Decision Analysis in Strategic Management

Decision Analysis in Strategic Management Introduction Organizational management requires rational decision-making processes. Particularly, this is more evident within the present competitive business environment. There are several methodologies applicable in the analysis of business decisions. Indicatively, the decisions play significant roles in the development of an organization (Hodgkinson Starbuck 2008, p. 56).Advertising We will write a custom report sample on Decision Analysis in Strategic Management specifically for you for only $16.05 $11/page Learn More They also influence the welfare of all stakeholders. The stakeholders might include the customers and internal employees. The management has the responsibility of making rational decisions. Presently, there is an increase in the participatory models. The highly liberalized society contributes to these notable transformations. There are organizational decisions that may relate to customers and employees. Alternatively, these decisions might appertain to the processes of organizational resource management. These decisions form critical domains in strategic management processes (Shapira 2002, p. 23). This report focuses on the analysis of the consequences of key organizational decisions. In achieving this objective, the report examines three important perspectives. These are applicable in decision-making processes. These include the modern, symbolic-interpretive and the postmodern perspectives. There is an eminent organizational decision relating to the expansion of major business operations. Modernist Analysis There are critical decisions involved in the expansion of organizational processes. An application of modernist principle in the analysis of these decisions is appropriate. Foremost, it is vital to examine the meaning of the modernist principle for decision-making. Notably, the modernist principle embeds in the concept of enlightenment. According to this theoretical argument, progress roots from principle empiric al knowledge (Monahan 2000, p. 23). Apart from this, an approach of rationality process remains appropriate. There are notable subdivisions of the general modernist principle. There is a general systems model. This model postulates that the explanations on empirical or social occurrence may base on systems. Particularly, this relates to the systems governed through regulations and frameworks. Apart from this, there is a socio-technical systems model. Principally, this model applies to the human behavior. Contingency theory is the last explanative model in the modernist concept.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Evidently, many managers apply this concept during crisis management situations. The concept stipulates that there is no any best methodology to organize (Bubnicki 2003, p. 34). However, according to this concept, the most applicable methodology depends on th e particular circumstance. The decisions made within organizations are critical. This is because these decisions might affect the cultural, political and technological elements. There might be other significant implications within different fields. An application of the modernist principle in the analysis of these implications is vital. A firm’s decision to expand its operations might have significant implications on the general environment. Specifically, these might include both the internal and the external environments. To begin with, the organization must consider the availability of the appropriate resources. Resources may include financial, human resources and other pertinent enabling factors. The contingency theory may be applicable in evaluating the possibilities of engaging different available resources (Shapira 2002, p. 89). According to this principle, the organization does not need to struggle to generate unavailable resources. Rather, the possible developments mu st occur in relation to the relevant context. This principle assumes the application of planning and rational budgeting. Ideally, the consequences of these assumptions might be detrimental to the organization. For instance, it might lack the required resources to remunerate all its workers. Apart from this, it might also lack the capacity to sustain most of its business or organizational operations. The application of general systems model may depict important revelations. This is because the system relies on the respect for regulations (Shapira 2002, p. 90). According to this theoretical view, it is important to recognize the importance of drafting policies and frameworks. These must dictate organizational operations. Expansion processes might affect the external environments. Indicatively, there is an urge to observe the relevant policies applicable in the business environment. There are several important regulations that countercheck the operations within the business environment . These may relate to tax policies, employment regulations, market operations and other important aspects (Thomas 2012, p. 139). Government and other private agencies participate in the establishment of these policies. Additionally, they also monitor their implementation and compliance.Advertising We will write a custom report sample on Decision Analysis in Strategic Management specifically for you for only $16.05 $11/page Learn More It is important to note that there are regulations that relate to the internal and external operations. Internal operations are pertinent to organizational procedures and practices. On the other hand, the external regulations concern the issues of public policy and governance. It is important