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Decision making principles in management
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First of all, let's describe the basic mechanisms of interaction between people, a sort of materials used for joining the bricks of management hierarchy, our company, family and state relations. There are three of them: I can order someone to do something - "authoritarizm", I can ask someone to do something on certain conditions or without them - "compromise", I can wait until my partner takes the initiative and performs corresponding actions - "consensus".
Consensus is a Japanese style of decision-making, i.e. keep discussing until the decision appears and becomes obvious, or until any participant takes the responsibility for some decision. Thus, the decision is accepted only in case it is clear for all the participants or at least for several ones.
This system of decision-making is the most effective one from the point of view of the minimization of risk. It is characterized by a strong discipline of its participants, and consequently high product quality. However this system is rather slow, having a high risk of refusal and breakdown in strong dynamic processes. As a rule, such management systems are used on the top management level. One of the important criteria of its use is almost equal social position of the participants. However, the last thesis is not always obligatory, but the involving of less socially provided members requires professional growth prospects (career - it is like the Japanese experience, is not it?). In Russia this system is used as a means of operation for one of the two reasons: either it does not suggest any growth prospects, or the latter do not assume growth of social well-being.
Human factor in the given system almost does not influence the decision making, because the decision, even though accepted by one person, is supposed to represent the essence of a collective product of thinking, because every member believes in the correctness of accepted decisions. The automatic control systems of similar processes should be flexible. For the systems of OLAP type, including a lot of factors, when it is important to collect as more information as possible on the examined phenomenon, it is highly recommended to use Data Mining technologies. However, the latter can be best applied for very simple and mobile interfaces. In other cases it is possible to involve analysts, who can use the listed tools, operatively collect the indispensable data and prepare qualitative reports or reviews.
"You give me - I give you ", i.e. a decision is accepted at the level of some compromises. The decision can be right or wrong, and the one responsible for it will either be rewarded or not. This system of decision-making is very dynamic and operative and guarantees a social growth to its participants. This system represents the basis of any young business.
However, this principle cannot always give the best results due to the subjectivity of both problem statement and the evaluation of product quality (are the best results so necessary, given the limited time of the product use?). This is a typical principle according to which the American society works, where everything has it own cost, where professional rises and falls depend on correct and timely accepted decisions, and the latter is very well paid.
This method is strongly subjective, being dependent on certain people and used as a rule for building average management levels. It is the area where a conservative way of thinking can bring only good (for example, doctors, teachers, etc.).
Here there are lots of automation devices available. ERP systems are characterized by typified information, habitual interfaces, strict forms of reporting and accounting, as the rules of the game are strictly determined and conservative.
Authoritarizm is the style of management accepted in the military forces. The responsibility for accepted decisions lays at the top level of hierarchy, while the bottom levels of hierarchy implicitly carry out the orders of the higher ones.
This style of management is highly operative not only in terms of time, but also in terms of the scale of ranks (otherwise it would not be used in the army), it is also completely subjective and conservative. The efficiency of this principle depends entirely on the accurate and detailed statement of the problem on higher levels. The given system requires strong rules and algorithms for performance of various actions; otherwise the system stays idle or carries out false commands. Along with that the system is conservative and has a slight feedback, as the principles of management in military forces have hardly changed for many years.
The automated control systems here should have conservative interfaces and information fillings, as any failure can ruin the whole system. It is also important to mention a subsystem that creates the rules according to which the orders are transformed in the scale of ranks. If you automate the technological process and forget about the rules, in some time the system may stop working properly and even cause some damage. Imagine what may happen if the rules reverse a driver's reaction to the traffic light colors, but the automatic control system remains unchanged.
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