Maintenance Management - Relevant Decision-Making Models for Preston Merger - Case Study Example

MAINTENANCE MANAGEMENT: CASE STUDY ANALYSIS Prepared by (Student’s Name) Date Institutional Affiliation University Name Introduction Preston has merged with another company and immediately after the exercise, a need for upgrading overall stock portfolio is deemed to be imminent. Refurbishment and maintenance programme is deemed to be necessary for purposes of upgrading stock to underlying legal standards and also, meet the customer’s expectations. For this reason, it is expected that the initiative should attain high quality standards in relation to workmanship. Preston is thus tasked with the responsibility of examining whether there is a need for conducting an in-house staff or rather outsources the entire exercise. As a result of this, the report focuses on identifying two most-relevant decision-making models that can be adopted in this scenario as well as the benefits and limitations of adopting a strategic plan to increase business profits in the coming five operational years or so. 1. Relevant Decision-Making Models for the Case It is important to note that decision making is indeed a vigorous process that seeks to make a distinctive and viable choice from a given number of alternatives in order to accomplish desired level of results (Eisenfuhr, 2011). From the definition above, it can be noted that the process involves three distinctive elements; first, it involves the making of a choice from an enormous number of options. For the case at hand, the choice is whether to go ahead and use the internal staff or go the outsourced personnel (Eisenfuhr, 2011). Second, the process involves more than a mere final selection from amongst alternative options. Consequently, the overall desired outcomes highly involves a significant level of purpose or targets that emanates from the overall mental process of decision makers that are engaged in the making of final decision. For this case, the two most viable models that can be used include; A. Rational Model In relation to this model, the entire decision making process is broken down into six distinctive steps that can be used to evaluate on the impeding issue at hand- whether to use in-house staff or outsource the exercise altogether. With the identification of the problem conducted, numerous alternative solutions to the issue are figured out. These solutions are properly analysed and the very best and workable alternative is selected for the final purpose of implementation. Notably, the selected solution is thereafter accessed in a given period in order to make sure that it is effective in the long run (Lunenburg, 2010). In the event that issues or rather challenges are identified at any given phase within the entire process, the notion of recycling is thereby effected. With the discussion below, the report makes a strong analysis on the six steps of the model. i) Identifying the Problem The need for conducting refurbishment and maintenance activities is set to improve on the overall growth of the existing stock portfolio and, also as a way of ensuring that it meets customer expectations and legal standards. Recognising these set objectives becomes the immediate basis for the identification of the problem areas, deciding on most viable courses of action as well as evaluating the immediate decision end results (Lunenburg, 2010). It should be noted that a given decision is said to be effective in case it assists a decision maker to accomplish specific set goals for the merged companies. In case there is a failure to attain a desired objective then it translates to being a problem. Effective and efficient decision makers are certainly more aware on the importance of proper identification of a problem while at the same time ensure to comprehend the issue at hand (Lunenburg, 2010). Markedly, the process of identifying challenges requires intensive levels of surveillance of internal and external environment for possible aspects that might attract attention. ii) Generating Possible Alternatives In the event that problem has been identified, the next step rests with the generation of alternatives to the entire problem. In the course of attaining these solutions, the decision maker should first indicate the immediate objectives that desire to attain through the entire decision. For the case at hand, the goals lies in updating stock portfolio to fit in with the current legal standards, meet customers’ expectations as well as ensure that the entire initiative maintains high quality standards in relation to workmanship (Lunenburg, 2010). The two alternatives for this case lie in making choosing whether to go with in-house staff or outsourcing the exercise. Most notably, at this phase, enough information should be collected in relation to each of the alternatives and their respective most likely consequences. iii) Evaluating Alternatives At this stage, the task to establish whether an alternative is feasible, satisfactory and the impact it will have on the entire merged companies. In deciding what impact an alternative will have on the companies, it is important that decision maker ensure that it should be acceptable to the people that will have to live with the consequences of the entire decision (Kepner & Tregoe, 2005). The failure to attain this aspect constitutes the likely rationale behind the failure of decision-making process in order to solve challenges. iv) Choosing an Alternative Once the evaluation of the alternatives is completed, choosing the most viable one, and for this