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Analysis of Managerial Decision Making

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Question :


Prepare an analysis of decision-making currently used and the changes that need to be made for organizational success. ** Include research on one technology method and one analytical method that will help the organization and influence approaches to decision-making. (You may focus on one department or a merger.) Use your knowledge from each week in this class to apply in your slides. 


Answer :


Decision making is very crucial for the success of an organization because decision making significantly affects the efficiency and effectiveness of the organization. 

It is one of the significant skills of the manager that involve the final execution of a well-thought plan. 

With the help of sound managerial decision making skill, the manager can help the organization to achieve the goals and objectives of the organization. 


American Apparel Decision Making

American Apparel is one of the well-known brand in the United States of America. 

It was well-known for its style and fashion. But in 2015, it was declared bankrupt. 

Managerial decision making ability of the organization was not effective due to which it suffered huge losses. 

There was no standard process and procedure to manage such a big firm that resulted in a complete mess. 


Change Needed in American Apparel

American apparel is in need of immediate change in order to ensure success of the organization. 

It needs to improve its managerial decision making ability so that the mess in its process and procedure can be cleared. 

The organization needs to define standard process and procedure to run the functions of the organization effectively and efficiently. 

It is also important to focus on its style as well as promotional campaign to attract more customers to the organization. 


Methods to Improve Decision-Making

It is very important to improve decision-making process in order to ensure the success of the organization.

Decision-making significantly affects the organizational efficiency and effectiveness. 

There are several methods or approaches that can be used to improve decision making to achieve organizational goals and objectives. 

Technological as well as analytical method can be used to improve decision-making effectively. 


Technology Method to Improve Decision-Making

In order to make effective decision, right information at the right time is needed. 

Technology method helps in making required information available for effective decision-making. 

It includes the use of latest and advanced information system within the organization that improves the quality and speed of decision-making. 

Thus, American Apparel can install the advanced information system to improve its decision-making ability. 


Analytical Method to Improve Decision-Making

Analytic Hierarchy process is one of the most effective decision-making approaches that should be used by American Apparel in order to improve its performance and productivity.  

It helps in mitigating intuition or subjectivity that goes into the process of decision-making. 

It also leads to fast decision based on personal lived experience that can result in achieving the organizational goals and objectives.


Impact of these Methods on Decision-making

With the help of these method, American Apparel can significantly improve its decision. 

These methods will improve the quality of the decision. 

They will also improve the speed of the decision. 

The organization can deal with the present issues effectively and efficiently and hence it can also achieve the goals and objectives.



Managerial decision-making ability of the organization significantly affects the efficiency and effectiveness of the organization. Therefore, it is important to focus on decision-making ability to improve its performance and productivity. There are several approaches that can be used to improve decision-making ability of the organization such as technology and analytical methods. 



Bridge, J., & Dodds, J. C. (2018). Managerial decision making. Routledge.

Luan, S., Reb, J., & Gigerenzer, G. (2019). Ecological rationality: Fast-and-frugal heuristics for managerial decision making under uncertainty. Academy of Management Journal, 62(6), 1735-1759.

West, D. C., Christodoulides, G., & Bonhomme, J. (2018). How Do Heuristics Influence Creative Decisions at Advertising Agencies?: Factors that Affect Managerial Decision Making When Choosing Ideas to Show the Client. Journal of Advertising Research, 58(2), 189-201.

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