The decisions made by business after natural disasters Essay Example
The decisions made by business after natural disasters Essay Example

The decisions made by business after natural disasters Essay Example

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  • Pages: 12 (3208 words)
  • Published: September 4, 2017
  • Type: Research Paper
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Every day, humans make decisions that lead to specific outcomes. These decisions can differ depending on the situation or the organization involved. Decision-making involves choosing the best course of action from multiple options (Adair, 1999).

The main focus of this paper is to discuss how an airline responded to a natural disaster (earthquake) and how decisions were made to solve the problem. According to Adair (1999), the classical five-step approach was used, which includes defining the aim, collecting relevant information, generating options, making a decision, and executing and evaluating it. However, addressing the issue caused by the earthquake requires efforts aimed at improving or achieving a specific goal.

The paper aims to demonstrate the occurrence of decision making and problem solving during the event that took place on September 4, 2010 in New Zealand, which impacted certain airlines. Christ Church International Airways Limited (CIAL) was estab

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lished as New Zealand's first international airport in 1950 (christchurchairport.co.nz). Originally serving domestic flights, CIAL expanded its operations to include international flights through various developments. CIAL has set corporate missions and goals focused on achieving sustainable growth in revenue and profits, delivering excellent customer service, maintaining a flexible service infrastructure to support future growth, providing a conducive work environment for staff performance, operating sustainably, and being recognized as a positive contributor to the community (christchurchairport.co.nz). The earthquake that occurred at 4:35 am on September 4 affected airlines in the Canterbury and Christchurch region.

The Christchurch air hose was shut until 10 am Sunday, September 5th morning. The CEO, Jim Boult, along with other senior management staff, is expected to make a decision in resolving the problem caused by the earthquake (christchurchairport.co.nz). In this

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situation, he is expected to rally the entire staff within the organization. The aforementioned situation reinforces the position of Adair (1999) and Rayment (2001), who advocate for a systematic and rational process.

The application of logical or systematic procedures has its shortcomings, so soft system and intuitive approaches such as sidelong thought and head games may be important (Rayment 2001). Challenging specific premises that were considered in solving the problem, flexible thinking and unconventional approaches, suspending judgment are considered in this approach and are mostly important in developing new ways of thinking (Rayment 2001; Hicks 2004). The problem posed by the earthquake implies that there would be certain organizational changes; meaning that certain departments would have to perform additional responsibilities or duties. The situation brings up an organizational change aimed towards new duties and future projects aimed at being prepared for uncertainties. Decision Making in organizations is mostly done within teams or group decision making and expertise-based intuition plays a major role (Salas et al 2010; Chong & Benli 2005).

The text highlights the relevance of decision making in unpredictable situations, such as the earthquake that disrupted service delivery. It emphasizes the importance of identifying desired and undesired outcomes, eliminating unfavorable choices or outcomes, and recognizing the different stages of decision making. Adair (1999, p.38) adds that problem solving and decision making are exclusive reserves of leaders.

The author explained different methods for solving a job or making a decision. The current situation of the airline is portrayed through six issues that require urgent decision making and solutions. In response to these issues arising from a natural disaster, the CEO (Jim Boult) calls for a brief meeting to

determine the next steps. The managerial staff, as shown in Table 1 and Fig 1, adopts the classic decision-making approach, which involves defining the objective, gathering relevant information, generating feasible options, making the decision, implementing it, and evaluating its effectiveness. According to Frishammar (2003), the crucial factor in this process is information. At this point, safety, risks, and ensuring continuity appear to be the most pressing concerns.

The questions posed by Frishammar (2003) relating to the use and acquisition of information in decision-making are addressed here. Considerations include the type and source of information needed, as well as how and where it is obtained. This is a crucial aspect of the decision-making process. The steps outlined above align with Rayment's (2001) analysis of problem-solving and decision-making. In line with the classical approach to decision-making, the management team discussed their objective, which was stated in a six-point declaration. The collection of relevant information involved gathering data on risks, losses, injuries to clients or staff, damages to infrastructure and tracks, and passengers affected by flight delays or rescheduling. This process primarily involved the non-commercial directors listed in table 1 (www.christchurchairport.co.nz).

