Organizational Strategy Case

        As CEO, I questioned Patricia’s conclusion. While conducted investigations support her recommendation of empowered-team approach, her lack of approach varieties gave me a sense of overconfidence. I believe we should expand our scale of investigations to the entire industry to measure productivity and profitability. In addition, we should also conduct investigations on our workers to improve intrinsic motivation and extrinsic motivation.

          Patricia knew she is an expert of furniture manufacture. Although her strong primary knowledge gave her references to direct inquiries to find out the cause of our problem, her lacking of secondary knowledge, however, also lead to biased judgments. Since changing the production structure is a massive scale change that cost much money and time, her myopic individual perspective can consequently harm the factory if the change is unsuccessful toward the result. Being the CEO, I will recommend her to push her boundary by conducting deep investigations on areas that she is not familiar with to neutralize her prediction of perception. For example, inside investigation in factory to find the root cause of mistakes and slower productivity. Moreover, hire a consultant from Rady can help us only if outside views are provided to the factory. An open view is always helpful. I will further ask her to delivery a full report with relative base rate of recommended strategy throughout the industry instead of rivals to understand the relative true percentage of success rate by adopting her recommendation.

        To persuade me, Patricia needs to perform a full-scale investigation on our productivity issue. I am not convinced by data extract from our rivals that might be a confirmation biased. I am interesting in comparisons between our company and the entire industry. I want to know if we can increase our workers’ intrinsic motivation by improving working environment or simply change our production structure. If there are extrinsic motivations like salary increase to motivate our workers, I want to know to what extend should we increase the salary level. In addition, if Patricia still insist on the empowered team structure, I want specific conclusion based on a complete report that relate to the level of improvement in motivations throughout the industry. Then, I will only make decision if the logic of skill will solve our problem. If information is hard to obtained, I will use logic of chance to make decision by regress the mean and observe carefully on variance of prediction.