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Operational Decision Making

Executive summary

Leadership and managerial practice is the major contributing factors to achieve the organisational success. The first part of the report is to identify the managerial issues as well as acknowledge the external and internal factors that reshape the business decision making practice. As per the findings, there are several managerial issues which are lack of stock management, poor performance of the staff, technical inefficacy, lack of communication and non-cooperation, internal conflicts and resistance to change. The major intrinsic factors are leadership style, managerial decision making style, problem solving method, ethical decision making and rationality. On the other hand, the external factors that reshape the business decision are the market demand, Organisational Structure, expected values, groups and Social Conformity etc. On the other hand, the second part of the report is about the issues at UBER, where the company is suffering from lack of rational decision making behaviour and discrimination, gender discrimination, ethical scandal in the workplace, lack of flexible working practice with strict regulatory authority. The discussion will be developed for understanding whether the structural and leadership changes at UBER would be helpful for retaining the market share of the company in near future. The evaluation further explores that; UBER would be successful to strengthen their position in the market through structural and leadership changes.

Part: 1
“The management of issues and factors that shape decision making in organisations”

The leader and managers create the vision in the organisation and accordingly develops the organisational decision to run the company’s operations sustainably (Brunsson and Brunsson, 2017). The study focuses on managing the organisational decision and identifying the internal and external factors that have crucial impacts on the organisational decision making behaviour. According to the internal and external factors as well as the issues related to the management, the leader aims at developing creative decision so that it would be possible to manage the operational efficacy.

Management of issues

There are certain issues, which influence the management team and organisational leader to design new approaches to run the operational activities (Hodgkinson and Sadler-Smith, E., 2018). The major issues in the workplace are lack of quality management principle for which the quality of products and services cannot be maintained. This further influences the decision maker in the organisation to make innovative strategy to maximise the product and service quality. On the other hand, lack of communication and non-cooperation are other serious issues, which also deteriorates the performance of the company and it also influence the leader to take the decision for creating good corporate culture, so that the employees can work productively (Brunsson and Brunsson, 2017). The other issues are internal conflicts and resistance to change, which also hamper the smooth working activities and practice in the workplace. The organisational leader aims at mitigating the issue of internal conflicts by taking good organisational decision of human resource management (Hodgkinson and Sadler-Smith, 2018). The other issues related to the organisational operations are such as lack of stock management, poor performance of the staff as well as technical inefficacy and these issues also influence the organisational leader and management team to design the decision and implement the best strategy for running the operational activities.

Internal factors reshaping organisational decisions

There are internal factors in the organisation which also have crucial impacts on the organisational decision making behaviour, where the leaders and the management team try to evaluate the factors in the workplace and aim at designing good corporate strategy to run the business operations successfully (Hodgkinson and Sadler-Smith, 2018). The leadership style and managerial decision making behaviour are the major internal factors for making good decision (Tolbert and Darabi, 2019). The leadership style in the recent organisational workplace is related to situational leadership and transformational leadership style, where the leaders try to cooperate and motivate the employees for better performance. The leadership style is hereby beneficial where the leader must lead the team members in a systematic approach (Brunsson and Brunsson, 2017). Managerial decision making style is also another important factor, where the management team must focus on empower the staff members in the decision making practice as well as develop collaborative decision for better management. The partnership working practice and cooperative decision making behaviour are hereby beneficial to influence the leader and make the best strategic planning to run the operational activities in the workplace. Heuristics is a problem solving method in the workplace which helps to develop alternative solution for running the business efficiently (Simons et al., 2016). The decisions of the organisation are hereby influenced by the problem solving method where the leader and the managers can handle the workplace activities and develop strategic planning to resolve the internal issues. Additionally, prospect theory is another important factor, where the leaders try to identify the cost and gain of the decision where it is beneficial to analyse the benefits of the strategy as well as assess the risk factors of the decision (Hodgkinson and Sadler-Smith, 2018). Ethical Decision Making is another factor which also influences the organisational decision making behaviour. The leader focuses on ethical decision making behaviour, where all the members can be treated equally and the decision would be beneficial for the employees at the workplace (Tolbert and Darabi, 2019).

