Challenge and conceptions of globalization - Myassignmenthelp.Com

Question: Discuss about the Challenge and conceptions of Globalization. Answer: Introduction In the current business scenario, decision making process is one of the key aspects to be considered by the contemporary business organizations in order to have an effective internal management. This is due to the reason that, the current business scenario is witnessing various challenges. One of the key challenges being faced by the contemporary business organizations is the increase in the rate of competition in the market. In addition, it is also to be noted in the present era of the globalization, majority of the business organizations are operating and catering to different markets around the world (Bond and J. OByrne 2014). Thus, it is important for the contemporary business organizations to have the effective decision making process in order to initiate the organizational decisions effectively. Moreover, it is also important to consider that despite having the fact that, contemporary business organizations are having different elements and factors to be considered in their bus iness operation, decision making process is the most important and key element for the organizational success. This is mainly due to the reason that, the more effective will be the decision making process, the more will be the efficiency of the organizational operation (Ford and Richardson 2013). However, in having an effective and ideal decision making process, there are various factors to be considered by the contemporary business organizations. One of the key factors is the origination of the biases from the decision making process. Biases refer to the barriers in the decision making process, which are being intentionally or unintentionally being generated in due of the decision making process (Oliver et al. 2014). Thus, it is important for the business organizations and their key decision makers to initiate activities in order to reduce the generation of biases. However, other than the generation of the biases, there are other key factors to be considered by the decision makers in having effective decision making process. Another important influencing factor is the social influence of the decision makers in the process of decision making. Social influence is important to be considered due to the reason that, the approach of the decision makers in dealing with certain business situation will be different in different social environment. On the other hand, there will be differences in the approaches between the decision making process of the decision makers belonging from different social backgrounds. Thus, it is important for the business organizations to identify the common biases and social influences that determines the effectiveness of the decision making process. However, with the challenges being faced by the decision makers in initiating effective decision making process, there are various effective solutions being generated. Implementation of these steps will help the decision maker in reducing the barriers in the decision making process along with speeding up the process of decision making. Thus, apart from determining the barriers and influencing factors in the decision making process, it is also important to identify the steps to be taken to enhance the effectiveness of the decision making process. This report will discuss about the various barriers of decision making process including the social factors and common biases. Moreover, the factors that will help the decision makers in speeding up the process of decision making will also be discussed in this report. Decision making heuristics: Heuristics are some general decision making procedures that are widely used by the people. These are based on little information but correct. It is a psychological short cut method which people use to reduce intellectual burden related to their decision making process (Toplak,West and Stanovich 2017). According to the theorists, heuristics reduce pressure of work in decision making in many ways by assisting people to scrutinize some signals as well as alternativechecks in the procedure. Heuristics helps in diminishing the task of retrieving along with storing information in the memory of an individual. It helps in the rationalisationof the decision making procedure by dropping the amount of integrated information important to make the choice as well as passing judgement(Maitland and Sammartino2015). According to the Blumenthal-Barby and Krieger (2015), heuristics serves numerous functions and range from very general to very particular. In case of the price heuristics, where the individuals judge high priced materials to have greater quality than the low priced things. This specifies specific consumer patterns. In case of outrage heuristic,when deciding the punishmentpeople ruminate how disgracefulacrimeis. The three most importantheuristics are representative, availability and adjustment heuristics. While making decision the people rely on various heuristics for speed and opportuneness. One of the most important heuristics is the representative one (RH) that is very much economical. In the case where one of the two thing are identifiable, people definitely choose the recognisable one, utilizing as well as reaching at a decision with the slightest amounts of information (Toplak,West and Stanovich 2017). The research and information gathering in this aspect is very contradicting. One set of researchers argue that recognised memory is observant, reliable as well as more accurate than the chance alone and smaller amount of recognition results in more accurate decisions. Another set of theorists found out that people utilize additional information while using their RH because they do not depend only on the recognition alone while making a decision. They also state that even when comprehensive recognition is established, persons use supplementary information, in combining with the RH. Another important heuristicis availabilityheuristicin which people are more inclined for retrieving information which is most voluntarily available for making the decisions. It is more researched one as this is the foundation of many of peoples judgments as well as decisions. In the arena of