Showing posts with label management. Show all posts
Showing posts with label management. Show all posts

Thursday 21 March 2024

ADMINISTRATION - Decision-making

  QUESTION:  What is decision-making? Contrast the comprehensive-rational Decision-making Model and the Bounded- rationality (satisficing) Decision-making Model. Which of the two models best explains decision-making processes in the Zambian public service? Give reasons for your answer. Word limit 2500 - 3000 words.


SUGGESTED ANSWER BELOW


ABSTRACT

Decision-making is the series of mental and physical steps taken in overcoming a challenge. The Comprehensive Rationality Decision Making Model and the Bounded Rationality Decision Making Model offer two possible logical ways of solving problems.

Comprehensive rational decision-making theory offers linear (successive) steps meant to lead to optimisation of benefits. The bounded rational decision-making model makes a modified rational process aiming at bringing realism into problem-solving. Its purpose is to arrive not at optimised benefits but simply a satisfactory outcome. The bounded rationality model in practice lessens the amount of information-evaluation proposed by comprehensive rationality theory.

The two decision-making models enriched the field of administration and in particular gave a better understanding of what may or may not work well in decision-making. Administrators who have studied the two models probably have to choose which to apply and to what degree.

 

KEY WORDS/PHRASES

Rationality – to be measured, examining available material before making conclusions.

Comprehensiverational decision-making – the decision-making in which decision-makers list and make full evaluation of facts and figures for and against.

Bounded rationality decision-making  model – a rational decision-making model in which there is less emphasis on full evaluation of available material.

 

INTRODUCTION

A decision is the choice made by the decision-maker, from a number of alternatives, to address some challenge in a specific situation. Decision-making is a problem-solving process which ends when an answer is found - normally from among a range of possible solutions. What is common in these two definitions is that decision-making involves selection of what to do.

 Decisions are made in public administration, politics, business, social situations and indeed in an endless list of other professions and circumstances.

The basic decision-making process has the four main stages of identification of goals, option generation, evaluation and choice, and follow-up and execution.

 

In this essay, we contrast the comprehensive-rational Decision-making Model and the Bounded Rationality (satisficing) Decision-making Model. We also attempt to explain which model is more in line with the decision-making process in Zambia.  

 

DEFINITIONS IN DECISION-MAKING:


1.      Rationality.

2.      Comprehensive-rational decision-making model.

3.      Bounded-rational decision-making model.


1.      Rationality

We start by explaining the word ‘rationality’. Rationality is reasoning that seeks to maximise the benefits, as dictated by the means available. Thus, the rational actor strives to avoid judgement based on emotion and arbitrariness. It may therefore be safely said that the rational actor attempts to make decisions and moves based on understanding why it is important to take one particular decision instead of another. For example, the rational actor will attempt to examine and understand facts and figures before deciding whether to buy a horse or a car as his/her daily means of transport. The principle of rationality has been used for a long time in economics in efforts to explain consumer choice.

 

1.      The Comprehensive Rational Decision-Making Model.  

Comprehensive rationality suggests that leaders seek to convert their vision to policy, supported by organisations which operate in a sensible and impartial manner. Accordingly, the Comprehensive Rational Decision-Making Process was conceived to have the following steps:

i.                    Identifying values and objectives/goals to be achieved.

ii.                  Listing and assessing all the different ways the objectives/goals can be achieved.

iii.                Determining how appropriate each of the listed objectives is.

iv.                Comparing the benefits of each option with its costs.

v.                  Picking the option that maximises achievement of values and objectives and goals. 

vi.                Execution.

vii.              Feedback.


  1.      The Bounded-rational decision-making model

 

The bounded rationality decision-making model seeks ‘sufficiency’ rather than ‘maximising’. Specifically, the model is based on:

·         The view that individuals and organisations cannot maximise their utility (degree of satisfaction); they instead are able to find a point that is ‘good enough’ or ‘satisfices’, and  

·         The reasoning that decision-makers do not have the means or the desire to consider absolutely all factors before deciding what course of action to take; they have to use the simple  'rule of thumb' (which is really a combination of rules and common sense) – focusing on the factors most relevant and making a decision.

