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1. Based on the alternatives being considered, how would you predict that decision

problem has been identified? Is that the best way to define the decision problem in this case?

This case is concerns the of a harsh budget constraint by the state legislature. The

President of the college must reach a decision on which one of two programs, to maintain and

which one to cut. If they want to maintaining both of the programs a speech therapy clinic

and demonstration high school (teacher college-say), is only by cutting back on employee

wage expenditure but it might amount to accepting widespread dissatisfaction and mediocrity

throughout the college and community, a very undesirable outcome.

In this case they should apply combination the incremental and Carnegie Model

decision to their uncertainty cases. Incremental Decision Model is decision making that

describes the structures sequence of activities under taken from discovery of a problem to its

solution meanwhile Carnegie Decision Model is organization decision making that involves

many manager making a final choice based on a coalition among those managers. From the

case there are two options which is need to make decision by the college and this is uncertain

options to them to make decision and there is involved various people intervention such as

government, society, professional people and college staff. So in order to identify the

decision problem, it might be to use combination of two model as of below exhibit.

Problem Identification Problem Solution

1- When problem identification is 1- When problem solution is uncertain,

uncertain, Carnegie model will be incremental model will applies

applies 2- Trial and error process id needed

2- Political and social process is needed 3- Solve big problems in little steps

3- Build coalition, seek agreement, 4- Recycle and try again when blocked
resolve conflict

In this case, the president should identify the decision problem to each alternative

given. To identify the decision problem, the president need to identify essential details of the

problem such as where, when, who was involved, who was affected and how current

activities in state college are influenced. In identification stage there is steps involved such as

to define and clarify the issue, does it warrant action? If so, now? Is the matter urgent,

important or both. Second is to gather all the facts and understand their causes. Third is to

think about or brainstorm possible options and solutions. Fourth is to consider and compare

the pros and cons of each option. Fifth is to select the best option and lastly explain your

decision to those involved and affected, and follow up to ensure proper and effective

2. How could the decision problem be identified differently so that it would lead to

alternatives more broad than trying to decide which program to cut?

Decision making is the process of selecting a logical choice from among the available

options. When trying to make a good decision, a person must weight the positives and

negatives of each option, and consider all the alternatives. For effective decision making, a

person must be able to forecast the outcome of each option as well, and based on all these

items, determine which option is the best for that particular situation. [James Reason 1990].

Human performance in decision making terms has been the subject of active research from

several perspectives.

The essence of management is making decisions. Managers are required to evaluate

alternatives and make decisions regarding a wide range of matters. Just as there are different

managerial styles, there are different decision-making styles. Decision making involves

uncertainty and risk, and decision makers have varying degrees of risk aversion. According

to Ralph L. Keeney, professor at the University of Southern California's Marshall School of

Business and co-author of u  



managers commonly consider too few alternatives when making difficult decisions. They can

devise new alternatives through brainstorming and imagining as many options as possible,

keeping in mind objectives, but not necessarily being entirely practical at first. In practice,

action-oriented decision makers tend to focus on solutions without considering whether they

are working on the right problem. Instead of choosing from decisions selected by others,

decision makers need to review what decisions they should be addressing.

Managers in a corporate setting tend to view decision making differently. To develop more

alternatives, decision makers should release themselves from existing constraints, think
imaginatively, and brainstorm with others, all the while keeping objectives clearly in mind

and being honest about what they really need or desire.

In this case there are two alternative different programs need to be analyse and choose the

best one in one of activities programme implement by Aliesha State College. There are

Speech-therapy programs and demonstration high school. From the both alternative,

definitely the decision problem should be identify differently in order lead to more broad

decision making. They should consider from various approach such as identify uncertainty

and risk of the programs, principle and information system differently.

Many decisions must be made with complete information. Decision makers often to be act

without knowing for certain all of the consequences of their decisions. Uncertainty simply

increases the number of possible outcomes, and the consequences of these outcomes should

be considered. That is, it is important for the decision maker to identify what the uncertainties

are, what the possible outcomes are, and what the consequences would be. Decision makers

can sometimes clarify the problem they are working on by listing what could happen and

assigning probabilities to each possible outcome.

Principled decision making can be a useful complement or alternative to analytical decision

making. Principled decision making may or may not involve ethics. Ethical decision making

uses ethical principles to make decisions. Principled decision making can be applied as an

alternative to analytical decision making in such areas as organizational missions, goals and

strategies. With more information, managers can make better decisions. Organizations can

achieve more consistency between upper management and lower-level managers by

providing more information throughout the organization.

So by determine the various alternatives differently, this State College can evaluate the

alternative given broadly with good point of view. Making decision can be made easily with

enough information and contradiction between two alternatives.

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depending on its goals. These two alternatives have their strength and weaknesses. They

also face with uncertain decision to solve the problem. So under Contingency Framework

Decision Models, I believe that with choosing cell 4 giving me clear clarification in decision


This cell 4 approaches press on individual and learning organization. Characterized by high

uncertainty about both problems and solutions is difficult for decision making. By using

individual approaches, it can to build a coalition with all members in Aliesha State college to

establish goals and priorities and use judgement, intuition or trial and error to solve the

problems. Additional techniques such as inspiration and imitation also may be required.

