Natural Disasters

Rommel’s quote about making a ”sound business decision” reveals overconfidence decision-making biases. His decision also discloses an anchoring bias as it looks like that Nationwide did not take into consideration some information that others did. Insurance was not the only affected industry with natural disasters; also Airlines were very affected with this whole hurricane and weather situations. Jet Blue was one of these affected airlines due to the weather. They held the passengers on its planes for about 10 hours with closed bathrooms.

They refunded to the passengers their money but in a very rude way. Unfortunately JetBlue’s Founder ;amp; CEO, David Neeleman couldn’t handle the situation, and responded to the media in an improper way. Justification for Problem Definition The most relevant error and bias for companies like Nationwide Insurance, American Airlines, and JetBlue company is the overconfidence bias, they thought they are always making the right decisions and they believed too much in their own ability to make good decisions, just as Rommel’s quote about making a “Sound business decision. ‘ Alternatives 1. Rommel, Burgin, and Neeleman should have thought of the welfare of policy owners and passengers before taking their decisions. In these situations we have to look for cause and effect relationships. 2. They should have listened to different options instead of taking the first option they had. In the three cases, the managers shaped their own decisions to reflect the organization’s performance evaluation and other systems to comply with the organization’s formal regulations and to meet organizationally imposed time constraints.

They should have also thought about their clients 3. The improper response to the media had very bad influences and was very unprofessional. They should have treated the situation with more winsomely and more professionally. Evaluate Alternatives All the alternatives said above depend on personalities and their abilities of problem solving and decision-making. These elements are important skills for business, management and leadership. Some people have these skills by nature and others have to go through processes and techniques to improve their level and quality of their decisions.

Recommendation Anything can affect the clients’ safety, the decisions and the choices have to be taken very carefully in favor of both clients and companies. Managers have to understand that there are events in life, like natural disasters that are outside human control, and these events require a convenient plan for both owners and clients. Also, sometimes previous organizational decisions act as precedents to constrain current decision so organizations have to try to avoid this to happen.