Decision Making at the Top:

The All-Star Sports Catalog Division

Case Analysis
PGPEX’2013 - Group 2

Kamesh Singal Reg No 17

Praveen Gudisagar Reg No 26
RajarshiSen Reg No 30
Rittick Banerjee Reg No 32
SauravChatterjee Reg No 34
SayantanHajra Reg No 35
SubrataDass Reg No 38
 Agenda
 Company Overview

 Organization Structure

 Current Decision Making and issues

 Organization Culture

 Barett’s leadership

 Proposed alternatives and evaluation

 Procedural Justice
 Company Background

 Founded in 1987 by Steve Archibald. First Store

opened in 1988 in Tampa, Florida.

 High volume and discount Sporting Superstore

 Rapid Expansion of Sales and Profit

 Company Overview

 U.S. Super Store - 450 retail stores located throughout.

 All Star International - 60 stores across Canada, brazil and

Mexico.

All Star Express All Star Sports Catalogue Division

Mail order catalog business Individual Organization

 Acquisitions of Sporting goods Wholesaler – Jackson Sports

and Hoffman's Team Apparel
 Strategy
 Mostly inorganic growth for ASC since 1995

 Acquired Jackson Sports & Hoffman’s Team Apparel.

 Acquired 4 regional sports goods wholesalers to build national

delivery network.

 Acquisition Integration Process Stages:

 Consolidated purchases to leverage buying power

 Developed common systems & merged administrative functions

 Integrating customer service & order fulfilment processes to

develop a common infrastructure
 Functional Structure
 Objective:
 Increase coordination & integration across divisions
 Benefits
 Opportunity to learn from others
 Better Training & Peer supervision for complex work
 Issues:
 Communication problem across functions (subunit orientation)
 Profitability measurement problem
 Location problem
 Customer problem
 Strategic problem
 Rewards System
 Pay for performance reward system
 Annual cash bonus & stock options
 Earlier payout dependent on:
 Corporate EPS
 BU earning
 BU sales
 New Bonus Payment mechanism dependent on:
 Performance of individual
 Total ASC earning & sales
 Current Decision Making Process

 Weekly Senior Management meeting for two hours

 First hour spent on discussing generic issues and key

project update

 Second hour spent on specific key issues

 In-depth discussion
 Sub-group formation

 CEO involvement in one meeting per month

 Stages of Decision Making Process

Framing the Identifying Analyzing

Problem Alternatives Alternatives

Ratifying the Making the

Choice Choice
Attributes of the Current Decision Process

 Analytical

 Aligned

 Apolitical

 Active Participation
Concerns about the Current Decision Process
 Conflict (lack of open debate)

 Closure

 Commitment

Other concerns coming out from the survey

 Difference in perception between Don Barrett and Senior
Management team about Team Effectiveness

 Lack of focus on certain important topics

 Decision making process not fully participative

 Lack of Procedural Justice

Organizational Culture : Competing Values
Framework

Collaborate Create
/Adhocracy

Control / Compete /
Hierarchy Market
Types of Culture

Create Control
Collaborate(Clan Compete (Market)
(Adhocracy) (Hierarchy)
Culture) Structure
Culture Structure
• Inward focus with • Emphasize • Bureaucratic
concern for flexibility and • Defined by • Value Stability
integration discretion Stability and and Control
• Emphasize • External focus Control • External Focus
flexibility and and concern on • Internal Focus (Relationships)
discretion differentiation and integration • Value
• Operate like • Value flexibility • Value Differentiation
families and adaptability Standardization over Integration
• Value cohesion, and thrive in and Control • Focus on
humane working chaos • Well defined Competitiveness'
environment, structure to and
group authority and Productiveness
commitment and decision making
loyalty process
Slip between Cup and Lip
 Espoused and actual theory

 Entire division centered on one man’s ideas

 Problem in decision making due to difference in perception

 Developer Executive

3D Theory of leadership
Bureaucrat Benevolent
Autocrat

Related Integrated
Relationship
Oriented
Separated Dedicated

Missionary Compromiser Task

Oriented Effectiveness

Deserter Autocrat
Questionnaire
 Autocrat
 I see planning as a one man job
 I direct the work of my subordinates and discourage deviations
from my plans

