Abstract:
Decision making is a very
important part of our life as we have to take decisions through every aspect of
life. In one’s work place it is one of the key skills and it is mandatory for
an effective leader. As a team member of TK Maxx, at times I have the opportunity
to participate in decision making process. Here I will explain two such
examples, describe decision making process, justify the effectiveness of the
decision making process and will reflect on my own decision making process.
This decision making process will help me to increase my effectiveness and
leadership skills.
Introduction:
Decision making is a very
essential quality of a leader. If one is not able to take decision on time,
appropriately with deadline and situation, then they can’t lead their team to
well-deserved success. Great leaders are great decision makers and to become a
good leader, proper decision making is inevitable. Decision making is the
mental processes which select the best option among the several choices. Every
decision making process produces a final choice. Decision making is an
emotional or reasoning process which can be irrational or rational it can be
based on tactic assumptions or explicit assumptions. Most of the decisions are
made unconsciously since based professions make logical decisions.
T. K. MAXX, UK
TJX operates in Europe under two
umbrella bodies: Homesense and TK Maxx. TK Maxx started its journey in 1994 in
the UK as off-price retailer. It is offering top-brand family apparel and home
fashions in the UK, Germany, Poland and Ireland with the network of 307 outlets
including 237 outlets in the UK.
TK Maxx has two types of work
associates: part time and full time. Full time work associates get associates
discount, medical allowances, pension plans, 401k profit planning share. Part
time work associates get competitive paid off time, optional 401k profit
sharing plan etc depending on the length of employment and working hours. This
organization provides excellent offers for attractive benefit package, flexible
working hours, decent compensation, job security, and career advancement and
growth opportunity. The workplace is equipped with favorable environment for
employees to get the same feeling like staying and working at home. Flexible
working hours and friendly environment make the working place more pleasant to
work in. Employees are motivated regularly by management, senior employees,
management offers regular training, reward through promotion and bonus scheme
based on performance. They recruit highly motivated and energetic people who
are very enthusiastic to learn and progress. TK Maxx ensures integrity,
diversity and opportunity for employees. It provides various benefits and
rewards (voluntary relief, private healthcare, pension scheme, season ticket
loan, holiday etc.) to employees as employees are the most valuable assets for
an organization and they are the key for their success. (TJXAR, 2010)
Two decisions made by TK Maxx recently:
1.
T.K Maxx recruited 20 new
staff for the new opening store at the Walthamstow centre in London. To train
up the new staff they exchanged a group of 10 existing staff form Enfield Town
branch to the new branch and vice versa.
This decision is sending new staff to old store and experienced staff to
the new store to train-up new employees by providing on-job training.
2.
They rearranged men and
women departments as customers gave complaints about the displaying of clothes
in both departments. Previously men and women clothing departments were in
different floors but now both sections are on the second floor, kids and
household (home) departments are on the 3rd floor.
These two decisions helped me to
develop my leadership skills, increase my experience and knowledge. This
resulted four new employees working under my supervision. As they are
completely new, I teach them how to conduct a task and monitor their activities
regularly. If they make any mistakes I rectify them professionally. Those
decisions helped me to learn how to adapt myself in different situations at
different time periods.
The decision making
process:
There are many processes of
decision making but the most prominent process is identifying the problem,
determine the requirements to solve the problem, set goals to solve the
problem, determine other alternatives to solve the problem, evaluate the
options and choose the best one, select decision making tools, apply the tool
to select a preferred alternatives and review the system. Here TJX trained
their new employees in most effective and optimum ways and rearrange their
store to meet customer demand and desire to satisfy their customers. TJX followed
the below decision making process. As they opened a new store where they
recruit new staffs but they need to train the new staffs. They can arrange induction
and some extra training for the new staffs. Instead of doing so, they exchange
their employees (old employees to new store and half new employees to old
stores) and trained them for 1 months which is most effective way to teach them
about in store duties. Similarly for the second choice they identify the
problem first, and then identify different options to solve the problem and
then select the best option and then evaluate the decision.
Both the decision follow the below processes:
• Define the problem
• Determine the requirements that the solution to the
problem must meet
• Establish goals that solving the problem should accomplish
• Identify alternatives that will solve the problem
• Develop valuation criteria based on the goals
• Select decision making tool
• Apply the tool to select a preferred alternative
• Check the answer to make sure it solves the problem
For the first decision, many of
the renowned organigations follow this process to train-up their new employees
and increase leadership skills among the experienced employees. Instead of
arranging special training they provide on-job training which is more effective
and has long lasting effect on employees. New employees get introduce with
working environment and take part in activities. On the other hand, old
employees give trainings and instructions to the new employees that increase
their confidence to lead a team and decision making. In second decision,
management collects information from customers and work associates. Normally
customers give complains to the work associates and work associates pass that
information to the superior managers or management.
