The report here discusses about an organizational analysis of Yellow Auto Company. The company was initially built by Deniz Sale in Bergama in the year 1989 whose management was later took over by his sons, Can and Caner Sale. The company is a car dealer of popular global brand Renault. The owners of the company are its shareholders and financial support comes from the assets of the two brothers. However, the company has two stores located in Cambidi and Gaziemir and focuses on selling cars in different locations. The company provides two kinds of car markets, one that deals with models that have higher market demand and the second deals with customized models of cars. The manager of the company looks after three most important departments that includes sales, finance and after sales service. The company believes in the initiation of face-to-face communication for attracting clients and takes care of customer satisfaction. However, the lack of an organizational chart or documentation related to responsibilities and authority allocation is the main reason for intervention in the problems and decisions of the company. The report identifies the opportunities for the organizational development of Yellow Auto Company. The report also presents a SWOT analysis of the chosen company. There are also recommendations, assumptions and justifications provided in the report.
Issues Related to the Company
In the year 2001, the top managers of Yellow Auto Company made a risky decision under serious economic crisis conditions of Turkey (Chor & Manova, 2012). The entire process of change involved top managers making a lot of analysis on the psychological factors of the employees. The managers even asked for external assistance from university in turkey to provide assistance for successful running of the process of policy change. Thus, the report will analyze the case study of the Yellow Auto Company and ensure organizational developmen from the psychological perspective.
Decisions Implemented By the Company
Yellow Auto Company made several assumptions in implementing the whole process of change. The top managers of the company made some important decisions that would help the company achieve a market share of 50%. The decision became quite a risky one due to the prevailing economic crisis in turkey (Kotler, 2012). Thus to ensure smooth going of the decision the company decided to seek help from the academic people of the Turkish University. Therefore, under the guidance received from the external consultant efforts for change implemented on enhancing the physical working conditions and proper task division among the managers and employees. The external consultants also helped in designing the career plans for the younger generations and at the same time implementation of principle involving right job for right person (Stahl et al., 2013).
However, the implementation of the decisions made by the managers of the company analyzed from the point of view of the theory of psychology. As per transactional analysis put forward by (Clarkson, 2013) there are three states of ego of human psyche namely parent, adult and child. The mentioned company however makes use of the adult state. This is because this analysis has strong objectives and involves easy evaluation and criticism. However, while implementing decisions, evaluation of results done by the top managers who also face the real effect of the change process and thereby make necessary adjustment for ensuring that correct direction of the change implemented.
However, after two years of the implementation of the change process through suggestions received from external counselors, the employee loyalty towards the company along with job satisfaction increased greatly. This also enhanced the profitability of the company by 25% more than the previous year. The company was also able to extend their sale and at the same time have two stores in and around the small town of Izmir (Kalpakc? & ?nverdi, 2016). However, through the cooperation received by the external counselors also extended to the newly opened stores in Izmir that forecasted not only a bright future but in also bringing in good results.
Analysis of Psychology for the process of decision making by the managers is an important factor in determining the future prospects of the company. If there fault in the decision making process of the top managers then the company might face huge crisis that might also affect employee morale and loyalty towards the company (Skudiene & Auruskeviciene, 2012). Various psychological theories can be adopted for the analysis of the decision making process. These include behaviorist theory, humanist theory, psychoanalytic theory, neurobiological theory and cognitive theory. The company under discussion however follows the psychoanalytic approach for decision-making.
However, the changing strategy of Yellow Auto Company looked upon from the perspective of psychology of the decision makers. According to (Ford & Richardson, 2013), four factors are responsible for influencing individuals in the decision making process. These four factors include perceived risk, social factors, hedonistic factors and sense of self. The factors not only suit the consumers but also are also an important in driving decision-making process for the decider. However, if the consumer level is considered and people are expressing interest in buying the products from the company then they must also have a level of satisfaction. This can however be said that all human beings possess the potentiality of hedonistic factors. Thus, good products and services can not only help the consumers attain superiority but also ensures a sense of satisfaction. They have perceived risk in their mind lowered through face-to-face communication by the employees of the company. The employees of the company can also assure the consumers through messages and phone calls thereby enhancing the trust in the company while ensuring a family feeling. Thus, the managers must train the employees to get familiar with the psychology of the consumers for better marketing future and management. Now if the matter considered from the manager’s perspective then they are also the decision makers of the company and is responsible for the company’s development. Thus, sense of self is a crucial factor for the shareholders and the managers. Moreover, their experience regarding the car market will help them analyze it. However, given the economic crisis in Turkey getting a 50% market share would be a huge challenge. Therefore, the top manager needed to be smart enough to conduct certain action regarding the perceived risk. Instead, they asked for help from the academicians of the local university. Thus, social factors put to use that ensured the successful change process (Cummings & Holmberg, 2012). The external consultants acted professionally in not only analyzing the psychology of the employees but also at the same time ensured good suggestions to the managers which in a way increased the commitment and satisfaction of the employees. Thus, the company had quite a good market share that was close to 54% percent in 2008. Therefore, it can be concluded that the understanding the manager and employee psychology is a crucial part of Organizational development.
