Question

You have learned that the six steps to the decision making include the following

Clearly define the problem at hand

List the possible alternatives

Identify the possible outcomes or states of nature

List the payoff (typically profit) of each combination of alternatives and outcomes

Select one of the mathematical decision theory models

Apply the model and make your decision

The implementation of this six-step procedure to the decision making has evidence for the large corporations. However, it is not obvious whether small and medium sized firms follow that procedure. In this discussion, you have to investigate the implementation of this six-step procedure to the decision making in a small or medium firm/enterprise and report the results of your findings. You can survey a small or medium firm or search for a report on a case study on the implementation of the decision making process in a small or medium size firm/enterprise. A few places to search include the BSU Library, BIC (college of Business) or the administration of your county (i.e. any unit on small and medium firms/enterprises).  Your report must be short and concise. Also, it must reference the sources.

Answer 1

In the some small or ,edium organisation, all 6 steps cannot be applicable because in these organisation, firm's financial position is not strong enough to appoint a specialised person on the specialised place. So due to the presence of less specialized person in the management of an enterprise. The manager does not know the importance of all these steps as he or she is not highly specialized. High specialized candidates demands more compensation, for this amount, generally there firms are not able to pay the desired amount of compensation. So these firms appoints less knowledgable person on low wages.

Reference - conversation with the medium firm entrepreneur of queenhut.com.