Some factors are used to
determine the decisions. For the first decision- there are some internal and
external factors which influence the decision making. This training system is
beneficial for both old and new employees. It is time and cost effective as
well. New employees are able to gather hand of experience and old employees are
able to improve or build their leadership skills. TK Maxx doesn’t need to
arrange extra training or doesn’t need to spend money for improving the skills
of the employees. This process helps to create friendly environment in the
working place as new employees always try to learn from experienced employees
and old employees help the new comers as much as they can. Some other modern
organizations like M&S, Tesco, Asda etc. also follow this process; for
competing with those organizations TK Maxx decides to take this decision. Here
employees are accustomed with all kind of activities and products which help
them to handle customers or promote products to customers. New employees need
less time to get the knowledge and skills. Experienced employees motivate new
employees and give direction and teach them which increase their managerial
skills. Competitors of TJX also follow this process and getting the
competitiveness it is very essential to have highly trained and skilled
employees.
In second decision- context and external
factors have great influence. Normally men and women like to do shopping
together. Before men and women clothing departments were in different floors
but they feel problem in doing shopping. If both sections are in same floor
they can do their shopping separately but in trial room (man and woman trail
rooms are separate but close to each other) they can observe each other. Then
they can share their opinions but if the departments are in different floors
they can’t do it. It is very essential for an apparel retailer to put man and
woman clothing department separate but near to each other; otherwise it looks
very odd or disorder. This decision reduced hassles and time to the customers.
For an example previously when new customers especially the foreigners visited
this shop for the first time, most of the time they didn’t visit first floor as
they think this shop has only women and children clothing on the ground floor.
Sometime foreign customers feel shy to ask questions but now it is easily
visible of man department. Now all kind of customers especially couples feel
comfortable to do shopping in TK Maxx.
For the first decision,
authoritarian approach was followed as senior management made the decision to
send the some experienced employees to the new stores and transferred some new
employees to the old stores. In authoritarian approach the business owners or
major stakeholders or senior management take the decisions for important
aspects. Here the top managements are responsible for taking decision to
exchange employees. They took this decision as it is very much cost and time
effective and new employees get proper training and old employees get the
chance to build and improve their managerial and leadership skills. For the
second decision, consultative approach was followed as management consult with
employees about the customer complain and demands and take the decision
according to the employee’s suggestions. In consultative approach top
managements discuss with other employees and ask for suggestion from the
employees. Here employee’s opinions get valued and employees become
satisfied.
Both the decisions are market led
decisions as the impacts of those decisions are optimal. For the first decision
authoritarian approach is followed and for the second decision consultative
approach is followed. For the first decision it is management choice how to
train-up their employees or how to increase the effectiveness and leadership
skills of their employees. The process is the most effective ways to train-up
new employees as they are getting hand on experience for a month and
experienced employees are able to share their experience and knowledge among
the new employees and increase their leadership and managerial skills. This
process doesn’t cost extra money so the output is optimum. For the second
decision it is needed to know the opinions of employees who directly involved
in customer dealing and handling. Staffs are very much known about customer
demand and needs. By rearranging the clothing departments, management fulfill
the customer demands and needs. The outputs are maximized and both the
decisions have great impact on the activities of the employees and customer
satisfaction.
When TK Maxx opens a new store,
they recruit new employees whom need training. Then management took the
decision to provide training in above mentioned way. They decided to change the
interior decoration of the shop when a lot of customers gave complains against
the previous interior decoration. In first decision, management chosen
authoritarian approach and this approach is very suitable for that case where
manager is only responsible for making decision. This approach is very suitable
for small organization where owner is the only responsible for making decision
and employees have no power in taking part of decision making. Consultative
approach is very familiar and most of the modern organizations follow this
process where decision was taken on basis on employers and employees opinions. For
making the both decisions management do the market research and gather
information. For making the first decision, management does the SWOT analysis
and find of the strength, weaknesses, opportunities and threats. Management
knew that this branch has some skilled and experienced employees and they are
capable to teach new staffs properly. The strength of this decision is that it
is very much time and cost effective; don’t need any extra training;
experienced employees get the opportunity to show and improve their skills. The
weakness of this decision is that sometimes new employees don’t get precise
information from the experienced employees as experienced employees like to
work in shortcut ways. Similarly in second decision making they gather the
information from staffs about customer complains.
The effectiveness of
the decision making process:
Optimizing approach:
Optimizing approach is the most or
best effective use of resource, opportunity or a situation. It takes into
account all kinds of cost related to decision making process. It ensures all
possible variables and aspects in the decision making process. The aim of this
approach is to ensure most perfect outcome. This approach is best suited in
scientific methods where information is very accurate and output is optimal.
This approach is time and money consuming.
Strengths:
-Ensures accuracy
- Provides the most perfect solution
Weaknesses:
-Can go on unbounded to the nth level
-Can become very costly
-Time consuming
Non-optimizing or satisficing approach:
This approach not fulfills all
the demands needed for a decision to be made. It attempts to meet criteria for
adequacy. It finds a solution which is good enough but not the best one. This
approach is just to suffice or satisfy to a minimum the requirement. This approach is less good than the very best
outcomes. Most of decisions of our life follow non-optimizing approach. There
is no additional cost of finding this approach.
