All the Wrong Moves Case Analysis

All the Wrong Moves Case Analysis

Description:

In the Harvard business Review case, “All the Wrong Moves,” by David A Garvin presents the decision-making tactics and how it affected the managerial team. There are a few key decisions and outcomes that the company has been affected: (1) the purchase a stock in the company Dipensit made by the Chief Financial Officer; the CEO’s credentials were discredited, (2) investigation of new product ChargeUp with Lipitrene; recall and analysis of company decisions. There were several approaches to make the final decisions: (1) a subcommittee formed to provide information to a senior team, (2) directed (3) voluntarily. There are key people involved in the company with high influences on the company: (1) Don Rifkin, Chief Executive Officer, (2) Steve Ford, R & D manager, and (3) Nora Stern, former entrepreneur.

Diagnosis:

The clear problem of Nutrorim is how the company approaches decisions that are complex which affect how company operates which is currently led by Don Rifkin, the Chief Executive Officer.

Don Rifkin, as the Chief Executive Officer, is suffering his company due to poor decision making efforts. He fostered participative management which is known to be considered a panacea for poor morale and low productivity at times. Rifkin does not know which decisions to be democratic or executive with, utilize the expertise of his managerial team, and is not aware of his team’s expectations or views. He is democratic, because he is acting out of defiance from his prior dictatorial boss. As described in Chapter 6 of our text, “Because the human mind cannot formulate and solve complex problems with full rationality, we operate within the confines of bounded rationality” (Robbins, 94). Systematic biases and errors crept into Don’s judgment which distorted his rationality.

He did not provide expectations or responsibility when the Chief Financial Officer purchased the stock. He did not consider the validity of the research and development team when it came to recalling the product under investigation which creates tension and lack of trust of his product and team. He does not address a negative environment when he witnessed Steve Ford approaching Nora in a sarcastic manner. His executive style is creating failure in the company.

Steve Ford as the research and development manager is creating an adverse environment for the employees. Ford’s aggressive approach makes him unheard when it comes to valuable expertise and research from his area such as when he voiced out he had research and documentation to support that their product under investigation could not have caused the illness and the product