Employing evidences or facts to perform the organization is definitely not a fresh concept inside the management practice.
Some managers use their experiences, research, articles and other evidences conducted by organization experts to make decisions in their firm. Using these evidences to produce solutions to fix problems inside the organization is referred to as evidence-based management (EBMgt). For the advocatte for EBMgt, this decisionmaking procedure has some positive aspects in its setup. Creating a top quality decision is actually a linear function with a marked improvement of data and information used as decision supports. Having reliable evidences and applying systematic procedure, managers can make a better managerial and organizational decisions.
With this good environment, organizations also will perform having a flexible method in putting into action all decisions because they are resulted from quite a few good studies. Finally, it also will make a learning environment for managers to improve all their competence to produce a good decision. For the opponent of EBMgt, this kind of practice is not easy to be implemented in the business because several reasons. Sometimes, it seems a lot of information intended for managers to consider as decision helps. Furthermore, by those data, managers regularly feel hard to pick the dependable information.
When ever managers feel that they have a very good evidence, sometimes they cannot utilize it as their decision support since it is not highly relevant to their firm in certain conditions. Lastly, managers frequently get caught in the wrong business practice must be half-done solution that is proposed by consultants. After that, managers often see various other consulting companies to make an effort misleading. To comprehend more deeply about EBMgt, let’s see one of PT KAI, the Indonesian state-owned business that run railways. Since the last 4 years, supervision of REHABILITATION KAI has evolved the company via getting reduction USD 8. 5 Million in 2008 to having earnings more than CHF 45 Million in 2013.
The amazing change in the company could not end up being separated coming from many innovations that is applied by simply its management. In 2009, the management would some researches and study about the company’s challenges causing having less revenue. From then on, they discovered two primary issues that were human resources and services trouble.
To solve the first issue, the administration applied the meritocracy system in its recruiting system.