Decision Making Across the Organization

In: Business and Management

Submitted By ramonicageorge
Words 750
Pages 3
Decision Making Across the Organization
Ramonica George
ACC/561
January 14, 2014
Grace Kalil

Decision Making Across the Organization

When it comes to decision making across the organization, managers must have an understanding of cost effectiveness, selling, pricing, and budgeting. The organization must be able to accurately budget for variable cost as well as fixed cost while maintaining an increase in profit and revenue. In this paper, I will discuss the different view-points of decision making across the organization. I believe that when looking at the behavior of analysis cost it allows me to think of it in the prospect of how my uncle explains the real estate business. This is the study of how the specific cost of an item is a direct effect of the business model. Looking at today’s economics, times and housing market conditions, interest rates have gone up. Last year, you could get a 30 year fixed loan at a 3.5%. In today’s market the same 30-year fixed is going to be at a 4.5%. The housing interest rates have gone up, due to the fact of the economy becoming better. With the economy in a better state, money now is more expensive to borrow because more people are able to borrow it. In today’s market, it is becoming harder for people to find help with their mortgages and a low interest rate. This is an example of Cost behavior analysis. The Martinez Company had decided to introduce a new product. However, the new product can be manufactured by either two methods; they are capital intensive method and labor intensive method. I believe that the best method is labor-intensive method. In order for Martinez Company to succeed, it is important for managers to gain knowledge on accounting. Accounting skills can be used not only to calculate payroll or the revenues generated by the sale of some products; it also can be used also to forecast inventory…...

Similar Documents

Decision Making

...Topic 7: Decision Making a) Explain with examples the TWO (2) types of decision making. b) Explain the steps in decision making. Introduction Definition of Decision Making * The thought process of selecting a logical choice from the available options * Decision making can be regarded as the mental processes (cognitive process) resulting in the selection of a course of action among several alternative scenarios. Every decision making process produces a final choice. The output can be an action or an opinion of choice. * Decision making is a process by DEFINING which a course of action is selected as away to deal with a specific problem. It is the selection of one alternative from among two or more alternatives * It is the process by which managers respond to the opportunities and threats that confront them by analyzing the options and making determinations about specific organizational goals and courses of action Answer: a) TWO (2) types of decision making Decision making is the selection of one alternative from among two or more alternatives. In other words, decision making is defined as the process by which a course of action is selected as the best way to deal with specific problem. There are two types of decision making are Programmed Decision and Non-Programmed Decision. 1. Programmed Decision Marking Programmed decision making is a repetitive decision that can be handled by a routine......

Words: 1184 - Pages: 5

Decision Making

...CHAPTER 12 ENHANCING DECISION MAKING Decision Making Rashan Carter, MSW IS 535 Managerial Applications of Information Technology Fall Semester Session Table of Contents Abstract ………………………………………………………………………Pg. 3 Decision Making ……………………………………………………………..Pg. 4 Information Requirements …………………………………………………....Pg. 4-5 Conclusion ……………………………………………………………………Pg. 5 Bibliography…………………………………………………………………..Pg. 6 [ ]Abstract Per our text, Decision Making in business use to be limited to management. Today lower level employees are responsible for some of these decisions, as information systems make information available to lower levels of the business. What is meant by better decision making? How does decision making take place in businesses and other organizations? (Laudon & Laudon, 2012) It is work of choosing issues that require attention, setting goals, finding or designing suitable courses of action, and evaluating and choosing among alternative actions. The first three of these activities--fixing agendas, setting goals, and designing actions--are usually called problem solving; the last, evaluating and choosing, is usually called decision making. When making a decision one should apply ethics to weigh the value or magnitude of impact. Often at times this can be challenging because there are so many influences that affect ones decisions. Ambiguity can play a big part in the circumstances, details, stakeholders, and morals in which decisions are made. In......

Words: 722 - Pages: 3

Case Study: Decision Making Based on Mission and Vision of an Organization

...may also not spread such infection from one patient to another. Since I read the case study: Decision Making Based on Mission and Vision of an Organization I will discuss in this paper the best solution on correcting the problem with Community Medical Center. I will go over the best mission or vision that is best suited for the business. A mission or vision is very important to a business. This is a good way to keep communication strong between the staff of the business. According to Johnson (2009), “Communication is critical for successful health outcomes; communication is the vital process that links consumers of care and providers of care” (p.226). In order for the president to come up with the best decision to communicate with all the staff he must have a clear vision to stand by in order to handle the issue at hand. Mission or Vision Statement Mission statements are an integral part of the strategic planning and implementation process that can provide direction to choices in strategic direction (Sattari, Pitt, & Caruana, 2011). The mission statement for Community Medical Center states: The mission of Community Medical Center is to improve the health of our community by providing high quality, caring, culturally appropriate primary health care that addresses the needs of people. In order to accomplish this mission in a way that is consistent with the values of the organization, programs and policies must be established. Medical Center is committed to maintaining......