When an entire organization is characterized by high uncertainty regarding both problem and

solutions, elements of the garbage can model will appear. Potential solutions will precede

problems as often as problems precede solutions. In this situation as board of trustee I should

encourage widespread discussion of problem and idea proposals to facilitate the opportunity

to make choice. Eventually via trial and error the organization will solve some problem.
4-If only one programs needed to be cut in order to erase the budget deficit, which programs

would you cut, and why? Are there other factors not given in the case which should be

considered in making this decision-such as the college mission or the potential for additional


In this case, Aliesha State College should be deciding between two alternative

program given in order them to implement the program. One major problem if they choose

both alternatives is budget deficit suddenly cut by the state legislation. If they choose to select

speech-therapy program, it is the great alternative because everyone agreed on that. It is also

need or desired by the people and given high priority to the people but the weaknesses of the

program is poor, sloppy, disorganized job that paediatricians, psychiatrists and psychologist

hesitated to refer their patients to the clinic. If they choose demonstration high school, it is

very excellence and the impact it made on the education students who listened in on its

classes and on many young teachers in the area who came in as auditors. But it is plenty of

perfectly adequate high schools in the area.

If only one program need to be choosing, it should be goes to demonstration high school

program because of both teacher and students involve in the programmes. Beside that its

teachers were the leading experts in teacher education. Goals of the Aliesha State college

maybe related to the programs selected. This program can increase knowledge and expertise

in education field in order to develop student¶s knowledge and skill and also to give a chance

to teachers to show their capability.


1. Describe the culture set by the former CEO Jim Carpenter. Would you describe it as an

adaptive corporate culture or unadaptive?why?

Adaptive corporate culture can be define as strategic focus on the external environment

through flexibility and change to meet customer needs. This culture encourages value, norms

and beliefs that support the capacity of the organization to detect, interpret and translate

signals from environment into new behaviour responses. It also actively creates change such

as innovation and creativity. Kotter and Heskett¶s (1992) seminal study of corporate culture

and performance, adaptive cultures are more appropriate not only for dealing with uncertain

environments but, by extension, also for implementing the prospector or differentiation

strategies that tend to be adopted in uncertain environments. Unadaptive cultures with

behavioural norms supporting control and consistency, are more likely to be accepted in

organizations facing relatively simple and stable environments and adopting low-cost or

defender strategies.

Differences between Adaptive Corporate Cultures an Unadaptive Corporate Cultures

Adaptive Corporate Culture Unadaptive Corporate Culture

Visible Behavior Managers pay close attention Managers tend to behave

to all their constituencies, somewhat insularly, politically and

especially customers, and bureaucratically. As a result they

initiative change when needed do not change their strategies

to serve their legitimate quickly to adjust to or take

interests, even if it entails advantage of changes in their

taking some risks. business environment

Expressed Values Managers care deeply about Managers care mainly about

customers, stockholder and themselves, their immediate work

employees. group. They value the orderly and


(Source:John P.Kotter and James L.Hesket

Jim Carpenter who had been CEO for almost three decades was very well liked by

employees. He always treated his employee like family. For example recognized them by

name, family day, social events and so on. He believe that if you treat your employees well,

they will loyal to you an in your organization. When his organization¶s business seem slow

he never lay off his employees but he will transfer his employee to other job even the task of

the job is not related to the employees skills. This is show that Jim Carpenter has been using

unadaptive corporate culture.

Jim Carpenter is ever set performance objectives and standards for the all department but he

believes that manager of each department have full authorize to set her or his employees fit

with the task. Jim Carpenter provide training programs in communications and Human

Resource(HR) for manager for every year and this approached quite advantages to the

managers. Under Jim Carpenter leadership, there is lack of turnover, higher profit,

employees¶ productivity and friendly atmosphere until merging of large competitors in the

National Industrial Products which is changed the era of Jim Carpenter.

2. Why did new management see the need to bring change to the organization? Was it

necessary to change the culture in order to bring the desired change?

Organizational culture is an idea in the field of organizational studies and

management which describes the psychology, attitudes, experiences, beliefs and values

(personal and cultural values) of an organization. It has been defined as "the specific

collection of values and norms that are shared by people and groups in an organization and

that control the way they interact with each other and with stakeholders outside the

organization. Ravisi and Schultz (2006) state that organizational culture is a set of shared

mental assumptions that guide interpretation and action in organizations by defining

appropriate behavior for various situations. Although it¶s difficult to get consensus about the

definition of organizational culture, several constructs are commonly agreed upon ± that

organizational culture is holistic, historically determined, related to anthropological concepts,

socially constructed, soft, and difficult to change

Because of National¶s major rivals had merged into two large companies and better able to

meet customer needs which one of the factor why new management see it needed to bring

change to the organization. The impact from merging of competitor, Simpson Industries

going down. Their sales and profit had continued declined and the cost still keeps going up.