to comply with all the relevant external regulations. These frameworks might outline processes and guidelines appropriate for business investment and operations. The compliance helps to avoid future cases of deterrence and hindrances withi n business operations. It also ensures the legality of all business operations. Through observation of legal policies, the basic human entitlements and liberties must have consideration. In this respect, the fundamental liberties of the human resource or personnel within the organizations are valued. There are notable positive influences from this observation. These include positive perform and employee welfare. Strategic management encourages the formulation of transformational policies within organizations. These are important because they guide the operations of the organization. This is toward the effective attainment of collective organizational goals. Therefore, the application of the principle remains appropriate. Business organizations cannot operate within illegal contexts. This is applicable within the general environment and social structure. The legal environment requires maximum application and observation. The general systems theory applies to the observation of all th e internal and external guidelines. However, the comprehensive observation of this principle might also cause negative influences. The business organizations might face notable delimitations in the successful establishment of new ventures. Particularly, this may be due to regulatory restrictions on important factors. These might include restrictions on resource allocation, extent of business operations and employee engagement (Monahan 2000, p. 73). Business organizations depict tendencies to avoid adherence to stringent regulations. Therefore, the consequences of observation of these policies bear both negative and constructive influences. The socio-technical systems explanative model is applicable in the analysis of this decision. The explanative model stipulates the significance of observing human behavior.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More An adequate comprehension of human behavior is important in developing rational decisions. This is because the consequences of these decisions mostly affect human beings. For instance, the employees are internal stakeholders that are likely to gain or suffer from the consequences (Bubnicki 2003, p. 60). Other external stakeholders must also realize full engagement in these decision processes. Observably, no business organizations can operate without regarding the requirements of all its stakeholders. This concept is applicable both to the internal and external stakeholders. The organization must consider the engagement of the behavior and feelings of stakeholders. Principally, this applies to the establishment and development of new operations. This process is important in several ways. The process enables the successful assessment of the competency of the workers to dedicate their strengths and capacities. This is appropriate for the operation and success of the new business ventur e. Human beings form critical components of the environment. This applies both to the social and business conditions. Therefore, there is relative significance in the comprehension and analysis of their behavior. The basic principle is that human behaviors have significant influences on the success of basic organizational decisions (Shapira 2002, p. 97). Therefore, the principle remains appropriate in the analysis of the consequences of these decisions. The modernist explanative model is important for the analysis of the consequences of the decisions to expand business organizations. The expansion processes within business organizations involve the integration of diverse cultures. Evidently, multicultural factors have significant influences in the success of business operations. In order to succeed, the application of socio-technical systems theory remains appropriate. Analytically, this process relates to the understanding and manipulation of basic cultural factors. This is because they have considerable influences on the organizational operations. Positive organizational culture is pertinent to the success of most organizations. The theory reiterates the importance of engaging human behavior. Its application also results into the development of a positive workforce. The workforce depicts the competency to operate effectively within multicultural environments. Harmonizing multicultural disparities remain as a critical tool for success. However, this initiative requires adequate time and consideration. This observation enables the business organization to develop a positive workforce. Human behavior has an important contribution in the development of positive work culture (Monahan 2000, p. 101). Therefore, the socio-technical systems may be best applicable in the analysis. It is noteworthy to indicate the wide diversities of components within the general environment. It encompasses a great deal of factors that have the capacity to influence basic organizationa l processes. The contingency model is most appropriate within emergencies. It is appropriate for crisis management. The expected consequences may not be positive or compliant with organizational best practices and policies. This is because the critical decisions occur haphazardly. There is an eminent lack of consultation. Consequently, the important stakeholders are not involved in major decisions. Therefore, an element of partiality and assumption of important factors might emanate. This is usually observable at the end of the implementation process. For