With the increase in labour force, the workforce has been becoming more diversified rapidly. Growing cultural diversity in the workforce in terms of gender and ethnicity has creative several challenging situations for business organisations. To cope up with such challenges, management people in organisations require following up new initiatives towards diversity management and reap organisational sustainability.
There are several real cases of organisations that have faced cultural issues while; operating in foreign business market and all are mainly due to the wrong decision making done at managerial level. There are many practical business situations where leaders and mangers lose their facets in personal as well as business contacts. In regard to this, it is necessary for the managers to avoid any such gestures or expressions that could hurt an employee’s sentiments and create a negative image in his/her mind. In some business situations, even a single wrong decision can harm the company’s image internationally ultimately reducing the chances of its future growth and survival.
Major challenges faced by organizations are related to the diversity in the work culture as companies employ people from different cultures and therefore experience diversity due to the environment mixed up of different cultures and viewpoints. Managers and leaders have to manage people from diverse countries with diverse perceptions in the same office premises.
In the present era, all the management functions of the company are highly influenced by this diverse culture and leader is under a pressure to change the leadership style and decision making criteria because people from diverse cultural backgrounds cannot be treated same way and get the task done.
Decision making process is a crucial segment of the business world and mainly managers of large business organisations are chiefly responsible for the final outcome of all decisions with respect to their organisations. Implementation of a specific guideline for all decisions can largely improve the effectiveness and efficiency of decision making process.
Managers of business organisations require identifying issue objectively and from a number of perspectives. On the basis of various researches it has been suggested that following both critical and creative aspects surrounding the issue can help managers to enhance practical thinking abilities.
Managers need to develop goals and objectives as in absence of specific goals and objectives; they will fail to develop business strategies for the future decisions or plans. Developing the goals will assist managers to develop a game plan for the future business deals and activities.
Business managers while making important decisions need to search alternatives and investigate conjectures that are not apparent. Such decisions facilitate managers in determining the least risky choice among all the possibilities. Business managers in order to make effective and best decisions on all information available require taking appropriate time to evaluate the problem and analyse all reasonable options. Decision making process sometimes includes allocation or personal action.
Irrespective of whether business managers are following it individually or not, should always accept accountability for the decision. In order to develop efficient managerial skills, business managers should always accept the results of the decision and identify if amendment need to be done. Sometimes even a best decision can be improved with little corrections based on response or feedback of management.
Developing and promoting leadership and decision making skills among business managers can aid organisations to build a motivated and powerful workforce. Managers who are inspired to improve their managerial abilities and advance their role in business organisations have the potential to assist business grow and succeed. Promoting better and superior opportunities for new managers can also serve as powerful motivator, enhancing productivity and lowering turnover costs.
Emphasis on decision making process does not mainly demand a major concentration on the mental processes of business managers. It requires evaluating the available elements of decision making such as which decision require to be made, what type of information is being provided, significant roles in the operations, and so on. Smart business organisations implement multiphase interferences such as identification of technology, organisational performance, information, organisational structure and human resource management.
Following are the important organisational behaviour theories implemented by business managers for developing and improving decision making practices. Organisational behaviour theories are highly based on structural means by which organisations can improve the performance and skills of its managers.
The rational comprehensive model is created on the analysis and interpretation of mathematicians, psychologists and economists. According to this theory decision-makers have the ability to identify the issue and have clear goals and objectives ranked according to their importance. This theory states that decision-makers have number of ways to address organisational issues and they select the alternative that enhances the achievement of their goals, objectives and values (Theories of Decision Making, n.d).
However, issues are not always properly identified and they need to be presented in such a manner which enables managers to make decisions about them. This theory highlights that decision-makers consist of high amount of knowledge and information with the aim of implementing the technique of rational comprehensive decision-making. This theory assists business managers to offer the ability of predicting the future outcomes of decisions taken. This theory also suggests that there is only one decision-maker, while it has been seen that generally a number of individuals, interests and institutions are involved.
This theory has been proposed to modify the deficiencies of the rational comprehensive model and to appropriately define how business managers essentially behave while making important decisions. According to this theory selection of goals and objectives is not different from the scientific investigation of the problem. This theory highlights that decision-makers only give preference to alternatives while solving an issue that varies incrementally from current practices and policies. Business managers for each and every alternative, consider only vital and significant outcomes (Ballantyne, n.d).
