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Principal of Management

The document outlines a 6-step rational decision making process applied to addressing challenges at a delivery and fleet company. The problem was identified as lack of vehicle tracking and inadequate vehicles. Alternatives generated were: installing digital software, adopting electric vehicles, or purchasing more conventional vehicles. Each was evaluated based on costs, environmental impact, future-proofing, and other criteria. Installing software provided benefits like accurate ETAs and productivity gains but also training costs. Electric vehicles reduced emissions but were expensive. Purchasing more vehicles required considering long-term economic and operational factors.

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Amy Dayal
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22 views

Principal of Management

The document outlines a 6-step rational decision making process applied to addressing challenges at a delivery and fleet company. The problem was identified as lack of vehicle tracking and inadequate vehicles. Alternatives generated were: installing digital software, adopting electric vehicles, or purchasing more conventional vehicles. Each was evaluated based on costs, environmental impact, future-proofing, and other criteria. Installing software provided benefits like accurate ETAs and productivity gains but also training costs. Electric vehicles reduced emissions but were expensive. Purchasing more vehicles required considering long-term economic and operational factors.

Uploaded by

Amy Dayal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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PRINCIPAL OF MANAGEMENT

Identify and describe a scenario that requires decision


making at your workplace, and apply all the SIX (6)
steps in a rational decision making process on the
identified scenario.
Table of Contents

 Step 1 : Identifying The Problem


 Step 2 : Identifying The Decision Criteria
 Step 3 : Allocating Weight to The Identified Criteria
 Step 4 : Generating A List of Alternatives
 Step 5 : Evaluating The Alternatives
o Installation of Digital Software In The Vehicles
o Adopting Electric Vehicles
o Purchasing More Fleet Vehicles
 Step 6 : Selecting The Optimal Decisions
Scenario at my workplace that requires decision making by applying
SIX (6) steps in a rational decision making process
 Currently, at the delivery and fleet company, we are being faced by a new era
that has changed and enhanced consumers’ consumption patterns that are
driven by the capability to purchase most of the goods across the world by
mere click and the rise of the e-commerce.
 The digitization of the customer experience shows that delivery and fleet
companies have to update their distribution channels. This has led to a new
challenge to the company that I am working for that is the Supply Chain
Management.
 The Supply Chain business is being faced with a challenge on how to handle its
logistics operations in order to accomplish consumers expectations due to the
increasing demand for products by the digital consumers.
 As one of the Directors of Supply Chain Management have discovered various
challenges that we are facing in the company and I had to involve the entire
management of the company together with the employees and other people that
were going to be affected by the new decision to be made.
Step 1 : Identifying The Problem
 The lack of visibility into the location of concerned vehicles that are supposed to deliver
items and the inadequate number of delivery vehicles were the major causes of these
complaints.
 Lack of clear track on the location of the delivery car resulted in cancellations of several
orders as we could not give most of the customers a clear update especially on urgent
orders.
 Due to the lack of a clear track of the vehicle, we could not tell if our drivers could make
within the estimated time of arrival to our customers.
 Employees could not know which roads to use and avoid at a certain time of the day to
get faster to their destination.
 The inability to track down our vehicle has led to a negative impact on our company.
 Inaccurate estimation of arrival time for deliveries has greatly impacted the reputation
our company negatively as clients are no longer content with rough approximations.
 Inadequate number of delivery vehicles and the increasing number of placed orders is
overwhelming the supply and chain industries, in a manner that we were not able to
deliver all the orders made in a single day, bearing in mind that most of the clients have
different locations.
Step 2 : Identifying The Decision Criteria
 The decision that we were going to make as the managers of the company was
based on our beliefs of what is best for the company, customers and employees.
 From the identified problem, we were going to monitor the performance of
every driver involved in making deliveries, enhance transparency in the
delivery operations, and be able to access data in real-time through vehicle
tracking. Thus the criteria we used were:

 How will the drivers be affected by tracking the vehicle?


 How will the decision to be made affect our customers satisfactions?
 How much is the organization going to incur if the decision is to be made?
 Will changes enhance the delivery operations?
 How much time will it take for the company to gain back its positive
reputation?
 Will the safety of drivers be protected by the decision made?
 Will the decision to be made to solve the problem at hand and other
unanticipated problems?
 How much money does the organization have at the moment?
 Will the decision have an impact on the environment?
Step 3 : Allocating Weight To The Identified Criteria

 A Likert scale of 7-point was used whereby ‘1’ was used to indicate that the
criteria was of no importance, and ‘7’ to indicate the criteria was very important
to every stakeholders and shareholders of the company.
 The employees were issued with the identified criteria and use a Likert scale of
7 points to weigh their significance to the organization.
 Bearing in mind that customers’ satisfaction is the main priority in every
business.
 Most of the employees felt that the biggest weight should be given to how the
decision made affects the satisfaction to the customers.
Step 4 : Generating a List of Alternatives

