Factors affecting the quality of decisions Flashcards
What are the 4 factors?
Human resources
Availability of finance
Technology
Other factors
How can human resources affect decision making?
Managers’ ability, training and experience to make good decisions.
How much risk the managers will take when making decisions.
Staff resistance to change.
How does availability of finance affect decision making?
Whether finance is available to exploit the opportunities, address weaknesses or build on strengths.
Financial constraints may mean an organisation cannot choose the best solution to a problem.
How does technology affect decision making?
Spreadsheets can improve the accuracy of calculations using formula and perform ‘What if?’ statements to calculate the projected outcome of a decision.
Databases can improve the speed of decision making by making it easy to search for information quickly using queries and sort functions.
Email can be used to communicate information regarding decisions to many employees at once and attachments containing information can be sent which reduces printing costs.
Internet sites can be used to find out a vast amount of information to make an informed decision.
How do other factors affect decision making?
Company policy may restrict the decisions made or the options that are available to decision makers.
Lack of opportunity to consult others may mean that decisions are poor and staff resist change.
Time constraints can restrict the time taken to decide on a course of action or to implement a final decision.
