The case “American Tools and Die” presents a scenario in which Vince Broft (the father) and Kelly Mueller (the daughter) make apply different decision-making approaches. Kelly and her father face an unprecedented challenge to ensure that their family’s company survives the economic downturn. According to Kelly, the strategy is to ‘adapt or die’ and she is adamant to see the company survives. She wants her father to be creative so that AT&D avoids being bankrupt. However, Broft does not seems convinced by Kelly’s decision to move the company to Mississippi because this would result in 195 employees losing their jobs. Furthermore, he feels like the employees are family to him and this bothers him too much. To ensure that the company remains in Michigan, Broft provides alternative ways including cutting down the payroll, and number of employees. However, the local union needs to support him before making the decision.
Introduction
Decision-making involves the application of knowledge and facts by an individual or group to select a choice from various alternatives. Every organization has rules and regulations regarding the procedures that need to be followed while making decisions. In this case, Kelly and Broft seem to have conflicting ways of making decisions. While Kelly does not need to consult (individual decision-making), his father seeks other people’s opinion before making a decision (group decision-making), showing two different leadership styles. Individual decision-making is faster compared to group decision making. However, group decision making can lead to better problem solving within an organization because of the combined efforts, knowledge, and expertise. Change in an organization is needed to ensure that growth is achieved. However, change cannot be achieved if proper structures are not placed within the organization to facilitate its implementation. Several issues including employees’ attitudes towards change and poor management can hinder change. Therefore, the employees need to understand the importance of change before the management can implement it. This is because employees’ attitudes towards change can lead to success or failure of a plan. Hence, an organization needs to be vibrant in decision-making and the approach they use to implement change within an organization.
Apply the decision process to create a decision statement
The decision making process contains five major steps that can be employed to select a choice and solve a problem. The following step are explained for the AT&D case
Problem Identification
The company is almost bankrupt and it is facing competition from foreign companies such as Toyota and Honda.
Information Search
Competitor Toyota wants to open a new plant in Mississippi that will employ over 150,000 individuals. AT&D is in the verge of becoming bankrupt and a decision needs to be made to ensure survival.
Alternative Courses of Actions
Shut down the company in Michigan and start a new one in Mississippi closer to a foreign automaker.
Continue operation in Michigan but reduce worker wages by 10 percent for one year, mandate a two-week, unpaid furlough at the end of December, and reduce the number of employees by 30 percent.
Evaluation of Course of Action
In the first alternative, the cost of doing business would be reduced. This is because the company would acquire materials cheaply and compete with foreign automakers that would be close to the plan. However, the employees are not considered in this alternative, which could lead to rise of unethical practices. In the second course of action, ethics is considered because the employees are factored (Ferrell, Fraedrich, & Ferrell, 2012). The approach is to reduce the cost of labor to ensure the company survives the economic downturn. Both approached focus on reducing business costs but the approach is different.
Recommend the best course of action
I would recommend the second alternative to be adopted. This is because it is ethical and it would not be costly to set up a new business. Moving the Company to Mississippi could result in lawsuits by employees who would have to lose their jobs tarnishing the name and reputation of the company.
Factors in play for the father and daughter that could affect the decision-making
Both Broft’s and Kelly’s approaches in handling the situation facing AT &D, several factors could affect their decision making process. Kelly and Broft are face with challenge of making a strategic decision that would affect the business operations in the long-term (Morato, 2013). Factors that can affect any decision making process can be grouped into perception, environmental or organization issues For the father, he uses a group approach where everyone in the group need to be satisfied and contented before a decision is made. As such, the opinion of the union leaders and plant manager could affect the decision-making. This implies that if the union leaders do not support the move to have the salaries of the employees cut then he would make a decision for the company to move to Mississippi. These factors are related to organization issues that might arise including politics and structures. Managers need to consider organizational politics before making any decision.
In Kelly’s approach to decision making, issue relating to the environment and perception could affect the process. The market in which the business operates in is a factor that should be considered while making business decision. Kelly suggests that the automobile market is very competitive and as such, a decision needs to be made quickly. Additionally, her personal values and expectations are also factors in play that could affect the decision. Kelly does not like structures and long decision processes that need mass involvements. She had to deal with such decision but her idea is to get things done. The situation including the environment and business location can influence individual choices. In this case, Kelly believes that the company will be bankrupt if a decision to move to Mississippi is not taken.