This theory states that a good decision is one that is followed by all policy makers not the one that is most suitable for an agreed objective. Incremental decision-making is corrective, not deliberately devised or future-based. This theory also suggests that organisational performance involves the creation and promotion of decisions making skills in business managers. Organisational performance assist managers to implement better decision making processes which in turns results in achieving higher productivity and profits for organisations. The theory states that public opinion has a large impact on decision making skills of managers when decision making process includes wider direction or drive.
Strategic decision-making process in managers is influenced by a number of factors in organisations. These factors are very crucial for significantly operate a business and evaluation of their value is vital. By identifying and evaluating the most important factors involved, business managers can effectively respond to market demands and endorse its services and products.
Market Research:- Business managers in order to develop effective and significant decision making skills regarding business or organisations need to be familiar with the business environment across the globe. Managers require to focus concentration to what is happening in the business environment, what are the developments among customers and what is wanted the most. For instance, the Taiwanese technology developer HTC integrated the Android software in its mobile appliances after fully investigating the business markets.
Competition:- This is considered as another crucial decision that highly impacts decision making processes of managers within organisations. In the era of high competition, managers need to emphasise to the business activities of their competitors. For instance, at the time of launching of Apple iPads tablets, its rival Samsung quickly reacted by introducing Galaxy Tab. This shows that managers at the time of making decisions on future business operations requiring considering rivals and their business development activities or plans.
Economic Environment:- This factor is especially significant because it is associated with the purchasing capacity of consumers and products and services afforded by consumers in general. At the time of taking decision managers need to keep in mind that they should follow some specific standards and not. For example, managers need to avoid imposing high prices on products and services during financial recession (Comfort and Wukich, n.d.).
The famous software company Apple manufactures the Iphone mobile devices which are comparatively very costly than same devices produced by other companies. However, at the time of financial recession in the United Kingdom and other consumer states, Apple started producing the cheaper version of Iphones that would better function in the economic environment in countries going through financial recession.
Social Responsibility:- This factor is equally significant as it influences business decision making process of managers in business organisations. Business managers while making business decisions need to consider the common interest and good of the general public. For instance, UK legislation restricts banks to enforce irrationally high charges on consumers who delay their mortgage payments (Gregory, et.al, 2012). Many prominent leading banks of the UK such as HSBC, Lloyds TBS etc follow this legislation.
A sound organization needs a well defined hierarchy and the best communication for its growth. In order to maintain a strong company framework, it is essential to know the area or sector where the organization is lacking and to put more efforts in that sector. Departmental loyalty plays a significant role in the smooth working of an organization.
The feeling of monopoly should not hindrance the minds of employees. During the departmental conflicts, it is very necessary to maintain coordination and collaboration to avoid situation of crisis (Baumueller, 2007). Sometimes, inconsistency also acts as an obstacle in the smooth working of an organization. On the other hand, poor communication among the departmental heads lead to chaos and this condition can be resulted into a disastrous outcome.
Too many levels of hierarchy slow decision making and are like obstruction to empowerment. For instance, the companies have many levels between the workers and the managers; therefore, the communication gap grows larger which lead to several conflicts and lack of information between them. Decisions have to pass through many levels of approval before anything gets done. Motivational issues in the working environment can hamper the growth of the organization.
Scarcity of resources or equipments to complete assignments or tasks can cause a motivational problem in a work place. A leader or supervisor who does not values employee’s perception runs a risk of creating an environment where an employee has no concern in the company’s success and he starts working hard just to continue collecting a pay cheque and avoid a disciplinary evaluation (Boeingm, 2012). Lack of reward system and perks can also create a motivational issue in the workplace.
Mediocre working environment like poor information sharing, harassment, discrimination and insensitivity etc can raise the issues relevant to performance management. It is often difficult for the managers to differentiate between the poor performance and misconduct in all the cases which results into lots of problems. On the other hand, some leadership issues in an organization can hamper creativity and reduce productivity as well. Organization has to suffer because of the following cultural issues which include inadequate attention to adopting a consultative and participatory approach in working with partners and stakeholders (Hartley, 2011).
Insufficient internal staff allocation and poor use of professional and technical capacities to invigilate project evaluation, design, management and monitoring also act as a barrier in the growth of an organization. Common organizational cultural issues can include ambiguity, poor communication and inconsistency. These aspects can lead to the experience of malicious and unpleasant working environment, which can make workers unreliable and may cause issues like harassment, bullying and high turnover.
Ethical simply means moral principles and an organization should always follow ethical principles for the sake of society and the growth of the organization as well. Values and ethics are the key to any organization. Values give the foundation for assessment about what is important for the organization to succeed in its core business. Managers of the organization should understand the ethical principles which mean that they should determine the core values that can guide the organization (Larreche, 2008).
