4.3 Qualitative Factors Outweighing Quantitative decisions

 

Two methods of decision making are based on quantitative and qualitative approach. Quanitative approach uses mathematical calculation based on profit or spent cost differences in a managerial accounting method such as differential analysis, whereas qualitative decision uses relatively subjective analysis which doesn’t use numerical calculation but has other substantial influence on the collected data (Thomas, 2018) outweighing the quantitative decision. There exist three naturally important non-financial qualitative factors for managements of customers to make decision which include the morale of all persons in a company or morale of owners  managers and employees, quality of product or service, and the supplier’s reliability for on time goods or service delivery (Kelly, n.d.). To make a very good conclusion, this discussion chose to start from the two last or third and second factors contributing to the most important one.

As the last or third important factor, reliability means the company’s ability to supply well-qualified product or service on time (Anonimous, 2021) or fastest time in my own opinion. Time discipline or on time habits in general is required in all sectors including business and non-business activities. Our costumer will be unable to fulfil the next job on time due to our delay on service or product supplies. If the customer is also a supplier for the next customer, the same thing will happen in such a way that all parties around will be negatively affected. Therefore, in this situation all parties will tend to find the one having best record of reliability no matter how costly they need to pay the best one. This reliability in other words is the other side’s value of the suppliers letting them have a very good reason to be outsourced.  Another different case example is ability of a pilgrimage company to give the first specially prioritized and constitutionally legalized visa which has no need to wait or without waiting for 10-15 years of regular pilgrimage service offered by almost pilgrim companies. Regular visa costed around $ 2795.64 and the special visa costed around $ 50000. Based on quantitative cost difference, people will not choose the special visa. However, due to the fastest time offered, they tend to find more ways to buy it so that they can go to mecca and perform the pilgrimage without waiting for a long time.  

As the second important factor, giving the best satisfaction from the services or supplied products to all customers sometime will make the customers come and come again to the supplier no matter how extremely unbelievable expensive the expense is. For example, the most highly skillful barber shop service supplier supported with digital database technology on the old and modern hair styles having well diverse hair stylists from all over the world well trained with the company’s state of the art technology of hair cutting machines will hang in the situation giving high cost of service and does not worry about losing customers since the service has no competitors. Therefore, in this situation the quantitative cost comparison between the available barber shops are outweighed.

In order of importance, People’s moral are the first and most important factor for customer’s consideration to choose the best supplier. Morale or personality (Anonimous, 2021) in this discussion is overall outlook, attitude and satisfaction of the employees in their association of working in any supplier’s organization or business. Very good morale of all persons - the owners, managers and employers of the suppliers can make them feel mutualistic and full of happiness during their cooperative activities making them easily happy to work and gain synergy on presenting the second and third factors which are supplying the best product or service and being reliable to supply them on fastest time. On justification, the supplier which has very good morale cultures will gain the highest trust based on the addition of the best trusted product or service and the best trusted on time supplies. In conclusion, this aggregated qualitative factor is the one mostly outweighing the quantitative decision.

         

References

Kelly, R. (n.d.). Short Term Decision Making. Education Training. Retrieved October 1, 2021, from https://www.cpaireland.ie/CPAIreland/media/Education-Training/Study%20Support%20Resources/F2%20Management%20Accounting/Relevant%20Articles/f2mashort-term-decision-making.pdf.

 THOMAS, D. K. O. S. H. Y. (2018, January 19). Qualitative & Quantitative Decision making. LinkedIn. Retrieved September 30, 2021, from https://www.linkedin.com/pulse/20140920165433-34529931-qualitative-quantitative-decision-making.

 Anonimous. (2021). Read "high-purity chromium metal: Supply issues for gas-turbine superalloys" at nap.edu. National Academies Press: OpenBook. Retrieved October 1, 2021, from https://www.nap.edu/read/9248/chapter/8.

Anonimous. (2021, July 15). Employee morale: Definition, affecting factors, and how to boost morale. QuestionPro. Retrieved October 1, 2021, from https://www.questionpro.com/blog/employee-morale/.