Process of Decision-making: A Case study of Flight Centre Travel Group Assignment Help
A manager has to make and implement decisions as part of his role. As future managers in the contemporary business environment you are expected to face critical management-related issues and to make key decisions to resolve those issues in timely manner. Discuss the decision-making process from a manager's point of view using a real-world management-related example/issue. Incorporate answers to the following questions in your report under the relevant headings: How can you improve your decision-making skills? Why do managers make wrong decisions? How you could have made a better one? Which step of the decision-making process could you have improved?
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From the initial period of corporate globalisation, almost all the organisations start focusing on the improvements of management roles and responsibilities, as managers play the most significant duty in handling the critical conditions. Therefore, the decision-making process of the organisation is also dependent on the potential roles played by the managers, as they have the efficiency of concentrating on the overall task-related elements, prioritising the potential ones, and take decisions as per the requirements. Apart from this, in case of distinctive problematic situation, such as employee crisis or management crisis, the mangers are the pioneers for solving such issues. The current report sheds light on a real life HR related case example of Flight Centre Travel Group, a large aviation giant of Australia.
The scope of the research is it would shed light on the process of decision making during such problematic situation, especially in such larger organisations. Additionally, the report also will highlight the reasons based on which managers often take wrong decisions, and the way of finding areas of improvement. In order to find the elements or components, the researcher will undertake the case study from news article and relevant journal articles, for understanding the driving factors associated with the topic. Therefore, the researcher will focus on conducting a secondary research for understanding the roles of managers in the process of decision-making. The analysis would be based on the information gathered from the news article and journal articles, through a systematic manner.
Overview of the issue
As mentioned in the introduction section, the case study is associated with the larger giant aviation company of Australia, named Flight Centre Travel Group. The name of the company has came into news channel due to their issue of underpayment, over time working hours, and over charging from the customers, i.e. overall different types of unethical practices. According to the statement of McGrath & Carter (2018), it is already proved from the responses of the former and current staffs that the company encouraged their staffs to collect more money from their customers, through some add-on values on their national and international flight booking. They follow the unethical procedure as a completely opened manner, and ask their employees to mark-up some of the flights.
Apart from this, Bainbridge & Curnow (2018) also mentioned that almost all the workers, previous and present, face the excessive but unpaid overtime hours. As per the statement of some employees, it can be stated that the payment structure of the organisation is insufficient for the employees, and therefore, they have to mark-up or gouge the flight bookings of customers for earning a decent wage structure. Additional to that, the staffs working in Flight Centre also reported that they do not get any supportive actions from the management of the organisation, and unethical fines are required to be paid due to the reason of any mistake. Furthermore, it is also reported that the workers get hard time for taking breaks, due to the excessive workloads and frequent long hours of working.
Reasons behind managers taking wrong decisions
According to the statement of Tarr (2017), although managers play the contributory roles in the process of decision-making, however, this does not mean that they can take right decisions always. For example, in the case study, the managers of the Flight Centre remain also involved with the unethical practices, such as the managers also encourage their followers to mark up the flights and collect excessive margins from the every service they provide. The report states that most of the Flight Centre consultants looked for up to 20% margin on every flight reservation process.
The process can be defined as unethical, as according to the statement of a former consultant of the Flight Centre Company, Renee Olofsson, it is observed that customers have no idea about the process of total cost marking up, which is generally adjusted during the flight reservation procedure. Therefore, the transparency level in this case is effectively lower in the organisation. Besides this, managers think that this marking up process is one of the parts of their jobs. Therefore, they charge the unethical payments from their customers, by justifying that as the service charges (McGrath & Carter, 2018).
Based on the statement of Llopis (2019), there are various reasons, due to which managers often become forced to take wrong or unethical decisions. For example, extensive dependency on the past experiences, too much addiction towards the corporate politics, absence of clarity regarding purposes, resource mismanagement, absence of opportunity, and least self-confidence level. However, in this case, the managers of Flight Centre might undergo the reason of addictive corporate politics, opportunity of earning huge, and ineffective payment structure of the company.
Process of improving decision-making skills
Based on the responses of the company staffs reported in the ABC news article, it can be stated most of the workers working in the organisation felt guilty about the process of marking up the flight costs, and this was the main reason behind the low and confused wage structure for their employees. As per the report of McGrath & Carter (2018), the current base wage for the Flight Centre travel consultants is $33,500, which is almost $4,000 lower from the minimum wage standards of Australia. Therefore, in order to improve the process of decision-making in such unethical circumstances, the managers require focusing on some Managerial Ethics Framework, which would be beneficial for modifying the operational process of the organisation.
Based on the viewpoint of Stanford (2017), ethical leadership and decision-making process can be considered as an integral part of the managerial aspects, based on which the managers need to play the role of saviour for reducing the possibility of company collapsing. As per the case study of Flight Centre, the managers of the company requires integrating Ethical Altruism theory, through which they can explore the fact that the highest value is embedded in the services done for others, especially for the customers. Therefore, such behavioural ethics might reduce the unethical and guilty practices of the organisation.
Apart from this, the company managers require to concentrate on the three distinctive types of ethical judgement, which can be categorised as moral, amoral, and immoral. In all the ethical frameworks, the managers need to focus on the economical responsibility, which is the significant consideration of corporate ethics. Apart from this, there are distinctive features of manager's values during the process of decision making, such as religious values, philosophical values, legal and professional values, loyalty, conformity, and so on. Based on the viewpoints of Wright et al. (2016), the managers of Flight Centre organisation at first requires elimination of the external addictive features, which have direct influence on their mind-set.
Apart from this, the managers can also follow different conventional management theory, for reducing the possibility of internal conflicts due to complicated wage structure and under payment process. Through analysing the event, it can be stated that Democratic management theory would be the best possible design, as the managers of the organisation can effectively incorporate their sub-ordinates, and take their opinions before implementing any process. Therefore, the guilt feelings of the employees would be reflected in front of the company managers, based on which they can take adequate decision for minimising the unethical practices. Hence, for the company managers, the ethical decision-making process would be as follows-
- Exploration about the factual unethical behaviours followed by Flight Centre
- Deciding the areas of ethical and legal issues
- Identification and consultation about its possible consequences
- Evaluation of the possible and available options
- Selection of the best management ethics (altruism in this case) and management theory (democratic)
- Implementation of the decisions (Stewart, Stanford & Hardy, 2018)
Conclusion and recommendation
Based on the entire discussion about the case study, it can be mentioned that underpayment and overcharging process might affect the trust and dependency level of the customers and workers, through which a culture of demoralisation might be occurred. Therefore, from this case study, it can be easily assumed that the managers have to provide attention on every aspect of company operations, as the issues do not come alone; they often create several other hidden obstacles for the stakeholders. From the managerial viewpoint, I think at first I would learn about the ethical practice standards required for retaining customer trust and employee support, as both of them will be the main backbone of my workplace.
Besides this, through this way, I can improve my management skills and efficiencies, and I can eliminate the possibilities of such unethical practices, as described in the case study of Flight Centre Travel Group. I would also encourage my subordinates to raise their voice if they see any unethical practices inside the organisation, without considering its after impacts. However, one time elimination of such hurdles does not ensure that the issues become destroyed from the roots. Hence, I would focus on continuous monitoring and observing on the procedures, for assuring the right progress of the decision making process.
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