Essay Manage Under Uncertainty

2394 Words Apr 2nd, 2013 10 Pages
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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Accepting this advice, the top management of Yellow Auto change to a more democratic management style opening systems of communication and the development of trust in employees throughout the organisation. This changes the group structure of Yellow Auto as where previously employees could be considered part of Scott’s out status, they have now have the opportunity to move up to the fringe status or actively participate as a primary set member (Scott in Harrison 1999:222). This leads to increased motivation with employees and gives them a greater connection to the company. By increasing the amount of people participating in decision making, Yellow Auto are able to utilize the diverse human resources that they have in order to generate more creative ideas and solutions to issues the company has. There are downsides into an increased group size however as reaching a consensus with more people is much more difficult. There is also an increase in the time it takes to make a decision and leads to unproductively and can create divisions within the company.

Clarify Job Descriptions

Another critical decision made in the case study is to interview all employees in order to analyse their jobs and clarify their job descriptions. This was completed due to employees stating that their responsibilities were not clear and authority and relationships were not clearly defined. Upon completing the analysis it was

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