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Managerial Economics

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Group 1 Discussion Board 4
Nicholas Alexander
Patrick Brinkman
Cherbrie Collins
Jessica French
Liberty University

Decision Making Using Evidence Based Management Daft (2013) states that managers should use data and facts to the “extent possible “ to make decisions using evidence-based management. This statement alludes that experience and intuition may be the best course of action. However, top-level managers may be confusing intuition and experience with fear for change. Cohen defines Evidence based management (EbM) as a model using evidence and facts to initiate change through effective decision-making (2012). Cohen goes on to state that most people only use anecdotal, low-level process problem solving where it is acceptable to be lucky. Most businesses cannot survive on luck alone. For EbM to work, Cohen (2012) identifies three components: analytics, decision-making, and problem solving. Managers must use analytics, math, to track data. This data must be incorporated into the decision-making process. Finally, managers have to know there is a problem and how to solve the problem. It would be beneficial if they knew what caused the problem as well. Dr. Shorthell (2006) identifies some ways to promote EbM within the healthcare community that are applicable for all businesses. The most important is that the data from researchers gets to the users in time to make decisions. The data should be clear and concise and explained in person to alleviate confusion. Dr. Shorthell (2012) goes on to say the largest incentive will come from an increase in performance accountability through payment incentives and reporting requirements. This would help develop a culture of information sharing between the employees and management. The culture of the business would also have to become pro-evidence based decision-making, starting with the boardroom. Dr. Shorthell adds, “The ultimate demand for accountability for the use of the best available evidence to improve the performance of the organization must come from the board” (2012, p. 26). This would cause a trickle down effect, encouraging all employees to seek evidence or data. Many management techniques have national awards that promote their use. Dr. Shorthell (2012) also recommends a national award for EbM. Ineffective decision-making is the leading cause of quality deficiencies and underperformance for many companies (Shorthell, 2012). EbM is essential and will significantly raise your awareness, decision-making, and problem solving ability.
Biblical Implications and Worldview The bible has an answer for every question we face, and guidance for all situations. When considering biblical implications for decision making, whether in a personal or organizational context, there is one passage that stands out: Proverbs 3:4-6 which says “Trust in the Lord with all your heart, and lean not on your own understanding; in all your ways acknowledge Him and he shall direct your paths.” This scripture is a reminder that our trust in God is the ultimate key to success. 2 Corinthians 5:7 similarly tells us “So we are always of good courage. We know that while we are at home in the body we are away from the Lord, for we walk by faith, not by sight.” Paul continues the passage reminding us that we live to serve and praise Him because we will all be judged by our choices eventually. It is our faith in God that helps us to remain steadfast and that empowers us to courageously do what we know He wants us to do.
Psalms 18:24 tells us “The Lord rewarded me because I did what was right, because I did what the Lord said was right” and Psalms 25:8 reminds us that “The Lord is good and right; He points sinners to the right way.” Our blessings come from following His teachings. Sometimes the pressures we face from external and internal sources can be unethical. In the case of the subprime mortgage crisis a few years ago, external pressures to jump on the bandwagon and internal ones not to be whistleblowers convinced many people to go against what they knew was the right thing to do. Deuteronomy 11:26-28 says:
“Look, today I am giving you the choice between a blessing and a curse! You will be blessed if you obey the commands of the Lord your God that I am giving you today. But you will be cursed if you reject the commands of the Lord your God and turn away from him and worship gods you have not known before. As Christians, we know that ultimately, He is in control of our lives and we need to follow His teachings. A biblical worldview enables us to acknowledge that trusting in Him will give us the strength to do what is right and to make the best decision, even in difficult times when information is limited. Christian managers apply evidence based techniques but in the face of uncertainty, we rely not on intuition but on God and on past experiences of deliverance thanks to His grace. We know that our success comes from Him, and that He will always show us the best way if we trust Him.
