SUMMARY:
In this article we can reach the academic community with a case of a Peruvian company to address the topic: " Decision-making process ", on organizational systems. This case has been obtained from a diagnostic investigation of a logging company, using organizational design and diagnosis for it. Finally, it is concluded that the environment in which a company develops has a lot of impact on its structure and organization, which is why we have found a great difference between the case of foreign books and the one that we have developed.
Keywords: coalition, programmed decisions, unscheduled decisions, intuitive decision making, organizational decision making.
ABSTRACT:
In the present article we prune to reach to the academic community a case of a Peruvian company to approach the topic: “Process of capture of decisions”, on organizational systems. This case has been obtained from a diagnostic investigation of a lumber company, using for her (it) the design and I organizational diagnosis. Finally one concludes that the environment in which a company develops has effect great in the structure and organization of the same one, is for it that we have found a great difference between the case of foreign books and that we have developed.
Key Words: coalition, programmed Coalition, programmed decisions, decisions not programmed, it (he, she) takes of intuitive decision, capture of organizational decisions.
INTRODUCTION
This article is about the development of a case in a Peruvian company: in the lumber corporation "TORNILLO" SAC, where the issue of decision-making process will be dealt with, for this reason I ask myself the following question: How does the process decision-making in the lumber corporation "TORNILLO" SAC?
For this, it has been necessary to make different visits to the company under study, and thus determine how they make their decisions, if they have coalition groups to evaluate their organizational problems. This will be developed based on information collected from the company, bibliographic information, which will help me make the proper comparison.
Finance is to show that when the company's strategy is not known, there is no optimal direction in the organization, this will be achieved through two data collection methods, the first through observation and inspection and the second, through documents and files; that accompanied by bibliographic theory on organizational design studied throughout the cycle and on the subject of decision-making process, will help to obtain alternative solutions.
2. OBJECTIVES:
General objective:
- Develop a case in a Peruvian company on the subject, decision-making process.
Specific objectives:
- Determine what are programmed and unscheduled decisions, and what type of decision is put into practice by the "TORNILLO" SAC corporation. Determine how individual decision-making occurs in the "TORNILLO" SAC corporation. Determine that they are coalition groups and if the wood corporation "TORNILLO" SAC, has formed coalition groups. Define how contingency decision-making occurs, and determine how it occurs in the timber corporation "TORNILLO" SAC.
3. METHODOLOGY:
To carry out the study of the decision-making process in the lumber corporation "TORNILLO" SAC, talks were established with the assistant manager of the company, in order to authorize the development of this research in the company.
Once authorized, various interviews were conducted in which the problems faced by the company at this time were questioned, later, it was requested that it be specified, within the problems that are listed below:
- Centralization of decision-making within the company. The “Tornillo” SAC lumber corporation does not have a strategy (but it does have it implicit in its vision), analysis of its SWOT and objectives, defined and reflected. If there is a manual of functions where each worker designates what to do, a limited control parameter, if it has a mission that is also known by the workers, and a vision that focuses on being a leading company in low costs.
This information marked the evidence that gave us the guideline to deepen the investigation.
To delimit the scope of the study of the lumber corporation "TORNILLO" SAC, the various existing positions were considered according to the organization chart in such a way that it allows us to analyze the performance of their activities.
This research lasted approximately 4 months, during the period between April and July 2007.
To recognize and verify the gaps in knowledge, skills and attitudes of the workers who work in the company, research techniques were used for data collection: documentary research, job descriptions and analysis of the information obtained. The compilation and evaluation of the information made it possible to detect the lack of performance of the existing personnel in the lumber corporation "TORNILLO" SAC
This research is exploratory and diagnostic in its functional and competitive structure. The collection of information has been carried out using the techniques of bibliographic and documentary analysis of the company and its formal and informal system. The analysis of the information obtained will be carried out through the processes recommended by the recommended bibliography on Organizational Design in the decision-making process.
4. DECISION MAKING:
According to Daft R. (2000), it indicates that programmed decisions are repetitive, well defined and there are procedures to solve the problem. They are well structured, because of their clear criteria, and the existence of good information on current performance.
Another author, Oz E. (2001) tells us that programmable problems are often known as structured problems because it is feasible to develop a program to solve them.
