Efficient business organization
Accurate, timely and appropriate decision making is arguably the corporate DNA of successful and efficient business organization. Nonetheless, the ability of managers to make decisions can be said to be the toughest tasks that managers constantly face in their managerial duties. If it is not project that needs his/her approval, it is the looming merger, the next strategy to counteract competitor’s moves or the banker’s request for a loan. Decisions seem to be everywhere surrounding the manager, yet they are fundamental and inevitable.
Notably, poor decisions can have severe negative consequences on the firm and need to be guarded against some managers rely on intuition to make deci...
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...sions while others make decisions as a reflex action and without much thought . However, effective and accurate decisions follow certain empirical procedures and most importantly they are informed. Bazerman six step of optimal decision making is one among many theories that have been used to guide decision making recently RossRola Inc faced a difficult situation.
The employees in the factory had formed a strong union to address their concerns. They felt that management should take considerable steps to improve the working conditions in the oil refining plant. They also expressed concerns over the safety of the machinery and gas tanks that were reportedly leaking on in close proximity to the distillation section. This posed great danger to the employees. Mr. Tony Davito, the general manager at the company held that the employees concerns were unfounded although he promised to look into it.
After consulting with the finance accountant the general manager decided that the layout of the factory was ok and since transferring the gas tanks would be costly, operations would continue till the end to the financial years when funds would be available. In the mean time, the workers were given gas masks. Several days later, the factory exploded. Ten workers died and several others sustained severe injuries and burns.
Today the factory has been shut down and management faces several low units in court filled by former employees and beneficiaries. This is an example of bad decisions making. Clearly, the situation that faced the General Manager was a sensitive problem that needed swift and appropriate decisions making. However Mr. Tony was not keen on weighing the consequences of his decision hence the tragic event. If a proper decision was made, this scandal could easily have been avoided.