Quality of Decisions and Organizational Performance...

Quality of Decisions and Organizational Performance Quality of decisions made is very important for the smooth functioning of an organization. It is a known fact that decision making is not just about selecting the right choices or compromises. Unless a decision has degenerated into work, it is not a decision. It is at best a good intention. Decisions made become effective only after they are implemented. Organizational management is required to make a large number of decisions on a continuous basis. These decisions are required to be made for the smooth running of the organization. The performance of the organization is greatly influenced by these decisions. Hence, making decisions is a matter of a huge responsibility for the management not only against the organization itself, but against their employees and other stakeholders, as well. The decision making process can be explained as a proposal considered by the management in the context of the organization and its strategic position. Alternatives, risks and potential outcomes are considered and then a decision is reached. There can also be a post audit and a feedback loop. The decision making process of the management is subject to human error as the management personnel have personalities, prejudices and a self-interest bias. Importantly, they have different attitudes to and appetites for risk. The decisions of the management are influenced by the decision making environment which consists of a unity of management’s experience, beliefs and perceptions on one side, and decision support tools and techniques on the other side. For determining the effectiveness of the decision made, the performance of the organization is normally measured on the basis of eight performance parameters. These performance parameters include (i) profitability, (ii) organizational effectiveness, (iii) continuous improvement, (iv) productivity of the processes, (v) quality of...

Cost Benefit Analysis...

Cost Benefit Analysis Cost benefit analysis (CBA) is a tool which is used for the determination of the worth of a project, programme or policy. Its principles and practice are well established and widely used. Organizational management normally uses this tool to appraise a project before taking an investment decision. The decision to conduct a CBA for the project alternatives and the manner in which it is to be conducted is usually taken since it helps the management in making judgments and appraising available options. CBA is a systematic approach for the estimation of the strengths and weaknesses of alternatives and is used to determine options which provide the best approach to achieve benefits from the project. It is the comparison of costs and benefits of the project to decide whether it can be undertaken. In CBA both the tangible and intangible costs as well as tangible and intangible benefits are considered. CBA is a term that refers both to (i) a formal discipline used to help appraise, or assess, the case for a project, which itself is a process known as project appraisal, and (ii) an informal approach to making decisions. Under both definitions the process involves, whether explicitly or implicitly, weighing the total expected costs against the total expected benefits of the project or its alternatives in order to choose the best option. The idea of this economic accounting originated with Jules Dupuit, a French engineer whose 1848 article is still worth reading. The British economist, Alfred Marshall, formulated some of the formal concepts which are at the foundation of CBA. But the practical development of CBA came in 1936 when the regulatory act required US Corps of Engineers to take up only those projects for the improvement of the waterway system...

Data Analysis and Management of Steel Organization...

Data Analysis and Management of Steel Organization A steel organization is very complex in nature. In such an organization, there are a large number of units working in conjunction with each other and there are a large variety of processes taking place simultaneously at all the times, generating huge amount of data. This large quantity of data need to be coordinated, collected, integrated, and analyzed for decision making in order to ensure the smooth running of the processes and units, as well as for the proper functioning of the steel organization. Hence data plays a very important role in efficient management of the steel organization. The speed and quality of the data analysis provide ultimately the steel organization the efficiency as well as a competitive advantage. Further while the majority of the data is generated internally in the organization, some of the data comes to the organization from the sources which are external to the organization. The generated data in the steel organization are worthless in a vacuum unless its potential value is unlocked and leveraged to drive the decision making in the organization. To enable such evidence based decision making, the steel organization needs efficient processes to turn high volumes of fast-moving and diverse data into meaningful insights. The overall process of extracting insights from the large data can be broken down into five stages (Fig 1).  These five stages are (i) acquisition and recording, (ii) extraction cleaning and annotation, (iii) integration, aggregation and representation, (iv) modeling and analysis, and (v) interpretation. These five stages form the two main sub-processes namely (i) data management, and (ii) analysis. Data management involves processes and supporting technologies to acquire and store data and to prepare and retrieve it for analysis. Analysis, on the other hand, refers...

Data based Decision making in a Steel Organization...

Data based Decision making in a Steel Organization During the operation of a steel plant a large amount of data gets generated. In a steel organization where there are a large number of units working in conjunction with each other and where there are a large variety of processes taking place simultaneously at all the times, the generated data is many times that of a normal organization. This huge amount of data need to be coordinated, collected, integrated, and analyzed in order to ensure that proper decisions are taken for the smooth running of the units, processes and ultimately the steel organization. Decisions taken based on analyzed data ultimately help in providing the organization a competitive advantage. Even without disturbances, unexpected situations and current rapid production changes in a steel organization are challenging for operators, maintenance personnel and production planners and management who make decisions. Hence, there is a need to have a systematic methodology to structure the decision making situations and to find out the relevant information and other needed factors. The performance of decision making depends on the quality of the decisions taken. Structuring the decision making situation means that all the relevant factors are considered and not forgotten, and action choices are found out and their effects are evaluated. This kind of approach produces cost-effective decisions. Data if collected and stored is only a lot of information available. For data based decision making, the data is to be structured and processed. Inter dependency of the data need to be understood and proper integration is to be done to have meaningful data analysis for decision making. Data is good, but only as good as the systems in place to collect summarize, analyze, make decisions, make action plans, implement interventions, and sustain implementation....

Organizational Communication – Effective Tool for Excellence...

Organizational Communication – Effective Tool for Excellence Communication is the process through which information is exchanged and understood by two or more people or groups, usually with the intended or unintended motive to influence the behaviour. It is seen as transfer of information from the sender to the receiver with the information been understood by the receiver. Organizational communication is a key element of the organizational climate. it applies to all the phases of management in the organization. It is the central binding force that permits coordination amongst the organizational people and thus allows for their organized behaviour. In fact, the behaviour of the people in the organizations is best understood from the way they communicate. Communication for the organization is like blood flow in the human body. It is very necessary for the effective organizational performance. Effective communication is also essential for the coordination between material and human elements of the organization. In the absence of such effective communication, the smooth functioning of the organization gets jeopardized. The most efficient management is that which understands the values of communication and use it effectively in the environment of the organization. During earlier days, communication in most of the organizations used to be largely informal since the organizations were small. As the size of the organizations increased, organizational communication has not only become far more complex and varied but also more important for the overall functioning and success of the organizations. Communication is a mixture of personal attributes and organizational aspects. Effective communication is necessary for the organization since the management functions in the organization are carried out through communication. In fact effective  management in the organization is directly related to the effective organizational communication. Organizational communication is of increasingly importance not only for the...