The lumber corporation "TORNILLO" SAC, regarding programmed decisions, for example, in setting prices for their product (wood), they already know price fluctuations, they are always alert to market prices, which is Programmable problems, as the author Oz quotes, which is a situation that is constantly presented for which they already know and it is something that the price issue can be solved.
Another problem that is constantly presented in this company is the problem with the machinery, when they break down or there are failures, they already know who to turn to in this case their technician.
In contrast, Daft R. (2000) tells us that unscheduled decisions are new, not well defined, and there are no procedures to solve the problem. They are used when the organization has never faced the situation before and may not know how to react. There is uncertainty as to whether a proposed decision will solve the problem.
According to Oz E. (2001) It indicates that in unstructured problems there is no algorithm that allows us to arrive at an optimal solution (either because there is not enough information about the factors that affect the solution, or because there are so many potential factors that no algorithm can be formulated that will guarantee a single correct solution).
Regarding Non-Programmable problems, the lack of structure in terms of their organizational design, starting with the organization chart of the TORNILLO timber company, has a lot to do with uncertainty, since each area does not perform the functions set out in the MOF that the company has delegated to each worker, for example, I have been able to realize in my research through observation in so many visits given to this company, noting that in terms of personnel, they did not exactly fulfill their function. The person in charge of the management assistant position wants to cover responsibilities of another area or another person, causing conflicts with the personnel and this is a non-programmable case since one does not know when these problems can occur.
Another problem is the lack of formality in your organization, in terms of the objectives, goals, standards, policies and strategies to be met, the workers do not have knowledge of these, since the manager has not captured and made them known, it is like this that work empirically based on the experience of 8 years that have been working in this business.
Their growth has been rapid, because they need to be formalized, I mean that they must adapt their organization chart to the current reality, set objectives, goals, and meet them through different strategies since companies are now in constant changes and improvements, and This will avoid problems, do not program, since the greater the growth, the greater the problems.
Individual decision making (rational approach) According to Daft R. (2000), this approach is based on the need for a systematic analysis of the problem, followed by a choice and implementation in a logical step-by-step sequence. This approach was developed to guide individual decision making.
Keep an eye on the decision environment; The administrator monitors internal and external information that will indicate deviations from plan or acceptable behavior.
Define the decision problem; The executive reacts to deviations by identifying essential details of the problem: where, when, who participated, who was affected and how this influences current organizations.
Specify the objectives of the decision; the executive determines what performance results to achieve as a decision.
Diagnose the problem; the executive digs below the surface to analyze the cause of the problem, additional data can be gathered to facilitate the diagnosis.
Develop alternate situations; the administrator, you can seek ideas and suggestions from other people.
Evaluate the actions; use of statistical techniques or personal experience to determine the probability of success.
Choose the best option; the executive uses his analysis of the problem, objectives, and options to select the route that has the best chance of success.
Implant the selected alternative; the executive uses his administrative, persuasive and management skills, gives instruction to ensure that the decision is carried out.
The following decision-making process is the one to be followed by the timber company TORNILLO SAC:
In the case of the Tornillo sawmill, they have not defined their SWOT analysis, which is the one that delimits the internal and external business information, all the decision taken is based on the experience of the business owner.
These decisions are made only by the manager, who in some cases takes into account some opinions of the workers as suggestions (after evaluating them), in order to make the most appropriate decision, which after giving their due instructions, puts into practice.
The Carnegie group's research indicated that decisions at the organization level included many executives and that a final decision was based on the coalition among them.
According to Daft R. (2000) it tells us that a coalition is an alliance between several administrators who agree on the goals and priorities of organizational problems.
When goals are ambiguous and unconscious, managers disagree about priorities for problems.
GomezMejia L. (2003) this author tells us that coalitions are political alliances between managers and that they share objectives and priorities, but they do not always favor the most rational solution, sometimes they favor the solution that sustains the power of senior management or the individual or dominant group.
An important reason for the formation of coalitions is that executives do not have the time, resources or mental capacity to process all the appropriate information to make decisions. Building a coalition leads to a decision supported by stakeholders.
In the company "TORNILLO" SAC. Regarding decision-making, it is done by the owner himself, since he is the partner to 100% of the shares and he only listens, recommendations, opinions of his children who become minority partners, and there is no coalition because there is no Groups are formed to study the problems that arise in the business, nor for possible solutions, any problem, the owner is the one who solves everything, but it is advisable to form coalitions since the business is growing and the owner is not going to supply to attend to the problems in the two branches.
