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C A S E S T U D Y – A N A LY S I S O F A

Principles of Management


Everyone brings moods and feelings into work. Research in the last few decades has started to look at emotional decision making with a new perspective. Instead of having only a rational vs. These moods affect how everyone works.WHAT DOES THIS CASE SAY ABOUT THE ROLE OF EMOTIONS IN DECISION MAKING? DECISION MAKING: The process of selecting a logical choice from the available options is known as decision making. When trying to make a good decision. and humans are emotional beings. . In fact. work has taken a more complete view. Positive emotions:  Enthusiasm  Optimism  Excitement  Pride Negative emotions:  Stress and tension  Anxiety  De-motivation  Procrastination HOW EMOTIONS AFFECT INTERACTION IN BUSINESS: Business depends on people. emotions are often considered irrational occurrences that may distort reasoning. emotional perspective. so plenty of emotions are running around in the work place. Rational thinking and decisionmaking does not leave much room for emotions. recognizing positive as well as negative effects of emotions in the context of making decisions. a person must weigh the positive and negative sides of each option. ROLE OF EMOTIONS IN DECISION MAKING: One way of thinking holds that the mental process of decision-making is rational. and also consider all the alternatives.

ON A TEMPORARY EMOTION” . Within this environment people do not work well. “DO NOT MAKE A PERMANENT DECISION. or indifferently. badly.Without doubt your behavior at work affects your colleagues. Disney is also strongly opposed to the possible merger between Time Warner and America Online. They may respond well. rather money only. The dispute between the two largest media giants has to do with how much Time Warner should pay Disney for carrying its cable channels. EFFECTS OF POOR DECISION MAKING:        Productivity Efficiency Turnover Profit Employee Moral Communication Brand Image ROLE OF EMOTIONS IN DECISION MAKING AFFECTS IN THIS CASE STUDY: The dispute between Time Warner and Disney was to pull ABC programs off the air. What emotions they have themselves. Relationships become strained and barriers are built. It all came down to money as Disney and Time Warner being sensitive to their identity did not care about the people and their names. depending on:  What you do or say (your behavior)  What they think you mean by what you do or say (peoples always  consider behaviors through their own filters.

So it is very important when we make decisions that make sure all the aspect of ground realities. itself a huge conglomerate. when Time Warner’s rights to carry the ABC network were to expire. and not make permanent decision on temporary emotions. . Some saw blocking the signal as a real risk. ABC faxed a terse letter to Time Warner notifying it that Disney expected Time Warner to continue to carry the ABC signal through May 24 after the end of the sweeps period.The role of emotions in decision making affects the both Time Warner and ABC network. On April 26.5 million homes that Time Warner’s cable serviced. Now this is the emotional decisions which were taking by Time Warner executives to consider blocking ABC’s signal to the 3. So. and they doubted ABC would take the chance of losing up to $3 million a day in advertising revenues. They felt ABC was negotiating by fiat. if not more. in that way it will helps and beneficial to the company. Time Warner had been insisting on an eight-month extension. Given that cable companies are not popular with the public and often seen as charging monopolistic prices. Others argued that Disney. several Time Warner executives feared that they would take the blame rather than Disney. The tone of the fax set off the tempers of some Time Warner executives. They figured the threat of blocking ABC’s signal might finally bring Disney to agree to Time Warner’s terms and this is the biggest decision making mistakes made by executives of Time Warner. if Time Warner put its message out effectively. five days before the latest negotiating deadline. might take just as much blame.

  Conflict of interest made Time Warner Execs think rather negatively. Procrastination  and Anger.HOW DI D “GROUP FORCES” SHAPE THIS DECISION? Group decision making is one of the most critical function or outcome of any group weather it is formal or informal. and the company we work for as well depend on the wisdom and ability of making good decisions. This can lead to bad decision due to often group polarization. Just to make Disney pay for their non-negotiating behavior.e. No compromises were offered by the group forces in order to achieve a win-win situation. Following are some points need to be highlighted related to the decision made in this case study. We can reduce this by avoiding homogeneity in group composition. Group decisions are often based on the consensus of all members in the group. negative groupthink or any other reason. there was conflict of interest between the members of the decision making groups. We can avoid the probability of the issues though by taking some remedy steps. How did “Group Forces” shape decision in this case study? In this case study. Unfortunately psychologists have found that groups suffer all kinds of biases and glitches that lead to poor choices no matters due to polarization. The group didn’t evaluate the alternatives before making the decisions rather went for emotions in the decision making i. Time  Warner ignored the legal consequences. The decisions pertaining to our families and friends. .

