by Hedreen (2023), the following is a current list of tools used by
managers who want to optimize their decision-making process:
SWOT analyses: Understanding organizational strengths,
weaknesses, opportunities, and threats helps managers identify
where they stand and how they need to compete in their
industry. This information is critical when making long-term
decisions.
Formal decision-making methods: The sharing of data among
managers or assigned team members that is collected using a
variety of peer analyses. Once the data is reviewed and analyzed
by the managers, a group analysis can be conducted to
determine the best decision available to the organization based
on the multiple sources of data.
AI decision-making software: For complex decisions, artificial
intelligence software can collect large amounts of data that can
include consumer data, economic indicators, product attributes,
or environmental factors to only name a few.
What are the relationships between the tools managers’ use and
the managers’ task?
The tools managers use can depend on the complexity of information
needed to make the most informed decision and the variety of resources
available. When large amounts of data are needed, this can involve
various departments within the organization and include AI decision
making software or business intelligence (BI) which analyzes past data.
Most BI systems use a variety of analytics processes, reporting processes,
and data visualization software that can increase overall profitability,
optimize internal processes, identify market trends, or identify
organizational problems (Eye on Tech, 2020).
What are the reasons for using the support tools?
One of the five functions of management is planning which entails
creating a road map for how organizational goals can be achieved (Belyh,
2019). Using these decision-making tools is how managers are able to
create that road map. The organizational goals are typically based off the
SWOT analyses and are designed to either improve a strength, remove a
weakness, provide an opportunity, or respond to a threat. These support
tools also provide the decision-makers with certainty based on the amount
of information provided, and can help minimize risk (Bierman et al., 2023).
References
Belyh, A. (2019, September 24).
Functions of management – planning,
organizing, staffing and more
. Cleverism.
https://cleverism.com/functions-
of-management-planning-organizing-staffing/
Links to an external site.
