You have just been promoted from front-line supervisor to be one of the
firm’s senior managers. During your business education, you learned that the
primary role of a manager is to make good decisions. As a supervisor, you had
frequently been making routine decisions, but you realize that decision making
for the overall company can and will have far greater impact on the company and
its employees.
Your boss, the chief executive officer (CEO), realizes that you do not have
much practice in this higher level, decision-making process and has asked you
to write a memo describing your understanding of how to make important
decisions.
Your memo should address the following questions:
·
Describe at least 3 criteria that would determine
whether the manager is making good decisions. What should be done to better
assure that you are making a good decision?
·
In the realm of decision making, what are
assumptions? Rather than use a dictionary definition, cite several specific
assumptions that would go with any real-life decision you have made or have
seen made at a company at which you have worked.
·
Given the importance of proper assumptions, your
boss asked you to assess the accuracy of certain business assumptions and what
could you do to test or confirm the credibility of them. The following were
major assumptions for each firm:
o
An automobile manufacturer’s assumption that the
demand for SUVs would continue because gas prices would continue to rise
o
An airline’s assumption that there was a need for
an airline that provided no added amenities