External factors reshaping organisational decisions

The external factors also have crucial impacts on the organisational decision making behaviour, where it is possible for the organisational leader to manage their organisational resources and capabilities and create good strategic planning for better performance (Brunsson and Brunsson, 2017). The social structure and economic condition are the major factors that reshape the decision of the organisation. Economic growth and social development are beneficial for the firm to strategise their business and expand it accordingly across the market (Gore and Conway, 2016). The market competition is also another factor to reshape the business and in this regard, intense competition and threat of substitute products in the market influence the organisational leader to increase creative way for attracting the customers in the market (Hodgkinson and Sadler-Smith, 2018). The consumer perception and changing demand in the market are also the important factors that have impacts on the organisational decision making behaviour to run the operations successfully. As per the recent market trend and consumer demand, the business leader strategise their products and services as well as make the decision to run the operations so that the customers can get the right products within effective time (Brunsson and Brunsson, 2017). Organisational structural hierarchy is another factor, which influence the business leader to strategise their decision (Hodgkinson and Sadler-Smith, 2018). The hierarchical structure according to the business functions is the best way to manage the operations, where the leaders are able to strategise their business and share clear roles with all the staff so that the operations can be maintained well. Hence, the external factors have critical implications for the leaders to strategise their business operations, so that they can perform well and fulfil the organisational vision (Tolbert and Darabi, 2019).

Part: 2
Analysing the management decision: a case study on UBER and Future Leadership

The organisational decision making practice and the leadership style are the major factors that reshape the business activities and it is beneficial for the companies to achieve the future aim and objectives by running their operations in a systematic approach (Mykkänen, 2017). The study is effective to analyse the recent issues faced by the organisation UBER, as well as evaluate the ways through which the issues can be mitigated further. Through in-depth analysis and evaluation, it would also be possible to review the structural and leadership changes at UBER, for understanding whether it is good for the organisation to stabilise their market position and run the business sin a sustainable way.

Issues at UBER

The cofounder of UBER Travis Kalanick focuses on sexist culture and there was scandal as well as working practice with strict regulatory authority which raise issues among the staff members. This made the tasks more critical and complex where Barney Harford did harsh comments which were sexist and insensitive in the workplace. This creates issue related to gender discrimination and leads an ethical scandal in the workplace. There is biased manner, in which the decision was taken by the m management team, which is also another major issue, for which the employees are not feeling safe. Lack of rational decision making behaviour and discrimination at the workplace are the critical issues, for which the reputation of the brand as well as market share has been hampered. The share price of UBER has also been affected negatively which influence the leader to take corrective actions so that the organisation would be able to re-establish the brand and run the operations ethically (Bond, 2019).

Structural and leadership changes at UBER

The structural and leadership changes at the workplace are necessary for the organisation to make effective decision and follow the ethical employment activities to run the operations successfully (Hallo et al., 2020). UBER has faced unethical issues in operating in the travel industry which deteriorate the performance and provide negative branding in the market. The employees and the customers are also not satisfied with such behaviour of diversity at the workplace, which leads to mismanagement and negative branding. The structural changes and thee leadership practice are crucial to strategise the business and in this regard, UBER must focus on transformational leadership style to cooperate with all the employees and motivate them to perform better. As per the transformational leadership style, the leader is able to crate good corporate culture with transparency and accountability as well as the Elkader is also efficient to treat all the employees equally. Moreover, implementing the Equality Act 2010 and non-discrimination policies at the workplace are mandatory for the leader to strategise the business and treat all the employees fairly. Fair decision making behaviour is also mandatory which influence the leader to tale rational decision which would be beneficial for all the staff members at the workplace. In addition to this, the transformational leadership style provides a scope to the leader to motivate the staff and continuously encourage performing better. This creates corporate boning and trust among the staff members. The leader also needs to respect others and maintain integrity to treat all the employees in the company. Hence, the leadership changes are mandatory for UBER to mitigate the issues and lead the team members towards achieving the future success. On the other hand, the structural development is also necessary, where UBER can maintain structural hierarchy and respect seniority at the workplace. Unbiased decision must be developed with collaboration and communication, so that every member at the workplace can be empowered and they can feel valued in participating in the rationale decision making behaviour of the company (Nickelsburg, 2017).