To find decisions that satisfice, decision-makers should be free thinkers. They must be able to process information well and use the most appropriate rule of thumb to ensure they are most effective. 

Some organisations are large and complex. Decision-making that considers every relevant fact can be really time-consuming and tiresome. Decision-making could be impracticable. So, the rule of thumb is supposed to help a decision-maker decide with relative ease.

CONTRASTS BETWEEN THE COMPREHENSIVERATIONALDECISION-MAKING PROCESS AND THE BOUNDED RATIONALITY MODEL

1.      One difference is that the comprehensive rationality model assumes that the decision-making process is linear (moves from one clearly-defined stage to another) in a sequential fashion. The bounded rationality model recognises that decision-making may not always move that way, especially in very big organisations. 

However, it still goes to the credit of the comprehensive rationality model that there is, at least, some formal approach to decision-making.

 

2.      While the comprehensive rationality model is about examining all relevant available facts and figures, the bounded rationality model embraces the impracticality of evaluating vast amounts of data and proposes minimisation of material to examine. It proposes that it is necessary to start out with only some key facts to consider, unlike in the comprehensive rationality model. It can also not be presumed that an individual or organisation will be able to generate the many alternatives that may require discussing in some cases.

Indeed, even the bounded rationality model does not dismiss rationality - the examination of facts available. It only proposes minimising their examination.

 

3.      The comprehensive model seeks listing of values and objectives in order of importance. By not suggesting that approach, the bounded rationality model appears to recognise the fact that sometimes, the objectives can be difficult to list in order of importance.

 

4.      The two models are both rational, but with a difference. It is 'absolute rationality' that is not embraced by the bounded rationality model. Mere rationality itself is not a problem.

 

5.      The comprehensive rationality decision-making model assumes that all the information that will be needed will be there, accurate, reachable and not expensive.  In actual fact, information can be scarce, inaccurate, unreachable and too expensive. The bounded rationality model acknowledges that decision-making is limited by how much relevant information the decision-maker can get.

 

6.      Comprehensive rationality aims at decisions that ‘maximise’gains – the highest possible benefit out of the alternative chosen. Bounded rationality treats maximum benefit as impracticable, and therefore seeks to only ‘satisfice’. In bounded rationality, therefore, it is enough if a decision is ‘satisfactory’.

 

7.      The comprehensive model makes the assumption that decision-makers will have the capacity and resources to do evaluation of alternatives in a technical way. This is not so, in real life. For example, a decision-maker may not know the evaluation criteria. Decision-makers are likely to have only sufficient knowledge to have a fair idea of benefits and consequences. 

   Decision makers both on the streets and in the boardroom often have competence handicaps and choose what is good enough (whether in shops buying shoes or in the boardroom discussing who to promote to a vacant position). Bounded rationality recognises the fact that decision-makers are not always technically competent.

 

8.      There are times when it is necessary to act in advance when one has a mere idea of the dangers of not doing so. For example, many countries and regions went on lockdown after the breaking out of the Coronavirus. While some countries may certainly have done a comprehensive analysis of the various alternative courses of action, many appear to have simply used the ‘good enough’ idea they had of the effects of Covid-19 afflicting their communities and locked down. The contrast here is that bounded rationality – unlike comprehensive rationality - advises openness of mind and pragmatic practice.

 

9.      Another contrast is that there are factors (such as ethics, feelings, loyalty, respect) that cannot be measured but are still very important. There seems no room for them in the comprehensive rationality model which argues that relevant factors must be identified and measured against consequences. That is, if a factor cannot be measured, it may have to be left out, and not be considered (even if it is an important factor to consider). On the other hand, the openness of mind encouraged in the bounded rationality model suggests that there is room for non-quantifiable factors.

WHICH MODEL BETTER DESCRIBES THE ZAMBIAN DECISION-MAKING PROCESS?

