Hotel management assignment - 2000 words essay

profilevandchuchu
ToolsandTechniques.pdf
Home>Business & Finance homework help>Management homework help>Hotel management assignment - 2000 words essay

By Dr Joanna Voulgaropoulou

DECISION-MAKING TOOLS AND TECHNIQUES

DECISION-MAKING TOOLS AND TECHNIQUES

• While the basic principles might be the same, there are dozens of different techniques and tools that can be used when trying to make a decision.

• Here are some of the more popular options, many of which use graphs, models or charts.

• You may want to use a combination of these techniques to arrive at your final decisions.

WHAT IS A DECISION MATRIX? DEFINITION

AND EXAMPLES

Decision matrices can help you select the best option,

But also in prioritizing tasks, problem-solving or even crafting arguments to defend a decision you've already made.

1. List your decision alternatives as rows, and the relevant factors affecting the decisions – such as cost, ease and effectiveness – as the columns.

1

2. Then, establish a ratings scale to assess the value of each alternative/factor combination. Be sure that the rankings are consistent.

2

For example, if you're looking at pain points, be sure each issue is worded so it gets more points the worse it is.

3

Next, multiply your original ratings by the weighted rankings to get a score. All the factors under each option should then be added up. The option that scores the highest is the winning choice or the first item to work on. Here are a few websites that have templates: • Launch Excel • MindTools • iSixSigma

3.

KEY POINTS

Decision Matrix Analysis helps you to decide between several options, where you need to take many different factors into account.

To use the tool, lay out your options as rows on a table. Set up the columns to show the factors you need to consider. Score each choice for each factor using numbers from 0 (poor) to 5 (very good), and then allocate weights to show the importance of each of these factors.

Multiply each score by the weight of the factor, to show its contribution to the overall selection. Finally add up the total scores for each option. The highest scoring option will be the best option.

NOTE:

Decision Matrix Analysis is the simplest form of Multiple Criteria Decision Analysis (MCDA), also known as Multiple Criteria Decision Aid or Multiple Criteria Decision Management (MCDM). Sophisticated MCDA can involve highly complex modeling of different potential scenarios, using advanced mathematics.

A lot of business decision making, however, is based on approximate or subjective data. Where this is the case, Decision Matrix Analysis may be all that’s needed.

DECISION MATRIX ANALYSIS:

HOW TO MAKE A GOOD DECISION

WHEN COMPARING

MANY DIFFERENT FACTORS

• https://www.youtube.com/watch?v=xO7xJ1sTyPI

REFERENCES:

• Pugh, S. (1981). Concept Selection: A Method That Works. In: Hubka, V. (ed.), 'Review of Design Methodology.

• Proceedings International Conference on Engineering Design, March 1981, Rome,' Zürich: Heurista. p.497-506.