Models of Decision Making

One slimy last that I made more(prenominal) than a year ago happened when I was a member of the committee of a small, preliminary vexation company somewhere in Texas, which was only starting to burst in less than ten years of operation. Having read from articles that IT had become such an integral part of the business strategies of most companies nowadays because it made slews of money, assisted in hurt of management and information, and that it kept records safer and faster, the thought made me think that IT was really what we needed. We were on the brink of entering the next high phase angle of business.We did brainstorming about the next strategy to go for by the following year, so that the business would be more successful and prominent for the next stage of business. I suggested about investing with IT equipments, as this would have extended our markets and services to be able to murder out to more customers in further states. The decision turned out to be a poor one because of misapprehension and negligence, as well as the wrong choice of strategy and application.Major abbreviationUsing the rational model in making individual decisions, the decision that I utilise in performing an IT investment to the business can be outlined as followsI. Forming the decisionA. Identifying the problem1. at that place was a problem in terms of functional and systems approach, as the manufacturing was not smooth and orderly, and the tasks were not do efficiently.2.There was a problem when it came to proviso chain management, especially that the ingredients should have already been ready by the period the orders were sent.3.There was a problem when it came to efficient floor management, so that the preparation did not flow smoothly and quickly.B. Generating resource effects1. Improve functional system by improving strategies, tasks, and goals.2.Improve supply chain system by exchanging tighter coordination with the provider companies.3. Improve IT system b y using the investment finance.C. Selecting a solution1.The chosen alternative should sack up or alleviate as much problems as it can handle.2. The chosen alternative should be strategically and financially acceptable.3.The chosen alternative should present values, information, and skills that could be availed from the existing environment.II.Negative consequences of the decisionA.Negative financial consequences1. About 68% of the total available fund did not bring about the expected results.2.Overall profit landed at merely $97,000, with a loan amounting to $200,000 plus company expenses.B.Negative pauperismal consequences1.The staffs and the committee lost motivation after being announced that the company had lost more than half of the expected returns.2.The staffs and the committee lost motivation because the company almost fell to bankruptcy.C.Negative personal feedback1. I lost my position as the second consultant of the finance administration.2.I was almost fired from the c ompany.III.Importance of the decisionA.Importance to the company1. The decision would have solved problems in functional, supply chain, and efficient floor management.2.The decision would have created a link and opportunity with strong IT companies in the environment.B.Importance to the higher staffs1.Improvement in the functional and efficient floor management would have led to higher profits and larger returns.2. Improvement in profits and returns would have led to bigger opportunities and investments.C.Importance to me1.The decision, if it were successful, would have promoted me as the first adviser of the finance administration.2. The decision, if it were successful, would have motivated me to do bigger projects amid the risks.Three decision theories, which were exercised in the planning and execution of instrument of the decision were the followingFirst and foremost is the rational model, which centers on comprehensive rationality and the common sense of the alternatives. T he rational model arrives at a decision by going over the four distinct steps first is identifying the problem second is generating alternative solutions third is selecting the solution fourth and final is implementing and evaluating the solution (bread maker III, 2001, p.1). It presents the decision-making process by helping me, first, in pointing out what exactly is the problem in the company accordingly by thinking of the alternatives that can be used, which would solve the issues that were at hand.Second decision theory that was used in the planning and implementation of the decision is the political model, which uses the organization as a coalition, with procedural rationality having to control the decision making process. In this model, what controls are the following aspects first is environmental uncertainty second is resource dependence third is task interdependence fourth and final is goal scrap (Rotman School of Management, 2001, p.4). The rationality of the procedur e appears to be most important.Third theory that was used in the decision making process is the instance-based model, wherein decisions are based on instances and the chosen alternative sprouts through accumulated experience (Gonzalez&Lebiere, 2004, p.8). Because we have known other companies that became successful after investing in the IT, such as Vanguard Group, then it became reasonable for us that our company will also succeed in terms of IT investment. We failed to conclude that the internal and external environments are two very important factors.ConclusionBased on my analysis in the recent pages, it appears that making judgments and decisions for a company should not rely solely on one person or group of persons. There should be brainstorming from different groups that believe on different ways and strategies. People make judgments almost too hastily. Each factor should be examine slowly and efficiently, especially when it comes to the finances and the returns of the finan ces.As for me, I have learned the lesson that it takes two to tango not just two, in fact the more there is then the better. It is good to make decisions in pairs just a great deal better if we do them in numerous pairs.ReferencesBaker III, E. (2001). Decision making. Retrieved November 23, 2007, from Dr. H. Eugene Bakers Homepage http//www.unf.edu/gbaker/Man6204/Decision.PDF.Rotman School of Management. (2001). Contingency framework models of decision making. Retrieved November 23, 2007