Group Decision Making Report

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THE UNIVERSITY OF NEWCASTE|
CASE STUDY REPORT|
HUMAN RESOURCES MANAGEMENT|
|
NGHIA DUNG DINH|
C3179988|

|

TABLE OF CONTENTS

EXECUTIVE SUMMARY3

1. INTRODUCTION4

2. THE DECISION MAKING FRAMEWORK AT YELLOW AUTO 5
2a. A Sociological Perspective.
2b. The Social Exchange Theory

3. THE CRITICAL DECISION…………………………………………………………6 3a. A Sociological Perspective
3b. The Group Polarization………...…………………………………………………

4. CONCLUSION8

5. RECOMMENDATIONS8

REFERENCE LIST9

Executive Summary
The report analysed the decision making framework of Yellow Auto Company from the perspective of sociology. Before 2001, Yellow Auto Company was a company which was owned and managed by a family. Therefore, the decision making of Yellow Auto Company had trend to be dominated by one person who was the president of the board of the directors, might be also the head of the family. An individual was limited and rationality bounded therefore caused management problems in decision making. The sociology perspective showed that not all people involved in decision making process and this caused to lack of implement the decision and the company would faced with the decreased of employee’s commitment and satisfactory. In 2001, the top managers of Yellow Auto Company changed their management style, corporate with the group of consultants in order to cope with the problems in the company and furthermore achieve the goal of increasing market share. The Sociological perspective showed that the interaction between group’s members of the company had increased, when working in group with discussing and sharing information, the company had made effective decisions and solved all the problems and achieved the goal. By the way, it also pointed that top managers of Yellow Auto Company were risk lover and tendency to take more risk when working in group. Therefore, there are two recommendations should be made after critical analyzing the case of Yellow Auto Company. First the top managers of the company needed to distinguish the family relationship with work and focus on group working, avoid being dominant by the head of the managers, also the family. Secondly, the top managers of the company should restrict taking risk decision when the company was running fluently. Taking risk decision was only effective when the company need a breakthrough or creative thinking.

1. Introduction
This report is about analysis of decision making framework of the Yellow Auto Company before and after the change in 2001. The sociological theories and model are used to analyse the decision making in the case. After the change in 2001, the Yellow Auto Company solved all problems and had scientific and effective management styles, and then there are two recommendations are made in order to the company sustain the success in the future.

2. Decision Making Framework at Yellow Auto Company
Yellow Auto Company was owned and managed by a family and all decisions of this organization were made by top managers also known as “a group of owners” with the president of board directors was the directly supervisor of three departments. All power belonged to family members, employees did not have much allowance to participate in decision making process and they were expected to ask to their managers when they got something unclear, managers would ask to their supervisors. Top managers took part in all the final round of each process and made the final decisions, for example the recruiting new employee process. Because of the power in the hand of some individuals so the family model had a trend to be individualisation, decision making power reality was in one people, often was the head of the family. More specific in this case, it could be the president of the board of directors. Individual ability and information was limited caused to the quality of decision making was bounded (Tolbert & Hall, 2008) 2a.Sociology Perspective

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