SWOT analysis of Decisions Made
(Langley et al., 2013) proposed a Perpetual Process Model for assisting the analysis of decision-making process. The proposed consisted of three parts namely emotional maker response and selective attention, interpretation and perpetual organization and behavior and attitude. Through the perpetual process model, the strengths and weakness of the decisions regarding the case interpreted. First, let one consider that emotional response and selective attention made under an environmental stimuli. However, this depends on innumerable factors like the assumptions and anticipations of events occurring in the future and the characteristics shown by the perceiver. In this context, Yellow Auto Company performed quite well as the top managers were able to perceive the right trend for marketing and at the same time anticipated a feasible and bright goal for the company(10). The next part is the perpetual interpretation and organization that deals with mental process. While undertaking the particular step the managers and perceivers must initiate categorical thinking along with perpetual grouping for making sure that there is feasibility of the anticipations and assumptions made. In this regard, the top managers of the discussed company followed the particular step through cooperation with the academicians for guarantying smooth running of the change process. This proves to be one of the strong points of the case. The aim of the top managers not only enhances the job satisfaction of the employees but also their commitment by doing a psychological analysis. In this regard, for future organizational development though it is necessary for the employees to have loyalty and good morale but can sometimes prove risky if top managers solely focus on the psyche analysis of its employees leaving aside more important issues like flexible future and marketing wave. Thus if there is any change of marketing on a sudden basis then efforts would go waste. The competitors of the Yellow Auto Company can be quite aware of the aspect that is also a weak point on the part of the company. Given the scenario if the companies still pay more attention on the psychological aspect of the employees as well as the managers could be in a bigger trouble (Mintzberg, 2013). The last step to consider is by the attitude and behavior that is the last step of the perpetual process model under discussion where the behavior and attitude of the employees have turned averse due to various reasons.
The results of change process put forward by Yellow Auto Company showed that the company did quite a good job. However, there are still areas that need improvement. Thus, there are certain recommendations that will act advantageous for the company and will help in improving the process of decision making in future. Firstly, the company should continue with the adjustments made on the maintenance of current commitment and job satisfaction of the employees. At the same time, there is also a need for increasing the morale of the employees that ensure people to treat the company as a part of their own family so that they can ensure 100% dedication while working. In addition to this, the company must continue to ensure right person for the right job that will not only save a lot of time for the managers but also the employees (Sageer, Rafat & Agarwal, 2012). In this context, if the psychological perspective considered the change process will also help in enhancing the loyalty and morale of the employees to certain extent. This is because, people realizes the sense of being valued.
However, other source of perpetual process bias exists that requires more attention. The Yellow Auto Company must consider these perpetual processes otherwise there will be a slow down of the developmental process of the company. For instance, the attribution error results in bias of the perpetual process. Most human beings consider favorable point as results in future that can be rather be dangerous as this can misguide the top managers of the company in anticipating the real direction of marketing which will not let them implement their very first decision of acquiring a market share of 50%. The recency effect of the perpetual process is another serious bias that needs consideration. In order to avoid this bias, top managers of the company under discussion must have a future foresight that will enable them discard such biases from taking place. Lastly, the company under discussion must focus attention on the possible changes and the marketing wave. Although it is important for the employees to have a good morale and loyalty in the company’s development but it could be dangerous for the top managers to solely focus their attention on the psychological analysis of the employees. In such cases, the competitors would capture the market share of the discussed company.
The report here discusses about Yellow Auto Company from the psychological perspective for analyzing the issues in decision-making. The report puts forward a brief introduction of the Yellow Auto Company along with decision taken by the company for changes in process for capturing a sizeable portion. The strength and weakness of the company discussed in the report based on the perpetual process model. The report ends in the light of providing recommendations for organizational development of the company.
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