The motive and purpose of this report is to evaluate and analyses the process of decision making in Airbus Company and its operations areas, internal and external challenges and factors that impact the decision making of the company. The discussions will also on the types of various decision, risk and impact analysis of the issues (Emrouznejad, Parker, and Tavares, 2008). There will be an identification of the decision making problems related to the company will also be discussed.
The aim of this report is analyze the development and growth taking place in the globalised world and then to take decision related to the same. The process of decision making and problem solving start with the recognition of the issues and problems, analysis of the reasons due to which the problem is started, and at last, collect the resources to solve the problem. In this way, the process of decision making completes. This process is done by the managers of the company whose key role is to analyze the types of problems present in the business organisation. He is the one who is responsible in finding the issues, make a decision, imitate the work on it and finally analyze the results. This can be done by using rational thinking on the problems of the organization like Airbus Company which ultimately results in positive outcomes.
There are various types of theories and model in the process of decision making that helps the company Airbus in making decision. There are various types of approaches related to the decision making of the company like incremental decision making approach. The report seeks both types of decision making that impact the strategic planning and management of the company airbus. There is a specific value of decision making as it impacts on the entire organization. the process of strategic thinking and strategic decision making within the organization and management plays a vital role, there are theories like psychological and management which should be used together to have better results of the decision making.
The process of decision making is basically based on four major points that is problem, solution, choices and opportunities. The problem is the initial point according to which the solution is framed by the managers. This can be done by using the opportunities and choices available in the process of problems soling. In this way the decision making process takes place. There are lots of alternatives available for the managers but they have to take one most effective decision which is suitable for the entire organization. Some of the theories of decision making are
The Incremental view which was given by Lindblom (1959) that argued the increments takes place in the process of the decision making. According to this, the process of decision making is a step by step process to achieve a specific goal. He said that learning’s can be done by doing. It says that the learning is a long and continuous process.
The original procedure view which was given by Das and Teng (1999) means that the organisational procedure view is an avoidance mode according to which some decisions are not planned and must be avoided.
According to the garbage can model given by Cohen et al. (1972) which argued that the process of decision making is meant to meet all the multiple actions and goals together.
The airbus company is a company that is dealing with the production and manufacturing of the aircrafts in the market. The company was formally established in the year 1970 as n European company. The head office of airbus is in Toulouse and the company operated other operations from France. There are other locations of Airbus Company that are 160 international locations of the company. The major development of the company’s aircrafts takes place on the major 16 sites that are France, Spain, Germany, and UK and there are three wholly owned subsidiary of this company that are in china, North America and Japan (Ansell, and Gash, 2008). The workforce of the company comprises of a unique kind of workforce. They all are integrated from more than 80 countries and nationalities and speaks more than 20 different languages. In the heart of this company, there lies the talent, skills, hard work, vision, mission, and human talent of the workforce and other members of the company to make this as a leading company of manufacturer of aircrafts (Moye, and Marson, 2007). The number of workforce are more than 55,000 who belong to 80 different countries and nationalities who collectively working at airbus and leading to the success of the company. The company is a leading company but still facing many problem related to the cultural difference, economic problem and technical problems.
The company is leading company and has a strong presence in the aerospace and defense. The Airbus Company is frequently going through the process of improvements by making changes in the technology and bringing innovation. The company has given up the old partnership and strengthens its business to have the globalized presence (Mardani, Jusoh, and Zavadskas, 2015). The objectives are to achieve the leadership related to the reinforcing the aerospace leadership, change in the pace of the innovation, launching one web and transforming the space and connecting it to the world. The major focus of the company is on the process of innovation. There aims and objectives is simply to bring innovation so that the company can expand and globalized its business operations. They want to add additional services to the new platforms of the company (Neef, and Neubert, 2011 Neef, and Neubert, 2011).