When looking at pressure through the bible one will find that conforming to wrong doings will only hurt you in the end. While it may bring a company good fortune at the time it will be frowned upon throughout the course of time. “Do not be conformed to this world, but be transformed by the renewal of your mind, that by testing you may discern what is the will of God, what is good and acceptable and perfect” (Romans 12:2, English Standard Version).
When a company decides to follow other companies in marketing, product lines, or organizational concepts they need to ensure that they are following ones that are ethical in the eyes of the lord. As a business leader there will be temptation throughout the business world in forums of market trends, stock market investments, and insider information. When these temptations arise a business leader will have to know that the lord is not guiding them to this path. In determining culture, the ability to quickly identify an individual’s and an organization’s values can be beneficial. This can also lead to incorrect assumptions and profiling. Therefore, it must be done with the understanding that the wrong inference may be made. The Bible talks about judging others in a number of verses. Luke 6:37, New International Version, says, “Do not judge, and you will not be judged…”. Matthew 7:7, NIV, also says “Do not judge, or you too will be judged.” It can be easily inferred that making assumptions about people is not right. However, this is not the true meaning of these verses. Matthew 7 clarifies in verse 15 and 16, NIV, “Watch out for false prophets. They come to you in sheep’s clothing, but inwardly they are ferocious wolves. By their fruit you will recognize them. Do people pick grapes from thornbushes, or figs from thistles?” Similarly, Luke 6:44-45, NIV, says “Each tree is recognized by its own fruit. People do not pick figs from thornbushes, or grapes from briers. A good man brings good things out of the good stored up in his heart, and an evil man brings evil things out of the evil stored up in his heart. For the mouth speaks what the heart is full of.” These verses bring some clarity. We should not judge, but we should not be naïve either. However, it is extremely important to observe our own actions to ensure we are behaving appropriately.
When making decisions, there are some biblical suggestions that can be applied. Biblical implications for this discussion board include beginning decision making with prayer, making righteous decisions that are unselfish and that are made by the will of God, including proper guidance when making decisions, and having confidence in decisions. This applies to non-programmed decisions, these decisions should be made by trusting in the Lord and acknowledge him, this will help an individual to see the path of righteousness and have the confidence in decision making. “Where there is no guidance, a people falls, but in an abundance of counselors there is safety” (Proverbs 11:13). Proper guidance when making decisions is important, it allows managers and employees to make better and unselfish decisions as well has be more confident when making decisions. 1 John 5:14 states that, “And this is the confidence that we have toward him, that if we ask anything according to his will he hears us”. If there are any concerns, fears, or apprehensions when making decisions, organizations or managers should possess the confidence that what is asked will be heard and it is already done. “In all your ways acknowledge him, and he will make straight your paths” (Proverbs 3:6).
Organizational managers, from a biblical perspective, should be willing to submit to the Lord. Following His direction and maintaining humbleness. Organizational mangers should maintain obedience with prayer and be fearless when it comes to making decisions; this shows confidence in the word of God. "For I know the plans I have for you," declares the LORD, "plans to prosper you and not to harm you, plans to give you hope and a future. (Jeremiah 29:11). Decision making managers have to be willing and ready to accept God’s answers by submitting to God. This allows assurance to be seen which allows God to see that one’s ability and obedience it present. Incorporating biblical principals in decision making is also a wise decision of managers; God will work on his purpose through your decision.
References
Cohen, F. (2012). Evidence-based management. The Journal of Medical Practice Management : MPM, 27(5), 286-9. Retrieved from http://search.proquest.com/docview/1243050386?accountid=12085
Daft, R. (2013). Organization theory &design (11thed.). Mason, OH: South-Western Cengage Learning.
Shortell, S. M. (2006). Promoting evidence-based management. Frontiers of Health Services Management, 22(3), 23-9; discussion 41-4. Retrieved from http://search.proquest.com/docview/203877155?accountid=12085
The Holy Bible, English Standard Version

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