THE UNIVERSITY OF NEWCASTE | CASE STUDY REPORT | HUMAN RESOURCES MANAGEMENT | | NGHIA DUNG DINH | C3179988 |

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TABLE OF CONTENTS

EXECUTIVE SUMMARY3

1. INTRODUCTION4

2. THE DECISION MAKING FRAMEWORK AT YELLOW AUTO 5
2a. A Sociological Perspective.
2b. The Social Exchange Theory 3. THE CRITICAL DECISION…………………………………………………………6
3a. A Sociological Perspective
3b. The Group Polarization………...…………………………………………………

4. CONCLUSION8

5. RECOMMENDATIONS8

REFERENCE LIST9

Executive Summary
The report analysed the decision making framework of Yellow Auto Company from the perspective of sociology.
Before 2001, Yellow Auto Company was a company which was owned and managed by a family.
And in 2001, Yellow Auto Company faced with strong competition with other auto dealers. Top managers wanted the company take the half market share and become the leader company in the market; they changed their management style with many advantages for the employees. Obviously, the exchange for employees’ effort increased and the commitment and satisfaction of employees increased with that, thus the overall performance of the company would improve and the company could achieve the goal. However, what if the Yellow Auto Company wanted to increase the market share but the top managers still kept their old management style with many problems? The situation would come to the scenario that the exchanges the employees would get back were the same but they needed work much harder. The employees would not conform to company anymore and they became deviant. According to Friztgerald(2013), company had three methods to deal with deviants. First was persuade, negotiate with them, second was expel them from the company. The last one was the company should change to adopt with the employee’s behaviour. The first two choices were not suitable, just only the third