Both the comprehensive rational decision-making approach and the bounded rationality philosophy are evident in Zambia. Which of the two models best describes the decision-making process in Zambian public service, however, seems to depend on the type of public sector entity being looked at. We expand this statement under two sub-headings:

The public sector

In the Zambian public sector, including the legislature and civil service institutions, decision-making appears to strongly be in the line of comprehensive rationality. The reasons are:    

-          Government procedure in decision-making is clearly spelt out in writing and must always be followed to the book. Decisions always have to follow the procedure of providing information for evaluation before approval is given. That is a characteristic of comprehensive rational decision-making.  

 

-          There is linearity in the way government ministries and departments make decisions. This is exhibited in the award process of contacts by the Zambia Public Procurement Authority ZPPA). Linearity is also shown in the way the national assembly operates. For example, laws start as bills which have to go through four sequential steps namely first reading, second reading, third reading and eventually being signed by the republican President before they become statutes.

-          It is possible to see assumptions associated with comprehensive rational decision-making. An example is the apparent assumption that there will be enough time for all the required procedure. There obviously is also the assumption that by being so procedural, the outcome will be the maximised utility.

In many ways, it is understandable using the comprehensive rational decision-making model in government institutions. They are normally very large and complex and if procedure were not rigid, it would increase the incidence of vices such as employing unqualified personnel and awarding undeserved business.

The parastatal sector

In quasi-government businesses (parastatals), there is some departure from the rigid system of procedure. For example, people can be dismissed more easily and at the local level than in the totally government sector. It is not so in the pure government sector. Firing a junior civil servant in remote Mbala (for instance) can require the involvement of very senior officers (normally the Permanent Secretary) in the capital city. Because of being slightly more autonomous and being in business, parastatal businesses enjoy a bit more flexibility in procedure. Overall, parastatal businesses suffer from many of the limitations (comprehensive rational decision-making burdens) as the pure government sector. This is because they operate within policy set by government and must achieve government objectives (not profit objectives) at the end of the day.

 

CONCLUSION

The formulation of the Comprehensive Rational Decision Making process, notwithstanding the weaknesses of the model, gave the world of administrators a crucial first step in how to go about solving problems. Being an initial step, it was bound to have imperfections. Other important theories such as Maslow’s Hierarchy of Needs, have also been found to have weaknesses (for example, it has been proven that one need does not have to be completely satisfied for a new, higher need to emerge).

When the Bounded Rational Decision Making process was proposed, it benefited from the existence of the comprehensive model evidenced by the fact that its proponents frequently refer to the comprehensive model in their writing. 

In fact, in many ways, the bounded rational theory was a strengthening of the comprehensive model out of appreciating the theory. If the comprehensive model had not been appreciated, the bounded rationality theory could have been made totally different.

And so, it could probably be stated that both the comprehensive and rational model of making decisions and the bounded and rational approach were attempts not to compete; they were attempts to solve a common enemy of mankind which was apparently insufficient decision-making tools. They each have validity.  

  


Monday 8 April 2019

HOW TO GET PROMOTED


Promotion’ is one of the few words that make people work that little bit harder in their job. The reasons are not far.
Promotion is when an individual is moved from one position to a higher one. For example, from salesman to sales manager, or accountant to head of finance.
Promotion normally brings higher pay, more privileges and better status. These are generally what the word is about. Does it need explaining? The question is, how does one put their hands on that promotion?
There are many ways to get elevated. Some of the things you can do to get your promotion include:
·        Putting your best in your work. Work professionally and present to your supervisors the best that you can achieve. This is perhaps one of the two most important rules.

·        Being trustworthy. Cultivate confidence in those around you that you can be trusted – with all forms of organisational assets including money, equipment and information. This certainly has to be the second of the two cardinal rules (the other being the above, of course).