There are various types of collaborative operations happen in Airbus Company relate to different areas. The operations are related to the infrastructure to operate in a safe, effective and efficient manner. The Airbus Company works with the airlines, airport, ground handling, civil aviation industry and authority. The company also deals to facilitate the daily craft operations with a diversified range of products and services. The airbus company is working as a part of a collaborative approach that focuses on the simulation, optimization and calculation of time and energy required to manufacture the aircrafts. They also try to provide support to the various ground support equipment (Hastie, and Dawes, 2010). The operations are also related to the preparation of the future. They want to shape the aircraft future by manufacturing such aircraft and airlines that provide future growth to the company. The optimization of the aircraft production is directly related to the resources available in the company. They use open approach for the future development and growth that explains that airbus is directly and actively engage in the evolution of the aircraft industry and its development. The operations and functions of the company is linked to the workforce of the company is comprises of a unique kind of workforce who are integrated form more than 80 countries and nationalities and who speaks more than 20 different languages. In the heart of this company, there lies the talent, skills, hard work, vision, mission, and human talent of the workforce and other members of the company to make this as a leading company of manufacturer of aircrafts (Koehler, and Harvey, 2008). The number of workforce are more than 55,000 who belong to 80 different countries and nationalities who collectively working at airbus and leading to the success of the company (Mertens, 2014).
The airbus company facing many issues and challenges related to the internal and external factors that are affecting the strategic planning of the company. There are various key factors that affect the decision making of the company (Denscombe, 2008).
Political factors
Economic factors
Social factors
Technological factors
There are lots of tensions and worries that are faced by the employees who are working with Airbus Company as it is a diversified company. There are various types and different nationalities of workforce working together due to which conflicts raise. There are situation when the company is unable to handle the chaos created by the workforce. In such situation, difference and conflict arises among the employees. The difference in the pay of the employees is also a big concern for the company as it has a negative impact on the other individual working with the company (Bartunek, 2007). The employees are not motivated and they are working for their own self-interest instead of working for the objectives of the company.
The team and group are good for the companies who have similar employees belonging to the similar nationalities and culture. The company airbus is a diversified company with workforce that belongs to more than 80 nationalities. In such situation in creates a challenging rest related to the social integration, conflict and tension (Hambrick, 2007). There are two leaders who bring different viewpoints on the similar topic which is also a major factor and give birth to conflicts and hot arguments.
These all kind of factors creates problems and frustrations among the groups and teams as there is no transparency and trust on each other. The French manager and German manager fight with each other creating an environment of fight and war (Metzger, 2007).
According to the airbus, and its structure, the decision making process is little complex. As the company is operating since many years and more than 80 countries, it is very important to have a growing and developing decision making process. At the airbus group, the decision making take place by the board of the company and the reviews of other members are also considered. In this way, the greater decision making take place in the company (Glanz, Rimer, and Viswanath, 2008). The role of the board of the members is to endure the business system and provides rights that can be effectively adopted by the company. They research on the data and information first before coming to any firm decision. They check out whether the data in quality data or not.
There are various types of risk related to the decision making of the company as they have negative as well as positive impact on the company strategies management. The fact is that there is a fast business growth and development taking place in the company so the company is unable to match the requirement with the company’s product demand. So they have decided to make changes in the management of stock and inventory.
The company wants to develop them more into the global market to make the presence more strong in the markets which are untouched. For this the company tries to do more research on the international markets. They ask the R & D department to collect data and information of the competitive companies and the ways they are using to expand their business.
Conclusion
To conclude the present study, it is the fact that the company airbus is involved in various types of business like aircraft manufacturing and defense. Due to this, the process of decision making in the management is take place according to the different departments. In one department, there are various types of needs that are also required to be fulfilled by the company. There are many decisions which are spontaneous and non-programmed but most of them provide a positive impact on the company and its operations. The process of decisions making in an ongoing process and a routine work that take place in almost every organization. Many of the decisions take place in airbus company that are well-planned and programmed like manufacturing, raw material, supplies, etc. In order to be competitive, the company also indulges in the changes and innovation. In order to achieve innovation in the company, they try to have effective research and development to stay in the competition. The market of aerospace and aircrafts is showing lots of changes and uncertainties due to which company faces many problems in present as well as in the future. Therefore, sometimes it becomes impossible for the company to build a stable program and decision for the company and its functions as they are based on science, mathematics and physics. Still the company is trying to improve and update their operations and functions in such way that they do not face many problems in the coming future.
References
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