An Analysis of Rbs Skaals

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An analysis of the case study RBS Skals: Leader’s Dilemmas using a Psychological Perspective -------------------------------------------------
Managing under uncertainty: Assignment 2
Melody Marume ( c3173481 )

CONTENTS

EXECUTIVE SUMMARY……………………………………………………………2

1. INTRODUCTION……………………………………………………………..3 2. THE DECISION MAKING FRAMEWORK AT RBS SKALS……………...3 3. RELATED DECISION MAKING ISSUES
3a) A PSYCHODYNAMIC APPROACH ……………………………………..4 3b) PSYCHOLOGY OF DECISION MAKER ………………………………...5 3c) PERCEPTUAL PROCESS AND THE DECISION MAKING PROCESS..6 4. CONCLUSION………………………………………………………………7 5. RECOMMENDATIONS…………………………………………………….8

REFERENCE LIST

EXECUTIVE SUMMARY
A Psychological perspective is used to analyze the decision-making framework at RBS Skals. RBS Skals is one of the ten biggest players in the very competitive and corruption riddled construction market of Latvia. Investments in the construction market have been very small ever since the collapse of the centrally planned economy in the 80s, however RBS Skals has managed to separate itself as a socially responsible, large capacity and financially stable company. It is popular with employees and subscribes to international quality standards. This makes it a viable choice for any big projects in and out of Latvia Maris Saukans is one of the three owners of RBS. He takes a very active role in the day-to-day company operations. He uses an authoritarian leadership style and his word is law. Maris has attached his personal success to that of the company and makes company decisions based on his personal goals. Maris’s attitude of wanting total control and not delegating have proved chaotic at times, and the decision by the board to put all other projects on hold and pursue the big tender, seem more out of fear for Maris as opposed to research. It is therefore recommended that the company utilize the rational eight-stage decision making model effectively; so as to combat elements of bounded rationality. It is further recommended that Maris delegate some decisions to the skilled personnel and spend time on decisions that he is actually needed. Lastly an application of the Johari window theory, can assist the company improve its self-awareness and help it achieve its goals efficiently in a very competitive market.

1) INTRODUCTION
The purpose of this report is to analyze the decision-making framework of the Latvian based Construction Company RBS Skals, under the leadership of its enthusiastic part owner Maris Saukans. The case study is a Marketing example, however a Management view is applied for the purpose of analysis. Maris has been the driving force behind the achievements of RBS over the last 8 years. This has mainly been because he has attached the success of the company with his own personal success. He rules with authority, whilst also maintaining team spirit in the work environment, as evidenced by his presence at construction sites and the reverence that his employees have of him. His authoritarian style of leadership, high drive for success, coupled with the lack of formal training and education may however be limiting the company from reaching efficient, sustainable and profitable goals. A psychological perspective is used to identify significant issues affecting the company, and make recommendations to ensure effective decision-making in the future.

2) THE DECISION MAKING FRAMEWORK AT RBS SKALS
Decision-making as a science is subject to debates over rationality. The confusion lies in whether the term rational decision-making refers to the rationality of the choice or the behavior of the individual/manager making the decision (Harrison, F E.1999), at RBS this would be in regards to Maris Saukans, who acts as both the Chairman of the Board and the Managing Director. Traditionally rational...
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