The Importance of Analysis and Analytical Skills to the Manager Making Essay

The Importance of Analysis and Analytical Skills to the Manager Making Decisions in Business - Essay Example Specifically, the study evaluates the structured analytical approach to problems solving and discusses the concept of decision making. This is then followed by a critical analysis of three types of management decision making methods; project plan, financial modeling and diagrammatic representation. These methods are then discussed together in relation to management, before arriving at a conclusion on the study. Structured Analytical Approach to Problem Solving Management in the business world often presents with complex problems that call on managers to develop better approaches to problem solutions. Bonem (2011, p. 1-2) discusses the need for the structured analytical approach to solving problems, explaining that the aging and retiring of the baby boomer (or elderly) generation of workers takes away the invaluable experience needed in decision making. Thus, the author argues that the present managerial aspects of businesses need to adopt a structured analytical approach that will co unter the complexity of organisational problems and the lack of experiential knowledge. The structured analytical approach involves a cyclical multi-stage approach to decision making. Proctor (2010, p. 273) argues that the structured approach involves a number of discernible activities at each stage in the cycle; objective finding, fact finding, idea finding, problem finding, solution finding and acceptance finding. Cooke and Slack (1991) provide for a decentralised approach to executing the cyclic stages. This involves one or more individuals executing the component tasks of decision analysis which include administration, evaluation and implementation. The tow scholars present a normative cyclic approach consisting of 8 stages that involve recognition of the problem, objective setting, understanding the problem, determination of the options available, evaluation of the options established, selecting the most appropriate and effective option, implementation of the solution and monit oring. The structured analytical approach to problem solving as discussed above is a formidable approach to a business context as it addresses the root causes of the problem, identifies and assesses all possible strategic options and settles on the best. It also provides for monitoring, and the cyclic nature allows for awareness and readiness to face organisational problems and challenges which helps to avoid impetuous decision making. However, the approach is idealistic and requires being adapted to the specific context of the business environment (Cooke and Slack 1991). Thus, a manager should manipulate/customise it to suit the specificity in the environment and problem. The Concept of Managerial Decision Making Wang (2010, pp. 28-33) states that decision making is the process of choosing the best alternative to achieve goals in light of finite resources. The author argues that the concept of decision making cannot be divorced from resource allocation and the process of execution as these are dependent on sound decisions for success. Decision making is closely interrelated with problem solving, which Reza and Fahimi (2003, p. 2) define as the process of identifying and filling gaps on a desired and an actual organisational state. The authors relate decision making and structured problem solving, explaining that decision mak