Quiz 9: Strategic Management


Mistakes that Mr. J M has made while taking the decision of allocating the limited office space: • Overconfidence: In the given case Mr. M has become overconfident of his abilities to take a correct decision, which is why he didn't feel the need to take consultation from anyone and give a second thought to his opinion. To him the idea of giving the space for Greenways project was the only correct solution to the problem and made it his final decision, which was incorrect. • Misused his autonomy of making a decision: His designation gave him full autonomy to take decisions. But as it was affecting the well being of a whole department, he should have consulted with others and a better decision could have been reached. • Emotionally influenced decision: Impressing and coming in the good books of the mayor were the sole factors influencing him to take this decision. It was solely dominated by emotions. • Improper communication: As it was a decision that affects the whole department, Mr. M needs to be humble and empathetic while communicating it to the representative of the departments. He behaved brashly and denied to announce the decision by himself and imposed its announcement on Ms. A. • Made decision following initial impressions: The decision was made with a selfish motive. He did not bother himself considering the following factors. • The welfare of the whole organisation. • Feasibility of the decision. • Implications of his decisions on the work in progress.

The law firm needs to immediately address the employee complaint, since if it is ignored and later turns out to be true, there could be serious legal implications including lawsuits or government agency inquiries. These might require time and costs to investigate or defend against, and could result in legal judgements and fines. Steps to take to address the issue would be: • Reassure the employee: The partner should let the assistant know that he will be looking into the situation, and should set a time to follow up with the assistant with a progress update. • Involve an expert: The partner should locate someone who has more knowledge about air quality in the process. A likely person would be the building manager or building maintenance manager. These people would be able to list possible air quality issues resulting in the symptoms given by the assistant, and arrange for testing to see if those issues exist. • Follow up: The partner should set a reminder on his calendar and follow up with the expert and the employee as appropriate, to make sure the issue is appropriately addressed and is not forgotten as other tasks arise. • Keep a written record: The partner should maintain a written record of the complaint and actions he takes in response to it, in case legal action arises in the future.

Consultant C has been missing client appointments due to drinking since his wife left him. Although the transgressions have been minor until now, a large client has asked for a $125,000 refund from your company for his recent no-show. Reasons to keep Consultant C: • He's been an asset to the company for many years, and is generally well liked by clients. • It will be difficult to hire another consultant with the same skill set, and there may be significant time to bring them up to speed. • Giving him one more chance to improve his performance might result in the return of the performance he's shown in the past, and also show other staffers that you care enough to give people a break when they are having a rough time. Reasons to fire Consultant C: • $125,000 is a lot of money! Another payment like this one is likely to impact whether you keep your own position. • Investigation showed that this is not the first missed appointment, just the most significant. This shows a pattern of negative behavior that may not suddenly fix itself, even if Consultant C is motivated. The best option from those provided is #3; put Consultant C on paid leave while he gets professional help with his problems. This solution has several advantages: • It prevents further incidents while the situation is evaluated. • It gives a consultant who has been of great value to the company for many years a chance to return to his former performance level. • If successful, this allows the company to maintain the relationships with clients that Consultant C has built through the years. If not successful, the clients will see that the company tried to help a person they have respect for, and be more likely to stay with the company even if Consultant C ultimately leaves.

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