Chapter 09 Managerial Decision Making

Consensus principle. The emergence of this principle is associated with a number of factors:

• Consensus principle. The emergence of this principle is associated with a number of factors:
• deepening the processes of democratization of management;
• -increase in information flows and complication of technical and economic conditions for decision-making.
• Consensus is the reconciliation of all controversial issues and different opinions in the process of making decisions. It is achieved through mutual discussions and consultations, as well as through the application of various methods of rationalizing the proposed alternatives.

Ringi method. The term "Ringi" in the "Big Japanese-Russian Dictionary" is interpreted as "obtaining consent to solve a problem by questioning without convening a meeting."

• Ringi method. The term "Ringi" in the "Big Japanese-Russian Dictionary" is interpreted as "obtaining consent to solve a problem by questioning without convening a meeting."

• In Japan, the “ringi” procedure is referred to as a management philosophy that preaches prudence, caution and collective responsibility. And although in the Japanese press one can find criticism of this procedure due to its excessive cumbersomeness and congestion of information channels, there is no question of refusing to use it. In the near foreseeable future, the Japanese will not give up the "rings". They believe that "rings" helps them to take into account the full range of opinions on the issues being developed, so it is too big a luxury to throw overboard any opinion that is not even very significant.

• The second stage: transmission of the problem “downward”, i.e. to the section where the work on the project is organized.

• The "rings" procedure consists of 5 stages:

• The fifth stage: revision of the document called "ringise", its endorsement by the executors (each must put his own seal), approval of the document by the company's management.

• The fourth stage: conducting focused meetings and conferences, at which a specific way to solve the problem is discussed.

• The third stage is "nemavashi", literally "chopping off the roots", that is, detailed coordination with the executors of all points of the upcoming project. In essence, this is "smoothing out corners", that is, weakening disagreements, cutting off opposing points of view.

• The first stage: the management of the company, together with the specialists involved, puts forward general considerations on the problem on which a decision must be made.