Words: 970 - Pages: 4

Decision-Making

...Decision-Making Case Study December 16, 2013 The health care industry have been impacted by the economy across the country. The patients who used Medicaid services have been affected by budget cuts. The Clark County Clinic has gone through budget cuts too. Each department that services to Medicaid clients has received a 15% budget cut. The managers of Clark County Clinic have to make a decision if they have to cut certain services or what they can do to still provide services to those that has Medicaid. Effective decision-making is a key component in managing an organization. Managers make important decisions daily that affect the operations and quality of their organization. Every manager has their own perspectives, some are natural at decision-making and some are not. Manager’s still uses tools such as the Informed Decisions Toolbox (IDT) by Rundall et al, it helps managers with their decision-making. Clark County Clinic has gone through budget cuts, a 15% budget cut. The organization has a number of decisions such has how to achieve the goal and still maintain the best quality care for their Medicaid clients. There is an article that have been written in 2007 by Rundall et al that describes the decision-making process and has a set of tools that may help this clinic make the most informed and effective choices determine which services should be changed to meet their budget needs (Rundall et al., 2007). The managers of Clark County Clinic will determine......

Words: 1081 - Pages: 5

Decision Making

...president of the Community Medical Center must adhere to the mission and vision statement of the organization to make a sound decision. “Importantly, organizational decision making should be aligned (decision should be in accordance) with the organization’s mission and vision statements and strategic planning-based goals and objectives” (James, 2009, p. 221). Decision making is an essential leadership skill. The president needs to make his decision in a timely and well considered decision. In the case study, the president needs to utilize the rational and decision-making model that uses the different kinds of methods in order to come up with a better solution. The operating room nurse that has allegedly contracted with HIV/AIDS should be afforded the right and the opportunity to be heard and tell her/his side of the story. There was no confirmation from the operating room nurse that he was indeed having contracted HIV/AIDS. It was just a presumption coming from the majority of the surgeons in the surgical department, and without any evidence being presented during the meeting between the chief of surgery and the medical center president; they want the nurse be removed from his duties in this department. The nurse should be given the due process which is accorded by law to everyone. According to James, “leaders and managers usually are taught to utilize the rational and decision-making model using analytical (quantitative) methods and when necessary, couple with group......

Words: 1009 - Pages: 5

Decision Making Across an Organization

...Decision Making Across the Organization ACC/561 University of Phoenix Decision Making Across the Organization Every company must make decisions regarding different aspects of the business. The individuals that make these decisions must be informed properly on all options and must collaborate with other decision makers within the company to make the best decision for the company. The following will review a decision by the Martinez Company to introduce a new product using either the capital-intensive or labor-intensive method of manufacturing. In order to make the right decision for the Martinez Company, management must first calculate the break-even point in annual unit sales for each method. This will give management an idea of which method may be better to use when manufacturing the new product. The following shows the break-even calculations for each method: Capital-intensive method Total Fixed Cost = 2508000+502000 = 3010000 Contribution Margin Per Unit = Selling Price –Variable Costs = 30 -5 - 6 - 3 - 2 = $14 Breakeven Point in Unit Sales = 3010000/14 = 215000 Units Labor-intensive method Total Fixed Cost = 1538000+502000 = 2040000 Contribution Margin Per Unit = Selling Price –Variable Costs = 30 -5.5 - 8 - 4.5 - 2 = $10 Breakeven Point in Unit Sales = 2040000/10 = 204000 Units The results of the above calculations show that by using the labor-intensive method the Martinez Company will reach the break-even point 11,000 units......

Words: 476 - Pages: 2

Re-Organization and Layoff: Decision Making Evaluation Paper

...Re-organization and Layoff: Decision Making Evaluation In an article that has been discussed over the past five weeks entitled Mismanaged Layoffs Gone Horribly Wrong by Brenda Buow (2013) states “A company’s handling of layoff’s can have consequences long after the former staffers have left.” No organization sets out to lay off employees, but sometimes that is what must be done in order to keep the organization afloat. There are not many solutions to not conducting a layoff, but over the past five weeks it has been discussed that organizations can do a reduced work week or an internal job fair. The most effective solution is reducing the amount of hours an employee works. This benefits the organization by saving money on payroll and can even help the middle-income customer. Solutions A reduced work week allows extra time for the employees rather than being laid off and losing employment all together. For the middle-income customer, the solution of a reduced work week allows parents to have time to care for their children. For example, “Laflamme, a mother of three, has been working only four days a week for the last few years. Having an extra day to herself allows her to run errands and chores around the house so that she can enjoy the weekend with her children” (Shingler, 2013, para. 7). A company facing layoffs can make the decision to cut back the hours of employees after performing an analysis of the company budget, and being able to positively say that cutting......

