1.

Introduction

This report based on the analysis of the case of Yellow Auto Automotive Company, which was operating as a dealer of a well-known global car company. Aa a rapidly developing family business, this company had face many management problems. To seek further development, the top management decided to start a top-down change process. Although the change was from top, a team of academicians were involved in the process of decision making. Also, with the efforts of these academicians, participation of employees and middle-level managers were provided. The outcome of the company's change process was successful. A few years later, this company achieved significant market shares and increased profitability.

This article aimed to critically analyse these decisions and the making process in a psychological view. our ma!or issues are identified as" decision making style

# autocratic decision making and participative decision making$, motivation, emotion control and role perceptive. The strengths and%or weaknesses of these decisions are identified. Also, a number of books and !ournal articles are reviewed to theoretically support the article's arguments. &elated theories and modes are represented as well.

2. Analysis

2.1 Group Decision Making

'roup decision making includes the activities such as setting group goals, choosing a course of action, recruitment and evolving norms #(rain, )**)$. This case case represented two modes when Yellow Auto Company made a set of decisions. They are the styles of autocratic decision making and participative decision making.

2.1.1 Autocratic Decision Making

According to +ewin #,-.-$, the leadership of top managers #owners$ of this family business could be identified as an autocratic style. Correspondingly, managing owners tended to use an autocratic style particularly towards

employees. An autocratic decision making mode implied that the owners maintained total control and ownership of the decision and did not involve any employee in the process of decision making. /n this case, the managers demanded
strict compliance form their employees. As mentioned, when making decisions,

employees 'were e0pected to ask for every detail to their managers'. Correspondingly, the managers tended to make all decisions personally. or

e0ample, when recruitment, the company owners #top managers$ 'attended all the interviews' and 'wanted to make the final decisions'. Also, the president of board of directors #one of the owners$ supervised three departments #finance, sales and after-sales services and spare parts$ personally.

An advantage of an autocratic style was that the leaders could make decision very fast. The application of an authoritarian style was particularly suitable in some difficult
circumstances #Tannenbaum 1 2chmidt, ,-3.$. or e0ample, in )**,, when Turkey

e0perienced a significant economic crisis, the top management decided to invest in human resources. /t was evidenced that this decision was !udicious. /n )**4, the company had 567 market share in /8mir, while the profitability increased )57. This positive result profited from the prompt decision made by top management under crisis conditions.

9owever, autocratic style also had its disadvantages. 2ince all of decisions were

made based on the owners' knows, the :uality of decisions would be poor, if the owners did not have sufficient knowledge in related field#s$ #(rain, )**)$. As mentioned, the president of board #one of the owners$ supervised three ma!or departments personally without any input form his followers. /t was hard to believed that as a enterpriser, the owner could have necessary knowledges in such three different fields simultaneously. Thus, it was hard to believe that all decisions, which were made without any professional advice, were sufficiently appropriate.

(esides, researchers had illustrated that decision-making tended to be less creative under an authoritarian leadership #+ewin, +iippit 1 ;hite,,-.-$. All
employees, including both store-sales and active sales, wore the same uniform as a symbol of the institutional identity.

/n addition, another disadvantage of a utocratic decision was negative emotions,

insufficient motivation #Cremer, )**<$ and less than desired effort from the people who have to carry out the decision #Tannenbaum 1 2chmidt, ,-3.$. This is analysed in
the ensuing paragraphs.

2.1.2 Participative Decision Making

=articipative decision making indicates that when a leader involves the members of the organisation in the process of decision making. ;hen using this method, the leader asks for information from the group and encourages others to participate by providing their perceptions, ideas and knowledge. 9owever, the leader would still apply an autocratic decision making techni:ue, maintain total control of the decision and be also completely responsible for the outcomes #+ewin, +iippit 1 ;hite,,-.-$. The advantages of participative style involve some group participation and involvement. /t is believed that when the leader does not have the necessary knowledge, a consultive style would lead to a better :uality decision #(rain, )**)$.

/n this case, the top management realised their lack of professional knowledge, which was necessary to manage the change process well. Therefore, a team of academicians from a university were involved as e0ternal change agents.

Although the top management used 'an autocratic management style towards their employees', nevertheless, 'they were eager to' take advices from these professionals before they made the final decisions.

The application of participative style enabled the academician group implement a setting of reform in organi8ational behaviours, such as the improvement of physical working conditions, clarifing the !ob descriptions and involving employees into the process of decision making. These measurements contribution to the company's successful change process.

2.2 Motivation

As one of the four factors involved by >A&2 model, motivation is defined as the driving force by which people achieve their goals. /n ,-56, >aslow #as cited in >aslow, ,--4$ depicted his hierarchy of needs as a pyramid with five levels, including physiological needs, safety needs, belonging needs, esteem needs and growth needs. +ater in ,-3*, >aslow #as cited in >aslow, ,--4$ added aesthetic needs and cognitive needs in his theory. According to 9er8bergs #as cited in (assett?ones 1 +loyd, )**5$ two-factor theory of motivation, the factors simulating employees include both monetary issue and psychological factor.

/t was represented that the company attempted to motivate employees by monetary

issue. An e0ample was the sales worked with the company 'had a base salary and got a premium for each sale'. 9owever, from a psychological level, it was hard to say this company motivated employees well.

irstly, as employees were e0cluded from decision making process. They would be hard to perceptive they were parts of the company #belonging needs$. 2econdly, the top managers' autocratic leadership would give employees the feeling of lack of respect and confidence #esteem needs$. Thirdly, employees were asked to report every detail to managers. /n other words, they !ust needed to follow the instructions made by managers. As a result, employees would not feel they could achieve their potential in their
career #growth needs$.