instance, the organization might discover that it lacks the adequate personnel or finances to steer its new ventures. This is more likely to cause failures and disagreements within the relevant teams. Therefore, there are only two theories of the modernist approach that may be applicable in the analysis of this situation (Bubnicki 2003, p. 84). These include the general systems and the socio-technical theories. Their application re sults into positive results. The consideration of human behavior and legal frameworks is important in any decision process. This includes the decision-making processes that might have remarkable impacts on the external or internal environments. However, the applicability of contingency model in decision processes that occur in emergencies remains important. This is because the management within any organization is already prepared to handle the negative consequences. Generally, the modernist concept reiterates the significance of rationality (Thomas 2012, p. 139). The subjective indulgence of this principle in management and decision making processes have both beneficial and negative consequences. It is upon the decision makers to adopt the most appropriate system in decision approaches. This observation defines the basic principle of strategic management. Organizations must have the adequate preparations to deal with the consequences of their decisions. Symbolic-interpretive Critiq ue The modernist perspective is not the sole approach to decision making. The process has observable limitations within diverse contexts. These shortcomings are avoidable through the application of other theoretical models (Green Li 2011, p. 1665). A symbolic interpretive perspective provides a typical alternative. The modernist explanative model relies singularly on the idea of empiricism. This involves the application of logical scientific processes in the evaluation of human factors. The factors might include a variety of elements such as intrinsic and extrinsic behaviors. Analytically, there are potential doubts concerning this approach. Foremost, individuals lack the audacity to analyze and interpret the cultures and behavior through their personal cultural lens. An organization’s decision to expand might stir different reactions amongst employees (Jacobs 2012, p. 4). However, the management lacks the capacity to empirically investigate and analyze these feelings. In th is context, it is obvious that the application of the modernist systems is vain. The basic reason for the interpretation of other people’s views might be misconstruing. The system might cause subjective ruling and dictatorship on individuals. Therefore, in many situations, decisions based on the modernist system have the potential of causing irrational consequences (Powell 2004, p. 45). Concerning the expansion decision of the organization, the symbolic –interpretive perspective is best applicable. Particularly, this regards to the analysis of potential consequences of general organizational decisions. This is because there are factors that exist in solitary form within the general environment. Ideally, there is no any solitary right idea. This is because notable factors within the environment are a makeup of the social interactions of individual characteristics and behavior. The modernist principle forces individuals and organizations to have positive convictions on o ne particular element or process. Although it might illuminate an element of freedom, the fundamental expressive human liberties remain narrowed. This is not appropriate for effective development and performance of organizations. An analysis of the renowned social construction theory indicates potential negative implications of the modernist approach to decision-making processes (Jacobs 2012, p. 15). There are notable social realities and influences within the general environment. This might also be applicable within the business situations. The interrelation of these factors leads to the development of common social patterns within the environment. Individual behaviors influence the general societal practices and beliefs. The modernist principle may be applicable in imposing individually derived decisions and principles on others. However, there are other viable alternatives. These include the use of multiple interpretations. The organization must endeavour to comprehend how the pa rticular natives influence their domains (Powell 2004, p. 78). This applies to all organizational members. This means that the management must focus on providing opportunities for members to elucidate their views on important decisions. In particular, the views must appertain to the indicated decision of increasing or expanding the organization’s operational base. The institutional theories reiterate the importance of considering a positive approach towards successful individual sociological understanding. Generally, the organizations’ decision to expand its processes and operations must base on realities. In this context, the application of symbols is preferable (Jacobs 2012, p. 24). This is relative to the use of the modernist approach in decision-making processes. Through the observation of symbols, the stakeholders affected by the organization’s decision to expand may learn several lessons. For instance, they might have the capacity to assess the expected be nefits or disadvantages associated. Particularly, this relates to the impacts allied to the decision-making and change processes within their organizations. It is important for the general humanity to gain an adequate comprehension of how social processes are appropriate (Green Li 