Introduction to Decision Making - Assignment Example

Introduction to decision making Affiliation: Change is an element of life for corporate bodies in the current fast developing and competitive environment. Allan Joyce, who became the Chief Executive Officer of Qantas in November 2008, is quite conversant with the term. Joyce is under massive pressure to transform the Qantas Company and make it competitive against other airline corporates such as the Virgin Australia Holdings. One of the strategies among others that would help in reinstating the situation at Qantas is selling the company’s assets including the frequent flier program. The idea would help simplify the balance sheet of the Australian carrier. Although whether he elects to sell or hold on to the company’s most expensive assets in the anticipation that better circumstances can prevail. The task to make the decisions that will help in ameliorating the status of Qantas would be a difficult one with multiple challenges (Rao, 2010). Qantas has continually experienced challenges from high costs of jet fuel just like many other Local Airlines. Quite recently, the Flying Kangaroo has also faced local challenges where it is forced to cope with a commercial slowdown and increasing rivalry with the Virgin Australia Holdings. In order to continually grow profits, someone ought to introduce stern principles and make harsh decisions in order to compete in the airline business (Rao, 2010).The decision to either sell or retain the Airline’s most priced assets would be a difficult decision to make for any expert. However decision to undertake either of the two procedures is a risky trail to take. The decision of Alan Joyce was a strategic, tactical as well as an operational one. The principal objective of the decision is to sustain the company in the local airline competition and counter the Virgin Australia for its customers; for this reason, it can be said that the move is strategic. The plan is tactical because there would counter the other Local Airlines by stealing customers from them. Qantas needed to deal with its declining market share and losses in its transnational operations through improving its competitiveness. With regards to the domestic scene, Joyce had to address the challenges from the Virgin Australia. The competitor Virgin Australia set up a program share accord with other global giants such as Delta Airlines and Singapore. Joyce took a draconian counteractive step by instituting central structural changes to the company’s operations. The action made losses of up to $200 million. Joyce made another decision to initiate new airlines, Jetstar Japan, and Jester Hong Kong, as well as a historic partnership with the Emirates in 2013. According to Joyce the changes and the decisions are strategical, tactically and operationally essential to Qantas future regardless of the enormous incurred losses. Qantas is an excellent example of an organization that has undergone massive pressure to transform and establish ways to adapt and become more inventive in the extremely competitive market for some time. Alan Joyce and several other Administrators like him are taking steps and making serious decisions that make their companies more innovative and flexible. Change is an aspect that most managers undertake in their organization, and Joyce’s case is not exceptional. The decisions made by Joyce have gone to an extent of debate whether they are the right things to do or wrong under the given circumstances. In any case, the decisions cost Qantas a massive amount of money and harmed its image. 1) Relevant steps towards making rational decisions. There are steps necessary for a rational decision that Joyce ought to follow. They are; Identifying the problem Joyce needs to identify the problem that should be addressed. The step is often easy to handle as it is not a sole task for him as a CEO to undertake. After the identification of a problem, it is essential for Joyce to establish the standard criteria that will be operational in solving the problem. The interests, values, and private preferences play a part in this step. The relevance of one’s opinions do not reflect another person, for this reason, identifying the criteria of solving a problem is important. Identify the decision criteria The next essential step in rational decision-making procedure is to ascertain the decision principles. The step involves selecting variables that will determine the consequence of the decision. With respect to Joyce’s case, he ought to learn the information that is relevant to absolute Makeover and profit making of Qantas. The step is reliant on individual’s principles and believes. Joyce will make decisions that will not affect the employees in order to save money or make profits; he should make decisions that will transform Qantas and set it on the right track. He should seek alternative means of cutting costs in order to attract customers, bring on board those they had lost to Virgin Australia and retrieve their competitive status. The aspect deals with how the changes will affect the employees, customers and the quality of service. Allocate weights to the criteria Joyce’s next phase is to apportion weights to the criteria. The step identifies and ranks the criteria according to their importance to the decision-making procedure. Joyce’s biggest weight ought to be how the transformation will impact on the employees. The subsequent weights are then distributed evenly. Develop the necessary alternatives With regards to this step, the prospective solutions to the problems ought to be considered. There is no preference at this stage rather a list of alternatives. Joyce can generate options such as; laying off the employees with large salaries and making promotions that will lure customers. Evaluate the alternatives With respect to this step, Joyce should identify the criteria to use in evaluating the options; evaluate for feasibility, acceptability and desirability and lastly select the alternatives that are suitable for obtaining the company’s principal objectives. Select the desired alternative Explore the interim preferred options for imminent antagonistic consequences. The possible problems which may be created by the choice and the risks associated with making the decision. Implement the decision Joyce should lay down a plan to achieve the decision; allocate the resources that will help implement the decision; check whether the decision is supported by colleagues and whether they are committed to realizing the implementation of the decision (Rao, 2010). 2) Given Joyce’s six-year experience, a preferable decision process according to me is the intuitive decision. I say this because according to his records since becoming Qantas’ CEO, he has regularly made decisions in an intuitive way. Regardless of the losses the company has experienced since his introduction as CEO, it is a proven trend that every organization facing similar challenges as Qantas must undergo. Intuitive decisions have helped to transform the given body (Rao, 2010). A rational decision follows standard rules and principles, but they take a long time before manifesting as compared to Intuitive decision that takes a shorter time yet yield quality outcomes. Multiple managers use intuitive method of decision-making and have obtained significant results. References Rao, P. (2010). OrganisationalBehaviour. New Delhi: Himalaya Pub. House. Read More