Solution knowledge refers to understanding and agreement concerning how to solve problems and reach organizational goals. This variable can range from complete agreement and certainty to complete disagreement and uncertainty about cause-effect relationships leading to problem solution. When means are well understood, the appropriate alternatives can be identified and calculated with some degree of certainty. When means are poorly understood, potential solutions are uncertain. Intuition, judgment and trial and error become the basis for decisions.
Contingency decision-making framework brings together the two dimensions of goal consensus and solution/technical knowledge concerning solutions. Each cell in Contingency Framework for Decision Models represents an organizational situation that is appropriate for the decision-making approaches. In Cell 1, rational decision procedures are used as a result of problems being agreed upon, cause-effect relationships are well understood, there is little uncertainty, alternatives can be identified, and the best solution can be adopted through analysis and calculation.
Our organization is engaging in research by means of the survey study in order to identify the issues that need to be addressed, benchmarked and reengineered. In Cell 2, there is high uncertainty about problems and priorities; therefore bargaining, coalition building, formation and compromise are used to reach consensus. The Carnegie model applies when there is dissension about organizational problems. Once bargaining and negotiation are completed, the organization will have the necessary support to move forward. In Cell 3, the problems and standards of performance are certain, but alternative solutions are vague and uncertain.
Techniques to solve the problems are ill defined and poorly understood. When this situation arises, intuition and incremental trial and error will be the decision guidelines. In Cell 4, there is big uncertainty concerning both problems and solution which makes decision-making difficult. The manager can attempt to build a coalition to establish goals and priorities and use judgment or trial and error to solve problems. This is the stage at which the organization currently stands. Based on the analysis these recommendations can be made to the survey team.
To track information in real time to develop a deep and intuitive grasp of the business; there should be two/three intense meetings per week with all the survey team members; the survey team needs some type of training concerning the correct procedures in order to effectively conduct and evaluate the research study; and the survey team should track operating statistics concerning the economical foundations, backlog and work in progress to consistently maintain accurate records in order to plan and predict the future standings of the organization.
Advice needs to be sought from everyone within the organization in order to build multiple alternatives, then the implementation of these alternatives can be integrated with other issues which will result in an overall strategic direction for the organization. It is also essential for the survey team to provide real-time data and work to reorganize employees and managers into cross-functional teams in order to tap into their collective knowledge.This allows employees to become empowered and to fully develop their capabilities and knowledge.
Golub, A. (1997). Decision Analysis. New York, NY: Wiley. Retrieved July 2nd, 2006 from University of Phoenix, Resource MGT/350. The Decision Group (2005). Contingency Decision Making. Retrieved July 2nd, 2006 from www. decide-guide. com.