Instruction: Study CHAPTER 5 “DECISION MAKING” and answer the

following.

1. Identify the skills a manager must strengthen to improve his/her decision making.

2. CASE STUDY
CASE 1. JONA CAR RENTAL: Before the Next Teardrop Fails
For fourteen months, Mr. Jose Naguimbing acted as general manager of Jona Car Rental.
The company had branches in Angeles City, Olongapo City, and Baguio City. The main office
was located in Makati City.
Jose succeeded his brother Pedro who founded the company and was well-liked by his
subordinates. The car rental company was very lucrative when Pedro left it to establish another
business. Jose was very enthusiastic during the first few months of his stewardship. At the fifth
month, his staff member began losing confidence in his abilities to run the firm. One time, when
a purchase order for three units of Toyota car was presented to him by the office manager for his
signature, he signed it immediately. The manager filed the order with the dealer on the same day.
The next morning, however, Jose instructed the office manager to cancel the order. He also
instructed the manager to buy three units of Mitsubishi cars from the dealer.
When the position of branch manager for Angeles City became vacant, he appointed
someone whom his immediate staff thought to be the least deserving of the three candidates.
After three months, his staff members were proven right: the revenues of the branch were
drastically reduced. Compared with a competitor in the area, the performance of the branch was
dismal.
When Jose decided to establish another branch, he asked his staff to identify three
potential sites for him to choose from. He picked Laoag City. It turned out that Laoag had the
weakest potential. After few months of operation, the branch had not shown any sign of promise.
In contrast, the competitor who put up a branch in Santiago City in the same year was registering
substantial revenues. Santiago City was one of the potential sites forwarded to Jose for
consideration.
Learning Assessment
1. Examine and discuss which of the steps in decision making was not done properly by
Jose that caused the kind of output his decision has brought.
2. Propose a decision tool or model that Jose can use to improve his performance. Use either
qualitative or quantitative approach.