The coevals of executable options is based on two main factors: the identification of the job (six point job) and the information gathered. Three major determinations are then made using this information. These determinations include ensuring the safety and security of clients and the airport premises, addressing any necessary track repairs, and coordinating flight schedules and missed flights before the airline reopens (www.christchurchairport.co.nz). This last determination is particularly important in maintaining stability for passengers flying with the airline after the natural disaster. According to Gore et al (2006, p.927),

executable options in the Natural Decision Making model are influenced by four significant factors: the characteristics of the task and environment, the nature of the research participants (those gathering the information), the purpose of the research, and the point of interest within the decision period.

The website of the airline discloses that the determinations taken and the three main points of emphasis have resulted in a positive outcome for the airline. Figure 2 displays the evidence of these determinations, as it demonstrates a steady increase in the number of people flying with the airline. The figure also highlights a significant drop in the number of passengers on September 4, 2010, with only five thousand riders. However, following this incident, there is a noticeable overall improvement, as shown in Figure 2.

The determination taken reaffirms Kourdi's (2003, p.65) assertion that the significance of determinations is inversely proportional to their magnitude. In this regard, senior directors emphasized a few important options. The success of the determination made can be attributed to inter-organizational coordination aimed at addressing the major challenges posed by the problem (Heikkila & Isset 2004, p.14; Baron 2000). This aligns with Rausch's (1996) observation that participative decision-making involving senior directors and other subordinates facilitates successful outcomes. The combination of factors such as the composition of decision-makers, coordination, and communication can explain the reasons for the airline's success after the natural disaster. The media archive of the airline clearly highlights the degree of success achieved after implementing the strategic choices, which were threefold.The airdrome was praised by other international airports for quickly responding to the problem caused by the earthquake. The airline's approach, which is primarily a traditional

model of decision-making, successfully achieved the main objective, as depicted in Figure 2, as highlighted on www.christchurchairport.co.nz.

The impact of communication and interdepartmental coordination after September 4th may be related to the Institutional Model decision-making process, as described by Heikkila & Isset (2004, p.9), which involves assessment, initial choices, external factors, internal factors, operational choices, organizational adjustment, and stability. According to the performance data shown in Figure 2, the total number of passengers fluctuated after the earthquake. For example, on September 4th, there was a significant drop of 5,000 passengers, the following day was close to 20,000, while September 6th had 15,000 passengers and September 7th and 8th had less than 15,000 passengers (www.christchurchairport.co.nz). However, this situation suggests that the decisions made were intended for temporary periods. The data indicates that the approach used by CIAL is not sustainable and that there is potential for exploring alternate processes or models.

The most important aspect of measuring success is aligned with the financial report of 2010, which still showed that year as the one with the highest success in the history of the airline. After examining the airline case and the specific process through which the problem was solved and a decision was made, it is crucial to assess other theories or models that deal with the decision-making process or the way the problem was solved. The management board applied classical decision-making theories, which align with the limited time period and urgency requiring a quick response. Hicks (2004) classifies the classical approach as a rigorous systematic method of dealing with problem resolution and decision making.

In the same vein, the author acknowledges that in a dynamic business environment, there

is no single best way to make decisions or solve problems. Instead, there are various approaches to strategic decision making and problem solving that are becoming essential. The author emphasizes how creativity enhances these processes, which fall under the category of hard approaches such as TRIZ, possible problem analysis, Osborne-Parnes Creative Problem Solving Process, and group problem solving. Additionally, system methodologies play a role in decision making and problem solving, with both hard and soft system methodologies being represented. According to Wang & Ahmed (2004, p.1284), viewing an organization as a system comprised of interconnected components means that no single component can survive without the others. See figure below for a visual representation of hard and soft system methodologies. Distinguishing between hard and soft systems depends on the specific elements of the system, which determine whether to use hard or soft system methodologies.

The hard system approach focuses on the structure and relationships within a system, with an emphasis on organization as an interacting system (Wang; A; Ahmed 2004, p.1284). In contrast, the soft system methodology emphasizes the uncertain, behavioral, pluralistic, and ethical aspects of a system. The hard system methodology is deterministic, rational, unitary, and teleological, meaning that it seeks to define problems that can be determined. On the other hand, the soft system methodology allows for investigation, inquiry, and uncertainties in the later stages even with ill-defined problems. Jennings; A; Wattam (1998), Robinson (2001), and Hicks (2004) highlight the importance of contemporary problem-solving models that consider how modern organizations respond to problems and make creative decisions.

