Decision Making At Sleep-Inn Motel - Case Study Example

Decision making at Sleep-Inn Motel. Executive Summary. This paper explores a report on the decision making process at the Sleep Inn Motel. Sleep Inn Motel is Motel business that is managed by Jack Roth who is the sole manager of his own business. In this case, the main problem is that Jack is trying to come up with a decision on whether he should undertake some decisions in the manner of operation of his sleepy inn motel business. In this respect, Jack has to come up with a decision on whether he should shift to the Holiday Inn or Day Inn motel chains. This issue came up because Jack had been getting loses in his business due to a reduction in the enrolment level in the motel. This established a need to come up with a fast decision, so as to avoid increased loses. In this case, the decision needs to be made urgently in order to save the prevailing condition of the Sleep Inn Motel Chain. In attempts to give a solution to the situation at Sleep Inn Motel, this report has addressed a number of options that may be used by jack in coming up with the appropriate decision for his business. Table of Contents EXERCUTIVE SUMMARY-------------------------------------------------1 TABLE OF CONTENTS ---------------------------------------------------- 2 1.0 INTRODUCTION---------------------------------------------------------3 1.1 AIM --------------------------------------------------------------3                                    1.2 BACKGROUND------------------------------------------------3                1.3 SCOPE------------------------------------------------------------4                                1.4 METHODOLOGY----------------------------------------------4                    1.5 PLAN--------------------------------------------------------------4 1.0 FINDING AND DISCUSSION------------------------------------------4 1.1 OVERVIEW-------------------------------------------------------4 1.2 UNIVERSALISTIC OPTION-----------------------------------5 1.3 THE CONTINGENCY OPTION-------------------------------6 1.4 THE CONFIGURATIVE OPTION----------------------------7 1.5 THE CONTEXTUAL OPTION--------------------------------8 3.0 RECOMMENDATIONS-------------------------------------------------12 4.0 IMPLEMENTATION ----------------------------------------------------13 5.0 WORK CITED ------------------------------------------------------------14 1.0 Introduction. 1.1 Aim. To give out advice to Jack concerning the best way of determining the decisions for his business. To identify the decision options that are available for Sleep Inn Motel.                      1.2 Background. Sleep-Inn is a motel business that is located towards the edge of an extremely small town next to a resort centre that is rapidly expanding. The business is located at approximately half a mile from the interstate high way. The business is about 10 miles from the area of tourists and surrounded by a number of national franchised service motel resorts that are appropriate for vacation destination. This business is going through a number of issues. These issues include decision on the manner of operation of business, new investments of capital for joining either of the chains, competition from different motels such as the Best Western inn, lack of developments in the turnoffs, insufficient signs for advertising the Sleepy-Inn motel, and the reduction in the level of occupancy. The main problem, in this case, is that Jack is trying to come up with a decision on whether he should undertake some decisions in the manner of operation of his sleepy inn motel or whether he should shift to the Holiday Inn or Day Inn motel chains. This issue came up because Jack was geting loses in his business thus a need to come up with a fast decision, so as to avoid increased loses. In this case, the decision should urgently be made in order to save the prevailing condition of the Sleep Inn Motel Chain. 1.3 Scope. This report covers the decision making environment at Sleep Inn motel Company. The report analyzes a case study on the Sleep-Inn Motel. It includes the options available for business in making the decision. This report would also cover the merits and demerits of the decision options for the company.                        1.4 Methodology.    This report is made from a secondary research. The quantitative data utilized in this report is data from Sleep-Inn database. A wide variety of theories would be used to ensure a report that is balanced. An analysis of the case study of Sleep - Inn Company would also be done. The analysis of the case study and the related theories would give information concerning the recommendations to the company. 1.5 Plan. This report involved an analysis of the decision making process in the Sleep - Inn Company. The report explores the decision making theories, an analysis of the case study on Sleep – Inn Company, and a discussion of the recommendation for the company. 2.0 Finding and discussion. 2.1 Overview. According to the process of decision making and decision making literature, there are four options that could be applied in the situation of the Sleep –Inn motel. These approaches include the contingent approach, universalistic approach, contextual outlook, and the configuration option. These four theories demonstrate four different options to the problem of Sleep - Inn, each of them having some emphasis on particular dimensions of the reality of Jack’s decision. This report gives out a criterion allowing a systematic and complete literature classification since the four perspectives display a spectrum which combines all the possible options of this problem. 