Decision-Making Strategies and the Uncertainty Avoidance

Subject: Management
Pages: 11
Words: 3072
Reading time:
12 min
Study level: PhD

Introduction

The decision-making process is one of the complicated strategical attributes, which defines the capability to reach strategical goals and leads to profit optimization. Nonetheless, the rationale for the decisions tends to be unclear due to the inability to discover the problem from dissimilar viewpoints to determine a novel solution to the issue while maximizing the sustainable development of the organization (Goebel & Seabert, 2006). These features have a substantial impact on the organizational performance while underlining the necessity of inquiry in this sphere as one of the urgencies. In the context of the workplace-based case, the problem can be formulated as the lack of the rationale for the utilization of the acquisitions as a prime instrument for the expansion. In this case, the issue can be redefined and be targeted at the concerns related to forecasting and the validation for the selection of the particular techniques for the evaluation and projections of the situation in the crude oil industry while concentrating on the magnitudes of the business uncertainties.

In only 3 hours we’ll deliver a custom Decision-Making Strategies and the Uncertainty Avoidance essay written 100% from scratch Get help

The crucial objective of this paper is to address the workplace-based issue to understand the current condition associated with decision-making strategies and uncertainty avoidance. In this case, the literature review is utilized to contribute to the identification of the action plan to enhance the research outcomes and advance the company’s current expansion strategy and financial performance while employing scientific and practical publications to portray the issues from dissimilar outlooks. In turn, the action plan is proposed based on the findings and includes critical action

learning, literature research, and discussion groups to determine the steps, which have to be taken to review an issue from divergent perspectives. In the end, the conclusions are drawn to summarize the outcomes and results of action learning writing.

Background of the Workplace-Based Case

It remains evident that the issue described earlier has a correlation with the workplace-based problem, as it is critical for the understanding of the rationale for the issue existence and the actions of the management in the presented situation. Meanwhile, this section will offer the reasoning for the necessity of the problem restatement due to the description of the key internal and external forces, which influence the decision-making processes.

My workplace is one of the leaders in the production in the crude oil industry while having a global presence and concentrating on the international relations. Despite the company’s stable condition and recognition in the market, the management decided to utilize the acquisitions as an expansion strategy to advance the company’s profitability and ensure the prosperity of the organization while facing different economic alterations. These actions will be based on the firm’s solvency and future provisions of the potential influence on the organizational profitability.

The initial acquisition was overpriced, but its paramount significance was emphasized by a new specialist with basing his/her reasoning on the probable opportunity to expand the operations in the GoM region. The possible actions in this area would have an advantageous influence on the functioning of the organization while affecting company’s image positively. The subsequent decline in crude prices raised the degree of scrutiny of the first acquisition while defining the following mergers and acquisitions. The evaluation research was conducted to understand the principles of decision-making and risk uncertainty while using scholarly and practitioner perspectives. As for the methodology of the study, the interviews with the senior executives were selected as a primary instrument to identify similarities, patterns, and disparities to determine the reasoning behind the decision-making.

Literature Review

Principles of the Action Learning

The primary goal of the literature review is to define the rationale and reasoning for the formation of the particular stages and steps in the action plan. This section will expand the redefined problem and determine potential solutions, which can be regarded as a desired outcome of the case. Meanwhile, it will define the steps for the construction of the implementation plan to address the redesigned issue.

Academic experts
available
We will write a custom Management essay specifically for you for only $16.00 $11/page Learn more

Firstly, the learning indicators and capacity are the critical components for the cultivation of changes and the understanding of the efficiency of learning within the organization (Getha-Taylor, 2008). These concepts contribute to the understanding of the possibility to reach the particular outcomes. Meanwhile, the learning indicators assist in defining the progress in the organization and its compliance with the goals related to modifications.

In turn, critical action learning is another principle, which has to be considered as essential in the context of the presented case. This framework is currently infusing the business world by emphasizing the vitality of learning in finding the connection between the selection of the particular organizational structure, power, and emotional intelligence (Ram & Trehan, 2010; Ram, 2012). A combination of these factors will determine the justification for the actions within the organization while assessing each attribute separately.

