Normative Decision Making Theory: The Sunflower Fuel Company

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Normative Decision Theory
By: Jana Short This theory was developed by Victor Vroom, Phillip Yetton and Arthur Jago, aka Vroom-Yetton-Jago contingency model. It is a situational leadership theory used to find the best style of leadership based on the situation. This includes helping leaders decide how much employee participation, from zero to one hundred percent, should be used when making decisions. The diagram shows five different decision-making styles which vary from autocratic decisions (AI or AII) in which leaders make decisions by themselves, to consultative decisions (CI or CII) where decisions are shared, through to group decisions (GII) in which leaders share the problem with subordinates and have the group make the decisions.
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He is stepping into the shoes and is now the CEO, General Manager, Sales Manager and Chairman of the Board. His opening speech showed his intent to move into an Consultive type organization, however, they are entrenched in the past patterns of management. The line of business is at the turning point for streamlining, hinged on the need for the sales team to improve communication to efficiently obtain the specific details each customer needs and the need to effectively project the correct delivery date to the customers. To gain this knowledge, they may benefit by working together in cross training so that the various departments of the company will understand why the details are needed, how to get the specific information from the customers to meet their needs and use this to project the time it will take to produce and deliver the machines. It will take strong management to pull the workers focus away from self-centeredness and guide them to see the full scope of the company. That self-centeredness shows a shallow type of fear, which probably comes from wanting to be recognized. To move the company forward, he may first need to recognize and applaud them for their accomplishments to build confidence. Once they have confidence they will be better prepared to cross train and move

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