2.2 Universalistic option. This is an easy option that begins all its prescriptions and explanations from the premise of the original business and establishes a linear relationship in variables which can be moved to the whole population. For the new decision at Sleep-Inn, the variables that need to moved from the original business include the workers. In this approach, the practices of the decision making are characterized as being generalized, and demonstrated by the ability of bettering the performance of a company. This option focuses on a point of view that is sub-functional. It analyzes the isolation of certain decision making policies that characterize the organization's success. It is an option that neither studies the interdependence synergy nor the practices integration. The contribution of this approach is always analyzed from a view that is additive. This makes the approach to deny, the fact that, various elements making up the system could be united in practice patterns that are different, but efficient to the organization. Even though, the study points out a number of decision making options and practices, it is possible to realize a subject that recurs that may represent the epicentre of universalistic contribution. On a surface view, it can be observed that this option focuses majorly on specific activities that are geared towards reinforcing the abilities of the employees (Bacharach 510). For instance, in the Sleep -Inn problem, variable compensation may include particular methods of selecting and recruiting, performance appraisal, and comprehensive training. Apart from this, there has been a shift of interest to aspects that are related to participation and commitment of then employees, team work, problem solving consensus, redesigning the job, establishing new compensation mechanisms and incentives of work. In comparison to the other decision making options, the universalistic option lacks a solid foundational theory. It emphasizes on testing that is empirical concerning the decision performance relation, which leads to a high degree of statistical significant. It also lacks the consideration of variables that are crucial, relationships and constraints. In the theories that were used to come up with this option, the transaction cost and agency framework can be highlighted. Arguments made by universalistic theory claim that the effects of a policy like appraisal overcomes the challenges of opportunism thus reducing costs of internal management. The key proposition of human capital theory explains that companies having skills, abilities and knowledge that is valuable will display significant levels of performance thus fostering universalistic conclusions. 2.3 The contingency option. This model brings out a different beginning assumption that is related to whatever the variable relationship means. Aside from the linearity argument proposed by universalistic model, this options an interactive model which gives the human resource a contingent that is generic. The relation between independent and dependent variable will fail to be stable thus vary according to a third variable that is referred to as the contingency variable. These are the factors that characterize the relation between decision making and performance hence denying the availability of best practices that might have lead to performance that is superior (Bacharach 507). This approach can be categorized into strategic variables, organizational variables, and a set of environmental factors. A number of studies have shown out that the contribution of decision making towards the performance relies on the strategies of the business. In this respect, the strategy to be taken by the decision making is considered in a manner that is interactive, but not reactive or unidirectional way (Bacharach 502). Organizational variables include technology, size, structure, and internal political relations. Environmental factors involve variable that are external to the company like technology, competition, labour, and macroeconomics. The contingency option builds a theoretical view that is more reliable than the universalistic option, despite the fact that it fails to reach the statistical value of the later. Generally, this model has come up due to two frameworks. The two frameworks include the capability and resource view, and the behavioural theory of the business. As per the first theory, many proposition contingency have been brought out in relation to decision making strategies and business strategy, as well as the environmental and organizational variables. The capabilities and resources view have analyzed the strategic fit and introduce the relationship that is reciprocal concerning making of the strategies of the organization and the human aspect. Its valuable, inimitable, and rare trait has for decades made this option an asset that is strategic and a unique element of management that is strategic. In comparison to the resource- based and behavioural theories, this option could be used in exploring the contingency relations like social capital, institutional cost of the transaction, or the framework that is dependence which brings out relations of power as a factor of contingency. The methodology used in this option has a focus that is quantitative, even though the contingency work depends on statistical techniques that are varied that allow a deep overview to the situation at the new Queensland factory. In other circumstances, factors of analysis like meta-analysis or clusters of the employees have been used. This option points out a number of exceptions concerning the contribution that has been developed using methods that are qualitative. 