Then, through a routine !ob of being told what to do and how to do, employees would have few change to ac:uire new knowledge #cognitive needs$ after being trained as new comers.

/n addition, it was mentioned that employees 'were generally e0pected to work over time'. /n this circumstance, the perception of work-life balance #aesthetic needs$ was ruined.

@0pectancy theory #Aroom, ,-<6$ illustrated that employee's motivation was closely related to the degree of he%she desires a reward. /n this case, since it was visible that the company did not satisfy employees' desires% needs in a phycological level, conse:uently, it was hard to e0pect a satisfactory individual performance and outcome.

2.3 Emotion Control

@motion control played a significant role in motivation. 2cherer #as cited in isher 1
Ashkanasy, )***$ illustrated that emotions were an interface which mediated between

environmental input and behavioral output. 2cholars # redrickson, as cited in isher 1

Ashkanasy, )***$ have recogni8ed the linkage between specific emotions and specific

types of behaviors. /t was found that negative emotions often had strong associations with specific kinds of negative behaviour, while positive emotions promoted many significant organi8ational processes, such as skill building, creativity and collective orientations. Also, positive emotions worked as an antidote to those cognitive effects of negative emotions. Correspondingly, unwell motivation caused negative emotions such as dissatisfaction. urther, any attempt to change behavioural patterns without first changing related emotions were unlikely to be successful # isher 1 Ashkanasy,
)***$. Thus, in this case, academicians aimed to increase positive emotions and reduce

negative ones.

/n the workplace , increasing welfare and improving work conditions was recognised as the most effective way to increase positive emotions and reduce negative emotions # isher 1 Ashkanasy, )***$. /n this case, academician team attempted to control emotions in the workplace through the improvement of physical working conditions #welfares$, such as renewing computers and the engagement of a a hairdresser. As a

result, these measures created positive emotions and affected !ob satisfaction in a positive way.

2. !ole Perception

&ole perception concerns the perception of roles and how it changes people's behaviour. The lack of a distinctly defined roles and a misty perception of the role would lead to underperformance and a downturn on self-esteem #2aha, )**4$. /n this case employees e0perienced a confuse on role perception because of the obscure !ob descriptions and unwritten company rules. Thus, academicians attempted to make these clear.

3. !ecommendations

/t is concluded that some ma!or problems involved by this case are" ,$ the unsuitable application of group decision making style, )$ unwell motivation in the organisation, .$ negative emotion within the workforce and 6$ a a misty perception of the role. After the top management's decision on investing human resource, particularly with the efforts made by the academicians from a university, the company successfully resolved some of these ma!or problems and improve the market shares and profitability. urther, to sustain this success and resolve some residual problems in the future, some suggestions are made as following"

irstly, transform the process of group decision making from an autocratic style to a participative way, which was applied by the academician team. As mentioned, the top managers #owners$ of the company acted as autocratic leaders and rarely involved employees in the process of decision making. That might appear effective at the early business stage or in crisis. 9owever, with the business growth, the company would have to face with more and more new challenges and make more long term decisions.

As the owners of a family business, it was hard to e0pect any top manager would have full knowledge and sufficient information in each segment of business operation. Thus, when making significant decisions, the top management would need to collect useful information from employees and taking inputs from professionals. Therefore, from a long term view, the transformation from an autocratic style to a participative way would be necessary.

2econdly, the company would have to care employees phycological needs more. As mentioned, the company e0pected the employees to ask for each detail to their managers. This tied the employees and made them hard to feel belonging, self-esteem and growth space. Thus, the company would have to change this mode and properly empower employees. (y this mean, more growth space would be given to employees. Correspondingly, employees would perceptive they were treated as parts of the business and achieve self-esteem. Then, employees' potentials and creativity would be

developed. Also, it would be easier to remain talent employees, who would become the company's significant strategic resources.

Thirdly, it is also suggested that the company start the transformation from a family business to a a bureaucratic organisation. 2ince with the company development, a simple family mode would not suitable to a great enterprise. Thus, the company should start to make rules formal and written, introduce a professional management develop its own corporate culture.

ourthly, it is recommended to make a standardi8ed shift schedule. As mentioned, the company's employees were generally e0pected to work over time. Thus, a standardi8ed schedule should be made. (y this way, employees would feel a life-work balance.

/n addition, a effective communication system is recommended as well. or e0ample, regular meeting with employees and middle level managers could be held to collect useful information.

!e"erences

(rain, C. #)**)$. Advanced psychology: applications, issues and perspectives . Cheltenham" Belson Thornes +td.

(assett-?ones, B. 1 +loyd, '. C. #)**5$ Coes 9er8berg's motivation theory have staying powerD Journal of Management Development, 24 #,*$, -)---6..

Cremer, C. C. #)**<$. Affective and motivational conse:uences of leaderself-sacrifice" the moderating effect of autocratic leadership. The Leadership Quarterly, ! #)**<$, 3-E-..

isher, C. C., 1 Ashkanasy, B. >. #)***$. @motions in organi8ations. Journal of "rgani#ational $ehavior, 2 #-$, ,),E).6.

+ewin, F., +iippit, &. 1 ;hite, &.F. #,-.-$. =atterns of aggressive behavior in e0perimentally created social climates. Journal of %ocial &sychology, ', )3,-.*,.

>aslow, A. 9. #,--4$. To(ard a psychology of )eing #.rd ed.$. G2" ;iley.

2aha, A. #)**4$. &ole perception" the role it plays. *+M +evie(, ,e)ruary, )--.4.

Tannenbaum, &. and 2chmidt, ;. 9. #,-3.$. 9ow to choose a leadership pattern. *arvard $usiness +evie(, May - June, ,<)-,4*.

Aroom, A. 9. #,-<6$. .or/ and Motivation0 Bew York" >c'raw 9ill.