Global Communications can improve their decision making process by understanding the characteristics of management decisions, thus improving their decisions and contributing to the success of the organization. “The characteristics of management decision making include programmability, uncertainly, risk, conflict and scope” (Gomez-Mejia & Balkin, 2002, 3).Global Communications also did not recognize the limits of rational decision making because Katrina Heinz, CEO, identified that, “Since we have already spent considerable time devising and agreeing to this strategy, we’re better served to address the challenge that we’ve set up” (University of Phoenix, 2004, P4).
This tendency of decision makers to make a less rational decision after investing time and resources even if the decision is the wrong one.Gomez-Majia & Balkin state that, “The more costly the resources invested, the more likely the decision maker will be wedded to the chosen alternative, even if new evidence shows it was the wrong choice” (Gomez-Mejia & Balkin, 2002, 4). The Board and Leadership team did not have sufficient information, and therefore could not accurately assess the likelihood of varying results of their decision.
The organization can improve the predictability and the consequences of their actions, thus leading to a more successful organization.”Uncertainty means that the manager has insufficient information to know the consequences of different actions” (Bateman & Snell, 2004, 9). There was no apparent contingency plan in place when the decision was communicated into the organization. No alternative scenarios or action plans were considered at this point. “The process of considering multiple scenarios raises important “what if” questions for decision makers and highlights the need for preparedness and contingency plans” (Bateman & Snell, 2004, 49).By generating contingency plans the organization may better be able to predict the future of the business and their decision making leading to a better managed decision making company. Sometimes decision makers can build in safeguards against an uncertain future by considering the potential consequences of several different scenarios.
Then they generate contingency plans – alternative courses of action that can be implemented based on how the future unfolds” (Bateman & Snell, 2004, 47).Many channels of communication were used when the new plan was accepted by the board and implementation was beginning. They should not have utilized these channels I this instance. The Union Vice President heard the news through the ‘grapevine’ she then contacted the Executive Vice President – HR and PR through e-mail which allowed for flaming to occur. “Employees perform better if they can quickly determine the best communication channels for the situation and are flexible enough to use different methods, as the occasion requires” (McShane-Von Glinow, 2004, P332).Communication is key in successful organization and the channel in which you communicate. Increased and better communication for Global will help the organization improve its operations, gain more understanding, utilize information more effectively, and enhance all aspects of decision making.
“A critical part of the communication model is the channel through which information is transmitted” (McShane-Von Glinow, 2004, P326).The organization’s leaders did not seem to have enough information regarding t he issues within their company. The CEO stated that it’s nice to get out of the fortieth floor and have a reality check (University of Phoenix, 2004, P5). Had she decided to do this before presenting to the board or accepting the alternative she did, she may have had more information as to the acceptance of this plan. She would have had better sense that the employees were already accepting another huge change in order to help the company.
Executives can improve their decision making and problem solving skill by learning how to communicate more effectively and gain all aspects of information required for decision making. In an organizational context, can’t rely on employee surveys and company newsletters alone to understand what is happening in the organization. They need to get out of the executive suite and meet directly with employees at all levels and on their turf to sully understand the issues..
. Management By Walking Around – MBWA” (McShane-Von Glinow, 2004, P344).