2.4 The configurative option. This model adds to the explanation of the decision making process with a vital insight concerning the functioning aspect that is internal. It analyzes the synergy interaction of the aspects which build it. In this regard, the system of coming up with a decision is defined as a set of elements that are multidisciplinary which could be put together in various ways to obtain a number that is infinite for the configuration that is possible. Out of these, management patterns can be extracted from which would represent a variety of reasonable possibilities that could be used in managing the human resources. This means that, the system needs to be internally coherent and consistent with the organization and internal conditions. It is particularly crucial to not that the patterns of configuration are types that are ideal in a similar manner as those suggested by the theory of sociology to which organizations that are ideal move towards a certain extent. The main contribution of this option depends on assumptions that the organization performance and configuration pattern relationship are not linear due to the practiced multiple interdependence that is the combined effect. Even though, this model acknowledges the relevancy of contingency option, they are categorized under the equifinality principle that outlines the chances of achieving some objectives of the business with different policy combination that are efficient for the company. In attempts of explaining the dynamics of decision making, this option relies mainly on methods that give room for the definition of patterns of management like factor analysis, network techniques, and factor analysis. 2.5 The contextual option. This option suggests a shift in view of the decision making analysis. Aside from the previous option, this option introduces a global and descriptive explanation over a model that is broad and applicable to various environments that encounter the particularities of industrial and geographical contexts. The main emphasis of this option is to expand the decision making concepts in order to give out an advanced explanation, to the internal working and reinforcement of the achievements of the company (Bacharach 498). This will also influence the organizational and external context in which the decisions of management would be made. In this respect, the major contribution of this approach relies on the reconsidering the relationship between human resource context and system. This approach suggests an explanation that is more than the level of the company and leads to the integration of the function in a framework that is micro-social. Contextual approach proposes a change in the perspective that becomes apparent especially in the reconsideration of the analysis level, human resource nature, and the implied actor of organizational function. This reconsideration influences the take of the decision in the company. In this regard, Jack would establish a function that is not the exclusive personnel specialist responsibility, but one that extends to other human resource managers like those at the line level. In this respect, a broad group of stakeholders would be involved in the making and implementation of the strategies of decision making. The stakeholders, in this case, may be external and internal thus influencing the decision strategies of employing workers at the new business. Despite the fact that the three options share the same theoretical view, contextual option bears a different beginning point. It considers the framework of decision making strategies as a critique of different assumptions of normative and rational theory. In contrary to this option, the theoretical view of the other three options appears to be closer to having a scope of relationship that is industrial. Contextual option relies on exclusive methodologies like ordinary statistics. In this respect, this option would involve the analysis of statistics methods like standard deviations, and means of the workers thus quantitative methods and qualitative methods would give room for a deep analysis of the institutional, social, and political forces. This would enable the Jack to get a wide understanding of the effects of the decisions given to the problem. This implies that the contextual option is an approach that would complete the normative and rational approach of the other options with an insight that is more descriptive and social. Alternative solution for Jack Roth. From the given evidences, all these approaches gives out a complement of the other, through the addition of variables, constructs, or relationships that were not considered earlier. The explanations of these options are complex thus enriching the understanding the strategies of coming up with an appropriate decision. The field of decision making demands frameworks that are multidisciplinary, multidimensional, and multi-paradigmatic analytical. The universalistic option, therefore, has a vital function to play when it comes to the decision making strategies. This is so because it is one option that assesses the importance of the human factors in the performance of an organization. When deductive logic is applied in universalistic option, it obtains a high, significant degree in the relationship test. This option, however, can be criticized due to its objective narrowness. Its explanations are rational thus fail in considering issues that are crucial in the analysis of the final decision. For instance, many studies have shown out that there exist some relevant conceptual limitations in the universalistic definition of causal relationships. This means that the making up of the key dependent variable in the problem-decision making for Sleep – Inn Company-could also be criticized. A study