As I said before, the lack of a coalition is going to bring problems, because as the company grows, there is more demand and a single person is not going to supply itself to solve them. In conclusion, the formation of coalitions will be necessary for the stability of this organization.
In addition, Tornillo does not have a SWOT, objectives and strategies, defined and reflected, that is why it is necessary that a coalition be formed, to carry out the aforementioned, evaluate them and put them into practice, which can allow them not to fall into more serious problems in the one future.
The contingency frame of reference incorporates two organizational dimensions:
According to Daft R. (2000) the consensus on goals; refers to the agreement between executives regarding what the organizational goals and results to be pursued should be. When executives agree, the organization's goals are clear and so are the performance standards. When they are not, the organization's direction and performance expectations are questioned. Consensus is of vital importance in the problem identification stage.
The owner (manager), and children always watch over the progress of the company, so father and children have to reach a consensus on what functions each one has to take when the manager is not there, is not there to go to watch, manage the other branch, therefore each child has the responsibility of fulfilling his function, ensuring that the objectives, norms, goals set in the company, are met even if the head of the company is absent.
Technical knowledge; refers to knowledge and agreement on how to achieve organizational goals. According to Daft R. (2000), technical knowledge is of great importance in the problem-solving stage of decision-making, when the means are well understood, the appropriate options can be identified and calculated with some degree of certainty. When they are not well understood, potential solutions will be ill-defined and uncertain. Intuition, personal judgment, and trial and error become the basis for decisions.
In "TORNILLO" SAC, the goals are known by the workers, this allows establishing somewhat clear norms and expectations; but their weakness is in regard to knowledge, since they work empirically, based on experience, intuition, etc. which are uncertain solutions, since the problems may be solved in some cases, but not in others, because strategies are needed and this company does not have them implicit.
CONCLUSIONS
- The programmed decisions are those that are repeated frequently, such as problems with a machine in the Tornillo SAC sawmill, whereas the unscheduled decisions are made in situations that occur infrequently. Decisions are made in Tornillo, They are empirical, since they do not have a SWOT, that is, they carry it out through experience and with some (evaluated) suggestions, in order to make the most appropriate decision, which after giving their due instructions, they put into practice. An important reason for the formation of coalitions is that executives do not have the time, resources or mental capacity to process all the adequate information to make decisions. Building a coalition leads to a decision supported by stakeholders Consensus of goals,It is important for the problem identification stage, while technical knowledge is in the problem solving stage. These approaches form what is the contingency frame of reference, that with a good knowledge of the media, uncertain decisions are avoided, taken from the intuition and personal criteria of the managers. In the timber corporation "TORNILLO" SAC, they must to form coalitions, first to make an internal and external analysis (SWOT), to consider and shape their objectives and strategies to achieve them, so that the entire organization is aware of this. Because of their rapid growth, they have ignored this important part of the organizational design, which brings formality in the organization, and at the same time it will be possible to avoid more serious problems than those that have arisen to date.The company TORNILLO does go through the entire decision-making process, even in its organizational informality; As every business goes through different problems that in one way or another, it has to solve them, and for this, it also needs the opinions of its children and workers today and that in the future when it is formalized, they will be from experts (advisers) to improve the business each time.The advantages that the decision-making process brings is positive, since it gives us the steps to follow to improve our decision-making, apart from this information I will provide the company to improve its performance and give them a little more technical knowledge of how a company can improve the topics previously discussed.The disadvantage is that the manager does not want to put into practice or action the entire decision-making process, since he only does so based on his obvious experience, important parts of it, and he must adapt to change for the well-being of the organization. My threats and opportunities that I have raised for the company will always go hand in hand with the decision-making process since it is constantly the main and initial part of monitoring the problems of the environment, in order to continue with the entire decision-making process. of decisions.My threats and opportunities that I have raised for the company will always go hand in hand with the decision-making process since it is constantly the main and initial part of monitoring the problems of the environment, in order to continue with the entire decision-making process. decision making.My threats and opportunities that I have raised for the company will always go hand in hand with the decision-making process since it is constantly the main and initial part of monitoring the problems of the environment, in order to continue with the entire decision-making process of decisions.