·        Pointing out serious mistakes or omissions – even if it is your boss who has made it. This is a sensitive area. Some supervisors, if they are insecure, may not take it well. However, it might be more damaging in the long run for you not to say anything when you see something wrong than to do so. All supervisors secretly appreciate sub-ordinates who act as their third eye (it insulates them from being in trouble themselves). Only, choose the right moment and right way to do it.

·        Being brave. If called upon in a large meeting to share with others what you know about a particular subject, rise and speak. The plenty eyes around you will not swallow you. If anything, you will establish yourself as a leader and solution-provider. 

  Self-improvement. Formal education, reading and listening to people with more experience are powerful ways of moving from one level of knowledge and competence to a higher one. Self-improvement must be an ongoing process.

Drawing a line between business and pleasure. Leave business for business time and pleasure for pleasure time. They rarely move together. Many careers of otherwise capable women and men have been wrecked or slowed down because of not observing this rule. If you have not been, be smart about it - starting today! Finally,

·        Sacrificing a bit of your private time to get important tasks done. All managers do this. So, you will be marking yourself as one, by missing one beer to complete one vital job. Thirty minutes or so will be a valuable investment in your career progression.
This is it for now. Get your career on fast track by observing these rules. They may not be the only important principles. Nevertheless, they are among the highest-ranking.

Bye!!

Saturday 19 November 2016

HUMAN RESOURCE MANAGEMENT - THE BASICS



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

















Friday 22 January 2016

MANAGEMENT LEVELS




First-line Managers
First-line managers or supervisors are the lowest in the management hierarchy. They are responsible for directly overseeing the work of non-managerial employees, who do the actual work of the organisation, and thus spend a lot of time leading and controlling. A lot of the planning of first-line managers is likely to be focused on a single day, week, month or a few months.

First-line managers need to possess a lot of technical competence as they have to closely monitor, advise and even give practical examples to the employees they supervise.

To have technical capacity means possessing both knowledge and practical abilities in such areas as salesmanship, accounting and machine operation.
First-line managers typically carry titles like foreman, supervisor, head-driver and office manager.

Each first-line manager reports to a middle manager and is actually directly in charge of one of normally a number ofsub-sectionssuperintended over by the middle manager. So, a first-line manager is likely to be found doing such work as supervising technicians in a workshop.

First-line managers interact a lot with other first-line managers, and middle managers, to ensure co-ordinated production of goods and services.


Middle Managers

Middle managers, who frequently are department heads, report to top management. They are the link between first-line managers and top management.

Middle managers convert broad objectives, policies and programmes created by top management to narrower, department-level goals, philosophies and activities.

Middle managers co-ordinate the work of the first-line managersworking under them.
Common titles of middle managers include marketing manager, production manager and finance manager.

Many individuals in middle management positions earlier served as first-line managers. In middle management, though, their involvement in technical activities is less.

Middle managers are instrumental in advising top management on such issues as the best goods and services to deal in and the most appropriate production methods.Staff training and development is another critical responsibility of middle managers.

Leading, organising and medium-and-short-term planning are common middle management activities. 


Top Managers

Top managers are responsible for the stewardship of the organization as a whole. They make general but far-reaching, long-term plans intended to, among other things, ensure institutional survival, create competitive advantage and grow the organisation.

Top managers normally include the board chairman, chief executive officer, president vice-president and directors of divisions. The plans, goals and policies they formulate become operational points of focus for the middle managers.

The typical work-day of a top manager hardly ends. Many matters requiring total concentration are done long after stipulated working time - and deep into the evening – at the office or at home.

Organisational success or failure ultimately rests on the heads of top management. They not only map out key directions but also find the resources for them. A large proportion of their time goes into planning.




Management levels. Bottom up: First-line management, Middle
Management and Top Management. The number of managers decreases at
each higher level



Management styles

Despite the existence of the above general hierarchy, personal style often determines exactly how a middle or top manager does their job.

Some middle managers, for example, while respecting the part played by their first-line managers, like to have as much direct communication as possible with the non-managerial staff, partly as a way of being in greater touch with reality.

Rupert Chimfwembe, 19 January, 2016.