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Decision Making Tools For Mangers Essay

1281 words - 5 pages

Decision Making PAGE \* MERGEFORMAT 1 Running Head: DECISION MAKING TOOLS
Decision Making ToolsLearning Team AUniversity of PhoenixWhen comparing the decision making tools from all of our team member's organizations, we found that our organizations use many different techniques. Some of the techniques that we discussed are: cost-benefit analysis, PMI analysis, grid analysis, SWOT analysis, and force field analysis. These decision making tools all have advantages and disadvantages. Our team will evaluate each tool, and decide on a decision making process.Within any organization there are a variety of styles associated with critical thinking and decision making. How an individual or group makes a good decision is usually based on the intensity of the predicament. Cost benefit analysis, PMI analysis, grid analysis, SWOT analysis and force field analysis are tools involved with the decision-making process. Cost benefit analysis works by deducting the cost of a choice from the benefits and profits that choice will return. This is a very cost-efficient decision making tool. PMI (Plus, Minus, Interesting) analysis weighs the negative and positive aspects of a decision. Grid analysis uses a chart or matrix to consider many different factors in a decision. This is a good tool to use when one has many different options in a decision. SWOT (Strength, Weakness, Opportunity, and Threat) analysis takes a look at internal strengths and weaknesses whereas also focusing on the external opportunities and threats involving an organization. The SWOT analysis helps an organization find the target market with the aim of recognizing opportunities and accomplishing goals set by the company. Force Field analysis points out the information in favor of and in opposition of a decision. Force field analysis is much like PMI analysis.Each of the decision making tools previously mentioned has strengths. Cost-benefit analysis allows the decision maker to determine the convenience, rate the importance, and identify the economic costs of a project. This tool can help a company to be cost-efficient. PMI analysis forces the decision maker to look at choices from all sides. This helps to eliminate snap judgment and ensures ainformed decision. Grid analysis allows the decision maker to see the whole picture, as well as rate the importance of each factor in a decision. SWOT analysis makes the decision maker take many views into account. It also makes one evaluate internal and external forces, to make a well informed decision. Force field analysis allows the decision maker to see thing from all angles to make a good decision, much like PMI analysis. Each of these tools can be used successfully to make decisions in business.There is also a downside to each of these decision making tools. Some disadvantages of cost- benefit analysis are that it does not take distribution into account, and it does not factor in non-monetary benefits. Although PMI analysis is a good and effective...

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