Manage Under Uncertainty Essay example

Better Essays
University of Newcastle


[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
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The communication flow from this point is then one way as determined by the autocratic style and the decision can be implemented throughout the rest of the organisation. There are also many negative attributes with the style of decision making however as the subordinates of Yellow Auto have not been included in the decision making process they may not be as motivated to implement the decisions made by the top managers. This is exacerbated in the case study as this decision to increase the market share of the company is risky due to the economic situation in Turkey. Turkey had experienced a financial crisis in both 2000 and 2001 the latter being ‘particularly far reaching in terms of its impact, resulting in a major collapse of output and employment’ (Onis, 2006). Accepting this level of risk without the consult of other employees can increase uncertainty within the company and cause employees to feel segregated from the company. Furthermore the use of a small group in this decision making process has the potential of experiencing the Abilene paradox (Harvey in Teale, 2003:290) in which some top managers may not voice their concerns to avoid being discredited or appear to lose faith in the organisation. In order to identify and address these potential issues management of Yellow Auto decided to work with academics in the implementation of this decision. Change in Management Style

Following an audit from the external consultants
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