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Application of contingency theory into management
Contingency theory: an overview of its use in management
Contingency theory: an overview of its use in management
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Abstract
The primary aim of the report is to analyze different models of decision making used by the managers at workplace. First the author analyzes the contingency model for the selection of decision making strategies. It is a model that states that why the decision makers use various strategies to deal with different decision problems. Decision making requires research of techniques for improving the effectiveness of decision that it makes. The article describes a framework for examining the individual’s selection of strategies for decision making. The case study discusses the theory of contingency model and its effectiveness on decision making strategies. The author also uses variety of examples to explain the theory. The author also identifies the uniqueness of choice makers and individuality of decision strategies. The main aim of the case study is to discuss the strategy
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Introduction
Contingency model of decision making is used in many management and organizations such as management, managerial design and participation in decision making. The choice of strategy for making decision in organizations depends on the type of problems, the surroundings and the personal characteristic of the decision maker. Motivation is the greatest element that is required to make a decision for the least asset for an acceptable solution (Chemers, 2014). The contingency model of decision making includes many stages of decision making. The first stage of contingency model is to recognize and examine the problems that the organization faces. The problem is related to the confusion and choice that is used between what is the target and goal of the company
In this case study, Laura and Danny have had significant changes in their lives. Laura has now left with the children and planning on moving with them to El Paso, Texas in a month. She has also filed for divorce from Danny. While Laura is making positive improvements to her life she is still concerned for Danny. She goes to collect what’s left of her belongings when she finds Danny in a state of panic. Danny has let himself go at this point. He started consuming alcohol, has not found a job, and is living with no electricity. Kid decides to pay Danny and Laura a visit and he quickly realizes Danny is in trouble. Danny begs for Kid’s assistance in order to help him start a new life. Danny is worried that he will end up alone and homeless
Rosenzweig (2013) states four fields of managerial decision making. As it is naturally a zero-sum game, participants in the game are highly correlated. Increasing advantages of our business will lessen the threats from our competitors (Moulin and Vial, 1978). Hence, Digby should emphasis on the third field to create competitive advantages through planning operational and non-operational strategy with rivals’ movements over business lifespan. And combined with the fourth field for core competencies in the long term. In practice, Digby released the new High End-Darwin for sustainable strategic
This is a crucial part of a strategic analysis because ‘…organisations do not exist in a vacuum, they are part of a complex world’ (Bowman 1987:61) and many factors can influence operations, beneficially and unfavourably. However, these can be difficult to comprehend due to their complexity, diversity and fast changing nature. Necessarily a number of techniques have been developed to facilitate the process and to ‘…contribute to answering the key managerial question…’of what ‘…opportunities and threats might arise in the future’ (Johnson & Scholes 2002:99).
Many ethical dilemmas are philosophical in nature, an ethical issue can be described as a problem with no clear resolution. In order to solve the issue or dilemma a consensus between the parties involved must be reached. There are several reasons to come to an agreement over an ethical dilemma, it is the basis for all aspects of personal and professional dealings. Each one of us is part of a civilized society and as such it is our responsibility to be rational, honest and loyal in our dealings with others. (Alakavuklar, 2012) states that individuals make decisions for different situations in business life involving various ethical dilemmas. Each time either consciously or unconsciously individuals may follow some ethical approaches
Toyota’s decision making structure is largely focused on management, despite the fact that the company operates in a highly dynamic and uncertain global environment. Toyota’s decision making proces...
