Changing Roles And Responsibilities Of Business Towards Stakeholders And Sustainability Of Production Systems: An Essay.

Contextualise the changing roles and responsibilities of business towards stakeholders, and the sustainability of production systems and economic paradigms and synthesize change management processes

• Implement systems for managing diversity in a global operational setting
• Describe operational processes in both manufacturing and service industries, taking into account quantitative and technological aspects of operations management, systems, supply chain and quality considerations
• Interpret and communicate issues in management and organizations in a global context within an organisation to develop innovative approaches for their integration in management strategies
• Research and apply various leadership theories, the practice of leadership and motivational techniques as factors of organisational management and change
• Develop a critical awareness of the policy tools used by governments and central banks in their efforts to manage the economy including: fiscal policy, monetary policy, exchange-rate and trade policies, as well as supply-side policies

Psychology of the individuals plays a major role while identifying the different aspects of the change in the decision making systems. According to Zsambok (2014), the decision making process that is proposed by Simon has helped in identifying the different constituent factors that helps in bringing forth changes in the decisions that are taken by the individuals. The intelligence and the cognitive abilities of the people affects the decision making process as it helps the individuals to identify the issues. On the other hand, the evaluation of the alternatives is facilitated through the engagement of the memory and the statistical biases that are made by the individuals while undertaking the decision.  Choosing from among the alternatives is one of the most important part of the DSS (decision support systems) as it helps in maintaining the different paradoxical situations of the change in the system and the performance of the business. Proper management of the organization is facilitated through the enumeration of the different biases that affects the decision making systems that is undertaken by the leader of the business (Strauch  2017).

The chief constituents of the discussion are based on the evaluation of the different biases that are met by the leader while undertaking the decision for bringing in improvements in the organization. Despite the technological advancements that are undertaken by the organizations, decision making is one of the key challenges that are faced by the management (Beach  and Lipshitz 2017). The systematic functioning of the organization is dependent on the decision making attributes as is stated by Simon. The introduction of the biases helps in identifying the inclination of the management of the organization while bringing in changes in the operations of the organization in the market. The functioning of the organization is dependent on the development of the DSS process and the manner in which it contributes to the proper functioning of the decision making attributes of the organization. The 37 biases helps in the formulation of the taxonomy for the proper decision making structure of the organization in the market. The identification of the issues is facilitated through the cognitive biases that are undertaken by the management of the business. The judgment biases helps in identifying the best alternatives that will be helping the organization to bring in changes in the systems and the operations of the business in the market. The identification of the varied judgmental factors helps in enhancing the decision making process that is considered by the business to bring in continuous changes in the processes of the same. Memory and statistical biases helps in maintaining the different levels of changes in the system and the operations of the business through the utilization of the different factors that helps the organization to bring in the change.  

The purpose of the report is to undertake steps to maintain the different levels of change in the organization through the identification of the different biases that influences the proper implementation of the DSS.  The report also enumerates ways in which the proper exposition of the different biases helps in enhancing the functions that are undertaken by the organization in the market.  

Judgment Biases

The cognitive bias is a systematic deviation from reasoning, evaluating, remembering and the like which affects the decision making functions of the management of the organization. The biases create illusions that often affect the segregation of the idea and thereby bring in abrupt confusion in the DSS. The differences in the reasoning and logical abilities of the leader affects the abilities of discriminating between the issues faced by the organization and the manner in which the alternative solution from the various available can be implemented. Psychological advancements of the leaders are affected through the heuristics or the identification of the issues and the manner in which they can be resolved. It also affects the manner in which the actions are planned to suit the purpose of the progression of the organization (Oppenheimer  and Kelso  2015). The identification of the irrationality in the decision making system affects the functionality of the organization in the market.

On the other hand, the identification of the needs of the organization to bring in changes is facilitate through the exposition of the different biases. The cognitive biases affect the identification process of the leaders, which enhances the issues that are faced by the business. The key elements that are portrayed through the study of the biases are dependent on the functioning of the decision making components that are undertaken by the leaders to bring in continuous innovation in the systems of the business (Beshears and Gino  2015). The DSS process that is proposed by Simon has helped in bringing forth changes in the system of the business in the market. On the other hand, Newell  and Shanks (2014) stated that the identification of the different biases helps in maintaining the paradoxes of the issues that are faced by the leaders while considering to make decisions for bringing in improvements in the systems of the business. The beliefs and the psychology of the leader affects the decision making attributes of the same while operating in the international markets. The identification of the issues and the manner in which they can be resolved is mitigated through the proper functioning of the leader and the manner in which steps are formulated to assist the change.

