NAME: NORMITA S.

MANACIO COURSE/SECTION: MAED-EM

SUBJECT: ORGANIZATIONAL LEADERSHIP AND MANAGEMENT
DATE: SEPTEMBER 16, 2023

Reflection Activity on Decision-Making

1. Read the following case study. Then, answer the questions that follow.
CASE APPLICATION ON DECISION MAKING
Designing for Dollars
Great design is absolutely critical for most consumer products companies. But how do these
companies know when a design feature will pay off, especially when every dollar counts? How
do they make their tough decisions? That’s the challenge that Whirlpool’s chief designer, Chuck
Jones. He knew he had to come up with a better way.
Chuck, s realization that the whole process of making decisions needed to be improved
came after a meeting with the Whirlpool resource allocation team. Chuck wanted to add some
ornamentation to a KitchenAid refrigerator that was being redesigned, but it would have added
about $5 in extra cost. When the team asked him to estimate the return on investment, he
could not give them any data. His “trust me, I’m a designer argument did not away them either.
Chuck resolved to improve the approach to investing in design.
His first step was to survey other “design–centric “companies, including BMW, Nike, and
Nokia. Surprisingly, only had a system for forecasting return on design. Most of them simply
base future investments on past performance. Chuck said, “No one had really figured this stuff
out”. With so many smart, talented people in the field, why had no one been able to come up
with a good way to make those decisions? According to two accounting professors, one reason
is that it’s incredibly difficult to discern design ‘s contribution from all other business functions
(marketing, manufacturing, distribution, etc.) And even the design profession could not agree
on how to approach this problem. Despite the obstacles, Chuck continued his quest to find a
way to objectively measure the benefits of design.
What he eventually concluded was that a focus on customer preferences would work
better than a focus on bottom-line returns. If his teams could objectively measure what
customers want in a product and then meet those needs, the company could meet financial
returns. Chuck’s design team created a standardized company–wide process that puts design
prototypes in front of customer focus groups and then gets detailed measurements of their
preferences about aesthetics, craftsmanship, technical performances, ergonomics, and
usability. They chart the results against competing products and the company’s own products.
This metric–based approach gives decision-makers a baseline of objectives from which to make
investment decisions. Design investment decisions are now based on facts, not opinions. The
“new decision-making approach has transformed the company’s culture and led to bolder
designs because the designers can now make a strong case for making those investments.

QUESTIONS:
a. Describe and evaluate the process Chuck went through to change the way design
decisions were made. Describe and evaluate the company’s new design decision
process. (Refer to the Case)
b. What criteria does the Whirlpool design team use in design decisions? What do you
think each of these criteria involves? (Refer to the Case)
c. Why is decision-making often described as the essence of a manager’s job?
d. Explain how managers can make effective decisions in today’s world.
List the six characteristics of an effective decision-making process.

Answers:
a. After meeting with Whirlpool's distribution team, Chuck Jones realized that the design
decision-making process needed to be improved. He wanted to add some flourishes to
his redesigned KitchenAid refrigerator, but he couldn't predict the return on investment.
Determined to improve his approach to investment generation, Chuck researched other
"design-focused" companies, including BMW, Nike, and Nokia. He concluded that
focusing on the client's interests works better than focusing on the outcome. Chuck's
design team developed a company-wide design process to create designs in front of
customer focus groups and then evaluate their preferences for aesthetics, nice work,
good operation, ergonomics, and practicality. They compare the results with
competitors' products and the company's products. This index-based evaluation
provides decision-makers with an objective basis for investment decisions. Investment
decisions are now based on facts, not opinions. The new decision-making process is
changing company culture and leading to good design because designers can now put
forward a strong justification for these investments. Chuck's process involves
researching other companies, focusing on customer interests, and creating company-
wide processes. The new design decision-making process was based on facts rather than
assumptions and changed the company's culture, leading to new designs. Overall,
Chuck's methods were effective in improving capital formation, and his new decision-
making process successfully made capital decisions based on objective measurements.

b. Whirlpool’s design team uses multiple criteria, including aesthetics, craftsmanship,

performance, ergonomics, and usability, when making design decisions. Aesthetics
 refers to the visual appeal of a product, while craftsmanship refers to the quality of
product construction. Technical specifications describe a product's functionality and
performance, while ergonomics describe a product's comfort and ease of use. Usability
refers to the ease of use of a product. These criteria are used to measure customer
preferences and compare the results with competitive products and our own products.
This performance-based approach provides decision-makers with fundamental
objectives on which to base their investment decisions. Overall, these criteria are
important in making design decisions that meet customer needs and preferences.

c. Because managers are responsible for making decisions that affect the organization's
goals, decision-making is often described as an important part of a manager's job.
Leaders must make decisions every day, from mundane to complex issues that require
meticulous analysis and decision-making. Good decision-making is crucial to a
company's performance, and managers need to be able to make decisions that benefit
the organization. Defining the problem, obtaining information, evaluating alternatives,
and choosing the best course of action are all part of decision-making. Leaders must be
able to make quick and effective decisions while adhering to the organization's goals,
resources, and constraints. So decision-making-] is the most important thing for leaders,
but it is often underappreciated.

d. In today's world, managers can make good judgments by following a structured

decision-making process that includes the following steps:

1. Define the issue: Managers must identify the issue or opportunity that necessitates a
choice.

2. Obtain relevant information about the problem or opportunity: Managers must

obtain relevant information about the problem or opportunity.

3. Identify potential solutions or alternatives: Managers must identify potential solutions

or alternatives to the situation.

4. Managers must weigh the benefits and drawbacks of each possibility before deciding
on the best one.

5. Implement the decision: Managers must put the chosen alternative into action.

6. Managers must monitor and assess the decision's outcomes to determine its efficacy.

The following are the six qualities of a successful decision-making process:

1. Rationality: Decisions should be logical and founded on facts and data.

2. Systematic: The process should be well-structured and follow a logical flow.

3. Analytical: The procedure should include a thorough analysis and comparison of

options.

4. Participatory: Input from relevant stakeholders should be sought during the process.

5. Time-bound: The process must be finished within a reasonable amount of time.

6. The procedure should be adaptive to changing conditions and new knowledge.