Words: 762 - Pages: 4

Re-Organization and Decision Making

... Re-Organization and Decision Making Ryan C. Larnett Date Re-Organization and Decision Making An individual that runs an effective operation and is our company must possess the strong decision-making skills. Time and again there will be many decisions that come along that are not popular, but necessary in order to ensure that the business survives. Creativity is definitely in aspect that is needed in the business world because of the ability to open mind to changes that can benefit the operation. Today we discuss the effects of cutting operating expenses in order to take the business from failure. Solving The Problem In our learning team discussion that took place in the previous weeks we were tasked with recommending creative solutions to prevent layoffs the employees. One creative solutions that was recommended was cutting operating expenses; this can be a great preventative measure in saving employees’ jobs. Upon reviewing the process of fleet management one is able to see creative solutions that are taking place in this rising industry in South Africa. The involvement of companies to handle fleet services is a very creative solution for companies that do not want to deal with the hassle. These companies are expanding their primary functions outside of providing fleet management alone. “The fleet management industry in South Africa is a rather static one, especially at the top end of the market where companies perform a one-stop service in the form of full......

Words: 802 - Pages: 4

Re-Organization and Layoff: Decision Making Evaluation Paper

...Re-organization and Layoff: Decision Making Evaluation Paper PHL/320-Critical Thinking and Decision Making July 20, 2015 Re-organization and Layoff: Decision Making Evaluation Paper The term “working poor” aptly describes most employees in the middle income tax bracket. Middle class Americans typically live paycheck to paycheck. These workers face difficulty saving money as incomes barely cover living expenses. The financial struggles of middle class employees greatly intensifies when a facing a layoff. The laid off employees not only deal with the loss of income after a layoff; they also encounter barriers in finding a new job. During the past three economic recessions, millions of American jobs disappeared as companies decided to save money of labor costs by outsourcing “middle-skill” jobs (Tankersley, 2014). Middle class jobs are increasingly hard to find. Learning Team A discussed the financial strain sustained by these displaced workers. The team decided a company’s best course of action to assist these employees consists of offering a severance package to discharged workers. The Severance Package There are many considerations that a company must make when determining to lay off employees. One such consideration is how the decision will impact the company’s reputation with current and displaced employees. Employees will experience a multitude of emotions including anger, fear, and resentment. However, there are ways to......

Words: 855 - Pages: 4

Re - Organization and Layoff: Decision Making Evaluation Paper

...Re-organization and Layoff: Decision Making Evaluation Paper Learning Team D PHL/320 07/20/15 Scott Phillips Decision Making: In our Decision Making Evaluation, we as a group most commonly agreed that the biggest factor to easing the “Layoff” would be to have a trained individual handle the situation. This would solve issues for all classes of individuals that are being relieved of their duties in a business setting while keeping the professionalism present in the process. Through other research there were other options available to remove the “Layoff” issues and it was best shown in Daniel Panger’s, “Alternatives to Employee Layoff.” Panger explains how the amount of money and time put into training an employee gets wasted when the employee gets laid off and expresses other ways to approach situations that demand change. The idea of reducing workdays and weeks is brought up to save money and escape the Layoff (Panger, 1971). The issues seen with this technique is in the long run it would seem to simply prolong the issue and still lead to a layoff. That leads us to the decision of having a prepared and educated person handle the laying off process. Implementing the Decision: For a businesses to use this solution there is many things that must take place and the most important would be to establish a formula and fundamentals that will be present in the process. There are fundamentals from others studies that have already been used and a...

Words: 568 - Pages: 3

Re-Organization and Layoff: Decision Making

...Re-Organization and Layoff: Decision Making SAMANTHA STINSON PHL/320 March 14, 2016 Jason Miller Re-Organization and Layoff: Decision Making Introduction When a company chooses to conduct a mass layoff, the employees are not the only ones affected, the ethical business environment and economy are also at threat. Handling a company’s finances can be very puzzling and companies that find it difficult to overcome this task, experience a downturn, weakening business, and when this occurs, the need to find solutions to relieve their financial issues become critical. The purpose of this paper is to provide a recommendation from the two solutions provided in Week 4, how this solution benefits the middle-income customer, business decisions involved in the process, and what resources a company would need to implement that decision. Employee Buyout When a company is enduring extreme financial hardships, they may be able to encourage their workers to resign or retire voluntarily. “A buyout typically includes an offer of severance pay for a particular length of time and the continuance of other fringe benefits.” (D. Sullivan, 2016). The employer is entitled to negotiate the terms so they are not only favorable to the company but the employee too. A positive side effect the company gains from offering buyouts instead of laying off or firing employees can minimize possible lawsuits and bad press. There are several laws and regulations that must be followed when pursuing the......