Each and every organization should adopt the ethical code of conduct for its betterment. Competitiveness, targets, goals and innovation will always be important to get success but they must be regulated by core ethical principles which include honesty, morality, integrity, promise keeping and fulfilling commitments, loyalty, fairness, respect and care for others, law abiding and accountability etc.
Without ethical code of conduct, organization can’t grow properly as it has been rightly said by the President Theodore Roosevelt, “To educate the mind without the morals is to educate a menace to society.” Human resource management systems are expected to communicate ethical values so that the company’s performance can be improved like clarifying objectives for the code and other ethical attempts to accomplish within the organization (Martin, and Fellenz, 2010).
HR managers should bring all the levels of the organization into the procedure to create the code and should always check on the latest legislation so that the ethical code can be as current as possible. The great strategic policy for the development of an organization is to use demand forecasting method which is the process of judging future trends and fashion in the employment market so that good HR recruitment decisions can be made.
Strategic Management includes the formulation and implementation of the paramount goals and initiatives taken by the company’s manager for the growth of the organization. Planning is extremely mandatory for the advancement of an organization that includes four steps (Needle, 2010). The first step of this process involves organizing to plan and engaging affected parties keeping in mind that the process of employee engagement operate in various ways in all the other levels of the planning process whereas second step involves setting long term strategic objectives and targets for the expansion of an organization. In the third step, promotion of SWOT analysis in the organization is done to know the strengths, weaknesses, opportunities and threats of the workplace and the last step involves evaluation of the above strategies to know the part where the managers are lacking in their efforts.
A.) It is a difficult task for managers to decide whether they have made the best decision or not. Waiting for the results can consume a long time but in the interim, managers can concentrates on the decision making process. It is a well known fact that nothing can assure a best decision, but implementing vigilance can enhance good decision making process more likely. Thus, it is recommended to managers to use vigilance which will assist managers to remain confident about the procedures followed that will generate the best possible decisions under the circumstances. Utilising more time at this point will help managers in saving time later in the decision process.
B.) It has been generally seen that managers usually make decisions individually. So it has recommended that managers should involve their employees and peers in decision making process and may need to seek input from them (Gilmour and Corner, N.d). In other words, managers in order to make best possible decisions should focus more on the participative decision making which includes opinions from board, ad hoc, standing committee, peers, team members etc.
C.) To make more effective and efficient decisions, business managers are required to use a number of techniques and models to assist them to determine whether group decision process is appropriate or not. These innovative models consist of various levels of assistant involvement in decision making process. Such models involve use of expertise of managers as well as of participative group to gather information, ideas and suggestions individually and then makes the best decisions.
D.) In order to improve managerial skills in decision making, managers of organisations are recommended to make decisions through thinking from various perspectives. Focusing on problems from various perspectives can enhance understanding of a situation, set objectives and accessible measures. Implementing multiple perspectives assist managers in effective decision making and find innovative or creative results, and explanation about solutions.
From the above discussion, it can be concluded that organizational culture is a kind of environment that helps to hold an organization together by providing appropriate standards for what employees should say or do. Organizational structure includes the values, beliefs, behaviors, norms and policies that connect all the members of an organization. Motivation is a key factor that can make an organization a better work place and motivating staff helps to make them more committed to the working environment.
Without motivation in the work place, a business can suffer from the lack of efficiency within the employees. This is because they have no incentives to perform task to a high standard or complete them on time. Leaders also play a significant role in an organization as it has been proved that effective leaders are more than managers. It has also been given in the following paper that how managers can improve team performance and analyze the whole process. This kind of approach has contributed to the success of the organization. It has also been stated that ethics are crucial in analyzing the success or failure of an organization.
Ethics affect a company’s prestige and assist to define a sound organizational model that will thrive even in diversity. Strong ethical and strategic policies can make an organization, a huge success and maintains the reputation of the organization. A business organization’s success depends on the effectiveness of its managers and a peaceful working environment. Modern organization needs competent managers who can easily resolve all the issues like global competition, ethical issues and maintain integrity among the diverse work groups. In nutshell, it has been showed that it is essential to have an effective performance appraisal system.
The system should be free from bias and non-fair practices so that the employees are given the chance to get a fair and kind appraisal. It also increases employee’s morale as good appraisal results motivate employees to work even harder. Therefore, faulty ratings results in frustrated employees, inappropriate rewards and punishment. Therefore, it is extremely necessary to solve all the issues related to organization’s structure, motivation, performance management, leadership and the organizational culture and to apply ethical and strategic policies for the enhancement of the organization.