Management Decisions

Management Decisions

Introduction

Management decisions are very tricky as one is only guided by the principles and it's hard for someone to foresee the actual outcomes. Some decisions, which we make with positive intentions, can have serious consequences. As mentioned in the case given, a manager's decision is not only assessed by his peers or juniors, it is also watched by the people belonging to the environment. We will be evaluating the management decision issue of a boss and his peers and in another case we will evaluate a case of business facing an ethical challenge.

Discussion

Part 1

Effect on Team Moral

The team moral will be high as after becoming the manager, they will initially feel happy that their boss now has the influence of granting bonuses. Later on as the manager, exercise control over spending in the department, the team moral can decrease if the decision making doesn't involve them. The moral of team can also reduce if they feel distribution of funds and expenses by the manager are unjust, he has done favoritism or has misused the funds (Ferrell, et al., 2012).

Effect on neighboring departments

The issue of spending on break room will influence the neighboring department who will feel and think that the reason of not spending on break room is because the manager wishes to have higher bonus for himself. This will result in aggravation and will soon result in confrontation between the departments. Places being used collectively should be managed collectively and measures should be taken to bring all the stakeholders on board. The manager should call other departments for meeting and discuss the issue in detail (Shaw, 2010). He should hear the opinions of his peers and colleagues and then decide the line of actions. The ethical issue in this case arises if, despite knowing that other departments are unable to spend on the break room, we having the extended budget have the responsibility of spending. Another ethical issue is the dilemma we face that if we spend the budget on fixed assets the company will benefit, if we spend it on our employees then the company will indirectly benefit. The decision to decide how much bonus the manager should take for himself is also an ethical issue.

Retaining Employees

The budget if not properly used and if the employees will not receive bonuses, then it will become very difficult to retain part time and full time employees. The office stationary and other expenses are almost fixed expenses so the only way we can save money is to avoid or reduce other expenses. The lack of bonuses will make the work situation worse as the employees will be less motivated to carry out work and the productivity will suffer. An effective strategy can be to involve them in the decision making process of budget expenditures so that they can also help in keeping the expenses under budget.

Hiring of New Employees

Hiring of new employees will become very difficult as the budget expenses will not allow us to place advertisements ...