The pros and cons of group and individual decision-making
Both group and individual decision making approaches can work depending on the nature and business operations. However, both approaches have advantages and disadvantages that can influence a decision.
Individual Decision Making Pros
If a single person is designated to make all business decisions, it could increase efficiency because time and resources would be saved. It would also not be expensive to make a decision in a business if it was made by an individual. In this process action is taken immediately and solution to problems are implemented quickly (Fredrick, 2008). Responsibility and accountabilities lies with one person on the outcomes and consequences of the decision. Disputes and disagreements that lead to conflicts in business might not arise in this approach. Diversity, which hinders decision-making in a group set up, may not arise.
Individual Decision Making Cons
Perception and attitudes of an individual may influence the decision they make. This could affect a business especially if one person makes huge decisions without involving others that could be affected by the choice made. Businesses do not have a platform where people could discuss the issues relating to a decision that could have been made out of impulse or personal issues. Conflicts of interest may arise especially if the person in charge of making decision wants to gain financially (Fredrick, 2008).
Group Decision Making Pros
Ideas and thoughts from individual with different knowledge and backgrounds can be pulled to make a healthy decision. Having different points of view can help a business to prosper because various alternatives to a problem are brainstormed and the best is selected. Further, the knowledge and skills of member is improved at the end of the process (Fredrick, 2008). It also increases solution and acceptance of one another in a group. Satisfaction in decision made is achieved because members are allowed to share their ideas and thoughts.
Group Decision Making Cons
This type of approach is time consuming because all members need to be allowed to present their ideas. Additionally, disagreement might arise which could delay the process of decision-making and cause prolonged conflict among member who feel their thoughts were ignored. Few members might dominate the discussion leaving the other without a chance to be heard. Finally, the member might focus on reaching an agreement forgetting about the decision that needs to be made (Fredrick, 2008).
The factors (e.g. bias, consequences, decision making styles) at work in the case for the could affect decision making for a team
Several factors including the decision system and expertise could affect the decision making for a team. Leadership within a team is essential but the approach the leader take could affect the decision the team makes. In this case, it appears as if Broft had made the decision for the group and was only inquiring whether they could accept. The right approach would have been to present the problem and allowed room for brain storming so that the member can attain a solution together. A change leader should allow individuals to air their views regarding a change. The communication approach used is not appropriate and the meeting should have been to discuss on the solution that could be adopted to ensure the company survived. It appears as though Broft was biased because of the approach used. Appreciative enquiry can be employed in the case but this would require that Broft to establish the urgency needed for change before developing a vision and strategy on how to implement the change (Morato, 2013).
In this case, the team should have staff authority because this type of authority allows individual members to offer advice to those who possess line authority (managers). Staff authority enables those tasked with the mandate of implementing rules to perform their duties by keeping them in check (Morato, 2013). The appropriate team for this case would be an interactive group where member meet and discuss a problem, identify alternative and make a decision together. The team should comprise of the manager and union representatives and employee group leaders. With this set up the leader will be able to reach an agreeable conclusion that would collectively benefit the business and employees.
Conclusion
Decision-making is a complex process that organizations have to deal with on a daily business. Making the right decision regarding employees and operations can be challenging but having the right systems and ways to make and implement the decision can foster business success. Change is good for business growth but managers need to think and decide when to implement change in a business. During economic downturn, implementing change can be difficult and right approached and leadership techniques needs to be adopted. Both Kelly and the father in the case have good intentions for the business but having the right approach is key. As such, I would recommend that Kelly’s father recommendations be adopted to enable the business to prosper.
References
Ferrell, C., Fraedrich, J., & Ferrell, L. (2012). Business Ethics: Ethical Decision Making & Cases. Mason, OH: South-Western Cengage Learning.
Fredrick, A. (2008). Encyclopedia of Decision Making and Decision Support Technologies, Volume 2. Pennsylvania, US: IGI Global.
Morato, E. (2013). Business Decision Making: How to Think Better. London: eBookIt.com
