Leadership and Decision Making: Vroom Case Study
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When deciding whether or not to purchase T-Mobile, it is important to consider the seven questions from the Vroom-Yetton model. The quality requirement for this decision is high, as a poor choice could have major consequences for the company. The commitment requirement is also high, as this is a large financial investment that would require a significant commitment from all parties involved. The problem structure is moderately complex, as there are many factors to consider when making such a large purchase. However, the leader does have enough information to make an informed decision as he is well-informed about the industry, being the owner of Sprint already. There is goal congruence between subordinates and the organization, as everyone is working towards the same goal of increasing market share. However, there is the potential for subordinate conflict, as some may feel that this purchase is too risky. Overall, the decision to purchase T-Mobile is a complex one with many risks and rewards. The leader must weigh all of these factors carefully before making a final decision.
For instance, the proposed merger of Sprint and T-Mobile would appear to make sense from Sons perspective as it would give Sprint even more market share than its rivals (Gelles & De La Merced, 2014). However, it has been met with significant opposition from members of the public and the government (De La Merced, 2014). One of the main concerns is that the merger would reduce competition in the wireless market and lead to higher prices for consumers. Sprint and T-Mobile are currently the third and fourth largest wireless carriers in the United States, respectively. If they were to merge, they would become much larger than their competitors, AT&T and Verizon. This could give them control over prices and lead to a monopoly. Additionally, many people are worried about job losses if the two companies merge. Sprint and T-Mobile have both been through several rounds of layoffs in recent years, and a merger would likely lead to more job cuts (Yao, 2014). Also, it is not clear whether the combination of Sprint and T-Mobile would lead to a viable 5G network. 5G is the next generation of wireless technology, and it is essential for the United States to remain competitive in the global marketplace. Without a strong 5G network, the US could fall behind other countries that are investing heavily in this new technology. That means American stakeholders are likely to have a big say in this matter. Thus, for these reasons, many people are opposed to Sprint and T-Mobile mergingor at least have concerns that Son should hear.
Some other points that should be considered based on the three factors driving the seven questions (decision quality, time constraints, and subordinates) are these: For one thing, Son should ask whether the decision is important. Given that the purchase would be a large one, it is likely that Son will want to involve others in the decision. This means the decision making style is likely to be collaborative. Another question is whether there is time pressure. If Son feels that the company needs to act quickly, he may opt for a more directive style of leadership. However, he also needs to think about whether the company has sufficient resources....
…of the curve. I would not recommend that corporate executives receive training in this model because it fails to take into account the ever-changing nature of the business world. The model is based on the assumption that there is a static set of best practices that can be followed in order to achieve success. However, in today's rapidly changing business landscape, this simply isn't the case. Corporate executives need to be flexible and adaptable in order to succeed, and this model doesn't provide them with the tools they need to do so.One criticism I would make is that the model is too simplistic and does not take into account the complexities of real-world situations. Yes, leaders can learn to lead, as Vroom (1976) points out, but they learn best in my opinion by doing in the real worldnot from models. Another criticism is that the model might not always produce optimal results, as it relies heavily on the leader's own judgment in assessing the factors that would determine the decision-making style that would be most appropriate. Despite these criticisms, the Vroom-Yetton model remains a popular tool for decision-making, and its strengths could be said to outweigh its weaknesses. Yet it is not one that I necessarily find appealing.
I would say that the model can be improved by taking into account additional factors, such as team size and composition, task type, and organizational culture. Additionally, the decision tree could be made more user-friendly, perhaps by including additional explanatory text or by providing an interactive tool. By making these changes, the Vroom-Yetton model could become an even more useful tool for leaders seeking to effectively lead…
References
De La Merced, M. (2014, Aug 07). Sprint ends its attempt to purchase T-Mobile. International New York Times [ProQuest]Gelles, D., & De La Merced, M. J. (2014, Jun 05). T-Mobile and Sprint zeroing in on merger. New York Times [ProQuest]Rigolosi, E. (2005). Chapter 6: Diagnosing the task. Management and Leadership in Nursing and Health Care : An Experiential Approach. New York, NY, USA: Springer Publishing Company, 2005. [eBook Academic Collection.]Vroom, V. (1976). Can leaders learn to lead? Organizational Dynamics, 4(3), 17-28.
Yao, D. (2014). Moody's: Sprint/T-Mobile merger faces negative free cash flow until at least 2018. SNL Kagan Media & Communications Report [ProQuest]
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