully understand business concepts that are likely to affect the success of the organization and I can interpret information provided by different departments such as finance and marketing. The strong analytical skills I have gained from the MBA course will help me boost my performance as a CEO as I will be able to predict challenges and offer solutions to the problems before they affect the operations of the company.
Steps needed to expand my confidence in decision making at higher levels of complexity
My preferred level of complexity demands a strong character that is unwilling to give up even in the face of uncertainty. It is challenging to operate in an environment where an erroneous decision has the potential to affect the success of the company. Although I have past experience as a manager, working as a corporate CEO demands more than the manager’s job. The nature of the tasks performed is complex thus I need to be more confident in the activities I am involved in. I need to make the decisions with confidence that they have the capacity to improve the performance of the company. The first step I need, is to focus on the positive side or simply being optimistic. To do this, I must ensure that the decisions made are based on facts from the available information. The other crucial step I need to take is to avoid working by myself. Although I will be charged with the responsibility of making complex decisions in the company, I will select a team of professionals to guide me in making the most appropriate decisions for the company.
The other step that will boost my confidence in working at the high complexity level is delegation of authority, especially for routine jobs. This will allow me to dedicate most of my time on crucial matters affecting the company. Being informed at all times is another factor that will help boost my confidence because I will be able to make sound decisions. With the gathered information, I will be in a position to make accurate decisions that are unlikely to affect the success of the company. With improved confidence in working at high complexity levels, I believe that my work will be diligent. I hope to motivate the other managers and employees in the company to develop a positive culture that will enhance the performance of the company.