Cognitive biases affects the decision making functions of the leader through the different psychological aspects as it is directly related to reasoning the different levels of change in the systems. The biases affects the beliefs of the leader through the enhancement of the understanding of the needs of the leader to identify the moist suitable alternative from the different viable aspects helps in maintaining the change in the systems of the business.  

The Judgment biases are specially characterized by the ambiguity effect which affects the decision making process of the organization due to the lack of information. The bias affects the decision making system through the lack of proper data on which the decision will be based. Lack of proper information affects the understanding of the urgency faced by the organization to bring in the change in the structure and the operation in the market. Salas  and Martin (2017) stated that the lack of proper information affects the functioning of the systems and the manner in which the change can be implemented on the processes. The lack of knowledge also affects the understanding of the outcome of the decision that is being undertaken by the leader to bring in changes in the systems of the business to cope up with varied market risks. The ambiguity effect affects the smooth functioning of the organization as in the absence of proper information the leader takes the risk of deciding the future of the firm (Guitart-Masip et al. 2014).

The psychological aspects of the effect are dependent on the assumptions that are made by the leader to bring in changes in the systems of the business (Stiegler  and Tung  2014). The proper functioning of the leadership role is enabled through the market information and analysis of the trends that are occurring in the market. It helps in enumerating the different aspects of the change in the systems and the functioning of the business while operating in the international markets. The differences in the mindset of the leader and the manner in which the leader reacts to the varied changes in the structure brings in changes in the situation of the business. On the other hand, the bias plays a major role while identifying the different perceptible changes in the functioning of the business as it helps in maintaining the different levels of change in the market structure.

LeBlanc, McConnell  and Monteiro (2015) stated that the identification of the need of the organization is dependent on the information of the change and the manner in which the change is facilitated through the decision making systems of the leaders in the market. The application of specific knowledge of the leader is facilitated through the identification of the issues that are faced by the organization. However, the ambiguity effect creates a barrier in the pathway of proper decision making systems of the business.

Memory biases relates with the storage and recalling important information. Here, time is an important factor. There are many types of memory biases- boundary extension, change bias, childhood amnesia, choice supportive bias, confirmation bias among others. Here, example can be taken of change bias, which makes the process of recalling information difficult (Johnson et al. 2013). This is because of the consideration of past events, which might affect the psyche of the individuals. This affectation hampers the decision-making process, acting as an obstacle in the performance of the basic activities.

Childhood amnesia is the condition, when the individuals are able to retain the memory of the past events till the age of four. The intensity of this retention is low in terms of the numerous things in which the individuals indulge. This indulgence aggravates the complexities in the decision-making process. Herein, the choice supportive bias can be related. This bias opens various options for the individuals, from where they can make the appropriate decision (Blumenthal and Krieger 2015). Boundary extension provides a broader picture of the past images. This broadness can be considered as assistance in terms of evaluating the appropriateness of the choices. This evaluation, in turn, enables the individuals in assessment of the feasibility of the decisions. Prior assessment towards decision-making helps in averting the unwanted instances, leading to the achievement of negative outcomes.

In terms of present drab monotony, consistency bias is appropriate. As a matter of specification, consistency means uniformity in the actions performed. However, according to psychology, consistency bias reflects the incapability of the individuals to establish link between the past and the present behaviours and attitudes (Mosier and Skitka 2018). This incapability sometimes is very depressing for the individuals, as they lament for their lost childhood. This lamentation, in turn, is a difficulty in terms of taking the decisions, which would help the individuals to move on in their life.

One of the other parameters of memory bias is the storage of information. According to the psychologists, human mind can retain only 10% of what they observe and learn. This is because of the responsibilities, towards which they have to be faithful and conscious. From the perspective of employees, the memory needs to be sharp in terms of taking fruitful decisions. However, if their mind is filled with disturbances, the decision-making process becomes difficult (Hogarth 2014). Herein lays the appropriateness of meetings, discussion and open forums, which clarify the doubts of the employees in terms of executing the allocated duties and responsibilities.

Delving deep into the aspect, the duties and responsibilities reduces the strength towards remembering the facts and information. Even if the people intake the information, they are unable to store them in their memory for a longer time. Boundary limitations act as a confinement for the people in terms of taking prospective decisions. These limitations entrap the minds of the individuals through obligatory responsibilities. This entrapment fills the life of the individuals with monotony, which leads to the thoughts of escape (Koch, D'Mello and Sackett 2015). Herein lays the correlation with the cryptomnesia bias. This imagination adds a different parameter to the thought process, taking the decision-making process to an advanced level.