Beside that there is low in productivity and production output.

When an organization requires some kind of organizational culture change, the change

process can be daunting. Culture change may be necessary to reduce employee turnover,

influence employee behavior, make improvements to the company, refocus the company

objectives and rescale the organization, provide better customer service, and achieve specific

company goals and results. Culture change is impacted by a number of elements, including
the external environment and industry competitors, change in industry standards, technology

changes, the size and nature of the workforce, and the organization¶s history and


Burman and Evans (2008) argue that it is 'leadership' that affects culture rather than

'management', and describe the difference. When one wants to change an aspect of the culture

of an organization one has to keep in consideration that this is a long term project. Corporate

culture is something that is very hard to change and employees need time to get used to the

new way of organizing. For companies with a very strong and specific culture it will be even

harder to change.

Prior to a cultural change initiative, a needs assessment is needed to identify and understand

the current organizational culture. This can be done through employee surveys, interviews,

focus groups, observation, customer surveys where appropriate, and other internal research,

to further identify areas that require change. The company must then assess and clearly

identify the new, desired culture, and then design a change process.
3. Describe the culture set by the new CEO Tom Lawrence. What are its advantages and


Lawrence has a big reputation as a young, dynamic and more focus on productivity

and company profit. After changing CEO from Carpenter to Lawrence, there are a lot

changing in leadership style. For example Lawrence has been cut costs in organization by

discontinuing social events activities. Beside that he also totally stops impromptu birthday

celebrations among staff in National. He believes that by cut training programs in

communication and Human Resource can avoid from wasting time and money expenses. By

implementing adaptive corporate culture, he only focus on company profit and productivity

and external factors effected to the National without having proper relationship with the


Lawrence introduced strict performance standards to all department and worker who are nor

achieved in performance standard will be given first warning to develop their performance if

not they will be terminate from the National. Under Lawrence leadership, there is weekly

meeting regarding department performance among each of managers. Employees who are

able to achieved performance will be rewarded. For example large bonuses, perk, first class

Air travel and so on.

After a year being president of National, production cost had been reduced by 20 percent and

output has been increase 10 percent wherever sales increase 10 percent. The impact of of his

leadership style, three experienced and well-respected Nationnal manager has been left the

company for jobs with competitors. Beside that, the turnover is highly increase among

production worker and its quite difficult to find skill worker to replace the vacancy. Because

of that Simpson was pleased that Lawrence has brought National¶s profit and productivity
due to performance standard but the impact to employees is low morale and high turnover.

Simpson query it can be bad impact in long run business activities in National.
4. With the culture established by Tom Lawrence, is it possible to return to high morale and

lower turnover?

Culture is importance in Organization because it can give various benefit to the

company. To get the benefits, there should be a strong culture value. Strong culture is where

staff is more motivation because of their alignment to organizational values. The various

benefit from strong culture value are consistent and efficient employee performance, team

cohesiveness, high employee morale and strong company alignment towards goal


For change to be successful there needs to be a compelling reason to change, a clear vision of

what the change will be, and a sensible first step. (Tribus, 2001).

(Giles, 2000) Culture change requires consistency of message, goal, direction, and leadership

to succeed.

It is possible to Lawrence to get return to high morale and lower turnover by implementing

adaptive culture. The result on turnover and low morale occurred in National is just only a

year under Lawrence leadership. According to Kotter and Heskett (1992), organizations with

adaptive cultures perform much better than organizations with unadaptive cultures. An

adaptive culture translates into organizational success, it is characterized by managers paying

close attention to all of their constituencies, especially customers, initiating change when

needed, and taking risks. An unadaptive culture can significantly reduce a firm's

effectiveness, disabling the firm from pursuing all its competitive/operational options.

Tom Lawrence should strive for what is considered a good culture time to time in order to

increase productivity, growth, efficiency and reduce employee turnover and other. For

example fair treatment of each employee as well as respect for each employee¶s contribution
to the company, strong communication with all employees regarding policies and company

issues and investment in learning, training, and employee knowledge. O¶Rielly, Chatman &

Caldwell (1991) developed a model based on the belief that cultures can be distinguished by

values that are reinforced within organizations such as innovation, stability, respect for

people, outcome orientation, attention to detail, team orientation, and aggressiveness.

According to Schein (1992), the two main reasons why cultures develop in organizations is

due to external adaptation and internal integration. External adaptation reflects an

evolutionary approach to organizational culture and suggests that cultures develop and persist

because they help an organization to survive and flourish.

So by monitoring, develop relationship and clear communication time to time and this

adaptive culture will be success in National Industries. This has been proven by past

researcher which is employees more focused on their performance to achieve performance

standard toward external environment impaction. This will give more responsibilities to each

employee to keep their performance record well and to face with others competitor in the

same industries.
'. Making necessary assumptions about the corporate environment and corporate strategy,

where would you place the company¶s culture under Tom Lawrence¶s leadership in a

quadrant of the grid in Exhibit 9.8? In your opinion, is that an appropriate culture for the