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Strength Of Rational Model Of Decision Making
The importance of rational decision making
Strength Of Rational Model Of Decision Making
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As Untied Tech undergoes this new step in the companies future, certain changes will be implemented. The decision for Honeywell not buying out United Tech was seen ahead of time, with board of directors suspecting the bold drop out. Yet this decision has impacted the company rather negatively, with UTC stock being low and failing divisions within their company the main and biggest question is can UTC produce shareholder value. Noting that now they are standing alone and having to produce enough revenue in a competitive market, the issues that CEO Hayes should mostly focus on is the growth of the company and how it will be producing new revenue and value for future investors. Considering their new niche and how they will market themselves are …show more content…
The next category is a non-programmed decision. This means that the decision was unstructured and does not happen as often as a programmed decision would occur. In this case Honeywell lack of buying UTC is considered a non-programmed. Even though their was a lot of talk before hand that the deal would have not gone through no one I the company was actually planning for the decision. Noting that now they are trying to see how to stand-alone and create shareholder value, which was not an issue that came up often. Therefore they now have to treat this decision uniquely and their expected programmed decisions they have faced before. Now that CEO Hayes knows the effects of Honeywell’s decision and the new situations that have come out of them. He will need to be able to make a rational decision, and with every rational decision a certain process model will be done. Even though presumptions can not be made for the classical decision process, people can still look and approach decision with rationality, When a company or manager follows the rational decision making process they can be assured that they are understanding much about the situation as possible. In order to do so he must focus on the first step, which is recognizing the …show more content…
Even though it is called a rational decision model, most people don’t pick rationally. Some experts have stated that companies in the US use rational decision making techniques 20 percent of the time. Which is low considering the decisions they go through are not easy. What can fade them picking such options is their behavioral aspect, the way they are raised or how emotionally connected they are to the company makes it hard for them to implement said decisions. In CEO Hayes position having a bounded rationality affects the process. His values and how long he has been with UTC made it hard for him to actually go through the decision. This company has grown with him therefore deciding to split it up affects him more personally then an outside person. The next issue would also be satisficing, which in a case like this can easily be done. Satisficing means having a tendency to search for alternatives that meets just the minimum standard for completing. To get the problem solved it can be easy to just pick the fastest decision. Hayes could pick the fastest outcome just to get the blame away from him; this could not benefit the company to the best. Yet it is not certain that he will go through those aspects in his behavior when picking an option. Still it is important to consider those
As a CEO I would want my company to be up to date in all aspects of technology so that we aren’t left behind. It seems that Atkins, the CFO, may have an old school way of thinking and wants to leave things as they are in working order. Atkins has the best interest of the company but will need to rethink certain things and accept that technology is a way of the future, and will not be going away. Vargo needs to identify that Devereaux is a risk taker, even at the expense of the company. Peterson, the Vice President of property and casualty, has said that the underwriters think that there’s too much judgment involved with their job, so the expert systems may not cut. The employees saying this may be valid reasoning, or a plea to keep from losing their jobs to artificial intelligence. More testing will be needed before the expert systems is fully in place.
In retrospect, the decision to place the top people on the best opportunities resulted in several of the companies failing. I think with quarterly or yearly deadlines looming, leaders may be forced to reshuffle the deck, placing their top people on the biggest problems in an effort to finish strong. Whereas this may result in a short term “fix” you are neglecting the future of an organization by having your most valuable resources working on the wrong
implications of leadership succession in an extreme form of mergers, a merger of equals, can
Delegating leadership responsibilities to in-groups poses a challenge of building a strong structure with a clear understanding of procedure. On the other side, if the leader cuts followers out of the decision making process, the newly formed relationships will suffer. The Normative Decision Model offers a recommendation for the ways leaders “adjust their decision style depending on the degree to which the quality of the decision is important and the likelihood that employees will accept the decision (Nahavandi, 2015).” An easy first step for leaders is to understand how many people will be effected by the decision (Nahavandi, 2015). Does it only concern an individual or is the whole group going to be impacted? Using the decision tree on page 76 of Nahavandi’s The Art and Science of Leadership (2015), leaders can effectively identify the appropriate decision style needed. A leader must adopt an autocratic style when the quality of the decision is not significant, when employees disagree, and when the employees don’t see eye to eye with the organizations goals (Nahavandi, 2015). While a consultative style is necessary when the employees will hold the responsibility of implementation; especially when employees agree with the overall goals of the organization (Nahavandi, 2015). Finally, “group oriented decision style should be used when the leader does not have all the information, and
In what specific ways did GM’s decision makers confine themselves to the closed decision-making process?
The scenario presented is the tale of Executive A planning to retire. Leader B and Leader C are in contention to move into the CEO position. When Executive A retires, there will be a change in company performance along with how employees react, as Leader B and Leader C have different leadership styles from Executive A.
