Management decision makingIntroductionBrowns Insurance Service Company offers various services to their customers at affordable prices. The company is a market leader in their market segment though they face competition in their call centre in North East England because the competitors are using advanced technology than that of Browns Insurance Service Company. The CEO, Mr Sebastian Green, believe that the main caused of their poor performances was due to inadequate decision which was made by board which was selected to make decision of the company. BackgroundBrowns Insurance Service is a reputable company registered to offer financial services to it customers.
The company has opened many branches in different countries so that they can be in a position to serve a wider market. However, the company has faced multiple problems. Some of these problems comprise of high competition in the market, poor decision making within the company and poor management criteria used in the company. According to the report from the CEO, Mr Sebastian Green, the company has lost a huge amount of money which was spend in launching new technology at their call centre in North East England.
The CEO blames the board for making poor decision which caused every plan to fail. Description of the problemThe company had waste a lot of money by purchasing technological equipment which failed to support the activities undertaken in the call centre. This force the company to spend more money and purchase the appropriate machines which will rectifies the problem. The CEO tends to blame the board for making in appropriate decision which has cost the company a lot of many to rectify it (Thierauf, 2008.
pp 59)According to the Mr Sebastian Green, who is the CEO of the company, he believes that the problem had arisen due to the groupthink during the time of making decision of the company. Groupthink can be defined as concept which leads to making poor decision regarding the issues or the objectives of the company. From the scenario given it seems that the members try to reach a consensus by minimizing conflicts which they have without evaluating, critically testing or analyzing their ideas first. Due to this and in many instances therefore, groupthink causes problems in an organization because it leads to poor or no consideration on the appropriate technology which will solve the problem completely.
Groupthink can therefore be a nuisance to the decision making process as is evident in the case of Browns Insurance Service Company where technological equipment which was expensively purchased failed to support the activities undertaken in the call centre. One symptom of groupthink which caused the problems in Browns Insurance Service was the failure of the technological devises to solve the problem as was anticipated before.
This implied that everyone in the group had used his common sense when coming up with decisions. Through that situation however, the board was misled and thus the problem of purchasing wrong equipment which could not solve the problem came into being. Another symptom was the time taken to reach such an important decision. Mr Sebastian Green-the CEO of the company said that the decision was made over the weekend in conference centre where some of the members of the group were considered with stereotypes of by-product or out-groups of loyalty groups.