Concept Of Rapid Volatile Discontinuous Change Essay Example

one who left. This caused potential chaos within the company. An analysis of this decision reveals that decision makers have limited cognitive abilities and cannot consider all optimal options in different situations (Simon, 1957). In simpler terms, those involved in making decisions often lack the foresight to be rational because they do not have complete information or many alternatives. Consequently, they settle for choices that are satisfactory instead of maximizing utility (Simon, 1979). The food company manager's approach aligns with this concept as he believed his decision was good enough despite facing opposition from other staff members. This is an illustration of bounded rationality or limited rationality, subjective rationality. Simon's theory of bounded rationality, cited by Tolbert & Hall (2008) when discussing normative models, applies to the decision made to let go of the driver. In this situation, the manager demonstrated an inability to make a decision.

The normative models assume that decision makers must possess all the necessary skills to make different alternative choices and predict the consequences. They should also be able to determine the outcome if it leads to profitability. Additionally, these models expect decisions to be made logically, rationally, and objectively (Teale, Dispenza, Flynn, Currie, 2003). However, humans do not live in a perfect world. When decision makers face cognitive challenges, they often fail to adequately evaluate all available information or uncover all relevant facts and details in order to maximize value (Simon, 1979).

The manager's choice to decrease the working hours of part-time employees and shift the cost onto them seems like a reasonable decision for the company. However, this decision was solely based on the manager's personal

preference rather than considering the organization's overall interests. Instead of taking a more comprehensive approach, the manager relied on their own narrow-minded bureaucratic mindset. Despite having ample time to make an optimal decision, they concentrated solely on one aspect and disregarded other crucial factors within the organization.

The decision to leave no other options was quickly made without careful thought by the manager. Simon argued that when all staff members contribute to a decision, it tends to have more favorable outcomes compared to decisions made by one person alone (Tolbert, Hall, 2008). The manager did not consider the feelings of others and failed to balance the importance of the driver and store assistant roles. According to Simon, managers should make logical and consistent decisions in order to create greater value (Simon, 1956). However, this decision made all staff members unhappy, leading one staff member to leave and causing a loss of valuable skills and knowledge (brain-drain).

The company should increase the cost of training newcomers in the future, which the manager's decision did not reflect rationality. The situation was straightforward: a driver made a mistake, but instead of punishing the driver, the manager imposed the cost on other staff. Although it may seem like the manager prioritized organizational profit, they did not take the time to explore more optimal alternatives. Simon demonstrates that managers rarely make perfect decisions in reality. However, if the manager desires, all the conditions can meet rationality in this situation.

The individual did not consider all potential outcomes, but rather focused on overlooking superior choices. Additionally, their lack of vision and understanding of bureaucracy was evident. This unique

situation did not require adherence to previous incorrect decisions, allowing the individual to rely on their intuition. According to Simon, many decision makers rely on intuition when making rational decisions (McKee, 2010). Empirical evidence supports this, as approximately half of organizational leaders make decisions based on intuition.

The manager was faced with a situation that he had never encountered before, so he couldn't apply his past experiences to make a judgement. In this case, it would be beneficial for the manager to use the eight-step model to make a logical decision. This model involves recognizing and analyzing all the problems and making a rational decision (McKee, 2010). Starting with identifying the issue and gathering information, the manager should also investigate what is causing this accident by determining its root cause.

To address this situation, I would gather input from fellow staff members to evaluate the driver's daily performance. It is crucial for all staff members to participate in the decision-making process. Once I have assessed the driver's performance, I would take into account the severity of punishment necessary to prevent future accidents and ensure fairness among staff members. I would handle this issue on multiple levels, including the organizational level, the individual level of the driver, and at a staff-wide level. While it may appear to be a simple issue, I would carefully consider how the punishment could impact the driver's abilities and resources.

For instance, I would bear half the cost of the repair, while requesting the company to cover the other half. I would also document this accident for future training purposes, particularly for new staff members. Additionally, I would

prioritize procedural justice by making the final decision. Nevertheless, it is crucial for all staff members to believe that they were part of the decision-making process. Their input was considered and ultimately influenced the final decision. Empirical evidence suggests that when staff perceive the decision-making process as fair, they are more likely to actively participate (Garvin & Roberto, 2001).

To create an inclusive atmosphere where diverse opinions are valued, it is essential for managers to be receptive to different viewpoints. To accomplish this, I propose initially refraining from divulging personal preferences and instead encouraging employees to freely express their thoughts. During discussions, it is crucial to exhibit genuine interest by actively taking notes, posing questions, and displaying patience. Following a group conversation, I would deliberate on at least two alternatives before arriving at a final decision. Furthermore, I would disseminate the information shared by all team members to the staff and underscore how their ideas can shape the ultimate outcome. Additionally, I would elucidate the reasoning behind my chosen decision.