Decision making memo


You have just been promoted from front-line supervisor to be one of the firm’s senior managers. During your business education, you learned that the primary role of a manager is to make good decisions. As a supervisor, you had frequently been making routine decisions, but you realize that decision making for the overall company can and will have far greater impact on the company and its employees.

Your boss, the chief executive officer (CEO), realizes that you do not have much practice in this higher level, decision-making process and has asked you to write a memo describing your understanding of how to make important decisions.

Your memo should address the following questions:

Describe at least 3 criteria that would determine whether the manager is making good decisions. What should be done to better assure that you are making a good decision?

In the realm of decision making, what are assumptions? Rather than use a dictionary definition, cite several specific assumptions that would go with any real-life decision you have made or have seen made at a company at which you have worked.

Given the importance of proper assumptions, your boss asked you to assess the accuracy of certain business assumptions and what could you do to test or confirm the credibility of them. The following were major assumptions for each firm:

An automobile manufacturer’s assumption that the demand for SUVs would continue because gas prices would continue to rise

An airline’s assumption that there was a need for an airline that provided no added amenities


Decision making memo


TO: Chief Executive Officer




I want to make some important suggestions in regards to effective decision making. In one time in our lifetime, we have encountered a situation that needed a full decision. Managers within their organization environment usually practice this. Coming up with the best decision is the best feeling each one would have to want to get. Some of the main reasons why some of the leaders become unsuccessful are regards to the unfortunate decision they make. Getting knowledge of coming up with the best decision is advisable to managers. Below are some of the techniques that one could decide to use in reaching best decision.

First, the decision that the manager will be articulating should align with the organization vision, mission, values, objectives, and goals. The decision made by the manager should first weigh from the point of view that affiliates the lay down a strategic plan of the organization and promotes the success of the intended objectives together with goals.

The consequences of a decision made should be analyzed against the aimed decision goal. If the outcome of the decision made by the manager yields the best objective and assist in articulating the known enigma, we can conclude that decision made by the manager is the best.

The efficacy of the decision from the manager can be analyzed by viewing the assumption and unfairness involved in the process. If the assumptions made are considered achievable, working, and so the biases involved being minimal, we can conclude to be the best. It will cause the manager considered as realistic and determined to achieve the potential goals.

The decision made should be evidence based. The manager should use the organizational challenges. This will help to see the scope of the enigma and ways to avoid it, performance data that include current and past records and business strategies that have to perform best and relates with the current situation. It will make the organization discover the manager is aligned to the organization set goals.

More so, the alternatives should be analyzed, so us to come up with the best one. This will help to reduce the emerging biases that can occur. A more comprehensive structure should be employed. It will enable to give a clear direction of great decision from all the collected options. Regarding to Ritov , he concluded that those who got awareness in not related task would prove and optimum solution to a problem (Ritov, 2008)

The assumptions of organization

This refers to taking into account that an individual issue has a piece of evidence even without proof. This assumption may be enlightened by a long ago familiarity with other people. With my earlier encounter in my former organization, the depicted assumption is that the skills of employees need to be modernized to go concurrently with the changing market. Also, the change with the organization setup is predestined as it keeps changing. Since the business trend keeps changing, it is advisable for the employee to follow suit in getting numerous training in aligning with what is needed in the market.

The assumption on escalating demand of SVUs to keep appreciating because of the gas prices increase. This is evidence in regards with economic turbulence witnessed in the production. This has made the gas increasing. This will then lead people to focus on SVUs because of their diesel consumption. To determine the efficiency, I will compare the current and previous data and then come up with a concrete result basing on the data recorded. Then with the outcome, I will correlate with my assumption. If the notion goes in term with economic analysis, then the hypothesis is efficient

The integrity of this concept on Airline is in the line of datum that the additional cost is usually eliminated to lower the cost of action. It is evident that most of the amenities keep regularly emanated to keep it at low cost. This has led to an escalation of prices to passengers who some of them do not like them. Only a few can use them. To get into the bottom line of decision, I would take into consideration feedback from travelers that steered to the concluded decision.

Yours faithful,


Ritov, S. (2008). Behavioural Decision Making. Decision Making, 337-351.