Problem Formulation and Identification Paper

There are so many ways that people within organizations make decisions. The most prevalent decision making styles vary according to many different variables. Industry specifics, government regulation, management styles are all things that can affect the decision making styles in corporations. At Traveler’s Insurance, decisions are made with many things in mind. Decisions are made to benefit the company’s image and profitability. Analytical and proactive styles are used. Analytical decisions are made by taking all factors into consideration, and leaving any subjectivity or ethical factors out of the situation. One example would be when one of the adjusters was investigating a claim and found that it was fraudulent. The claimant was adamant about going to court over the claim. The adjuster had enough information to prove the claim was fraudulent, but because of the behavior of the claimant, his supervisors asked him to settle with the claimant. They wanted him to settle the claim because with all of the court costs, the claim would cost more to fight than to pay. Also, the claim process with this specific person was causing some bad publicity for Travelers. The supervisors had made an analytical and proactive decision. Analytically the claim cost less to settle, and proactively the company was saved from more bad publicity. The ethical aspect Travelers left out of the decision was that the claimant was filing a fraudulent claim, and should not have received a dime for it. He may even have deserved some type of criminal charge for his actions. The adjuster did not agree with the decision, but did as he was told to do. Making that decision exhibited a rational decision making process. Both of these types of decisions can be referred to deliberate or logical.

Amsted rail makes decisions the benefit the company, the employees and the environment. These decisions are made with analytical decision making, and also with an ethical outcome in mind. The company had been...