Despite the vitality of learning in the cultivation of change, the role of unlearning cannot be undervalued, as it assists in the abolition of the particular arrangements, which have an adverse influence on the efficacy of the decision-making behavioral patterns (Brook, Pedler, Abbott, & Burgoyne, 2016). In this case, the phenomena such as wicked problems, which imply the participation of a plethora of individuals while causing the development of the extended range of the alternatives, have to be assessed on the continuous basis to minimize the occurrence of negative consequences (Brook et al., 2016).

Models and Theories of Decision-Making

In turn, it is critical to describe key models and theories utilized for the evaluation of the decision-making processes due to their potential implementation in the action learning. Firstly, the thinking hats approach is the most common principle exploited in the decision-making to be able to discover the issue from dissimilar viewpoints while enhancing the possibility for selection of the most suitable alternative, which complies with internal and external factors (Goebel & Seabert, 2006). This approach can be actively used as a component of the action learning activities since it contributes to the understanding of the decision-making process while applying its concepts in practice. It could be said that the usage of this approach is critical, as it eliminates the irrelevant alternatives while enhancing the efficacy of risk assessment and contributes to the increased percentage of uncertainty avoidance.

Meanwhile, the novel understanding and potential application of the single-process and multiple-strategy is critical, as is approach determine the flow of critical thinking while identifying the avoidance of irrelevant information to decrease bias of the decisions (Sollner, Broder, Glockner, & Betsch, 2014). The utilization of this method as a part of the action plan will contribute to the understanding of the concepts of risks avoidance. Simultaneously, it can assist in understanding the decision-making principles and their influence on finding a solution to the issue.

Uncertainties in Forecasting

The connection to the novel identified topic, the uncertainties in the forecasting has to be evaluated to determine the potential topics for discussion and the overall implementation of these concepts while finding a suitable solution to the issue. In this case, the problems related to uncertainty has to be prioritized, as these matters can be considered as the primary cause of the wrongful decision-making (Piccirillo & Noro, 2008). In turn, the uncertainties’ minimization strategies tend to imply the usage of assessment instruments combined with the interactive communication to ensure the accurate delivery of the urgent information to the participants of the decision-making (Spender, 2014). It remains apparent that the implementation of this model as a part of the action plan will have an advantageous effect on the determination of the company’s weaknesses and threats related to forecasting.

The forecasts and projections are critical for understanding company’s future development paths and sustainability (Makridakis, Hogarth, & Gaba, 2012). The connection between forecasting and uncertainty is apparent, as the overall accuracy of forecasting is questionable due to the impossibility to consider all the relevant details linked to the constant changes in the economic environment. The key proposal is the development of the particular plans of actions to be responsive to the alterations while eliminating the risks and defining the boundaries of uncertainty (Makridakis et al., 2012). This principle can be actively exploited in the context of the presented case to eliminate the risks and the level of ambiguity associated with forecasting.

15% OFF Get your very first custom-written academic paper with 15% off Get discount

Lastly, the dynamical nature of the decisions related to the forecasts cannot be underestimated, as the behavioral theories highlight the interdependence between the competences of the workforce and the right time frame for the application (Evgeniou, Fang, Hogarth, & Karelaia, 2013). The application of this theory has to be assessed by using the action learning concepts in the context of the workplace-based problem. This aspect will reveal whether the issue related to the forecasting in the organization occur due to the lack of skills of the specialists.

Steps Taken to Address the Problem

Critical Action Learning

Based on the aspects described in the literature review, it could be noted that critical action learning will have a beneficial influence to finding the resolution to the workplace-based issue, as it tends to depict the problem from dissimilar perspectives while prioritizing a particular side. It has to be mentioned that the action learning’s primary benefit is the possibility to change the orientation of the actions and the research during the implementations of the procedures.

One of the stages has to be related to the understanding of the uncertainties retained in forecasting while paying particular attention to the rising indecisions and assessment of the competences of the forecasters. This aspect can be achieved with the assistance of the implementation of the processes and the scheduling of the interviews with the executives and meetings with the workforce of the company. This step will help evaluate the existence of the issues related to this field and provide the reasoning for the proposal of the link to the re-defined problematizing.

In turn, the concepts of critical action learning and necessity of unlearning have to be utilized to minimize the occurrence of wicked problems while introducing the detailed plans for actions in the context of different situations (Brook et al., 2016). In this case, a profound analysis of the situation in the organization has to be conducted while evaluating the issues, which can be regarded as potential sources of malpractice and decision-making. Lastly, the principles of thinking hats and single-process or multiple approaches for decision-making have to be applied with the help of the critical learning approach. Reusing the thinking hats theory will contribute to revealing the uncertainties and behavioral patterns of decision-making while having beneficial learning outcomes on the learning capacity of the workforce.