medicine, the missed or wrong diagnoses have been often attributable to various heuristics among which, the availability heuristics is one of the responsible factor(Harrison, Mason and Smith 2015).According to the scholars, heuristics are advantageousbecause these are cognitively reasonable, but the clinicians or practitioners in medicines need to identify whenavailability heuristic needs to be over-ridden in supporting more inclusive decision making attitudes. The adjustment heuristics are the basic decision making heuristics in the circumstances where few estimates of value have beenneeded. In this specific heuristic, people initially use some anchors or some estimates that surface initially as well asregulate their estimates till they reach to the satisfactory answer. The research reveals that people, whenever asked any question their anchoring and adjustment heurist are found to be used (Capraro, Jordan and Rand 2014). The practical and actualapplication of the anchoring or adjustment heuristics are in the negotiations aspect wherea person makes counter offergrounded on the anchor which is provided to him. Peopleoftenincline to make estimates that tend to fall towards the anchor part, where real values incline to be remoter away from the initially plantedanchors. Further, anchoring entails effort therefore such works are significant in avoiding the anchor bias (Vuori and Vuori 2014). According to the psychologists, most people are partly rational and typically irrational and emotional at the time they make decisions.Heuristics hep in formulating as well as solving most of the complex problems along with processing the information by receiving, storing, recovering and transmitting that informationthus speed up the procedure. The psychologists have found a new kind of heuristics which is fast and frugal type of heuristics. This model they have established can be logically applied in increasing the speed of the decision making process (Beach and Lipshitz 2017). Fast and frugal heuristics are simple yet task specific judgement strategies which are ecologically logical as well as balanced as these exploit the structures of the information in environment. These are initiated in the changedpsychological capacities for instance memory as well as the perceptual system. These are simple, fast and frugal yet enough for operating effectively in case the time, information as well as computation are seem to be limited andprecisesufficiently for modelling computationally (Maitland and Sammartino2015). These heuristics are powerful enough for forming good reasoning. In the traditional decision making procedure, all attributes need to be examined, scored then weighted for all the options. Therefore, the classical processesprove to be complex as well as exhausting for the decision makers incase the quantity of options or attributes increase. It slows down the decision making procedure. On the otherhand, fast and frugal heuristics follows the method of trying to take the best by ignoring the rest (Harrison, Mason and Smith 2015). This fast and frugal decision model is based on matching heuristics that achieved almost as good results as the logistic regression model, but are faster as well as more malleable in making decisions. Maitland and Sammartino (2015), have identified the important zones of psychological inquiry that was previously unkempt in the classical study of the human judgment and the process of decision making. The different heuristics have greatly contributed in understanding the real-world decision making process of the people under different environmental constraints.There are theoretical arguments which discuss the decision making procedure under the light of various factors such as the reasonableness, optimality and importance of general experience in the procedure of decision making (Hoffrage et al. 2015). The heuristics incorporate synergy and integration in the strategy selection so that the people need less time to make decision at the time of urgency. Common biases while making decisions The researchers have identified several internal biases which often result in bad decisions. These are inappropriate prejudgments, inapt experience, attachments and self-interest. Prejudgment takes place when the decision makers select an option of action as well as ignore any other advices and information which do not support their decision (Harris et al. 2016). Inapt experiences help to explain the reason the people continue with the status quo against the face of constantly changing customer demands in the global economy. An effective decision making starts with an implicit understanding of the customer judgement as well as decision procedure. The biases affect decisions process, as in the case of the current financial crisis (Koch,DMello and Sackett2015). Biases Resulting from Attention: The attention or memory related restraints convey a strong impact on the judgment as well as decision making process. In fact, as peoples attention or memory influences the decision making. Therefore, unbiased decision taking becomes impossible because attention as well as memory are prejudiced. People cannot attend all obtainable information relevant in the decision but tend to emphasis on the information which are basically interesting, attention grabbing, easy to understand as well as process(Koch, DMello and Sackett 2015). For instance, well-written or well-organized documents receive exceptional attention than the ill written or ill organized memos. Information which has instant or direct insinuations for decision making is more intense as well as attention-drawing than the information which has distant or indirect implications. Judgments relating to one portion of information, object or a particular issue are influenced by the other pieces of these factors which are present at the moment of decision making. These factors influence judgment when they are irrelevant to the decision making task (Montresor et al. 2015). In addition to this, the most common kinds of factors are contrast, assimilation and the framing. The contrast takes the decisions away from the context. On the other hand, as the two same objects are compared, the targets are displaced to the reference point. Framing effect represents shift in the decision