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8 Steps Decision Making Process Essay

1815 words - 7 pages

Managerial Decision Making1.Define the situationWe are the management team of an Australian branch of a large pharmaceutical company that has large offices based in Europe and North America.In Australia we have a small team of about 40 people.We have three major departments in our organization the marketing team, the finance team and the customer service team.It has become apparent to us in the last year that there seems to be a segregation of departments i.e. between Finance, Marketing and Customer service.We have noticed that there seems to be a lack of communication between departments on the main issues concerning the operations of the company. This has made a significant change in the mood among employees.As a result this has caused in the first 6 months of the 2007/08 financial year a 10% employee turnover. In the second half of the financial year this rate increased another 20% to 30% in total. We have also noted that the majority of turnover seems to be male and within the 20-25 year age.The global CEO and management of our company have set a KPI of a maximum of 10% employee turnover in any given financial year. The management overseas has set a deadline by which this must be achieved two years from now in the 2009/10 financial year.The consequences for not achieving this target are a considerably low performance review by our superiors in America and Europe, potentially resulting in bonuses not being paid and ultimately the loss of our jobs.Is this high turnover caused through poor managerial and communication skills or perceived poor working conditions by employees?2.Define the problemWe are trying to solve the problem of high employee turnover.3.Identify the evaluative criteria (goals).1.Suitability to the work (stringent testing to fit the job)2.Working conditions and environment3.Lowering Turnover by achieving KPI of 10% employee turnover4.Cut the cost of recruitment5.Industry standards of salary and benefits6.Create a stronger team environment.4.Weight the Criteria (relative importance from step 3)1. Create a stronger team environment (60)2. Lowering turnover by achieving KPI of 10% turnover (50)3. Suitability to the work (stringent testing to fit the job) (40)4. Working conditions and environment (30)5. Cut the cost of recruitment (20)6. Industry standards of salary and benefits. (10)5.Generate/ identify alternative solutions1.Conducting exit interviews (40)2.Peer evaluation of managers (20)3.Periodic reviews and appraisals (30)4.Improving the organizational culture & work (60)5.Improving working conditions and environment (10)6.Hiring the right people (50)7.Review practices and policies.6.Compute Optimal DecisionNeed to label column on x and y axis anshu will do this.Optimal Decision MatrixPRA30120060018009001500300HRP5020001000300015002500500CEI401600800240012002000400IOC6024001200360018003000600PEM2080040012006001000200IWC10400200600300500100402060305010STWCCRSTEWCILTKISSIndexPRAPeriodic Reviews and AppraisalsHRPHiring the...

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