Companies are always looking for ways to make sure an operation runs continuously no matter what the obstacles are. Contingency is like a mechanist using oil to ensure that the machine runs smoothly. Doing the right thing involves a series of complex contingency plans. There is no one answer to the issue because variables are constantly changing. When the
In the choice making process the supervisor is the key leader who does not permit his kin to contribute in the choice making procedure, rather they are offered headings to take after. This authority style is best for representatives who are normal or poor entertainer on the grounds that in this approach the pioneer watches out for his kin why should assumed perform the assignment on the given headings; this will expand the execution of workers and additionally the
Some decisions prove to be vital and any miscalculation that may be involved may prove dire for the individual or the organization. In identifying the criterion to use while evaluating different decisions, many factors pertaining the structure should be considered. The pros and cons of every decision made should be evaluated to ensure that the option chosen has the most positive effect on the individual and the organization. Some of the activities that may require keen decision making include project development, finance and operations. With the knowledge attained it will be easier to cope with tough decisions that may come up in my career. Decision making models may be generated to give an in depth view to the problem and also provide critical analysis ability. It is also vital noting that for those in managerial positions, they face a bigger task in decision making. A good understanding of the business function and structure will provide an in depth knowhow to those that have studied the
Thinking critically and making decisions are important parts of today’s business environment. It is important to understand how the decision making process works and the steps involved. The nine steps of the decision making process are: identifying the problem, defining criteria, setting goals and objectives, evaluating the effect of the problem, identifying the causes of the problem, framing alternatives, evaluating impacts of the alternatives, making the decision, implementing the decision, and measuring the impacts. (Decision, 2007.) By using various methods and tools to assist in making important business decisions an individual can ensure the decisions they make will be as successful as possible. In this paper it will be examined how the decision making process can be followed using various tools and techniques to make successful business decisions by using these same tools and techniques during a thinking critically business scenario. The paper will also discuss how different tools and techniques could have been used to make different, yet still successful decisions.
Making business decisions involves choosing between alternative courses of action. Many factors affect business decisions, yet analysis typically focuses on finding the alternative that offers the highest return on investment or the greatest reduction in costs. Some decisions are based on little more than an intuitive understanding of the situation because available information is too limited to allow a more systematic analysis. In other cases, intangible factors such as convenience, prestige, and environmental considerations are more important than strictly quantitative factors. In all situations, managers can reach a sounder decision if they identify the consequences of alternative choices in financial terms. This unit
Managers should be ready to teach the importance of decision-making skills and reinforcing organizational policy. Avoiding hasty, careless decisions, which can have devastating results on the manager's unit or the entire organization. Decisions made with forethought, using the many managerial tools available will lead to better and more profitable operatio...
Life is full of decisions. Some decisions are trivial. Should I choose paper or plastic at the grocery store? Which of the 31 flavors of ice cream should I pick? Other decisions are vital. Should I get married to her or should I take this new job? Your decisions may affect many people or only yourself. In this paper I will present a decision-making model. I will describe a decision that I made at work using this model and how critical thinking impacted that decision.
Problem solving and decision-making are fundamental in all managerial activities. Although these defining characteristics of management can be used interchangeably, current literature makes a comprehensible delineation between the two. Problem solving can be defined as a mental process and is part of a larger process that begins with identifying the problem and ends by assessing the efficiency of the solution. Decision-making is also considered a mental process and identifies several alternative scenarios before making a final selection. For the purpose of this analysis, I will discuss the similarities and differences of problem solving and decision-making. I will also explain the steps of the decision-making process and discuss the different decision-making approaches.
Therefore, to achieve this objective, managers have to make choices in decision-making, which is the process of selecting a course of action from two or more alternatives (Weihrich & Koontz; 1994, 199). A sound decision making requires extensive knowledge of economic theory and the tools of economic analysis, that are directly related in the process of decision-making. Since managerial economics is concerned with such economic theories and tools of analysis, it is very relevant to the managerial decision-making process.
Making decisions is an important part of our everyday life. Decisions define actions and lead to the achievement of goals. However, these depend on the effectiveness of the decision-making process. An effective decision is free from biases, uncertainties, and is deeply dependent on information and critical thinking. Poor decisions lead to the inability to achieve set objectives and could lead to losses, if finance is a factor. Therefore, it is important to contemplate about quality and ways to achieve it in decision-making, which is the focus of this paper. The purpose is to look into the needs of decision-making, including what one should do and what one should not do.