A manager needs to use different criteria when making decisions that have an impact on his firm’s operations. A manager needs to identify the specific problem that exists in the firm which needs to be solved. After identifying the problem, a manager needs to brainstorm with other members of the organisation to come up with probable solutions.
A consultative process makes all participants in the firm have more confidence in the manager’s leadership (DuBrin, 2003, p. 65). A manager needs to look at benefits and problems of every proposed solution before settling on the most appropriate one. A manager needs to understand all benefits and risks likely to be experienced by his organisation after the decision has been implemented.
An effective manager needs to understand the industry his firm operates in to ensure he makes appropriate decisions that advance its interests.
He needs to take note of different issues in the industry to find out how they impact on his firm’s operations. Jones and George (2006) reveal that a manager needs to rely on accurate information to expand his knowledge on various matters in the market (p. 87). A manager needs to study both short term and long term trends in the industry to understand how they are likely to impact on his firm’s performance.
It is vital for a manager to understand his firm’s vision to ensure that he makes appropriate decisions that help it achieve its objectives in the industry. He needs to allow other stakeholders in his firm to participate in making crucial decisions that enable his firm to make positive progress in the industry.
The assumption by an automobile manufacturer stating that the demand for SUV’s will continue to rise due to an increase in fuel prices is not backed up by accurate statistics. The manufacturer needs to do a lot of market research to validate this assumption, before its managers make any decisions regarding this issue. A leader should not use assumptions that have not been verified through elaborate marketing research to make choices that impact greatly on a firm’s operations.
He needs to use statistics gathered from different consumers to understand the best course of action his firm needs to pursue in the market. Pastinen (2010) reveals that managers need to develop effective systems that help them coordinate all activities their firms are involved in (p. 59).
These systems will help a firm understand financial as well as strategic implications of choices it makes in different markets. Therefore, the SUV manufacturer needs to assess all risks it is likely to experience before it decides to manufacture more vehicles.
An airline that makes an assumption that some travellers are willing to travel without additional amenities should conduct more market studies. However, the airline’s managers need to take time to find out if there are any major changes in the industry before making a drastic decision.
Managers need to compare services offered by other airlines to get more evidence that shows this assumption is credible and likely to benefit the firm’s operations in the long term. They also need to find out how the airline’s loyal customers are likely to react to such news and if this shift is likely to affect the quality attached to its brand in the market. Ultimately, the managers need to decide whether to market the airline as a low cost service provider or to maintain its current identity in the industry (Rue & Byars, 2003, p. 67).
References
DuBrin, A.J. (2003). Essentials of management. Peterborough, Canada: Thomson.
Jones, G.R., & George, J.M (2006). Contemporary management. New York, NY: McGraw-Hill.
Pastinen, M. (2010). High-performance process improvement. London, UK: .Springer.
Rue, L.W., & Byars, L.L. (2003). Management: Skills and applications. New York, NY: McGraw-Hill.