Team B's assignment this week was to select two different publicly traded companies in the same industry. The two companies will serve as the basis for subsequent team assignments. The two companies chosen for study are Wal-Mart and Target. This paper will provide an overview of each of the selected companies.
The issues in this case revolve around the launch of a mini-oxidation product which will solve global clean water issues. Their filtration unit has already experienced two failures in the launch of this product. Vyas, the business manager of this unit, is convinced that the unit can be turned around by innovativeness. He revives an abandoned oxidation technology and recommends his team to develop a small-scale oxidation system with the capacity of disinfecting waste-water in small batches. While the market analysis of the product proved promising, marketing the product was a tussle and it failed due to defects in the design and lack of interest in the market. Through a three-phased process recommended by Cynthia Jackson, Vyas team was able to come up with a feasible business proposal for the implementation of the product. Both Cynthia and Vyas are tense about accepting the proposal due to its past failures but promising future.
That brings a great challenge to succeed, and lets the leadership work in new and innovative ways to make such a merger successful. McClelland’s theory states, in regards to the need for achievement, that people strive “To excel one’s self.to rival and surpass others. to increase self-regard by the successful exercise of talent” (Kreitner & Kinicki, 2010, p. 215). By this definition, the merger would motivate leadership to excel in the face of a challenge, and to increase their professional self-regard in their success in doing so. On an individual level, you are asking the performers and employees to recognize both economic and social climates, and to come together in action to save both their careers, as well as their passion for life....
Akamai Technologies, Inc. is an organization which delivers the content over the Internet. It is one of the largest organizations which provide the distributive Computing Platforms; it provides a cloud based services to the end user. It serves 30% of the overall web traffic. Akamai provided numbers of servers which are located all over the globe and stores the web application of the clients. It provides a faster access to those applications because of the distributive contents in to various servers around the world. Akamai does not want the long routes to it distributed the data based on the locations, it works as like a work or a task which is not possible to be completed by a single persons is divided in to multiple process or threats or assign to teams to complete their individual part, so that task can be complete faster, in the same way the contents are stored at different servers based on their access mechanism.
Enviably, Curley decided to integrate, and it seems to have been successful. They only had one year where circulation was down. Though people seriously doubted the integration processes, it worked and USAT is still a successful company.
Trimming fat and reducing management layers is inevitable. However, boosting shareholder wealth by stepping on the stakeholders is immoral and unethical. While it is hard to say definitively what the right answer here was, we can examine some of Kidder’s principles of resolving ethical dilemmas to evaluate the decisions made. For example, ends-based thinking, which refers to doing what is best for the masses, was clearly not accounted for in this decision making process. Shareholders and senior management seemed to be the benefactors in CSC’s example. Furthermore, the care-based thinking principle also seems to have been neglected in this decision making process. I would find it difficult to imagine that senior leaders contemplated their proposed behaviors as if they were the object rather than the agent, and consulted their feelings before determining that 40% of the workforce must fall into the category of not meeting expectations (Hughes et al., 2014). Overall, CSC’s decisions were clearly not entirely moral or
Blenko, M. W., Mankins, M. C., Rogers, P. (2010). The decision-driven organization. Harvard Business Review, 88(6), 54-62
David Fletcher is a portfolio manager with many years of experience and success under his belt. He currently is a limited partner managing an Emerging Growth Fund for Jenkins Fletcher Partnership or JFP. The company was small when David started and consisted of a CEO, Paul Jenkins, CFO, 2 financial assistance, 4 research analyses, 1 research assistant and a receptionist. David first started with JFP he hired an Administrative Assistance, Whitney to help organize his calendar, contact companies and take messages, etc. Whitney proved to be capable and eager to learn. Under David’s guidance she received her MBA and was promoted to a Portfolio Manager in training. One of her primary areas was Healthcare but she also had retail and environment. In addition, Whitney developed a solid network of contacts and was very good at annualizing the financial statements of potential business. However, David was still holding her hand and had not allowed her to invest completely without his input. Also, she was just starting to attend conferences solo. Although Whitney was helpful, David felt he needed to form a team to help with the labor intensive job of processing all the information for managing the fund. His typically day was consumed by meetings, phone calls and conferences and he could not keep this pace for the long haul. Therefore, he discussed the possible of forming a team with Paul Jenkins and several of investment firms before proceeding with the concept of a team at JFP.
As a massive provider of consumer goods in India, Hindustan Lever Limited (HLL), is attempting to penetrate the rural markets where there is a massive opportunity for growth. HLL’s current operating sectors are becoming increasingly competitive and crowded. Their best opportunities now lie in developing new markets and rising to the top of that market. They are attempting to do this with a program for developing entrepreneurs, named Shaktis. Met with initial success the program now needs to grow without increasing costs.