Yellow Auto Automotive Company

Contents

1. EXCUTIVE SUMMARY 2

2. INTRODUCTION 3

3. DECISION MAKING FRAMEWORK 3

3.1. Personality Perspectives 3

3.1.1. Big 5 Model 3

3.1.2. Myers Biggs Type Indicator 3

3.2. Value Perspectives 3

3.2.1. Rokeach Value Survey 3

3.2.2. Schwartz's Value Cricumplex 3

4. CONCLUSION 3

5. RECOMMENDATIONS 3

6. REFERENCES 3

7. APPENDICES 3

1. EXCUTIVE SUMMARY

This report utilizes personality and value perspectives to analyse the decision-making framework of Yellow Auto Automotive Company.

Yellow Auto was a family company and decisions were made by top managers and they were also family members, who had an autocratic management style but very open to development efforts. In 2001, they decided to achieve a goal of having 50% of the market share in the region by investing in human resources.

From personality and value perspectives, the top managers of Yellow Auto are more likely imaginative and creative people. They would dare make the decision in the huge economic crisis situation. At the end of the change process, the decision that they made was implemented successfully. As a result, Yellow Auto increased its market share, profitability and job satisfaction and organizational commitment of the employees.

However, the top managers made the decision based on their belief and their knowledge. They did not have any discussion with the middle and first line managers and employees. The autocratic management style is more likely to cause a lack of co-operation between owners and their employees in achieving the objectives. It makes the quality of the decision is limited, could become a weakness.

It is recommended that the managing owners shoud have more interaction with their employees when they make decisions in the future. In addtion, unwritten rules could be a cause of confusion in information flow and slowed the work and decisions. Hence, it is further recommended that the company should create clear rules to distribute work for each members in the company. After that, the decisions would be made more effectively and faster.

2. INTRODUCTION

The purpose of this report is to analyse the decision-making frameworks of Yellow Auto Automotive Company. In 2001, they determined to achieve the target of 50% of the market share. Thus, they decided to invest in human resources and this decision helped the company achieve a great performance. This report employs personality and value perspective to analyse the process of decision-making of top mannagers and makes some recommendations how they might improve their decision making in the future.

3. DECISION MAKING FRAMEWORK

The framework of decision making may have a signifcant effect on the quality of decisions. Yellow Auto was owned anh managed by a family. According to Rivers (n.d), family businesses have some advantages in comparison with their competitors is they are more nimble and, therefore, they are able to make faster and better decisions. However, M.A. Belch, G.E.Belch and Sciglimpaglia (1980) stated that there are conflicts between family members when they make decisions, and according to March and Simon (n.d), these potential conflicts may occur when family members have different goals or different strategies to achieve goals (cited in Sheth, 1974). In a family company, decisions can be made by individuals or groups (Walsh, 2011). In the Yellow Auto case, although the decision was made by top managers comprised solely of family members, it was dominated by only one family member, the president of board of directors who was also the owner of Yellow Auto. He made decisions regarding all the operations done within the company, other family members were consulted on the important decisions, such as making investment that was mentioned in this case study.

In the Yellow Auto case, top managers decided to grow the company through investing in human resources without the participation of the middle and first line managers and employees. Thus, the quality of this decision is limited by what Simon (1957) identified as the "bounded rationality" of individuals (cited in Tolbert & Hall, 2008). In addtion, top managers believed that the goal could be achieved if and only if the human resources quality was increased in the company. Thus, they did not think about other alternatives as what Simon call "reportoires" (cited in Tolbert & Hall, 2008).

3.1. Personality Perspectives

Reviewing the owner's personality from a personality perspectives will assist in understanding how he made his decisions. In this part, I will utilize relevant theories, models and frameworks analyse the critical decisions in the case study.

3.1.1. Big 5 Model

The owners or managers of Yellow Auto is known as well-organised or careful people who scores high in "conscientiousness" (Robbins & Judge, 2011). Before making investing decision, they had a discussion with other family members. They were aware of the risk level of this decision. Thus, they decided to work with academicians working at a university to analyze the situation of the company at that time to ensure that the change process would be well managed. In addition, when the change started, they cared about physical working conditions of employees first. As a result, the company provided better catering sevices such as opening its own fast food restaurant in Gaziemir and recruiting a hairdresser at the plaza.

Although following autocratic style in management, udring the research process, managers worked with the consultants in an atmosphere of open communication and trust, and was there by conforming to what Robbins and Judge (2011) called "agreeableness".

According to Robbins & Judge (2011), people who with high scores on "open to experience" are creative, curious, and artistically sensitive. They are very high on this with opening their business. Yellow Auto was the dealer that sold a well known brand's cars in small towns within the third largest city of Turkey, but managers determined a goal of expanding the company by investing in human resourse even thought they knew this was a very risky dicision because at that