making procedure which occur at the time when people focus on the different conceivable reference points (Chen, Moskowitz and Shue2016). People while indulging in making group decisions, more people take part in the procedure and exchange different views and perspective but in reality there are little sharing of unique information are shared. This is where most cases of biasness take place. This is known as common knowledge influence on the other group members (Sassenberg, Landkammer and Jacoby 2014). The effect of group polarization is also important aspect in this context where group discussion increases extremity of preferences shared by a small number of group members. Despite the fact that the traditional researchers disclose that more information used to be shared through group discussions but the recent studies have revealed more negative aspects about the undesirable options have proved to be more persuasive than the positive arguments against the favoured options. These kinds of bias occurred in all kinds of groups but is more distinct in the unanimous groups (Elbanna et al. 2017). The unwillingness for consi dering preference-inconsistent information upsurges the group polarization as well as group thinking. Biases Resulting from Under processing While the previous section focuses on the judgmental biases causing from the limitations in peoples attentional as well as memory systems. Usually, people can attend or recall relatively small amount of information in one time but not all of them are most diagnostic information. The peoples over dependence on the cognitive heuristics or the strategies designed for simplifying the judgment or decision making(Chen, Moskowitz and Shue 2016). The simplified decision making strategies reduce the number of cognitive efforts needed for reaching the judgement. This is called under processing(Sassenberg, Landkammer and Jacoby 2014). There are several key cognitive heuristics among which representativeness, availability, simulation and anchor-adjustment are important and record biasness in decision making. The representativeness heuristic encourages the causal judgments or the decisions of category membership. Under processing makes people to overlook important things for example the preceding probability or the base rate of outcome. For instance, new products in the market may include all the needed appearances in quality or success but they can still fail in case the base rate and incidence of success in product category has been very low. Sample sizes are also neglected if people rely heavily on representativeness or other heuristics (Shepherd and Rudd 2014). Quality of information are often neglected by the people when they make decision as they rely heavily on the heuristics. The reliability and validity or accuracy need to be judged before decision process. Biases Resulting from Over processing: Many decision makers become unmotivated as well as unable for considering every bit of information which appears to be relevant to some particular judgments or decisions. Under such circumstances, a comparatively small pieces of information are considered important as well as the cognitive heuristics have been used for simplifying judgment or decision making procedure (Sassenberg, Landkammer and Jacoby 2014). According to the researchers under processing results to poor or wrong decisions when main parts of information are often overlooked and when people or individual do not consider the implications of information carefully. Ironically, over processing also leads to poor or wrong decisions. This happens when the decision makers are quite motivated as well as capable to consider the large amounts of evidences very carefully, therefore, they can gather or pay heed too much to other irrelevant information (Laureiro?Martnez et al. 2015). Consequently, when these people over interpret t he irrelevant information, they may seem relevant. Thus, judgmental accurateness influences jointly by processing efforts and the decision maker make decisions based on the nature of evidences. Therefore, it can be said that over processing often results in overuse of the irrelevant evidences thus lead to biased decision making. Lastly, it is needed for the people that proper understanding is base of the growth of impartiality procedures as well as decision aids dramatically improve peoples judgment or decision making. Social factors in determining the decision making process Age group of the decision makers There are various social factors that determines the effectiveness and efficiency of the decision making process. This is due to the reason that, in the present era of globalization, majority of the business organizations are having diversity in their workforce along with the diversity in the higher level management. Thus, the approach of the decision making process becomes different due to the fact that, decision makers are belonging from diverse social backgrounds. According to Recio-Garcia, Quijano and Diaz-Agudo (2013), one of the key social factors that determine the effectiveness of the decision making process is the age of the decision makers. This is due to the reason that, according to the authors, age differences among the decision makers lead to the differences in the decision making process. The more will be the age of the decision makers, the more will their defensive approach. On the other hand, the less will be the age of the decision makers, the more will be their off ensive approach. Decision makers belonging from lower age groups will have the inclination towards more offensive and risky decisions. The authors have also stated that, business organizations with having decision makers belonging from the lower age groups will take aggressive business approach in the market. On the other hand, business organizations with having decision makers from the older age groups will take defensive approach in the market. Another age related factor is the influence of the past experiences for the decision makers. As stated by Gifford and Nilsson (2014), the more will be the age of the decision makers, the more will be their experiences in the business scenario. Thus, the decision making process of them will take more time and will get more influenced by the past experiences. On the