analyze problems or situations. IF ANYTHING. consider and evaluate alternative courses of action. fans of Rosie O'Donnell have been waiting for the popular  talk-show host to appear on ABC's "Who Wants to Be a Millionaire. kicking off TV's allimportant sweeps month. However. Group decisionmaking techniques help businesses turn ideas into action plans. making a final decision in a group may be difficult in certain circumstances. and select from among the alternatives a solution or solutions." This is the big week. Assembling employees into decision-making groups is one method of tackling an issue or problem in the workplace. WHAT ACTUALLY HAPPENED BETWEEN DISNEY AND TIME WARNER?  For months. The more minds working on a single problem the more potential solutions are created. . COULD SENIOR TIME-WARNER EXECUTIVES HAVE DONE TO HAVE ACHIEVED A MORE EFFECTI VE OUTCOME IN THIS PROCESS? Before evaluating the group decisions made by the executives of Time Warner.WHAT. when she and a clutch of other celebrities are scheduled to appear on the hit game show. we need to have a better understanding of what actually happened wrong and who was responsible for it? Group decision making also known as collaborative decision-making can be defined as a type of participatory process in which multiple individuals acting collectively.

The decision of Time Warner to cut ABC. But Monday night.  something Time Warner has been reluctant to do. The company cut off ABC during a crucial "sweeps" period." Almost 3. would result in defame of the  image. WHAT DECISIONS THE EXECUTIVE OF TIME WARNER HAD MADE DURING ALL THE PROBLEMS?  When we are working in any organization we have to think at least twice before making any significant decision that is going to have a  great impact on the public image of organization. 1999 and several temporary extensions had been granted to continue carrying the channels on Time Warner's cable  network. The timing of Time Warner's action is significant. rather than as a premium service. Time Warner denied the access of ABC channels as part of a  long-running contract battle with ABC's owner. The contract between the two companies had initially expired on December 31. The May sweeps began last week and run through  May 24. from its cable system is indicative of the ruthless struggle that is under way among media and telecommunications conglomerates for control of both traditional markets and those emerging as result of the development of the Internet. Basically. The executives of Time Warner took a very drastic step when the  negotiations with Disney were about to turn down. Houston and Los Angeles. In fact. the highest-rated US TV network. including New York. group decision making is used to make better decisions in the favor of organization. . Disney wants Time Warner to carry some of its programs as part of the cable company's basic service. which TV stations use to set advertising rates. Walt Disney. Time Warner management was very particular about its public image but the decision made on April 30.5 million homes in 11 US cities. the only thing some of her fans saw when they tuned in was a black screen and a rather unentertaining message:  "Disney has taken ABC away from you. were greeted with the eviction notice when they tried  to view ABC channels.

The President of Time Warner gave orders to his engineers to block the  ABC signal. “Why did we decide to take a stand now?” asked Dessler. Tuesday afternoon. Before getting erred the executives had think all the Cause & Effect of  their decision. . For once they didn’t think what would be the reaction of the viewers of  Time Warner due to this decision. the executives of Time Warner made an oppressive decision  based on the temporarily emotions.  rather solving it with more efforts and meetings.” WHAT ACTUALLY THE EXECTIVES HAVE DONE TO GET MORE OUTCOMES FROM THE PROCESS?  Basically. Services were restored after 39 hours as the Federal Communications Commission was set to rule in favor of Disney's request to force Time  Warner to restore the signal until the end of the current sweeps month. They say they made a legal miscalculation and also incorrectly assumed that Disney would back down. Time Warner called a news conference and announced that it had offered  Disney a six month extension of the negotiations. The executives should not have taken the problem to personal level. after only 39 hours of blocking ABC’s signal. They once should have account for all the parameters of their public  image. Time Warner executives admitted afterward that they erred. “We thought it was the right time. As a group Cause & Effect of each significant decision is evaluated with finding the best suitable alternatives which may affect the image  of any organization. One more thing they can do was to ethically warn publically Disney or ABC before taking this extreme decision. FCC ruled that Time Warner had violated the law by blocking ABC from  its system during a sweeps month. They were just pushing us and pushing us.