BIBLIOGRAPHIC REFERENCES
Daft R. (2000). Organizational Theory and Design. (6th ed). Mexico: International Thomson Editores.
Oz E. (2001. Information Systems Administration. (2nd ed). Mexico: Thomson Learning
Gomez - Mejía, L (2003). Administration. Madrid - Spain: Mc Graw Hill.
García, J. (2005). Administrative research and methods (1st ed). Mexico: Trillas SA.
Porter, M (1997). Competitive strategy (1st ed). Mexico: Continental SA
Valero A. (2007). Ideas for SMEs: Success is not a matter of luck, it is a matter of strategy. Available in:
www.ideasparapymes.com/contenidos/planeacion-estrategica-PYMES-estrategia-empresarial-ganadora.html
APPENDIX 1)
The analysis of strengths, opportunities, weaknesses and threats was carried out from the collection of information with the support of the manager, through interviews.
SWOT ANALYSIS (Market share - cost leaders)
Opportunities:
Increased demand for wood.
Have recognized suppliers.
Provide greater services.
Potential Market for Branches.
Threats:
Growth of companies dedicated to the commercialization of wood.
Labor Policies.
Tax Policies.
Natural phenomena.
New Government.
Price decrease by the competition.
Unstable Exchange Policy (Foreign currency).
Strengths:
Low prices.
Positioning and market share.
Good financial image.
Machinery and equipment.
We have quality products.
Quick service.
Variety of woods.
Use of Peruvian raw material.
Weaknesses:
The organization needs to be well defined
Lack of definition in Planning.
Unidentified personnel.
High inventory costs.
High expenses.
Little knowledge of the competition.
Lack of formality
APPENDIX 2)
Case: “TORNILLO” SAC Timber Corporation “Success is not a matter of luck, it is a matter of strategy”…
Mr. Gonzalo Torres Norway, started from a young age in the commercialization of wood and its natural environment. In 1992, based on his personal experience, he decided to create a sole proprietorship with the commercial name of "Aserradero Gonzalo Torres", counting from the beginning with the support of his family.
In 1999 a new company was created as a legal entity called: “Aserradero Gonzalo Torres” EIRL. On January 02, 2004 a branch was opened in the Piura Region; With a lot of effort, this desire could be crystallized, having a great reception.
In 2005, Mr. Gonzalo Torres Norway consolidated the Gonzalo Torres Sawmill and the Gonzalo Torres EIRL Sawmill into one. Thus forming: THE ASERRADERO GONZALO TORRES SAC.
Currently it is a provider of important public institutions such as: The Regional Government of Lambayeque, Provincial, Municipal and District Governments; Foncodes, Infes, and also serves private companies: artisanal and industrial fishing shipyards, Universities, construction companies, Realtors, etc.
There is a large stock of wood in its various forest varieties, being considered by SUNAT in the category of main contributors (PRICO).
As of 2005, it has its own transport units, which transport the wood from different parts of our Peruvian jungle.
A lifetime dedicated to this business makes him the "Best". Today the CORNILLO SAC Timber Corporation continues to put into practice its well-known slogan RAPIDITY, EFFICIENCY AND GUARANTEE.
Its mission is to provide its clients with different types of wood, in the best conditions of quality, cost and price, guaranteeing the origin as well as the sustainable use in a responsible way with the environment. Promote the development of human resources that guarantees their permanence in the market, fair attention to their suppliers and the well-being of the organization. Like any company, this wants to be the leading company, at a regional level (north), in the commercialization of different kinds of high-quality and low-cost woods, guaranteeing a good product.
It has the following organization chart:
Over the years the company grew, but it did not have well defined and above all its objectives, strategies and its “SWOT” analysis, which were very important for its development.
According to Ariel Valero, a graduate in International Trade with a specialty in Marketing: It is obvious that every business owner wants their company to grow steadily and become more profitable every day.
However, the world is changing at such a speed that traditional business models are dying out before our eyes, and although some opportunities disappear, new ones emerge and even with greater potential.
This is why today more than ever, the growth and profitability of a company depends to a large extent on its leaders being able to serve their market beyond traditional ways, visualizing a winning strategy and executing it successfully.