Statistical bias is considered as the technique used for estimating the quantitative value for the parameter. The conditions are static if the expected value differs from the underlying value. Selection bias is one of the forms of statistical bias. In this bias, the samples are selected specifically for the studies and the experiments. This bias is also known as Berksonian bias. Spectrum bias is a subpart of selection bias. This consists of tests for assessing the intensity of biases within the samples. Diagnostic tests help in estimating the values (Schmidt and Hunter 2014). Evaluation of the results reflects the sensitivity and specific issues, which might hamper the decision-making process. The bias considered by the estimator projects the difference between the expected decision and the undertaken decision. Within this, omitted variable bias is an important component, which is an important component of estimation of the parameters related to the decision-making. The analysis tool of regression tool helps in omitting the independent variables, which needs to be present in the model. This omission helps in considering the factors, which needs to be there for undertaking the decisions (Montibeller and Winterfeldt 2015).

Mention can be made of statistical hypothesis testing, which is considered as unbiased. The result of this test is unbiased when the alpha level is between 0 and 1. This test is also fruitful in terms of evaluating the analytical biases and approaching the decisions, which are to be taken. Exclusion biases can be considered an important component in this context. This is in terms of the capability of some individuals regarding the achievement of success in taking decisions. Exclusion bias follows the exclusion criteria for excluding the people with weaker intellect. This exclusion can result in the psychological affectation (Morewedge et al. 2015). On the other hand, it helps in taking the readings from the samples regarding their approach towards the bias and decision-making.

Attrition bias is one of the other type of statistical bias. This arises due to the loss of respondents in the study to collect data regarding the responses towards the decision-making. This loss is a challenge in terms of estimating the conditions and variables, which might hamper the experiment. This obstacle is hurdle in terms of establishing reports regarding estimating the results. Excluding the weaker people is not the solution. Assessment needs to be done in terms of the finding the exact drawbacks, which are hindering the individuals from taking the decision (MacCoun and Perlmutte 2015).

Hypothetical testing might lead to misleading results. However, estimations and evaluations help in assessing the effectiveness, appropriateness and feasibility of the results in terms of the decisions. Statistics helps in projecting the gathered and collected facts, which solves half of the problem regarding decision-making. Statistics projects the probability regarding the approaches of the sample. Calculations are vital for considering the probable options. For doing the calculations, stability is needed, which is not possible if there are disturbances (Lerner et al. 2015). Herein lays the correlation with the boundary limitations, which confines the thought process of the individuals. This often leads to the achievement of negative results, deviating from the identified goals and objectives.

Conclusion

This assignment proves successful in providing an insight into the biases proposed by Arnott. In the competitive ambience, taking a proper decision is necessary in terms of fulfilling the goals and objectives. Biases in the activities are an obstacle in the execution of the activities, aggravating the complexities in the existence. Four types of biases gain important in the paper, which aggravates the complexities for the individuals in undertaking prospective decisions.

According to their importance, cognitive bias can be placed in the first position. This is because of the fact that observation helps the individuals in enhancing their learning process. Biases in this are the peer pressures and influences, which adds vulnerability to their self-conceived thoughts, ideas and feelings. Based on these aspects, judgmental bias attains negative shade. This negativity compels the individuals to encounter difficulties in making judgments for the gathered information.

Statistical bias can be placed at the penultimate position, however, it is the prime analytical tool in terms of estimating the values and conditions towards decision-making. Samples are an agent in terms of completing the process of data collection for excavating the biases, which hamper the decision-making process. Herein, the decision-making models can be connected for studying the differing and wide-ranging behaviours towards decision-making. The presence of choice and options ease the process. Statistics nullify the chances of errors. Countering this, errors are bound to occur within the statistical projection unless the decision-maker and estimator expose matured behaviour.

Throughout the assignment, behavioural theory gains consistency. This is in terms of the behaviours and attitudes towards decision-making. Conducting hypothetical statistical testing is the planned action towards determining the biases within the decision-making process. Consideration of the experiences is reasoned behaviour towards achieving the positive outcomes. Assessment of the capability of the individuals is also an example of the reasoned behaviour in terms of exposing ethical approach.

Human mind possesses certain capacity towards retaining the gathered information. Within this, biases is an interruption in the process of fulfilling the identified goals and objectives. Typical forms of the biases are differing and wide-ranging advices and suggestions, which distorts the determination and perseverance of the individuals.

Statistical bias can be considered as an evaluation of the consequences related to the approaches related to cognitive, judgemental and memory bias. Relations can be established between memory and judgmental bias. Strategic approach proves beneficial in terms of systematizing the approach towards assessment of the behaviours, beliefs and attitudes towards making decisions. Statistical hypothesis testing can be considered as an important component within the strategies. Ethical consideration is vital in terms of taking the appropriate decisions. Consciousness towards the ethical approach determines the personality of the persons. Lack of this consciousness affirms the incapability of the persons regarding moving on in their life.

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