Scientific Decision Making is a systematic approach to collecting facts. And applying logical decision making techniques. Instead of generalizing from experience, intuition (guessing), or trial and error.
Scientific Decision making includes more than one person in the decision process. This means that to a business with lots of employees. The decision may be much more agreeable and will have reduced bias and so is more reliable. For Dyson this would have greatly benefited them as it would mean. That they may not need to have lost as many as 865 manufacturing jobs. If there was a better more agreeable option. And wasn’t solely based on James Dyson’s. And the managers intuition (the ability to have a grasp on a situation or information without the need for reasoning).
Reducing bias would have meant that employees. Would have had a larger say and the directors wouldn’t have made a decision based entirely on their own benefits. And costs rather than the business as a whole. Therefore a scientific decision making model could have had benefits to the business. And employees because it would mean that the workforce. Would have been much more motivated for the change and may have been more productive leading up to it. Perhaps resulting in reduced costs (job losses).
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Another way that scientific decision making benefits a company is through the prediction of future costs. And profits (revenue – costs) of making a decision. So therefore enabling a company to make a better decision that will potentially increase profits and minimise costs. To Dyson this would have benefited them by showing them which decision (to move or to stay) would have resolved their problems with having higher production costs in the UK than Malaysia in perhaps the long term because even though moving to Malaysia has boosted profits for them and made them market leader in 2 years, perhaps a different decision would have boosted their profits further and also made them market leader in only 1 year. This is because the scientific decision making process shows you the profits and costs of all options enabling them to see the most profitable option meaning it is more reliable.
Therefore this model would either have ensured Dyson’s success by making their decision more reliable or allowed them to make an even better choice potentially creating more profits and success for them.
However a scientific decision making method could also incur large amount of costs to a business because it reduces productivity because of the amount of time and research required to complete the model therefore causing a business’s costs to rise. For Dyson this would have largely negative results because the business is wanting to reduce the costs by moving so increasing them in the decision making process would make the move quite pointless in the short term.
The loss of productivity could also mean that the business wouldn’t have the capital to invest in growth as they did in order to become market leader so therefore it could take longer for their profits to boost and for them to become the market leader. This means that it could also have large costs in the long run also and so actually a scientific decision making model may not have been greatly beneficial to Dyson in this decision.
Overall despite the benefits to Dyson of using this model, such as the prediction of future costs and profits and also the bias that may have been included in the decision, I don’t think that they are worth the costs the business would incur as a result of using it. It would use lots of time and take longer for the decision to be made and so productivity would decrease and affect both long and short term growth and profit, because it would take longer the benefit to moving (gaining 30% less production costs) would take longer to take effect. Therefore overall the scientific decision making model could actually create more costs than profits for the business through using it and because of the sheer success of the business, I do not think that it would take much benefit in using this model.
