Comparing Decision-Making Models

 

Decision-making models are critical for making informed and consistent decisions. In this discussion, you will use what you have learned about decision-making models to solve the organizational problem below.

Scenario
Imagine that you are an organizational consultant for the SNHU Pet Supply Company. You have been asked to recommend who should lead a new initiative to expand the company’s online presence. After several discussions and interviews, the leadership team has shortlisted two candidates. Each candidate brings a different set of skills and expertise to the table, and each also poses a few challenges.

The first candidate, Myra, is a 15-year veteran of the organization who has worked her way up from an intern to a very capable product manager. She has extensive knowledge of the company’s products and services and embodies the company’s culture and vision in her work. Myra is not well-versed in e-commerce and the technologies that will be needed to implement and launch the company’s online initiative. However, she is a fast learner, and the management position doesn’t require too much in-depth knowledge of technologies.

The second candidate, Michael, was hired six months ago and shows great promise as a leader and manager. He has an MBA from a reputable university and worked for a technology startup for three years before joining the company. He has no experience in pet supplies or related industries, but knows how to launch an online company from the ground up.

In your initial post, address the following:

Compare and contrast two different decision-making models addressed in your course resources, explaining how each would be used to approach the hiring decision.
Recommend which of the two decision-making models would be the best suited to help make the hiring decision, and why.

 

Sample Solution

Choosing the right leader for SNHU Pet Supply’s online expansion initiative requires careful consideration. Two decision-making models from our course resources can be valuable tools in approaching this hiring decision:

1. Rational Decision-Making Model:

  • Steps: Define problem, identify criteria, evaluate alternatives, choose best option.
  • Application: Define the ideal candidate based on specific criteria (e.g., industry knowledge, leadership skills, tech expertise, budget). Objectively score each candidate against these criteria, assigning weights based on importance. Choose the candidate with the highest total score.

2. Vroom-Yetton Model (VY Model):

  • Focus: Considers decision importance, information available, decision maker’s expertise, and time pressure.
  • Application: Analyze the situation. If the decision is crucial, information is limited, and time is tight, the leader might choose a more directive approach (e.g., A1: Decide alone). If there’s ample time, information, and the leader wants to involve others, they might use a collaborative approach (e.g., G2: Group decision).

Comparison:

  • The Rational Model is systematic and objective, focusing on clearly defined criteria and scoring.
  • The VY Model is more flexible and adaptable, considering the context and decision maker’s preferences.

Recommendation:

For this decision, I recommend using a combination of the two models. Here’s why:

  • Importance: Expanding online presence is significant, so a well-informed choice is critical.
  • Information: Both candidates have strengths and weaknesses, requiring careful evaluation.
  • Time pressure: While urgency exists, there should be enough time for a thorough analysis.
  • Expertise: The leadership team has valuable insights and should be involved.

Process:

  1. Rational: Define key criteria (industry knowledge, leadership, tech expertise, etc.) and weight them based on importance.
  2. VY Model: Assess the situation. Since the decision is crucial, but time allows for consultation, consider a Consultative Model (C1 or C2):
    • Gather individual input from leadership team members using the defined criteria.
    • Analyze individual ratings and discuss discrepancies or concerns.
    • Make a final decision based on combined insights and the initial criteria.

This combined approach leverages the strengths of both models: the objectivity of the Rational Model for assessing skills and the flexibility of the VY Model for incorporating diverse perspectives from the leadership team.

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