MANAGERIAL DECISION MAKING AND RESEARCH
Managers wrestle with a multitude of problems—big and small—in everyday work life. The different between a successful and not so successful organization lies in the quality of decisions made by the managers in the system. We have seen that scientific thinking equips managers with an awareness and comprehension of the multiplicity of factors operating in their work environment. It also gears managers to problem solving objectivity, after taking calculated risk, and all in all, making good decisions after weighing the alternatives. Does this mean that once the manager applies scientific research result to decision making that the decisions so made are always going to be right?
No, for various reasons. First, there is always a 5% chance of making a Type 1 error; that is, accepting the null hypothesis when it should be rejected. Second, though research results may offer the directions for change, sound common sense should be the guiding light for good decision making. Thus, good decision making entails a common sense approach to applying research results.
To sum up, research is the scientific path that leads the manager to decision making, and experience and common sense are the beams of light that guide managers to solve problems sensibly. Experience is the cumulative knowledge gained from the outcomes of past problem-solving endeavours. Such experience might be the result of a trial-and-error mode of operation in the past, leading to an understanding of what works and what does not. The questions then arise, why not be guided by the past experience and common sense alone? Why go through the rigorous scientific process of research?
Scientific research is important for several reasons. It is only through scientific thinking process that we come to understand, and take into consideration, the complex text set of factors that operates in any given problem situation. Research also exposes us to the ever increasing advances in technology. Today, the managers can find facts that are material to the business—nationally and globally—by simply using the internet. Vast masses of company data also become available to the managers, on practically any aspects of the company’s multifarious operations, through a good information system and data warehouse installed in the company’s information technology system. Managers also have solved simple, repetitive problems by using the menu-driven Expert System. Such technology was not perfected even a couple of decades ago.
True, managers cannot solve every problem by doing scientific research themselves. Often internal research teams help in conducting research to find the answers to problems or outside researchers are hired for the purpose. In either case, knowledge of research or the scientific thinking process helps the managers to understand each step taken by the researcher, and enhance the quality of the decisions made. This is primarily due to the fact that the content of the research report, on submission, are meaningfully grasped. As a meter of fact, a good research report itself may very well be at least in part the result of a knowledgeable manager interacting effectively with the researcher.
Good decision making, as we have seen is a function of thoroughly understanding and using the finding of the research, carefully weighing the various recommendations made, taking experience as a guide, and recognizing the organizational culture and the values of the system. Ethical behaviour dictates that the manager applies research findings for the benefit of the organization, even if they clash with his or her own personal goals and ambitions. Govern by a sense of fairness and ethics, the manager instituting the study must, in such a case, subordinate self to organizational interests.
Managers wrestle with a multitude of problems—big and small—in everyday work life. The different between a successful and not so successful organization lies in the quality of decisions made by the managers in the system. We have seen that scientific thinking equips managers with an awareness and comprehension of the multiplicity of factors operating in their work environment. It also gears managers to problem solving objectivity, after taking calculated risk, and all in all, making good decisions after weighing the alternatives. Does this mean that once the manager applies scientific research result to decision making that the decisions so made are always going to be right?
No, for various reasons. First, there is always a 5% chance of making a Type 1 error; that is, accepting the null hypothesis when it should be rejected. Second, though research results may offer the directions for change, sound common sense should be the guiding light for good decision making. Thus, good decision making entails a common sense approach to applying research results.
To sum up, research is the scientific path that leads the manager to decision making, and experience and common sense are the beams of light that guide managers to solve problems sensibly. Experience is the cumulative knowledge gained from the outcomes of past problem-solving endeavours. Such experience might be the result of a trial-and-error mode of operation in the past, leading to an understanding of what works and what does not. The questions then arise, why not be guided by the past experience and common sense alone? Why go through the rigorous scientific process of research?
Scientific research is important for several reasons. It is only through scientific thinking process that we come to understand, and take into consideration, the complex text set of factors that operates in any given problem situation. Research also exposes us to the ever increasing advances in technology. Today, the managers can find facts that are material to the business—nationally and globally—by simply using the internet. Vast masses of company data also become available to the managers, on practically any aspects of the company’s multifarious operations, through a good information system and data warehouse installed in the company’s information technology system. Managers also have solved simple, repetitive problems by using the menu-driven Expert System. Such technology was not perfected even a couple of decades ago.
True, managers cannot solve every problem by doing scientific research themselves. Often internal research teams help in conducting research to find the answers to problems or outside researchers are hired for the purpose. In either case, knowledge of research or the scientific thinking process helps the managers to understand each step taken by the researcher, and enhance the quality of the decisions made. This is primarily due to the fact that the content of the research report, on submission, are meaningfully grasped. As a meter of fact, a good research report itself may very well be at least in part the result of a knowledgeable manager interacting effectively with the researcher.
Good decision making, as we have seen is a function of thoroughly understanding and using the finding of the research, carefully weighing the various recommendations made, taking experience as a guide, and recognizing the organizational culture and the values of the system. Ethical behaviour dictates that the manager applies research findings for the benefit of the organization, even if they clash with his or her own personal goals and ambitions. Govern by a sense of fairness and ethics, the manager instituting the study must, in such a case, subordinate self to organizational interests.
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