Literature Research

The review of the literature and publication assists in finding the rationale for the occurrence of the particular events, which can be used for the problem reframing. In this case, the evaluation of the various methods, activities, and theoretical concepts and models, which will contribute to the understanding of the presented case. In this case, the conducted literature review defined the potential areas, which require research to determine the relevancy of the problem redefinition.

Firstly, it could be said that evaluation of the models and principles of critical action learning has to be prioritized, as this matter defines the flow of the processes while determining the presence of the particular results. Meanwhile, the conception of unlearning has to be assessed, as the complexity of this phenomenon cannot be underestimated due to the potential implication as an instrument to minimize uncertainty. In turn, particular attention has to be paid to the decision-making theories, as the single-process and multiple-strategy were not actively used previously and require sufficient evaluation before the application. Meanwhile, the application of other concepts might be considered reviewed from the literature syntheses conducted earlier, as the areas of application are defined clearly.

Lastly, the nature and dynamic nature of the forecasts require sophisticated analysis. These concepts imply a high level of complexity, which might be regarded as a potential threat to the validity and reliability of the findings acquired via action learning. Nonetheless, all models and theories described above have to be evaluated simultaneously due to a plethora of interdependencies between concepts. This tactic will accumulate the understanding a complicated nature of the critical action learning and decision-making process and ensure the assessment of the existing issue from dissimilar standpoints.

Get your customised and 100% plagiarism-free paper on any subject done for only $16.00 $11/page Let us help you

Set Team Discussion

Lastly, it is crucial to set a team discussion, as this approach contributes to the evaluation of the strategy while determining the potential implications of the existent alternatives and options. It remains apparent that the primary topics and themes for discussion were defined in the literature research section, but having a detailed understanding of the concepts will have an advantageous influence on the implementation process of the stages of the action plan. In this case, the themes include the applicability of the concepts of models of critical action learning and unlearning, the evaluation of principles of thinking hats and single-process and multiple strategy as cultivators of the rationale and logical thinking in the forecasts, the necessity to consider the dynamic state of the forecasts, and the correlation of the employees’ competences to the critical outcomes of action learning and upsurge in uncertainty avoidance.

Meanwhile, the nature of the critical action learning underlines that setting the discussions in accordance with the rising issues will be beneficial due to the ability to determine the potential aspects associated with the company’s profitability and efficacy. Consequently, the teams of the discussion can be modified freely with the start of the implementation, and the presence of these modifications will be critical for the continuous reframing of the workplace-based issue.

Results and Conclusion

It could be said that the understanding of the workplace-based issues eases redefinition and problematizing procedures, which are required to enhance the organizational functioning. Meanwhile, the existent issues are related to the lack of the rationale linked to the decision-making process, which can be redesign and targeted at facing the problem associated with bias in projections and forecasting. In this case, the literature review reflects the research and action stages from dissimilar perspectives while offering novel insights related to the critical action learning and unlearning, decision-making strategies and models, and fluctuations of decisions in forecasting and their correlation with the competences of the employees.

The literature review covers the scientific understanding of the issue while depicting the possibilities of the practical application. In turn, the plan consists out of critical action learning research, literature research, and team discussions. All topics reflected in the literature analysis tend to be a basis for the action plan and have a correlation to the understanding of the redefined problem.

Based on the factors provided above, it could be said that the principle outcomes are connected to the discovering the tactics to improve the efficiency of the organization while developing sufficient and detailed plans of actions and the minimization of the occurrence of errors in the forecasting. In this instance, these aspects will have a beneficial influence of the decision-making related to the subsequent acquisitions. Meanwhile, the workforce will increase its awareness about the necessity to reflect the issue from unrelated perspectives to enhance the probability of the achievement of the desired outcomes.