2011, p. 1696). Especially, this applies to the derivation of basic meanings and implications on processes. Therefore, the symbolic-interpretive perspective remains more appropriate for rational decision processes within organizations. Postmodern Critique A Postmodern perspective might be applicable in the analysis of an organization’s decision to expand. Evidently, this approach heavily relies on the concept of philosophical comprehension. According to the perspective, a mere simplification process is not appropriate for any decision process (Feldman 2000, p. 45). It is important to put philosophical inquests in the analysis of the general social or cultural factors. This is appropriate for some o f the factors that have the capacity to influence the decision process. Certain environmental factors might cause significant influences on decision processes. These include both the internal and outdoor environmental factors. These conditions range from the business, regulatory, human and cultural influences. As indicated in the postmodern perspective, organizations must not worry about environmental situations. This is because of many important reasons. For instance, the philosophical fundamentals within the model indicate that the fixed external realities never exist. Instead, most of the perceived factors remain as images or reflections that dictate the manner of performing particular duties. The general implication is that business organizations must not focus on less intricate external factors that influence their operations. Instead, much concern is required for the more tangible and eminent internal organizational influences or factors (Scherer Palazzo 2011, p. 920). This i s because they depict momentous manipulations on the overall business processes. The sociological observations on issues relating to cultures and individual behavior are all in vain. This is because they are less likely to influence the outcomes of most critical decisions. The social construction is more disjointed. In addition, it holds limited value and influence on organizational processes. Therefore, the decisions to expand operations are more likely to enable the organization to succeed and attain more transformative results. However, the theory denotes the importance of observing internal tangible factors. This is applicable within all the decision-making mechanisms. The notable external factors have negligible influences on the organization’s decision to perform (Levy 2010, p.380). Consequently, the belief on empirical knowledge as indicated within the modernist principle does not apply. The postmodern perspective provides for a unique perception on the concept of know ledge. The application of knowledge might not be helpful in the decision making process. Additionally, this might also relate to the analysis of the outcomes of these decisions within organizations. The concept is applicable to both the business and non-profit organizations within different environmental conditions. The application of knowledge in these processes may lead to diverse negative implications. For example, it causes the creation and development of interest groups. These are likely to lead organizations to stray conditions. Apart from this, it may also cause the neglect of other categories of personalities. This causes disparities and hinders collective achievement of organizational goals (Levy 2010, p.386). Decisions that depend on the premise of knowledge and empiricism cause partial marginalization of certain groups of personalities. Knowledge must not bear an element of exclusion of particular groups. Rather, it must involve a collective inclusion. This concept exists in the definition of knowledge itself. Knowledge is a process that entails the domestic agreement about certain identifiable realties within the general community. Therefore, this explanation process reiterates the significance of collective participation and consultation in decision-making initiatives. This is because knowledge is a communally owned and shared concept. Power must derive from meanings and general familiarity. Therefore, it is impossible to underestimate the significance of individual or group experiences in the development of rational decisions (Scherer Palazzo 2011, p. 929). The concept emphasizes on the need to base decision initiatives on learning processes. This is because of the importance of familiarity and experience on knowledge. The role of cultures and discursive processes in enhancing familiarity during decision processes remain critical. Indeed, the postmodern perspective provides a typical and practical application in the analysis of the outcomes of a decision. Conclusion Decision-making is a critical initiative in strategic managment. Presently, organizations recognize the need to adopt transformative decision processes. This explains the need to evaluate the different theories applicable in decision-making. The report examines critical elements within three basic theoretical models. These include the modernist, postmodern and symbolic-interpretive theoretical models. All of these explanative models have significant influences on organizational decisions. Generally, environmental factors have remarkable influences on the expansion of business operations. These influences require analysis using the various theoretical models. List of References Bubnicki, Z 2003, Analysis and decision making in uncertain systems, Springer, London. Feldman, M 2000, American legal thought from premodernism to postmodernism: an intellectual voyage, Oxford Univ. Press, New York, NY. 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