Effectiveness of structural and leadership changes to stabilise the market and operational development

The structural and leadership changes at UBER workplace are beneficial to stabilise the market and operational development, where the management team can improve the leadership style and create good corporate culture. It is beneficial for the organisation to maximise the market share and improve reputation to get rid off of the ethical scandal at the workplace. It will provide a scope to the management team to achieve the strategic goal of UBER through leadership changes and creating good structural hierarchy. Good corporate culture, freedom to work and flexibility management at the workplace are the major tactics through which UBER would be able to handle the operations and lead the employees towards achieving the future success. In addition to this, the management team can audit new leadership style with high communication and cooperation, where all the members are participating in the rational decision making practice. Equality and diversity management as well as non-discrimination practice further provide a scope to the organisation to improve their ethical decision making practice where UBER will be efficient to run their operations and maximise the employee’s performance for long run. Through good corporate culture and structural hierarchy as well as leadership style, UBER can manage their position in the market and encourage the employees for better performance (Kerr, 2018).

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The leadership and managerial practice at the workplace is mandatory at UBER in order to mitigate the issue of biasness and the gender differences at the workplace. There was no such transparency and equality in treating the employees which leads to the organisation to law suit related to ethical practice and workplace diversity. The recent changes in structural alliance and leadership may have crucial impacts on the organisational decision making behaviour and management practice, where UBER would be able to manage their position and create good corporate culture through managing transparency and account stability, respecting the employees, creating values for them, flexibility and freedom to work, enhancing internal communication and collaboration in working efficiently. The market share of UBER and positive branding can also be possible through the leadership and structural changes, where UBER would be able to run their operations successfully and retain the long run and experienced employees.

Reference List
  • Bond, S., 2019. Uber leadership shake up tightens Dara Khosrowshahi’s grip. [Online] Available at: [Accessed on 4 November 2020].
  • Brunsson, K. and Brunsson, N., 2017. Decisions: the complexities of individual and organizational decision-making. London: Edward Elgar Publishing.
  • Gore, J. and Conway, G.E., 2016. Modeling and aiding intuition in organizational decision making: a call for bridging academia and practice. Journal of Applied Research in Memory and Cognition, 5(3), pp.331-334.
  • Hallo, L., Nguyen, T., Gorod, A. and Tran, P., 2020. Effectiveness of Leadership Decision-Making in Complex Systems. Systems, 8(1), p.5.
  • Hodgkinson, G.P. and Sadler-Smith, E., 2018. The dynamics of intuition and analysis in managerial and organizational decision making. Academy of Management Perspectives, 32(4), pp.473-492.
  • Kerr, D., 2018. Uber U-turn: How the new CEO is cleaning house after scandals and lawsuits. Accessed at: [Accessed on 4 November 2020].
  • Mykkänen, M., 2017. Clarifying communication professionals’ tasks in contributing to organizational decision making. International Journal of Social Sciences and Humanities Invention, 4.
  • Nickelsburg, M., 2017. New Uber CEO Dara Khosrowshahi on leadership, fostering innovation and navigating crisis. Accessed at: [Accessed on 4 November 2020].
  • Simons, P., Benders, J., Bergs, J., Marneffe, W. and Vandijck, D., 2016. Has Lean improved organizational decision making?. International Journal of Health Care Quality Assurance.
  • Tolbert, P.S. and Darabi, T., 2019. Bases of conformity and institutional theory: Understanding organizational decision-making. In Microfoundations of institutions. London: Emerald Publishing Limited.

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