case, between the two already formulated ones, is imperative. The decision maker should make select an alternative that is deemed feasible, satisfactory and acceptable to the work group as a whole (Kepner & Tregoe, 2005). At this stage, the decision to choosing in-house staff or outsourcing the exercise should be conducted using effective judgment and intuition processess. v) Implementation of the Decision At this stage, the chosen alternative should be properly and clearly comprehended through communicating the final decision to all concerned parties; for this case, these stakeholders include; in-house staff and managers (Kepner & Tregoe, 2005). The decision maker should ensure to encourage every of the concerned party of accepting the alternative as a proper course of action while also ensuring to avail sufficient resources to make the chosen alternative succeed, establish effective and workable timelines and, also assign responsibilities in a clear and concise manner. vi) Evaluating Decision Effectiveness The very final step in the rational decision making process is related to evaluation of the effectiveness of the chosen alternative. The goal of this stage is to ascertain whether the embraced course of action is able to generate probable outcomes. The process is indeed crucial because decision making is a continuous and never-ending process; there is a possibility of the chosen course of action failing in the course and thereby prompting the generation of other new alternatives (Ram, Montibeller, & Morton, 2011). For instance, the upgrading exercise might choose to use in-house staff but while at it fail miserably due to lack of expertise and skills or rather the cost factor hence go ahead to recommend outsourcing some, if not all, parts of the entire refurbishment and maintenance of the stock portfolio. B. Political Model The political decision-making model is deemed to be prescriptive in nature since it provides an effective description of the manner for which decisions are made. For this situation, the decision maker is not rational, objective or even unbiased (Ram, Montibeller, & Morton, 2011). Given the fact that each of the group members possess different agendas they need to negotiate with each other about whether the company should go the in-house staff way or outsourcing course of action. The entire process is composed of a distinctive set of continuous cycle of bargaining amongst the different decision makers for purposes of ensuring that each of them tries to have their viewpoints to be chosen. In this case, the process involves influencing powerful personnel involved to embrace their perspectives and thereafter, influence the remaining decision makers imperatively (Ram, Montibeller, & Morton, 2011). On the contrary, the model does not foster for making the complete information available to all parties given that it is focused solely on negotiation that is mostly influenced by aspects of power and distinctive favours for that matter (Ram, Montibeller, & Morton, 2011). As a matter of fact, important and full information is, in most cases, denied for the purpose of ensuring easier manoeuvre of a given viewpoint and in the end, other group members are made to fall in line behind the chosen alternative. However, the model does lead to certain improper results since the nature of bargaining and manoeuvring, which is basically involved with withholding information and social pressure, might generate effects that are damaging and might last for longer periods (Ram, Montibeller, & Morton, 2011). In fact, in the event that the concerned parties become aware of whatever that happened, they might not appreciate the duplicity involved in the entire process as a whole. C. Recommended Model For this case, the model that is deemed to be more appropriate lies with the rational decision making model. The directors should engage the rational model because it provides a continuous process of evaluating the best course of action. The model allows possible alteration even after the implementation phase has been completed. It thus goes without saying that the directors will still be able to replace ineffective course of action at any given moment as a way of cutting down on possible loss of resources or wastage for that matter. It is important to note that the six steps involved in rational decision making process ensure that the very best course of action is adopted hence guarantee possible positive end outcomes. Most notably, it allows the recycling of the entire six phases until an effective alternative is formulated and implemented thereafter. 2. Strategic Planning Strategic planning is used as an effective tool needed for the purpose of transforming as well as regenerating organisations regardless of their nature of operations (Pirtea, Nicolescu, & Botoc, 2009). A workable and efficient strategic planning process is able to transform organisations, amass wealth to shareholders or even alter the existing structures upon which a company operates. A. Benefits of Strategic Planning First, the adoption of a strategic plan will ensure that the organisation is fairly-positioned to prevent any possible challenges that might result in attaining its immediate goals. For instance, strategic managers that ensure to focus on employees’ attention to aspects related to planning enjoy greater assistance in terms of monitoring and total planning responsibilities since the junior employees are made aware of the need for executing effective strategic planning (Bradutan & Sarbu, 2010). Second, strategic plans provide a greater sense of