Words: 883 - Pages: 4

Decision Making in Organization

...of temperature and pressure). LDPE resins can be blended with linear low density (LLDPE) or high density polyethylene (HDPE) resins to tailor the physical characteristics for specific products. Low density polyethylene (LDPE) resins are polymers made from ethylene (ethane).These resins have good clarity, good moisture and gas barrier properties, can be heat-sealed, and are strong and flexible. LDPE resins are manufactured as odorless white pellets or granules. The pellets are used in industrial fabrication processes such as blown and cast film, extrusion coatings, and injection molding. The resins are mainly used to manufacture films for packaging applications. Fresh milk and juice cartons are made with paperboard coated with LDPE film, making the cartons leak-proof. LDPE resins are also molded into durable products from power cables to toys. Facilities and equipment * Substation * A Substation is a part of an electrical generation, transmission and distribution system. Substation transforms voltage from high to low, or reverse or perform any several other important functions. NS Platic and Metal Trading Sdn Bhd have their own substation within their premises which the substation capacity is 1300 amp, this useful for future business expansion. * 30 ton weighing bridge * Providing cost saving solutions for customers is a high priority of NS Platic and Metal Trading Sdn Bhd. They have installed a 30 ton weighing bridge in premise to facilitate......

Words: 8459 - Pages: 34

Decision Making Based on Mission and Vision of an Organization

...Decision Making Based on Mission and Vision of an Organization Donna Wahlmeier MHA 601 Professor: Martha Plant September 5, 2011 Decision Making Based on Mission and Vision of an Organization The following case study will be examined to find the best possible solution to the problem that will be in the best interest of the Community Medical Center. During this examination we will use the mission statement that will best fit the organizational. The president needs to make a decision that will benefit all involved and follow the mission statement that the organization stands by. The mission statement for Community Medical Center states: The mission of Community Medical Center is to improve the health of our community by providing high quality, caring, culturally appropriate primary health care that addresses the needs of people .In order to accomplish this mission in a way that is consistent with the values of the organization, programs and policies must be established. Medical Center is committed to maintaining and improving the health of all County residents. The Medical Center will provide comprehensive, high quality medical treatment, health promotion, and health maintenance through an integrated system of hospitals, clinics, and health services staffed by individuals who are responsive to the diverse cultural needs of our community. The Medical Center, as a training institution, is committed to maintaining an environment that is supportive of a wide......

Words: 1253 - Pages: 6

Decision Making

...Running head: DECISION MAKING Decision Making Bonnie K. Hinsdale Grand Canyon University BUS 660 November 24, 2010 Decision Making The purpose of this paper is to explore how a company can become an analytic competitor. Questions as to what are the sources of Decision Making to an analytic competitor will also be discussed. A discussion on how influential quantitative modeling is and its utility in business decision making will be summarized. Finally, a Christian view that presents an ethical perspective on quantitative modeling and decision making will be presented. In an ever increasing global environment, maintaining a competitive advantage can be sustained through quantitative modeling, which can make a company a viable analytic competitor. How Can a Company Become and Be an Analytics Competitor Competitors make it increasingly more difficult to maintain a strategic competitive advantage when exclusive technologies, products and services can be duplicated (Davenport, Cohen & Jacobson, 2005). Organizations are now framing their strategies to accomplish optimization of “key business processes”: serving optimal customers, optimize supply chains, and understand and create optimal financial performance (Davenport, et al., 2005, p. 1). Optimization strategies demand that organizations now gather extensive data and perform extensive analysis that will guide executives in the decision-making process. The data and the......

Words: 1870 - Pages: 8

Ratio Analysis in Decision Making for Health Care Organization

...Ration analysis Financial statements paint a picture of financial health of an organization. Important aspects of the financial statement of a health care organization are ratios. Analysis of ratios show how two numbers relate or compare to one another. Ratios are a way for organizations to make comparison. These comparisons not only encompass what is happening presently but can also be used to make comparisons about numbers and ratios over time. Ratios are a way for organizations to compare themselves with competitors and the industry. (Finkler, Kovner, and Jones, 2007). There are four major ratios that financial statements analyze 1) liquidity 2) activity 3) leverage and 4) profitability. The financial statement for Mayo Health System for the year 2011 will analyze each area to determine the health of the organization. Liquidity Liquidity ratio looks at an organizations assets and liabilities is an indicator of the organizations ability to pay off debts (Investopedia, 2012). The two main ratios for liquidity are current ratio and the quick test ratio. Below are the calculations for these ratios. I. Liquidity ratios 1. Current ratio Current Assets/Current Liabilities = $10,128.9/5,399.5 = 1.88 Interpretations: a) Current assets are more than enough to pay for current liabilities. b) The company has the ability to pay short term obligations. 2. Quick/acid-test ratio Formula: Cash & equivalents + short term investments + accounts receivable)/liabilities =......

Words: 845 - Pages: 4