Reflections on the Literature

Action learning process implies the continuous research and restatement of the existent situation, which will lead to the optimization of the solutions related to the workplace-based issue. Meanwhile, this process is complicated and requires profound understanding and assessment of the topic due to the existence of a plethora of details. This approach contributes to the analysis of problem from dissimilar perspectives and highlights the initial source of the problem, which requires refinement. In this case, it could be said that the overall learning process implied an extensive coverage of the topics, which will reflect a plethora of issues associated with the workplace and the industry. Initially, the matter was connected to the aspects related to the enhancement of the relationships between employees and management, the involvement of the workforce in the decision-making processes, and understanding of the decision-making strategies and reasoning for the selection of the particular resolutions. After an extended period, the overall framework and problematizing were redefined to the applicability of the acquisitions and the essentiality of uncertainty related to forecasting and projections. Based on the factors provided above, it could be said that the application of the concepts of action learning and research allowed monitoring reactions of the workforce and management to the proposed changes while evaluating their opinions related to these innovations. The overall learning process required expansion of knowledge and understanding of the concepts on the regular basis while encouraging flexibility to redefine the issue.

It remains apparent that dissimilar viewpoints were accessed from the practitioner and scholar sources to determine the reasoning for the occurrence of the dispute and the potential paths for the optimization of procedures. It could be said that this approach contributes to the understanding of the workplace-based situation while using various instruments and models to determine the outcomes and to conduct the analysis and evaluation of the suitable options. In this case, the action learning and research were regarded as the primary definers of activities to accumulate changes while covering theoretical and practical application. Meanwhile, it was revealed that principles of unlearning also have to be considered due to their correlation with the alterations of behavioral patterns and a potential effect on the minimization of the uncertainties (Brook et al., 2016).

Another attribute of the learning process was the literature review, which helped discover the necessity of the decision-making tools and their influence on the profitability of the organization. Meanwhile, the literature synthesis revealed that the need for understanding the concepts of uncertainties and evaluate prevention strategies. In this case, it could be said that literature review is utilized as a tool to increase the theoretical basis (Kumar, 2010). Nonetheless, practitioners highlight the essentiality of this instrument while selecting the appropriate strategy and using cases like examples to encourage learning initiatives (Kumar, 2010). Lastly, a role of the discussions in the learning process cannot be underestimated, as these concepts are critical for the evaluation of the solutions from different perspectives while considering dissimilar viewpoints of the individuals (Hardman, 2009). It could be said that this approach elevates the effectiveness of the overall learning process while being a source of understanding rationale and reasoning for the particular actions and grounding the decision on the collective opinion. In the end, all of the mentioned learning techniques have to be used simultaneously to enhance the learning outcomes.

References

Brook, C., Pedler, M., Abbott, C., & Burgoyne, J. (2016). On stopping doing those things that are not getting use to where we want to be: Unlearning, wicked problems and critical action learning. Human Relations, 69(2), 369.

Evgeniou, T., Fang, L., Hogarth, R., & Karelaia, N. (2013). Competitive dynamics in forecasting: The interaction of skill and uncertainty. Journal of Behavioral Decision Making, 26(4), 375-384.

Getha-Taylor, H. (2008). Learning indicators and collaborative capacity: Applying action learning principles to the U.S. Department of Homeland Security. Public Administration Quarterly, 32(2), 125-146.

Goebel, G., & Seabert, D. (2006). Put on your thinking hats. Journal of School Health, 76(7), 393-395.

Kumar, R. (2010). Research methodology: A step-by-step guide for beginners. London, UK: SAGE Publications Ltd.

Makridakis, S., Hogarth, R., & Gaba, A. (2012). Forecasting and uncertainty in the economic and business world. International Journal of Forecasting, 25(4), 794-812.

Piccirillo, E., & Noro, M. (2008). Guidebook for supporting decision making under uncertainties: Today’s managers, tomorrow’s business. London, UK: World Scientific Publishing Co. Pte. Ltd.

Ram, M. (2012). Critical action learning: Extending its reach. Action Learning: Research and Practice, 9(3), 219.

Ram, M., & Trehan, K. (2010). Critical action learning, policy learning and small firms: An inquiry. Management Learning, 41(4), 415-428.

Sollner, A., Broder, A., Glockner, A., & Betsch, T. (2014). Single-process versus multiple-strategy models of decision making: Evidence from an information intrusion paradigm. Acta Pshychologica, 146, 84-96.

Spender, J. (2014). Business strategy: Managing uncertainty, opportunity, and enterprise. Oxford, UK: Oxford University Press.