unity in matters related to both idea conception and action at all hierarchical levels within an organisation. In essence, it fosters the formulation of company strategies that sets a benchmark that can be used to define all significant elements that helps to govern the overall operations of a company (Bradutan & Sarbu, 2010). Given that element that contains business strategies as formulated and implemented by the senior-most management, acts to avail the platform deemed necessary for evaluating the necessary aspects for all units and at the management level (Bradutan & Sarbu, 2010). It is important to note that an organisation’s unitary portrayal and its immediate matching actions, which are conducted in their respective overall activities are mostly insured by strategic plans that truly plays a critical coordination role of coordination and communication for all managers. Third, by embracing a strategic plan, the organisation will benefit from the aspect related to consistency of all strategic decisions made with the existing and tactical alternatives (Bradutan & Sarbu, 2010). It also sets to provide an effective and perfect coordination of all operational and functional-based units within the organisation as a whole. Consequently, the adoption of a strategic plan will ensure that the merged company will enjoy a consistent contribution relating to the immediate clarification and comprehension of the set missions and visions as well as the focal purpose of the company thereby improving on utilisation of staff deployment for overall company strategy (Bradutan & Sarbu, 2010). More significantly, it offers the creation and development of a distinctive culture of enterprise with a fundamental perspective of making it certain to guarantee future workable long term growth and development. For the case at hand, the company is set to enjoy a successful profit-based implementation objective. Subsequently, use of strategic plans ensures to provide effective explicit operational strategies that are solely focused on a wider and enormous participation mode; and through a connection with strategy formulation as well as implementation, the plan will assist to improve on employee motivation and thereby eliminate possible resistance to alterations to imminent change (Bradutan & Sarbu, 2010). This is to say that these strategic plans ensures to promote a favourable comprehension of a performance-reward form of relationship as it identifies limiting facets as well as alternatives thereafter formulating a fairly favourable operational environment needed for effective performance; which is certainly crucial for the creation of workable performance measures and potential for growth and development. In addition to this, the adoption of an efficient strategic plan ensures that the future probable challenges that the company might face is known in advance, while possible opportunities and threats identified for the many areas of business platform (Bradutan & Sarbu, 2010). In essence, it acts to improve the overall economic as well as financial outcomes of a company while still ensuring to foster quick and timely development and the strengthening of the market position and competitive advantage. B. Possible Limitations of Strategic Plan First, the decision to adopt a strategic plan in order to increase on its business profits is limited by the fact that it can fail to avail concise and detailed information of future operations (Bradutan & Sarbu, 2010). This is because a technique of establishing the future does not rely on the internal or external situation but rather; it is mostly composed of a distinctive combination of qualitative desires, position to be adopted in the market as well as the overall business culture. Secondly, strategic plans can never be confined to a certain set of routine regulations and processess hence the strategic managers tasked with their formulation understand it differently. Notably, the success of improving the business operational profits cannot only be ensured through formulation of strategic plans (Bradutan & Sarbu, 2010). It also results to imminent spending of time and other resources before they can be implemented thus postulating the fact that they are indeed expensive to sustain over a given period. Despite the limitations identified as above, it will be important that the directors go ahead to develop and sustain a strategic plan. The director should understand that a strategic plan ensures that vision, missions and objectives, which in this case is accomplishing profitable future, is met in a concise and clear manner. The director should however; ensure to adopt optimal ways of formulating and implementing the five-year strategic plan so that resource wastage is minimal at all costs. References List Bradutan, S & Sarbu, A.2010. Advantages and disadvantages of the strategic management in the current economic context, p.51-54 Eisenfuhr, F. 2011. Decision making. New York, NY: Springer Kepner, C. H., & Tregoe, B. B. 2005. The new rational manager (rev. ed.). New York, NY: Kepner-Tregoe. Lunenburg, F.2010. The decision making process, National Forum of Educational Administration and Supervision Journal, vol.27, no.4, p. 1-12 Pirtea, M, Nicolescu, C, & Botoc, C.2009. The role of strategic planning in modern organizations, Annales Universitatis Apulensis Series Oeconomica, vol. 11, no.2, p. 953-957. Ram, C., Montibeller, G., & Morton, A. 2011. Extending the use of scenario planning and MCDA for the evaluation of strategic options. Journal of Operational Research Society, vol.62, no.5, pp. 817-829 Read More