 Compromiser
 When conflict arises I try to be fair but firm
 I make an effort at planning but the plans do not always work
out
Questionnaire
 Deserter
 I do not show too much interest in my subordinates
 I am not interested in being flexible or in others being
flexible

 Missionary
 I treat subordinates with great kindness and consideration
 I overlook violations of any kind if it helps to make things
run more smoothly
Questionnaire
 Bureaucrat
 I respond to disagreement and conflict by referring to rules and
procedures
 I prefer to work within standard operating procedures

 Benevolent Autocrat
 When conflict arises I stand my ground and try to be as
persuasive as possible
 I am willing to change my work methods only if the change will
improve productivity
Questionnaire
 Developer
 I successfully encourage others to obtain information and
pay attentions to what they have to say
 When I am responsible for planning I involve many others

 Executive
 I make adjustments in both my own work-methods and
work-relationships when I feel it will improve overall
productivity
 I try to resole conflict as quickly as possible by uncovering
its underlying causes
 Developer Executive

Bureaucrat Benevolent
Autocrat

Related Integrated
Relationship
Oriented
Separated Dedicated

Task
Missionary Compromis Oriented Effectiveness
er

Deserter Autocrat
Don Barett – Decision Making Method

Method C MethodD

High
Impartiality

Method A Method B

Low

Low High
Consideration
 Decision options

 Group Norm change –

change in Don Barett’s leadership style X
 Team oriented approach –
consensus based

 Top management Team –

3-4 key members
Consensus Decision Model
 What is?
 A questioning process
 Everyone cooperates and consents
 Integrated will of the group
 What is not?
 Not a set of rules or procedures
 Follow a popular leader
 Compromise
 Implicit Majority
 Intensity of Preferences
 Characteristics
 True democracy
 Nonviolent and non-coercive
 Better decisions
Issues with consensus decision making
 Endless wrangling

 Groupthink – wanted to be accepted by in-group

 Grandstanding

 Obtrusive blocking

 Irreconcilable difference

 Takes too long

Consensus Decision Making issues
 Free Market Democracy
 Certain characteristics needed
• Responsibility
• Self-discipline
• Honest
• Respect & Cooperation
 Disinterested but not uninterested
 Suggested Alternative

Top Management team

Benefits

Constructive Debate : Six Hat thinking

 Fast Decision making : R-A-P-I-D

 Six Hat thinking
Information and Data – what do I know?
What do I need to find out?
How will I get information I need?

Intuitions, Hunches
How others will react emotionally?

Difficulties, weakness, danger – be defensive

Logical reasons, identify risk
Tougher and resilient plan
Positives, Advantages
Logical reasons
Why idea useful, keep going

Creative Ideas, alternatives, possibilities

Solution to Black Hat problem

Process control
Strategy, planning for action, outcome
Ideas running dry – ask for ‘Green Hat’
Contingency plan – ask for ‘Black Hat’
 RAPID decision making model
R – Recommender – initiates the process

I – Input – must be consulted before decision is made

A – Approve – essentially an ‘I’ with more power

D – Decide – final authority

P – Perform – carries out decision once made

Organizational Justice

Distributive Procedural
Justice Justice

Interactional
Justice
 Procedural Justice
Consideration of
team member’s input

High procedural
fairness

•High commitment to final decision

• Increased sense of attachment to team
• Positive impact on perception of procedural justice
 Bibliography

http://www.vernalproject.org/papers/process/ConsensNotes.p
df

http://www.bridgestar.org/Library/RAPIDDecisionMaking.aspx

http://www.mindtools.com/pages/article/newTED_07.htm

http://en.wikipedia.org/wiki/Organizational_justice

http://www.bain.com/publications/articles/who-has-d-how-
clear-decision-roles-enhance-organizational-performance.aspx
THANK YOU …