Manage Under Uncertainty

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University of Newcastle

October
2012

[Yellow Auto Case Study]
[GSBS6001 Individual Assignment]
[By: Shih Yun Lin (3172398)]

Executive Summery

Managers are constantly faced with critical decisions that will heavily impact on the company’s competitive ability and profitability. This report will analyse the critical decisions made in the case study The Change Story of Yellow Auto Company from a sociologic decision making perspective. The case study presents four main decisions which are: increase of market share, change in decision management style, clarify job description and invest greater time and money in human resources. The analysis of these decisions centres on the relationships between employees and managers and the positive and negative attributes of group decision making. The case study demonstrates that the decisions made by Yellow Auto have been successful in achieving the organisational objective of an increase in market share and an improved human resources quality. Recommendations have then been made in order to improve the company’s future decision making process including: a more consultative decision making process for high risk decisions, a hybrid management style, a different set up for job descriptions and quality management for human resources activities.

Table of Contents

Executive Summery2
Introduction3
Critical Decisions4
Increase of Market Share4
Change in Management Style5
Clarify Job Descriptions6
Invest Greater Time and Money in Human Resources6
Recommendations7
Conclusion9
Reference List10

Introduction

Companies must constantly make critical decisions in order to choose strategies in order to gain a competitive advantage or keep up in the rapidly evolving market. The factors influencing decisions and the relative advantages and disadvantages can be viewed from multiple perspectives. This report will analyse the decisions made in the case study The Change Story of Yellow Auto Company from a sociologic decision making perspective. The sociological perspective focuses on the patterns of social relationships, interaction and culture and how this impacts on the company’s decision making process. Various critical decisions have been made in this case study including: Increase of market share, change in decision management style, clarify job description and invest greater time and money in human resources. These decisions have all strongly impacted the company and will continue to impact it in the future. These decisions will be explored with a sociological focus, discussing positive and negative attributes of each decision. Recommendations will then be explored in regards to how the company can improve their decision making in the future. This case study report is based on credible research retrieved from published books and accredited journals obtained from the internet.

Critical Decisions

Increase of Market Share

The first critical decision in the case study is the goal set in 2001, to increase Yellow Auto’s market share to 50%. This goal has been derived by the top managers alone and without any input for from the middle managers or front line staff. The managers believe the only way to achieve this goal is through an improvement in the human resource quality. There are many sociological factors in this decision including autocratic management style and small group decision making. Firstly Yellow Auto’s management style is comparable with that of McGregor’s Theory X management style in which top management makes all the decisions and maintain a strict control over the business (Mathis, 2010). This decision making and enforcing style can be effective due to the nature of small group decision making, in which smaller groups are able to reach consensus more easily. This is due to it being a more timely approach as lower number of people correlates to a reduced number of differing opinions and an increase in the...
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