The Effective Decision Essay -- GCSE Business Marketing Coursework

The Effective DecisionThe Effective Decision - The Function of the mind ExecutiveAt 60, John Neyland, the company hot seat, decided he would bed before the requisite retirement age of 65. He did not utter his decision to anyone until he reached 62, and at this cartridge holder he confided to his best hotshot and the most powerful jump on member that he would retire imminently. Mr. Neyland proposed that cock Strong, Vice President, Administration, a very able and experienced executive, succeed him as president. Mr. Neylands friend vehemently opposed Bill Strongs candidacy, and forcefully argued that Margaret Wether only, vice president of manufacturing, was the best qualified to be the brand-new president.This case presents a place where the decision-making performance has completely failed. The selection of the president is one of the most in-chief(postnominal) decisions a board of directors makes. Not only does a president engage an ample impact on the fortunes o f a company, but the very process by which the executive is picked influences the way employees, investors, and other constituencies view the company and its leadership. unrivalled of the boards most precise partings is to ensure the presence of an legal management suppuration program for the whole enterprise. While the CEO (in most firms, the president is to a fault the CEO), is the person managing the program, the board needs to play an active oversight role to ensure that the program is in place and is working effectively. Considering that Mr. Neyland was approaching the mandatory retirement age, and that a significant difference in opinion in the midst of Mr. Neyland and the most powerful board member as to who should be the new president, it is clear that the board (the president is almost always a board member) was extremely derelict in its duties. The decision-making process was greatly undermined, with huge ramifications for the organization.In the Japanese way of decision-making, the single most important element in solving such capers is defining the question. Because the Japanese system is very time consuming and involves many participants from various functions within the organization, the Japanese system is suited to big decisions. A change is president is one of the most life-and-death events in the life of a company, and it is an event in which the board of directors plays a central role. Because the ne... ...ns by consensus, and they have developed a systematic decision-making process. The critical first step in the Japanese decision-making system is to define the problem and then proceed through well-defined stages to arrive at an effective decision. For example, the Japanese flush out various opinions without any discussion of the answer. The Japanese focus on exploring and debating the merits of alternatives, rather than on the optimal solution. The process includes all parties that are affected by the decision. When a consensus is reached, the decision can be easily implemented because people implementing the decision were intimately involved in the decision-making process.The disagreement between Mr. Neyland and the board member regarding who should succeed Mr. Neyland has sabotaged the effective decision-making process. It is super unlikely that the next president will be the best candidate, and political science will compromise the integrity of the decision process. Naturally, there are enormous implications for the economic health of the organization. American and European managers often make poor decisions, and the consequences can be devastating for their organizations.