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TABLE OF CONTENTS
EXECUTIVE SUMMARY3
1. INTRODUCTION4
2. THE DECISION MAKING FRAMEWORK AT YELLOW AUTO 5
2a. A Sociological Perspective.
2b. The Social Exchange Theory 3. THE CRITICAL DECISION…………………………………………………………6
3a. A Sociological Perspective
3b. The Group Polarization………...…………………………………………………
4. CONCLUSION8
5. RECOMMENDATIONS8
REFERENCE LIST9
Executive Summary
The report analysed the decision making framework of Yellow Auto Company from the perspective of sociology.
Before 2001, Yellow Auto Company was a company which was owned and managed by a family. Therefore, the decision making of Yellow Auto Company had trend to be dominated by one person who was the president of the board of the directors, might be also the head of the family. An individual was limited and rationality bounded therefore caused management problems in decision making.
The sociology perspective showed that not all people involved in decision making process and this caused to lack of implement the decision and the company would faced with the decreased of employee’s commitment and satisfactory. In 2001, the top managers of Yellow Auto Company changed their management style, corporate with the group of consultants in order to cope with the problems in the company and furthermore achieve the goal of increasing market share.
The Sociological perspective showed that the interaction between group’s members of the company had increased, when working in group with discussing and sharing information, the company had made effective decisions and solved all the problems and achieved the goal. By the way, it also pointed that top managers of Yellow Auto Company were risk lover and tendency to take more risk when working in group.
Therefore, there are two recommendations should be made after critical analyzing the case
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