Decision making critical issue analysis of the HBR case study, All the Wrong Moves, by David A. Garvin.
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Tata Nano is India’s cheapest car with not the most affordable or the best value for the money. In 2009 Tata Nano had entered for being the lowest priced car in the world and predicted the Indian c...
Introduction This case revolves around Mr. Don Rifki n’s decision making ability. Nutrorim have had an overwhelming response for its performance-enhancing sports supplement powder “ChargeUp”. The company has now introduced a new improved variant in the same segment with the name “ChargeUp with Lipitrene”.
Don has always encouraged an open decision making process within the organization. But this democratic attitude has proved problematic for the company. The decision to recall the Charge Up product raised the credibility of the product’s testing department. Few of
the decisions made by the company s uch as recall of the “ChargeUp with Lipitrene”, Investment in Dipensit and others have raised questions on the decision making process of Nutrorim.
Case Objectives: To analyse the decision making process of Nutrorim and to highlight the problems involved in the process.
CASE ANALYSIS: Problem background Nutrorim is an organic products selling company started in 1986 by an organic farmer and his wife. Nutrorim used individual distributors to sell products but after endorsement by a top athlete the sales for their product ChargeUp increased manifold and Nutrorim became a market leader and increased their employee base. After Don Rifkin joined the company as CEO the company witnessed tremendous growth. growth. The company went public in 1997 and now recently Nutrorim has launched a new version of their already successful product ChargeUp with lipterine in it, which was a new combination of organic oils and seeds that appeared to enhance fat burning and was developed in Nutrorim Labs. Recently after launch the company faced an accusation that the new product was responsible for gastrointestinal distress among people who consumed new ChargeUp version. Now company faces a serious need for some enhanced decision making process which would make way for company through this crisis situation. The company has option of keep selling the product in the market which may lead to a legal law suit being faced by the company or to recall the product from market which would prove to be very costly for the company.
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Group-3, Sec-B
The Company faces decision making crisis as the decision making process is rather disorganized and full of debates and decision was made on no basis. Ultimately product was recalled even when company knew what it means for their profits and when their own employees who thoroughly tested the product for a long time on animals and among themselves backed backed up that the product is safe. safe. Nutrorim managers are most concerned about their company’s reputation and everyone in the top management is ineffective in
taking decisions during this crisis situation.
Solutions: 1) Inquiry and laying down of stricter management rules on the part of Don Rifkin: In order to maintain a “democratic” work environment, Rifkin does not question and
inquire his employees much. This has led to inappropriate decisions within Nutrorim. He should make his employees more accountable to him and increase their responsibilities. Pros: 1) Better decisions would be taken. 2) The entire workforce will also feel engaged and an intrinsic part of the decision making process of the organization. Cons: 1) Constant probing on Don’s part might make his employees feel bound to answer him and they may not feel free to work.
2) Rifkin should develop his leadership skills: Don Rifkin should take an upper hand in all the decisions of his organization and display better leadership qualities. Everybody’s opinions should be taken but in the end it should
be Rifkin taking the final decision.
Pros: 1) This would help in better decision making process being followed at the organization which would in turn enhance its productivity. 2) A crisis such as the present one would be minimized to a considerable extent. extent.
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Cons: 1) Stricter rules and only Rifkin having his say may cause other employees to take a backseat and hence their lesser contribution to the company’s decisions.
3) Transparent process of decision making: As Nora had had pointed pointed out, all the the decisions decisions must be made made in front of
everybody and
nobody should be allowed to leave the room until a final decision was taken. Moreover, Don should form proper subcommittees i.e. the groups who would report to him individually as well as help him analyse conflicts and develop alternatives. Pros: 1) Key opinions would be highlighted and thus better decisions will be taken. 2) This will help involve all the members of the organization in decision making and nobody would feel left out. Cons: Choosing the right members and forming the subcommittees might be a tedious task for Rifkin and will be time consuming.
The Best Solution:
Rifkin should develop his leadership skills Don Rifkin should become a better leader so that he can make firm decisions that benefit the organisation. Being a good leader will cater to implementing stricter management rules and developing a transparent decision making process.
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Group-3, Sec-B
CASE CONCLUSION The group based on the cased study concludes that Don Rifkin has not been an effective leader as he is not able to take concrete decisions on his part and takes too much time to make decisions. As a leader he should be able to convey his ideas more effectively and lay down ground rules for others so that they can be comfortable in their particular domain and need not interfere in each and everything that they do. Don Rifkin also seems to be very easily influenced by others which make other people feel like he is incapable of standing on his own feet. Rather than standing on one on one conversation decisions made and concluded in front of everyone will improve the transparency of the process and no biasing if somebody feels will take place.
Managerial Learning: Developing a rational decision making model helps in making the right decisions that benefits the organisation. A manager must keep some distance between him and the employees in order to maintain authority. Assuming the role of a leader is an essential of being a good manager. This gives a manager the authority which helps in achieving the objectives. A manager must be congenial but avoid being “too nice” when it comes to getting the
work done. A proper organisational structure is crucial for effective decision making.
