Question

Choose an organization and a particular decision situation due to the current Pandemic.

Required:

Give examples using this context, of each step in the decision-making process as described in Unit 6. (1. Clarify the decision problem, 2. Specify the criterion, 3. Identify the alternatives, 4. Develop a decision model, 5. Collect the data and 6. Select an alternative). Your project must include but is not limited to the following: A summary of the nature and history of the company. Background elements of the decision selected and what circumstances have resulted in the decision needing to be made. The possible effects of the selected decision, if implemented. Use of Quantitative data.

Answer 1

Given the current Covid 19 pandemic, it has become increasingly difficult for companies to maintain their day to day business activites because of a lockdown existing at majority of the geographical locations around the world.

With respect to my analysis, i am taking the company named "Indus steels" from India. Indus steels was founded way back in 2005 as a steel and iron manufacturing plant essential for constructions purporses. It has beeen a pioneer in manufacturing new ways of steel has reached a considerable position in the indian market

1.) The decision problem:-

Because of the restrictions of the bureacracy and the risks that the Covid 19 poses, the company has to make important decisions in enabling it to function keeping in mind the long term objectives. The main decisions that the company has to take include paying the salaries to the 1000 odd employees the company has, deciding on whether to continue production or to halt them, taking care about the welfare of its employees, etc.

2.) The criterion :-

The criteria for taking these decisions involves the huge amount of fixed expenses involved in maintaining the reputation of the brand when the production and supply restarts after the lockdown. Also, if a company is unable to take of its employees in the times of need , it becomes incresingly difficult to regain the trust the employees carry about the values of the company.

3.) Identify alternatives :-

The alternatives at this crucial juncture which any businessman/entreprenuer can take if faced with above situations may be :-

a.) Pay the salaries in parts to employees - Instead of disappointing employees by firing and cutting their pay amounts, the company can focus on paying the salaries to the employees in parts and parcels. The company can try to pay 50% of the salaries this month and make the instalment basis payments for the remaining parts of the salaries in the future months.

b.) Fire few employees and retain the best employees - Doing this, the company has to fire few of the employees whom it deems is not necessary once the situation improves and the production starts. But this might lead to a negative publicity in the market and might result in a bad reputation among the public.

4.) Develop a decision model :-

The decision model here with respect to managing the fixed expenses of the company (like rent, salaries, etc) would be to pay these expenses in bits and pieces over the upcoming months once the situtaiton improves. This way, it will not be a huge burden to the company and also will help the employees cover their livelihood.

5.) Collect the data :-

The data here refers to the liquidity and the ability of the company to pay the necessary expenses. Based on the the company's resources, we deem it to be possible that the company would be in a position to satisfy its dues as it will be able to recover them in the long run.

6.) Select an alternative :-

The best alternative here according to me is to pay the salary of the employees in parts. This way, the company will retain its dedicated resources and build a trust in the hearts of the employees and its customer for the way the company has treated the people who believed on them. Also, it will allow the company to pay all the expenses in installments thereby reducing a burden. Once the situation improves, the company can put forward a plan to recover these diseconomies of scale and bring the goals back on track.