Morphologic analysis, also known as originative thought and thought coevals, is one of the solicited techniques in this study

(Rayment 2001). Another technique discussed is systems theory, which has both difficult and soft methodological analysiss. Jennings, Wattam, and Robinson (1998) highlight that morphological analysis involves various techniques such as vote, bunch, hurdlings, burdening methods, and gut feel techniques. Given the multitude of theoretical accounts and theories, an important question arises: which ones should be used in specific situations and why? Furthermore, what kind of significant results do they produce? In the case of the air hose mentioned, it appears that a classical approach was utilized by the senior directors. Therefore, now is an appropriate time to critically assess the effectiveness of these theoretical accounts or theories. Building on the positive aspects of the approach taken by the senior managers of the air hose, one can agree with McFadzean (1996) who states that a significant portion of a manager's time involves problem-solving and decision-making. These tasks can range from well-structured and quantitative to ill-defined or unique and qualitative problems.

The lack of following a classical attack can be understood from the cognitive processing perspective. According to O'Loughlin and Mcfadzean (1999), this perspective suggests that directors react spontaneously to initial information and then consider additional information. The cognitive processing approach is fundamentally linked to the rational perspective. The rational perspective in decision making and problem solving can be associated with the classical attack and theoretical models that analyze a particular situation. Lee et al (1999, p.18) argue that decision makers behave as if they exist in a world of absolute certainty.

Contrary to the dynamic concern environment state of affairs filled with uncertainnesss, the premise is that determination shapers are nonsubjective, possess complete information, and examine all likely

options alongside their effects before coming to a suited decision ( Huczynski & A ; Buchanan 2001, p.738 ) . However, Robbins ( 2003 ) states that the classical theoretical account of determination devising can non to the full depict the procedure through which determinations are taken in organisations due to the absence of accurate informations or information and quantitative elements such as chances and weights. Thus, the departmental staffs responsible for gathering information can be used as a beginning of exposing the claim that quantitative elements are not involved in the analysis aimed towards determination devising or problem resolution in comparison to the classical approach adopted by the airline.

In his 2003 publication, Robbins argues that the classical decision-making model does not fully represent the way decision making is approached in organizations due to the complexity involved in organizational decision making and problem solving. He extends this argument from individual decision making to group decision making. He critiques the individual perspective of decision making by highlighting the lack of accurate data gathering and the unreliability of probability estimates in solving problems. However, he suggests that group decision making takes into account risks that can affect organizational goals. Given the limitations of classical decision making and problem solving, alternative models with quantitative analysis such as the Multi Attribute Utility model, Osborne-Parnes Creative Problem Solving Process, and Situation Appraisal - Kepner-Tregoe can be applied.

Alternate decision-making model: Osborne-Parnes Creative Problem Solving Process, ASK SIRL model, and Multi Attribute Utility model

If classical decision making is considered inadequate, which other models would have performed better or achieved higher outcomes? Three decision-making models will be considered: Osborne-Parnes Creative Problem Solving Process,

ASK SIRL decision-making model, and Multi Attribute Utility model. The Osborne-Parnes Creative Problem Solving Process, also known as mess decision-making, could be adopted by the airline to quickly make decisions or solve six-point problems (Hicks 2004, p.177). The process consists of objective decision, fact decision, problem decision, idea decision, solution decision (idea evaluation), and acceptance decision (idea implementation). However, the airport situation cannot be fully considered as an innovation-focused problem; instead, it can be seen as a problem requiring stability and safety. So why choose the Osborne-Parnes Creative Problem Solving Process? What sets it apart from the classical decision-making model? Further examination of the Osborne-Parnes Creative Problem Solving Process reveals that the steps to be taken are clear enough and may surpass mere individual decision-making levels.

Hartmann; A; Patrickson (1998) argue that in today's business environment, prompt responses are necessary for organizational issues. This is especially true for airlines, which require urgent stability and quality management. Nevis et al (1995) suggest that decision making should be based on logical analysis of information and the use of problem-solving techniques to assess different options. In this case, the chaos happening measure can be used to identify challenging situations, such as ensuring passenger and crew safety and airline stability. Data determination involves gathering relevant facts that may affect airline operations.

