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I am assigned on an internship program with OSIM, which is a Singapore-based company with operations in China. Now, I am writing a report on the company decision making. The main contents to evaluate the factors influencing how the decisions are made in this project team. And who will finally make the decisions of the company.
The OSIM Company wants to move their product-Massage Chairs to China. Because the company want to save the cost less expend than Singapore. Also, China is a developing countries it have more opportunities for sells and improved technology of the Message Chairs. In addition, China has the biggest consumers groups in the world.
Background of company
In 1980, Ron Sim was established OSIM International Ltd in Singapore. OSIM is a combination of the surname of its founder, Sim, and "O" that stands for the globe. Singapore is the originally place where it established. The company is regarded as an electrical and household appliance, which is under the name of R Sim Trading.
In 1989, the company registered the name Health Check and Care, and saw a shift in focus to healthy lifestyle products.
In 1993, the company launched its distribution network expanded to 60 point-of-sale outlets in Asia. Also the company officially launched the OSIM brand.
In 2002, OSIM opened its global business headquarters. The Economic Development Board awarded the Business Headquarters Status (BHQ) to OSIM.
In October 2005, OSIM did a strategic decision. OSIM made a decision to acquisition of US Nationwide specialty retailer Brook stone.
Today, OSIM is a global leader in branded healthy lifestyle products such as shoulder and neck massagers; massage chair; slim belt and foot massagers. OSIM is focus on the consumers' health. "Inspiring Life" is the motto of the OSIM Company.
A multi-awarded businessman, Mr Sim is not only an inspiration to the OSIM team but to other entrepreneurs as well. Mr Sim led the OSIM group in setting and realising its vision, goals and direction. Besides his corporate role, Mr Sim participates actively in public services, currently as an Advisory Board member of SMU Lee Kong Chian School of Business SMU and NTU Entrepreneurship and Innovation committee.
Definition of relevant decision making
Here are some factors that will influence decision making: Perception, Individual Decision Making, Group Decision Making, and Bias.
Perception is that people translate sensory impressions to coherent and uniform idea of the world around them. Perception is our sensory expensive of the world around us. It involves the recognition of environment stimuli and actions in response to the stimuli.People find out all inputs and outputs information to understand and describe the process of perceptions. We find out information such as taste, smell, touch, hearing, sight then analyze and sort out the information and make a decision. This is a perception at work.
It including two points: Individual decision making, and Group decision making.
Individual decision making
It is a selection of a person when he or she is a management. She/he must do a decision and with himself. Every decision making process produces a final choice. The manager must choosing the suitable decision between two or alternatives choice. This is a traditional decision making approach and can work effectively for a manager when the group's input is not required or in certain cases.
Group decision making
A group of one company, they should discuss and think of about one or two or more choice before they make a decision for the company. This method is more useful and will reduce the mistake. For the company, use group decision making also can reduce the lost. Group decision making is that all the members in this group finally choose the same choice.
Bias is an inclination to another points or person. Every person will biased when they make a decision or they have to choose only one thing between many things. It is an informal mode during the competitive. Because the lack of a neutral point of view, so the bias will appear. There are many forms of bias in the life, and always considered as pronoun with prejudice or bigotry.
Factors influencing decision making
There is several factors influence decision making. These including intuition, age, past experiences, personal cognitive biases, individual differences, personal relevance belief, and people commitment and so on. It is important to understand the factors that influence decision making process. That will help to understand what the decisions are made. So, the factors that influence the process may impact the outcomes.
Individual decision making mainly includes three models: Rational decision making models, Bounded reality models and Intuition models.
Rational Decision Making Models
Rational Decision Making is the "perfect world" model. It is a method for systematically selecting among possible choice that is based on reason and facts. An organization manager always adopts a series analytical step to review relevant facts, observations and possible outcomes before choosing a particular course of action in a rational decision making process. They assume complete information, listen to all opinions and take the maximum payoff finally.
It includes six-step decision making process:
Defining the problem;
Evaluate the Alternatives;
Make the Decision;
Implement the Solution;
Monitor your Solution.
These six steps are essential decision-making techniques. It will help manager to take the suitable decision when need to make an important decision.
Bounded Reality Models
Bounded Reality Models is the "real model" model. This model is seeks satisfactory and sufficient solutions from limited data and alternatives.
This model is an real model, not many steps need to think about.
Also, intuitions will also influencing the individual decision makings. It is a non-conscious process created from distilled experience that results in quick decisions.
The age, personal experiences, mood and any other reasons will influence the intuition. Thereby, the intuition influence individual decision making.
Group decision making also is the important point while a company want to make a decision for the products or services. Also have some factors influencing it.
There are five stages of group development:
Members feel much uncertainly.
Lots of conflict between members of the group
Members have developed close relationships and cohesiveness.
The group is finally functional.
In temporary groups, with wrapping up activities rather than performance characterized by concern.
Groupthink is a psychological phenomenon that occurs within members in the group. Their desire for harmony in a decision-making group overrides a realistic appraisal of alternatives. Group members try to minimize conflict. Also try to reach a consensus decision without critical evaluation of alternative ideas or viewpoints. Antecedent factors such as group cohesiveness, structural faults, and situational context play into the likelihood of whether or not groupthink will impact the decision-making process.
In a word a groupthink is important during a group make a decision. The group think will decide decision is benefit or not. All the group members must follow the group think and then the decision will good to the company.
Evaluate the suitable decision making for the company
Through the above information, there are many factors will influence the decision makings. So if the company wants to make decision to move the product to another country. It is a big problem for the manager.
The manager should decide how to make the decision, which is make decision by him or make a decision by the leaders in the group of the company.
Here are some strength between individual decision making and group decision making:
Individual decision making strength
A person can take an action immediate and solve the problem or a situation faster.
A person can know the decision from the beginning to the end and he should solely responsible for the decision whether it is good or not.
Can take full accountability for the outcome of the decision and its consequences.
A person can take no arguments with other persons' opinions.
Group decision making strength
Generate more complete information and knowledge
Offer increases diversity of views and greater creativity
Increased acceptance of decisions
Generally more accurate(nut not as accurate as the most accurate group member)
The OSIM Company wants to move its product-Massage Chair to China. It is a good choice for the company. And if this project can achieve the successful there are many profits for the company. But who can make the decision it is a big problem.
Mr Sim he is an outgoing person and loves his job very well. Mr Sim is a person with many own ideas so he can won many awards. Mr Sim is a clever manager with many ambitious goals so he thinks the biggest benefits for the company it that have the group to make some big decisions.
OSIM Company is a big health instrument company and many stores in many countries. So there are many things need to make a decision. His own ability is limited. If there have a group for the company to make some decision that will have more benefits and he will not very tired during the work.
Now, the company wants to move the Massage Chair to China. It must bring benefits for the company.
If the company uses the group decision making, it will reduce the decision time. And many things need to discuss before the chair move to China. They need to think about which city is suitable for the first stores or sales in which shopping mall, when is the suitable time to enter into China, who is the main consumer group, and how to do the after sales services and so on. This decision making will have more ideas and advices for the project. And can reduce the errors. In addition, there are many research need to do before the project passed. If only one manager make the decision he should do all the research by himself. Otherwise, there are many people in the group and they can assign their tasks and do a summary at the end of the research and finally do a suitable decision for the project.
Actually, the group decision making is the suitable decision making forms for the OSIM Massage Chair project.
Discuss other factors may influence the decision