LO1 - Copy 5ز4ز2021
LO1 - Copy 5ز4ز2021
LO1 - Copy 5ز4ز2021
decision-making
P1 Explain and apply different formal and informal approaches
used to support effective decision making in a given
organizational examples
Learning outcomes:
1.Knowledge- based approach
2.Formal vs. informal approaches
3.The role of stakeholders in decision making
4.‘Make or Buy’ decision
5.Limiting factor analysis
6.Key factor analysis
Sustainability
• What is 'Sustainability'?
Sustainability focuses on meeting the needs of the present without compromising the ability
of future generations to meet their needs. The concept of sustainability is composed of three
pillars: economic, environmental and social - also known informally as profits, planet and
people. Sustainability emerged as a component of corporate ethics in response to perceived
public discontent over the long-term damage caused by a focus on short-term profits.
• For example , a factory that allows its waste to flow into a nearby body of water to
avoid the short-term costs of proper disposal can cause expensive and significant
longterm environmental damage. Sustainability encourages businesses to frame decisions
in terms of years and decades rather than on the next quarter's earnings report and to
consider more factors than simply the profit or loss involved. For more information:
https://youtu.be/kZIrIQDf1nQ
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Topic 1
3. Business Growth
Quick and correct decision making results in better utilization of the resources. It helps the
organization to face new problems and challenges. It also helps to achieve its objectives
4. Achieving Objectives
Rational decisions help the organization to achieve all its objectives quickly. This is because
rational decisions are made after analyzing and evaluating all the alternatives.
Purpose OF KBDM
That gives already a clue about why formal decision making has
advantages. The nicest thing about formal decision making is that, if the
specific process itself is good and executed well, it builds a lot of trust.
The clearer the form of the process becomes the more people dare to
participate. And the more people of a group participate in a process the
more valid they found solutions get.
Organization Protocol Builds equality and trust Is faster in adhoc use and
long-term way meaning the longer is completely adjustable because
It's used the more trust it there is no obvious protocol
builds.
• Unreliable suppliers
• No competent suppliers
sales)
• Quantity too small to interest a supplier