THE DECISION-MAKING PROCESS: A Proposal

A decision is a choice of action from among at least two possibilities.

A decision is a choice of action from among at least two possibilities. When you have a decision to make, and the task is proving not so straightforward – so many things to consider, and the possibility that a wrong decision could be costly, for example – you may have to adopt a formal, structured approach like what is suggested here. It is a seven-step, yet relatively simple, decision-making framework.

1.     Define the required decision. What decision do you really want to make? If the resolution is not clearly stated, the answer at the end of the process may not sufficiently match the problem you had at the start. That is, there is a difference between making a decision as to how to increase sales over a period of six months and as regards how to increase sales by ten percent over a period of six months.

It could further help to state the task with a focus on deciding rather than on the problem. In other words, the sentence how do we increase sales by ten percent over a six-month period? might be better than one that says sales are ten percent less than they are supposed to be over a six-month period.

The former (sentence) urges you on in the direction of finding a solution. It could help you keep your sights on what is to be done, as it not only identifies the problem but also calls you to action in a specific direction. The latter, while indeed also pointing out the problem, tends to blur the all-important need for a deed. 

2.  Gather pertinent facts and figures. Good decisions normally come from a good body of information. It is important to have a healthy understanding of the issues related to the challenge faced. Without relevant knowledge, it might be difficult doing what is required in step 3.

3.   Propose possible solutions. This step involves making a good list of interchangeable decisions that solve the problem in their own way.

4.     Select the best suggestion. The question here is, how effectively and efficiently does each of the alternative decisions listed in (3) address the challenge?

A useful approach is rating the suggested solutions from strongest to weakest. To do this, you need to identify the most important aspects of the solution. That means recognising the specific needs the solution must especially satisfy. To make this clearer, let us go back to our example of increasing sales by ten percent over a time span of six months.

Some key need areas would likely be:

-         What costs does each alternative solution entail?

-         How much effort on the part of the sales team is required in each case?

-         Can the ten percent targeted increase actually be surpassed?

The significance of each of such considerations should always be in sight, for a fuller perspective.

5.   Revisit steps 1 to 4. Just in case a key issue was somehow not factored in, or the required decision was not well-framed, it is necessary to review the first four stages. This can prevent unnecessary, expensive mistakes.

6.    Implement the chosen decision. The selected option can now be put in motion. It becomes necessary, sometimes, to adopt combinations of two or more decisions.

7.     Evaluate the effect. How well does the decision you have picked solve the problem? If not so well, could implementation be the reason? If the implementation looks flawless, you may have to check the first four steps once again.

By the way

Indeed, we said decision-making could be a simple, seven-step process. The reality, it must be said, is that human judgment is not always sober and based on information on the table. Decision-making can be influenced by such powerful internal and external forces as intuition, emotion and amount of time available.

                                     Rupert Chimfwembe

                                      21 November, 2016

HUMAN RESOURCE MANAGEMENT - THE BASICS

Human resource management is the activity of providing an entity the people it requires to function well, ensuring the people stay and generally running “people matters”.

People are the most central asset of an organisation. The value people embody are primarily labour, knowledge and intellect which, normally, are applied simultaneously.

The importance of the human element in production (both for profit and not-for-profit) calls for specialist attention, and hence the presence of a human resource manager in many organisations.

Human resource management can be split into three main areas, namely, employee supply, employee maintenance and administration. We shall examine each in turn, even though these passages will hardly do justice to the wide field of human resource management, and so are better treated as guidelines. They do, nevertheless, present key areas of the job of superintending over the human segment of production.

Some Basic Components of Human Resource Management

                               
EMPLOYEE SUPPLY

It is the process of finding and hiring the people to make the organisation operate efficiently and effectively. It includes:

Planning.The future requirements of an organisation need to be forecast. It necessitates job analysis, centred on job specification and job description.

Job analysis is the determination of the task content of a particular post, the qualifications the position requires and its importance relative to others. 

A job description is a list of the duties a person has to perform in a given post. 

A job specification is a list of the qualifications – in terms of education and experience, and as a person –that an individual has to have to fill a vacancy.

Recruitment and selection. It is the activity of soliciting for possible candidates to fill a position and finally contracting the most suitable-looking. An interview of applicants is normally conducted. Vacancies can be filled through other avenues such as head-hunting and promotion of an existing employee. In head-hunting, there may not always be an interview:a pre-identified top-performer is merely coaxed into joining the organisation.

Orientation and Culturalisation. Orientation means making a new employee familiar with the operations of the new employer. Some of the components of the orientation process are:

-       -   Understanding the practices of the organisation.

-       -   Meeting old members of staff and getting to know different departments.

-       -   Appreciating the mission and vision of the employer.

Culturalisation involves introducing a new person to the norms, values and customs of the workplace. It includes explaining how employees interact with each other and with their employer, and what they hold dear, like marking the birthday of everyone with a celebration.

Placement. This takes place after hiring, orientation and culturalisation. The new employee is finally put in thejob that suits their qualifications.

EMPLOYEE MAINTENANCE

Employee maintenance includes all activities of basically a motivational nature that, ultimately, have the effect of making valuable employees stay with the organisation as long as possible. The employee maintenance responsibilities given below are just some.

Remuneration. It is the compensation in various forms,direct and indirect, financial and non-financial, given to employees in exchange for their services.

Training and development. Training is schooling given to enable one perform better in their existing job. Development is education designed to enable an employee work satisfactorily in a higher position in the future.

Fringe benefits. This is remuneration in addition to the normal salary or wage, such as company accommodation.

Job redesign. It is action taken to keep employees stimulated and working at their best. It commonly takes the form of job enrichment, job specialisation, job enlargement or job rotation.

In job enrichment, an employee may be assigned to do work normally done by someone or others in a higher position.

Job specialisation meansreducing the number of tasks one does.

Job enlargement is expansion of the range of duties performed by an individual, and job rotation involves enabling employees to switch from one job to another, performing each temporarily.

Appraisal. These are reviews, usually annual, of employment performance. They can result in such decisions as recommendation of additional training, development programmes, or promotion.

Appraisal can indeed lead to moving an employee to a position of a lower level that is seen as less demanding but more appropriate, action referred to as demoting. It should really be the last direction to look in, as human resource management should seek to help everyone reach the expected standard of performance. Demotion can also be effected as a disciplinary measure.

By and large, demotion, especially today, remains a route requiring delicate treading.

Labour relations. Human resource management has to do the balancing act of meeting the interests of both management and workers, which do not always coincide.

ADMINISTRATION

Administrative tasks of human resource management are basically those not exactly falling under either employee supply or employee maintenance. They embrace, but are not limited to, updating files, devising employee-employer-friendly leave plans (normally done hand-in-hand with employees and their supervisors), and ensuring that everyone operates within organisational policy.

From time to time, human resource managers find themselves in the unenviable situation of performing the formalities of severing ties between employee and employer.

Rupert Chimfwembe

 8 November, 2016