The problem at hand stems from the gathered information, which specifies the urgent needs. The determination process involves thinking, planning, and finding solutions. The implementation of the solution relies on the acceptance phase. In this phase, analysts who focus on quantitative aspects evaluate the model. However, the same model also incorporates both convergent and divergent thinking during the solution phase

(Daellenbach, 1994). To facilitate decision making, a three-point scale is used to assess ideas, with three being the highest rating. Comparing each option against another helps choose the best decision. Unlike the classical approach, this method does not consider weighing options, leaving directors unaware of available choices and their reasons for selecting a particular option.

According to Rayment (2001), in terms of business decisions, this model primarily emphasizes the last stage of the "SIRL" model, which involves selecting, implementing, and reviewing solutions. Other models or theories tend to overemphasize the "ASK" part of the process.

Wholly neglecting the first stage (ASK) would be a mistake and could impact the result. However, in previous theoretical accounts, the stages of similar incidents have been given too much emphasis. In the case of the airline, the 'SIRL' stage can be seen as a learning or organizational acquisition process, which is forward-looking (in case it happens again in the future, knowledge of how to deal with it). Sinofsky and Iansti (2010), however, argue that a systematic, logical approach to decision making or problem solving has its weaknesses, as soft systems and intuitive approaches like mind games, game theory, and utility theory are crucial in challenging assumptions or unconventional approaches in the decision-making process. Collins et al. (2006, p.432) and Lock and Thomas (2007) suggest that the Multi Attribute Utility Theory (MAUT) is a mathematical model that evaluates tradeoff issues related to risks and benefits of considering multiple options in decision making. MAUT also provides a comprehensive set of quantitative and qualitative approaches to comparing options and considering the range of effects particular options may have, similar to how probability theory deals

with uncertainties.

The quantitative technique used in this attack is based on a scale called utiles, with values ranging from 0 to 1. A value of 0 represents the worst option, while a value of 1 represents the best option. In the case of airline decision making, the MAUT method can be used to determine which option to choose based on available information from different variables. Despite the time limitation in the airline industry, MAUT is still considered the best model to use because it is both a quantitative and qualitative tool. However, one drawback of MAUT is the lack of information on the variables and data used in the process, which can result in false or random information. New models have been developed that take a socio-cultural and institutional perspective into account, considering interdependent variables to understand problems. These models include system methodologies, naturalistic decision making, institutional theories, IBM ILOG, and cognitive models of moral decision making, among others.

The instance survey addresses important elements needed by the directors, but it also emphasizes the significance of the qualitative perspective. Learning in an organization is just as crucial as quality management, efficiency, and competitiveness for the stability and continuity of the organization. Traditional models focus on determining which areas to prioritize in decision making. However, new comprehensive models, including quantitative approaches, analyze and clarify situations using numerical, mathematical, and qualitative considerations.

The important factor in this situation is the ability to quickly and flexibly respond to certain circumstances and find spontaneous solutions to problems. In this particular study, it was crucial for the staff and managers to mobilize and coordinate within a short period of time, as well

as make decisions or resolve issues with a sense of urgency. Approaches such as the hard and soft systems methodologies and the Multi Attribute Utility Theory offer a more concrete approach to decision making and problem solving. Both the hard and soft systems methodologies consider both quantitative and qualitative aspects of decision making or problem solving, similar to the Multi Attribute Utility Theory (Wisniewski 2005).

The airline company under consideration has made continuous improvements in performance following a natural disaster, specifically an earthquake. The financial report shows that 2010 was a remarkable year for the company, with significant increases in profits and recognition given to some managers by external bodies or organizations. From a personal standpoint, the staff has adopted a logical and analytical approach to understanding situations and challenges. While choosing between traditional or classical approaches may appear straightforward, organizations require further analysis and critical or quantitative reasoning for any approach employed.

Another crucial aspect of the research process is the communication with the public, either through client relationship management or customer feedback. In 2009, clients provided their perspective regarding the ongoing expansion of the retail sector. This suggests that contemporary businesses engage in dialogue with their customers prior to determining what is marketable or profitable.

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