Decision at the Top - Group 2 Version 2.0

PGPEX’2013 - Group 2

Kamesh Singal Reg No 17

Praveen Gudisagar Reg No 26 RajarshiSen Reg No 30Rittick Banerjee Reg No

32SauravChatterjee Reg No 34SayantanHajra Reg No 35 SubrataDass Reg No 38

Decision Making at the Top: The All-Star

Sports Catalog Division

Case Analysis

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

StrategyMostly 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

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

Current Decision Making Process

Stages of Decision Making Process

Framing the Problem

Identifying Alternatives

Analyzing Alternatives

Making the Choice

Ratifying the Choice

Analytical

Aligned

Apolitical

Active Participation

Attributes of the Current Decision Process

Conflict (lack of open debate)

Closure

Commitment

Concerns about the Current Decision Process

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

Other concerns coming out from the survey

Organizational Culture : Competing Values Framework

Control / Hierarchy

Collaborate Create /Adhocracy

Compete / Market

Types of Culture

Collaborate(Clan Culture)

• Inward focus with concern for integration

• Emphasize flexibility and discretion

• Operate like families

• Value cohesion, humane working environment, group commitment and loyalty

Create (Adhocracy)

Culture

• Emphasize flexibility and discretion

• External focus and concern on differentiation

• Value flexibility and adaptability and thrive in chaos

Control (Hierarchy) Structure

• Bureaucratic• Defined by

Stability and Control

• Internal Focus and integration

• Value Standardization and Control

• Well defined structure to authority and decision making process

Compete (Market) Structure

• Value Stability and Control

• External Focus (Relationships)

• Value Differentiation over Integration

• Focus on Competitiveness' and Productiveness

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

Missionary

Compromiser

Deserter Autocrat

Developer

Executive

Bureaucrat Benevolent Autocrat

Related Integrated

Separated Dedicated

Relationship Oriented

Task Oriented Effectivenes

s

3D Theory of leadership

Autocrat I see planning as a one man job I direct the work of my subordinates and discourage

deviations from my plans

CompromiserWhen conflict arises I try to be fair but firm I make an effort at planning but the plans do not always

work out

Questionnaire

QuestionnaireDeserter

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

Bureaucrat I respond to disagreement and conflict by referring to

rules and procedures I prefer to work within standard operating procedures

Benevolent AutocratWhen 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

QuestionnaireDeveloper

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

Missionary

Compromiser

Deserter Autocrat

Developer

Executive

Bureaucrat Benevolent Autocrat

Related Integrated

Separated Dedicated

Relationship Oriented

Task Oriented Effectiveness

Method C MethodD

Method A Method B

Don Barett – Decision Making Method

Consideration

Imp

art

ialit

y

High

Low

HighLow

Group Norm change – change in Don Barett’s leadership

style X

Decision options

Team oriented approach – consensus based

Top management Team – 3-4 key members

Consensus Decision ModelWhat 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

Top Management team

Suggested Alternative

Constructive Debate : Six Hat thinking

Fast Decision making : R-A-P-I-D

Benefits

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, HunchesHow others will react emotionally?

Difficulties, weakness, danger – be defensiveLogical reasons, identify riskTougher and resilient plan

Positives, AdvantagesLogical reasonsWhy idea useful, keep going

Creative Ideas, alternatives, possibilitiesSolution to Black Hat problem

Process controlStrategy, planning for action, outcomeIdeas running dry – ask for ‘Green Hat’Contingency plan – ask for ‘Black Hat’

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

RAPID decision making model

Organizational Justice

Distributive Justice

Interactional Justice

Procedural Justice

Procedural Justice

Consideration of team member’s input

•High commitment to final decision• Increased sense of attachment to team• Positive impact on perception of procedural justice

High procedural fairness

http://www.vernalproject.org/papers/process/ConsensNotes.pdf

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

Bibliography

THANK YOU …