other hand, according to the authors, decision makers belonging from the younger age groups will have less organizational experiences and thus will get less influenced from their past experiences in initiating decision making process. Masculinity of the society Another important social factor is the masculinity of the society. According to Dartey-Baah (2013), the more masculine will be the society, the more will be inclination of the society towards the materialistic success, achievement and rewards. Thus, decision makers belonging from the masculine society will concentrate more on generating profit and revenue for their organizations at any cost. They will be more result and success oriented. On the other hand, according to the authors, if the society is inclined towards femininity, then the society will be more concentrated towards caring, modesty and enjoying the quality of the life. Thus, decision makers belonging from the feminist society will be more employees oriented and they will be more concentrated in welfare of the employees rather than going after the organizational success. Thus, this is another social factor that is having influence on the decision making process. According to Skerlavaj, Su and Huang (2013), masculinity and femininity of the society is one of the key factors in determining the effectiveness of the decision making process. This is due to the reason that, in some cases, the masculine approach of the decision makers will be beneficial for the business organizations and vice versa. The authors have stated that, there are various organizational situations where the decision making process should be masculine or vice versa. Thus, the influence of the social inclination will be also determined by the organizational situation. Location and country of origin Another key social factor in the decision making process is the location or the country of origin of the decision makers. This is due to the reason that, different locations are having different cultural and social elements being followed around the world. According to Anderson, Sweeney, Williams, Camm and Cochran (2015), the approach of the decision making process will be different if the decision makers are originating from a conservative country. According to the authors, decision makers from the conservative countries will be conservative in initiating gender equality in the organization. Thus, their decision making process will not consider factors such as gender discrimination. On the other hand, decision makers from the more liberal countries will be open to new ideas and will encourage gender equality and other contemporary factors. The authors have also discussed that, decision makers from the conservative countries will be reluctant in accepting new, innovative and out of the box thinking. They will be more inclined towards following the social norms and regulations and driving the organization in more traditional ways. On the other hand, the decision makers from the liberal countries will be open to innovative and new ideas from the employees and they will encourage in having open and liberal working environment in the organization. They will give less importance to the hierarchical process and traditional approach. However, in the decision making process, the social differences of the decision makers is not only the key social factor rather, the social structure where the organization is located is also important. This is due to the reason that, if the decision makers are liberal and open to new and innovative ideas, then also the decision cannot be taken unless the employees and other associated stakeholders will get agreed. Thus, in the decision making process, locations of the business organizations, perception and culture of the majority of the employees are also having influences. It is important for the decision makers to consider these social factors related to the organization in initiating the decision making process. The above discussion also shows that, there are various social factors that influence the decision making process in the organizations. Conclusion Thus, from the above discussion, it can be concluded that, in the current business scenario, decision making process is having different and various factors to be considered by the decision makers. This report have discussed about the various steps to be initiated by the decision makers. One of the key steps or heuristics being discussed in this report is the determination of the availability of the resources to initiate decisions. According to this strategy, it is important for the decision makers to identify and determine the available resources for the business organizations before concluding any decisions. This is due to the fact that, if the decision making process are being initiated without taking in to consideration the available resources, then there will be an imbalance between the available resources for the organization and budget being decided. Thus, this report recommends that, the decision maker should be able to determine the available resources for their organization s and should initiate the decision making process accordingly. Various biases that can get originated in the decision making process are also been discussed in this report. Biases are being discussed in this report in order to identify the potential areas of improvement and recommend steps to overcome those. One of the key biases being identified in this report is the self-interest bias. This is having the most probability of origination due to the reason that, in majority of the cases, the self interest of the decision makers deviate the effectiveness of an ideal decision making process. Thus, it is being recommended that, decision makers should prevent the generation of their self interests for the greater interest of the organizations. The less will be the influence of the self interest of the decision makers on the decision making process, the more will be the engagement of the employees with the decision. This is due to the reason that, if the decisions are being taken without any outside biases, then the employees will have the positive im pression and they will be more motivated and engaged to follow the same. 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