 Together with other shareholders of the company, we had to brainstorm and


come up with alternatives solutions to the identified problem. An internal
analysis was conducted through questionnaires where employees were asked to
come up with ways of how to handle the situation at hand. Some of the
alternatives proposed included:

a) The organization to install digital software in the vehicle in order to


streamline and have effective communication between the people in the field
and also customer

b) Adopting electric vehicles

c) Purchasing more fleet vehicles


Step 5 : Evaluating The Alternatives
 The management of the company had to assess these alternatives and see how
effectively they can be in addressing the issues of concern.
a) Installation of Digital Software In The Vehicles
 The managers enhanced their order work flow and saved more time by sending
jobs and ordering instructions through the installation of WEBFLEET that had
PRO Driver Terminal. The terminal was used to read the message sent from the
office in a loud way in order to avoid disrupting the driver.
 WEBFLEET enabled the organizations to give more accurate ETA’s to their
clients. Professional navigation involves the usage of a complex network of
live data in traffic and advanced algorithms that aid drivers to avoid traffic jams
and drivers will get the job and make deliveries on time.
 Fleet management powered by GPS tracking systems was of more help than the
traditional fleet management system because it could alert those in the office
whenever a driver leaves or enters a virtual geographic region. This aids in
notifying the customer that their goods have arrived or to notify the driver that
he or she is entering a no go zone.
•The use of digital software was seen to be of help by enabling fleet managers to
analyze the behavior of a driver by providing clean information on the performance
of the driver in the field. This is to ensure that drivers do not spend most of their
sitting idle when they are supposed to make deliveries.

•From the observations made, it was a clear indication that the decision of installing
digital software could make the organization reach a wider market and satisfy
customer needs through deliveries, thus minimizing the cancellation of orders

•This was seen as a way to maximize the organization’s productivity.

• The installation of this digital software meant that the organization was going to
incur an extra cost by implementing the decision. Also, drivers’ training of how they
will use the digital system was another area of concern if the decision of installing
digital software was to be made.
b) Adopting Electric Vehicles
 Substantial research has identified numerous reasons why fleet managers are
adopting the use of Electric Vehicles. Some of these reasons include:

 Minimizing the running cost: less cost was incurred when using Electric
Vehicles than when using internal-combustion engines, the observations pointed
out that the cost gap was going to rise as the price of fuel continues to go up and
the efforts to renew energy drive the prices of electricity down. Also, it was
observed that the cost of maintenance for Electric Vehicles was much cheaper.
Electric Vehicles have fewer moving parts and require less regular maintenance.
 Reduce emissions and improve environmental impact: most of the nations
have seen the use of EVs as a key way to minimize emissions to the
environment. Building out an EV fleet is among the best ways to protect the
environment. By doing so, clients and consumers will recognize and appreciate
the efforts.
 Future-proofing: most of the developed countries are planning to ban the sale
of new diesel/petrol vehicles by 2040. It was observed that electricity is the
future and by adopting the use of EVs now, an organization stands a better
chance of being ahead of its competitors especially when more drastic changes
take place.
 However, the adoption of EVs can be hindered by some factors such as they are
too expensive to buy. More time spent at the charging stations and need in
training the drivers to take in the knowledge of how to use the Electric Vehicles.
c) Purchasing more fleet vehicles
 When purchasing fleet vehicles the company considered whether to opt for
gasoline or petrol/diesel vehicles. The digital technology electric vehicles were also
to be considered as well.
 It was observed that the recurring and initial cost of various types’ vehicles kept on
varying from year to year. Hence it was advisable for the company to try and factor
in the economic landscape 4-10 years from now. Besides, it was observed that
having a fleet that is composed of various types of vehicles could aid the
organization leverage the benefits of each hence giving fleet manager on which
type of vehicle to purchase as the business grows.
 The decision to purchase more fleet vehicles meant that the organization was going
to employ more employees who will require training on how to manage and
operate the assigned vehicle. Also, this meant that the organization was going to
incur an extra cost in maintaining the existing and the purchased vehicles.
 The evaluation team concluded installation of software in fleet vehicles was the
best alternative that the organization could implement. The installation of digital
software was seen to cater for all the identified criteria in step 2.
 The advantages of installing digital software were seen to outweigh the
disadvantages that come with the implementation of the alternative.
Step 6 : Selecting The Optimal Decisions
 However, selecting the optimal decisions among the alternatives had to involve all
the stakeholders and shareholders of the organization who were going to be
affected whether directly or indirectly by the decision to be made. The evaluation
team had to explain the advantages and disadvantages of each alternative to the
members present before making the final decision.
 Most of the points were given to the installation of digital software as the best
decision the organization could make. The installation of this software was seen to
have so many benefits as well as advantages to the organization, employees and
customers.
 Some of these benefits are such as saving cost incurred on phone call, management
to get more detailed data regarding how deliveries are being done in the field,
ensuring customer satisfaction by giving well estimated time on deliveries,
ensuring drivers’ safety by tracking them down thus being aware of the situation
they are in or they might be facing.
 It was seen that the installation of digital software was going to minimize the cases
of theft affecting both goods to be delivered and the fleet vehicle.
 After going through all the steps required to make a decision that will solve the
problem at hand the management of the organization decided to install digital
software to all the vehicles involved in making deliveries.

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