Explain how continuous improvement models, knowledge management systems, quality systems and sustainability principles can be incorporated into business systems
Continuous Improvement Models
To close the gap between actual and desired performance, decisions need to be made. Decision making involves making a selection from among alternative courses of action. Implementation and evaluation of the implementation provide feedback into the next cycle of group decision making. Effective problem solving and decision making processes follow an ordered format, requiring you to: 1.
Examine the current situation, in measurable terms, to discover or identify the discrepancy (this could be a problem, issue or opportunity). 2.
Diagnose symptoms and root causes.
Gather and analyse data relevant to the situation and the solutions. 4.
Generate alternative solutions/ options/ projected outcomes. 5.
Evaluate and assess alternatives.
Make a choice between alternatives, or a combination of alternatives. 7.
Assess associated risks and benefits, in terms of organizational objectives. 8.
Assess costs and benefits.
Define the intended solution/s, also in measurable terms. 10.
Express solutions as a set of targets or goals.
Implement the chosen actions.
Monitor and evaluate the decision to determinethe success or need for changes to the intervention.
Group decision making demonstrates several advantages over single person decision making. In high performance teams, members and leaders demonstrate sound, orderly decision making abilities – they know how and when to make decisions and accept responsibility for reliably and consistency implementing decisions. The advantages come from the ability of the team to readily source a range of ideas and information and to generate problem solutions through cooperative sharing of ideas.
Consensus-based decision making
Effective group decisions are based on consensus. Consensus means that team or group members are actively encouraged and supported to participate in the decision making processes, and to assume responsibility and exercise initiative as appropriate on the basis of agreement. Agreement is achieved as a result of examination of information relevant to the issues under discussion. Consensus is a method by which an entire group of people can come to an agreement. The input and ideas of all participants are gathered and synthesized to arrive at a final decision acceptable to all. Consensus based decision making helps to achieve better solution and promotes the growth of trust and collaboration.
Consensus is a power sharing mechanism. If there are serious conflicts, consensus can be difficult. A fallback is a good option. If consensus cannot be reached, a vote with two thirds majority might be accepted. Voting is a means by which it is possible to choose one alternative from several and is, therefore, a win or loose model, in which people are more concerned with numbers it takes to win than the issue itself. Voting does not take into account individual feelings or needs. In essence, it is a quantitative, rather than qualitative, method of decision making. With consensus people can and should work through differences and reach a mutually satisfactory position. It is possible for one person’s insights or strongly held beliefs to sway the whole group. No ideas are lost, each members input is valued as part of the solution. A group committed to consensus can utilize other forms of decision making (individual, compromise, majority rules) when appropriate; however, a group that has adopted a consensus model will use that process for any item that brings up a lot of emotions, is something that concerns people’s ethics, politics, morals or other areas where there is much investment.
Knowledge Management Systems
Organisations should value the insights and experiences gained through their business activities and capture them using a knowledge management system....
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