Strengths:
-Relatively easy to achieve
-Sometimes the best decision that can be achieved
-Can be time efficient
Weaknesses:
-Not the best solution
-May not take all factors into consideration
-Can become unconstrained almost anything could possibly be
justified as satisficing.
The effectiveness of first decision making: the decision was
very effective and successful as the output is very immense. Both employers and
old and new employees are benefited from this decision. This decision saved
money and time of the employers as they did not have to provide any kind of
extra training and employed any expertise to teach new employees. In this
process employees are able to learn operational activities very quickly.
Similarly new employees are also benefited as they got friendly working
environment and cooperation from experienced employees. They are able to know
the rules and regulation properly by following the senior members. Old or
senior employees are also benefited as this decision helps to increase their
leadership and management skills. When they are working with new employees they
are giving their full effort to make the balance- which augments their
management skills. They help new employees; give direction and monitor their
activities. They inspired new employees to give their full efforts in work.
They act like a leader. The first decision is very much effective as it
optimizes employee’s skills and knowledge as well as cost effective.
The effectiveness of second decision: the output of second
decision is tremendous. Now customers feel comfortable to do shopping in this
store. Now there is synchronization in the display. Display is looking
outstanding. Now customers have no complained regarding display. Man and woman
can do shopping easily. This decision has a psychological effect on customers
as customers are happy; they like to spend more money in shopping. Now this
store is three-storied but most of the customers like to do shopping in
one-storied building. After implementing this decision, sells increases as well
as profit increases. There is good arrangement for recognizing different
departments. Previously sometimes customers ask to staffs for similar products
for his/her partner and staffs need to either contact with other staffs with
relevant department or he/she needs to visit the department personally. After
the implementation now staffs move less and face less hassle which create
customer and employee satisfaction.
Conclusion: Reflect
on my decision making practices:
In my life I follow different
decision making approaches on the basis of situation, location and time. The
decisions at home and in the workplace are not always the same. For serious
life situation matters I consult with my parents, relatives and friends. In a
more subtle situation I make decisions by following my ethos without discussion
approach. At the workplace, on a normal basis I follow consultative approach
applying code of conduct appropriately which is very effective. A workplace can
create a friendly environment when all the employees work together as a team,
help and co-operate each other, and share their views.
From this assignment I learned few things and those are:
1. What is called
effective decision making
2. How to make effective decision
3. The impact of effective decision making
4. What things I need to consider in decision making
5. How can I improve my decision making skills
Effective decision making is very important for our personal
and work life, so it needs to improve. For improving my decision making skills
I will follow the following process:
1. Whenever possible, consider alternatives
2. Reframe the question
3. Correlation doesn’t equal causation
4. Never forget the sample size
5. Anticipate my impulsivity
6. Make contingency plans
7. Make important decisions when relaxed and rested
8. Weigh costs against benefits
9. Imagine my decision will be spot-checked
10. Distance myself
11. Beware the vivid, personal and anecdotal
12. All decisions are not equal
13.Be rational
There are six steps to making an effective decision:
1. Create a constructive environment. (establish the
objectives, agree on the process, involve the right people, allow opinions to
be heard, make sure of asking right questions, use creativity tools from the
start)
2. Generate good alternatives. (generating ideas,
considering different perspectives, organizing ideas)
3. Explore these alternatives. (risks, implications,
validation)
4. Choose the best alternative. (by suing grid analysis,
paired comparison analysis, decision trees,
nominal group
techniques, multi-voting, Delphi technique)
5. Check your decision.
6. Communicate your decision, and take action.
Decision making is very important
part of our life. Most of the time we take decision unconsciously but getting
the best output there is no other option to make decision consciously. We need
to invest few times prior to make a decision. Managers are the leaders of
organizations. They lead teams and if they take any kind of wrong decisions it
will affect the whole organizations. Managers must give importance in effective
decision making otherwise it hampers the harmony. After implementing those two
decisions, effectiveness of employees increases and they need less time to give
a decision. Previously I felt little bit confusion about arranging the products
on shelves and most of the time I asked my manager or supervisors but now I can
do it by myself and my manager and supervisors admire my decision. Now I am
capable to handle any kind of tough situation. In case of very tough condition
I asked help from my manager.
Reference:
PSYBLOG,
13 ways to quickly improve your
decision-making, 15th May 2008, Retrieve on: 2/1/13, Available
from: http://www.spring.org.uk/2008/05/13-ways-to-improve-your-decision-making.php
[Accessed: 2/1/13]
MindTools
web site, Decision making skills-start
here!, Available from: http://www.mindtools.com/pages/article/newTED_00.htm
[Accessed: 2/1/13]
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