Decision Making

Table of Contents
Principles of Decision Making
Introduction
Challenge #1 and its Solution
Challenge #2 and its Solution
Conclusion
References

Decision Making
What are the key factors that make a right decision?
Decision making in the real world is about the interface of technologies, analytics and human factors

Decision Making
Rational choice theories assume that decision processes are:
Consequential – they have consequences
Preference-based – we want them to lead to what we want – to the consequences we want

Decision Making
All decision makers share a common set of basic preferences
Alternatives and their consequences are defined by the environment
Decision makers have perfect knowledge of all alternatives and their consequences

Introduction
DMC is a consultant team, based in Almaty, Kazakhstan, representing a company called Decision Making Consulting.
The office is based in Almaty, Kazakhstan.

Introduction
DMC is currently working with a human resources management team in an international consulting company, ABC Partners
ABC is American-owned, with its headquarters based in San Francisco, USA

Introduction
Decision Making Consulting Group has been appointed by the Human Resources Vice President (HR VP) of ABC because the company faces a series of challenges.

Challenge #1
Senior Management Recruitment and Retention
ABC Partners Company had faced with problems of hiring people on Senior Manager Position.
During the 5 years, this position was replaced by 17 different people
All hired managers are White American aged 50-60

Challenge #1
The PROBLEMS are:
Lack of diversification
Poor hiring decision
High senior management turnover

Solution
Senior Management Recruitment and Retention
Hiring people from different group categories
The main factor here is that diversity increases the latitude of perspective, cognitive resources, and general problem-solving (Hambrick, Cho and Chen, 1996, p. 662; Barsade et al., 2001).
Conducting an interview from face-to-face
Spread advertising as in the USA, as in Kazakhstan

Challenge #2
Making Groups Work
The new HR VP has also asked to review decision making processes among the various teams in the organization.

Challenge #2
Making Groups Work
A rotating, flexible team management system based on specific projects was set up three years ago on instruction from the San Francisco headquarters
Each of the four senior executives put in charge of oversight, strategic direction and final authorization of actions for each project

Challenge #2
Implementation and day to day management is delegated to the project team
All of whom are citizens of Kazakhstan, aged 25-35.
Of the forty (40) current employees, 60% (24 people) of them are female and 40% (16 people) are male.

Challenge #2
By nationality, they are 60% Kazakh (24 people, 16 female and 8 male), 30% Russian (12 people, 8 male and 4 female) and 10% (4 people, all female) are from other nationalities.
They all have graduate level business education.
Turnover in this group has also been high, with 70 different people occupying the 40 available positions in the last five years.

Challenge #2
The PROBLEMS are:
There appears to be widespread dissatisfaction among the employees
Decision making is slow
There appears to be limited support for the decisions made among the employees actually involved as to how to implement projects.

Solution
Conduct teambuilding
Decrease turnover by conducting qualified interviews
Share people on different departments with different people, according to their preferences

Conclusion
Our consulting team believes that if ABC Partners Company follows these aspects, finally, they will reach desirable consequences exactly as they previously have wanted and it will be considered as preference-based decision making process.