Fundamental Perspectives and Techniques of Decision Making Dissertation

Fundamental Perspectives and Techniques of Decision Making - Dissertation Example In the contemporary uncertain business contexts, making a decision which has certainly long-term implications on business requires thorough understanding of all possible future situations and more importantly the managerial ability to balance both controllable and uncontrollable parameters (Bhushan and Rai, 2004, p. 3). Managerial decisions are key factors to influence a firm’s success and failure. Managers need to ensure that their firms are able to continually innovate and get accustomed with changing business environments so that it can maintain a reasonable stance and pace in competitive edge. If managers want their firms to survive in the dynamic and uncertain business conditions, they need to carry out effective decision making processes. ... Creative thinking aims at bringing newer ideas whereas problem solving is directed to find a solution, an answer or a conclusion (Adair, 2010, p. 1). An individual or organizational decision is the end result of much more dynamic processes and a series of activities labeled as ‘decision making’. McGrew, Wilson & Wilson (1982, p. 5) stated that the decision maker, in his decision making process, identifies the problem, clarifies particular goals that are desired, examines various possibilities for achieving the desired goal and finally completes the process by taking a definitive choice of action. Decision is therefore an answer to a specific question or some problems or a choice between two more courses of actions. Ahmad, Hasnain and Venkatesan (2012, p.21) described a five-stage process for decision making. It comprises of identifying all alternatives, valuing these different choices according to preferences and potential outcomes, assembling the information, choosing a mong the preferences and outcomes and finally selecting the most favourable and appropriate choice. Decision that has been taken after careful coordination of information, evaluation of potential outcomes and analyzing of various preferences based on advices, suggestions and help of people involved as members in a group-decision making has been found to be very effective in terms of its appropriateness and positive outcomes. Decision making is a cognitive process that involves logical reasoning and creative thinking about choosing a specific course of action that is supposed to bring the decision maker to a certain result. One of the key challenges in decision making is reducing or eliminating the uncertainty. A better way to avoid uncertainty is to collect relevant information before

Failure of Financial Regulation in the UK Essay

Failure of Financial Regulation in the UK - Essay Example This essay evaluates the failures of financial policies in United Kingdom and the move made by policy makers to cushion the country from falling into financial crisis. Financial crisis witnessed towards end of this decade had similar effects to crisis witnessed in 1970s. Many people grappled in unemployment, devaluation of wealth and other related issues that come when economic depression occurs1. G 20 meeting realized that policy tools made to cushion the world from economic slump had failed to discharge their role. It was also apparent from that meeting that the banking policies of United Kingdom and related market players had stains to the crisis. Growth in a country or in the world depends on sound policies, which balances the financial market and enhances economic stability. Economists and analysts in the economic sector believe that fiscal tools, which guide the economic growth of the country, must meet a certain threshold if the country is to remain stable. Deliberation of the meeting indicated that credit securitization is a factor that policy makers in the financial sector ignored2. Many banks offered credit loans to investors without collaterals that could support financial stability. The banks could not raise the minimum threshold required to make them remain in businesses after the investors had defaulted. The result was as worst as the financial depression of 1970s. Critics have contributed to this situation by making different argument about the country should do to avoid similar misfortune. The argument has rested on the effects of policy, which influence banking system. Some critics noted that policies instituted to correct the dangers of economic depression failed because of poor implementation strategy, which aimed at making the country more economically sound. Many economists believe that policy tools adopted in the banking sector created a window, which led to the economic meltdown. Evidently, a weakness of a policy can create instability as observed during the financial crisis. The major question that the society is trying to answer is not what caused the depression but how it can avoid the depression in future. Analysts have settled on the fact that failure of UK financial system is the contributor of the economic crisis. Economists have stated three reasons, which support the argument that policy failure led to financial meltdown. First, the role of financial market is to regulate market economy3. This regulation occurs through relationship that exists between the financial system and the market players. Economists believe that financial relationships influence market structures by creating stability and instability in the market. This means that financial system is the key driver to propel market structures towards making balance payment in the market. A failure of the system spells doom to the society since it creates imperfect operation in the market. Evidently, a slight mess bin the market would contribute to a collapse of other systems in the financial sector. Financial analysts have sited burst and boom factors as factors that directly influence market stability. Financial system usually look at credit supply and credit pricing as factors that control speculation in the burst and boom factors. Studies indicate that internet burst and boom witnessed in 1998-2001 increased the liquidity index in the country4.