advanced in human resource strategies reported that the measures of universalistic performance depends exclusively on accountancy and financial indexes that ignore the other concerns of the decision policy (Bacharach 498). The decision option for an organization must be made through the combination of broad measures having different origins and weights as per the particulars of an organization. Additionally, the survival of a business for two years is conditioned not only by the interests of a number of stakeholders, but also by the availability of potential employees in an organization such as Jack and his wife. The contribution of the contingency option is vital, but the approach has got some criticism. It can be argued out that the methodology of this option that depends mostly on regression comes out with a conclusion just like that for the universalistic option. This is so since any influence of a particular variable like workforce on performance of a company is thought to be constant to the extent of contingency variable. The main problem with this option occurs whenever the variable is a strategy of a business. In this respect, the options or models rely on generic typologies. The situation in Sleep–Inn demands a deep analysis of the functions of decision making so as to give out a specific topology for the appropriate decision for Jack. However, according to the advanced theories there are no evidences concerning the activation creation of human capital. Therefore, it is extremely crucial to take into consideration the other variables which affect the causal relationship. Contingency model has been of considerable use in introducing these variables into the model. The proposed variables by the literature have been categorized into business strategy, organizational influence, and environment. These categories of variables influence the strategies of decision making considering that this relation is reciprocal. The configuration option is a model that opens the black box of the system of decision making. Analyzing its explanation, it can be concluded that the functions of the organization consists of policies of decision making, practices of decision making, and strategy of decision making. The strategy of making a decision is involved with the orientation of the organization in managing the human capital and ensuring the cohesion is given out to the number of practices in which it is implemented. Apart from this, practices have a limitation to functional areas that are concrete and policies that are placed in a level that is intermediate. This is so because they give out the description of more than two practices that are necessary in obtaining the objectives like employees security, bettering the community channel, and involvement of the employees within the workforce of the new business. 3.0 Recommendations. Contextual option is an approach that gives out a framework that is broad in the analysis of the strategies of decision making, and bringing up a social dimension in the other explanations. In this respect, this model introduces external variables, which are studied, to determine how systems of management would influence the environment of a business. This means that, an inductive logic is adopted so as to introduce an approach that is empirical. In this respect, this report proposes this option for Jack since it is a wide conceptualization of the decision making strategies. The theoretical concepts that build up this model suggest that the strategies of coming up with a decision are set of policies, strategies, and practices that are integrated and are means through which companies manage their employees through the influence of organizational context, socio-economic context, and the business strategy. This implies that, this option displays the horizontal process of decision making as the decision strategy formulation and as an activity pattern congruent (Bacharach 499). This option is defined by strategies, practices, and policies that have a relation with each other in synergy in order to develop and manage the skills, abilities, and knowledge stock in the organization. The effects of this option can be determined by considering the internal activities of the organization, and the consequence of the decision on the strategy of the organization as a contingency variable. This means that both chains would be analysed in order to come up with an appropriate decision. This approach would take into consideration a framework that contextual for decision making that is associated with a set of socio-economic and organizational variables. This option, therefore, is conceptualized as a process that is evolving in the adaptation and proactive change. The option involves gathering data that are relevant to the problem then using the findings to establish the right decisions for the problem. 4.0 Implementation. Considering the Sleep-Inn problem, Jack would obtain detailed information concerning Day-Inn chain and Holiday-Inn chain and how clients would react to the idea of the new business in their vacations. This data is captured through having some conversations with customers and observing their behaviours while in their vacations. Another significant aspect of contextual option is that Jack could make partnership with the original customers, allowing their work and encounter to be a guide to the interview. The data that are obtained from each interview would be analyzed, and main insights and issues are used to come up with the right decision (Bacharach 500). 5.0 Work Cited Bacharach, S. Organizational Theories: Criteria for making an organisation decision and Evaluation. The Academy of Management Review, 2006, 14: 496–515. Read More