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Managerial Decision Making 1 Running head: Managerial Decision Making

Managerial Decision Making Part 1 Unit 1- Individual Project January 7, 2012 Instructor: Dr. Anthony J. Matias Belinda Caballero

Managerial Decision Making 2 Abstract Business proposals and formal research have both differences and similarities. Each difference and similarity has its own place in the business world. Formal research has a more scientific approach. Business proposals are more strategic.

Managerial Decision Making 3 Introduction In order for a business manager to understand and compare the difference between business proposals and formal research, they need to become knowledgeable with the two elements. A manager who is knowledgeable about research can effectively utilize them within their business. Formal Research vs. Business Proposals

A formal research is the process of finding one or more solutions to a problem, after a thorough study and analysis of the situational factors (Sekaran & Bougie, 2009). A business proposal is a written scheme from a seller to a prospective customer. The main purpose is to fulfill the requirements of a client (Lara Hopkins).

Formal research and business proposals are two aspects of business that should be used together. When developing a business proposal a formal research should be initiated. Without a formal research what validity would a business proposal have? Business proposals

are most often used when a customer is interested in purchasing or acquiring a business or for financial purposes. A business proposal gives information to the customer about a product and the target market for the specified business. A business proposal is used to provide specific details of the proposition and how this said proposition will function. A business proposal is a tool, it attempts to explain why, where, when and how this business will work and why it should be of interest to the customer. There are several forms of research, two which we will speak about are applied and basic. Applied research is used to solve a current problem faced by the manager and demanding a timely solution. Basic research is used to generate a body of knowledge by trying to

Managerial Decision Making 4 comprehend how certain problems can be solved (Sekaran & Bougie, 2009). All companies use applied research when a current problem needs to be resolved. Basic research uses a more scientific approach to gather information on a general are of the business

Part 2 Outsourcing is the use of outside resources to perform the duties which are normally handled by an internal department. Although, outsourcing can provide economical gain to the company it is important to remember there will inevitably be human cost because of unemployment. There are many benefits to human resource outsourcing, including cost and productivity. While a business can choose to outsource specific aspects of the HR department, outsourcing the entire department is the most profitable (Amita Bhagria, 2010). Most corporations believe that in order to compete globally, they have to look at efficiency and cost containment rather than relying strictly on revenue increased (Bartlett, 2004; Drezner, 2004; Farrell & Rosenfeld, 2005; Jasper, 2003). Although, a company might see outsourcing as a benefit, there are many consequences to outsourcing a department. If a business decision is made to outsource the HR department it is important to remember that there are several consequences to that decision. Closing a department due to outsourcing means several people will be unemployed. Consequences of outsourcing are not limited to unemployment. Outsourcing can also reduce the morale within the company and the community. The decision to outsource boils down to company profitability versus human consequences.

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References Sekaran, Uma & Bougie, Roger (2009) Research Methods for Business: A Skill Building Approach. (5th ed) John Wiley West Sussex: United Kingdom Definition and Elements of a Business Proposal (n.d) Retrieved on January, 2012 from http://www.selfgrowth.com/articles/definition_and_elements_of_a_business_proposal.html Human Resources Outsourcing Considerations (n.d.) Retrieved January 2012 from http://www.younghrmanager.com/human-resources-outsourcing-considerations Drezner, D. (2004, May). The outsourcing bogeymen. Council of Foreign Relations: Foreign Affairs. Retrieved from http://www.foreignaffairs. org/20040501faessay83304/daniel-wdrezner/the-outsourcing-bogeyman.html.