Scenario: The sugar substitute research decision

You are the head of research and development (R&D) for a major beer company. While working on a new beer product, one of the scientists in your unit seems to have tentatively identified a new chemical compound that has few calories but tastes closer to sugar than current sugar substitutes. The company has no foreseeable need for this product, but it could be patented and licensed to manufacturers in the food industry.

The sugar-substitute discovery is in its preliminary stages and would require considerable time and resources before it would be commercially viable. This means that it would necessarily take some resources away from other projects in the lab. The sugar-substitute project is beyond your technical expertise, but some of the R&D lab researchers are familiar with that field of chemistry. As with most forms of research, it is difficult to determine the amount of research required to further identify and perfect the sugar substitute. You do not know how much demand is expected for this product. Your department has a decision process for funding projects that are behind schedule. However, there are no rules or precedents about funding projects that would be licensed but not used by the organization.

The company's R&D budget is limited, and other scientists in your work group have recently complained that they require more resources and financial support to get their projects completed. Some of these R&D projects hold promise for future beer sales. You believe that most researchers in the R&D unit are committed to ensuring that the company's interests are achieved.   

Can anyone help me in answering these questions related to this scenario:

What is the issue/ what decision has to be made?

What level of employee involvement should be used and why? 

Answer:

The company is facing the problem of a limited budget. As head of research and development (R&D) at a major beer company, there is a need to determine whether and to what extent to involve the department's researchers in allocating budget for further research on a new sugar substitute into which one researcher has tentatively discovered.

The extent of employees to be involved in the decision

Medium level of involvement which is consulting with individuals. This level of involvement can let the subordinates discuss the problem and identify the solution. The employees will be responsible for the decision-making of identifying the problem, choosing the solution, and implementation it.

The first factor leads me in the choosing medium involvement of employee is due to the scenario is not programmed decision but a little bit complex and more of an opportunity. The product needs to highlighted by pouring resources into this project in order to fully commercialize it.

The second source of decision is the lack of knowledge that beyond the leader level of expertise that needs the technical expertise from his subordinate to improve the decision quality which the R&D lab researcher is more familiar with the field of chemistry.

Third, the decision is also reflected in the complaint of the researcher that they require more resources and financial support to get their project completed. In this event, the employee like to know where will there stand on this new research project since there some complained about others project that is lack of resources support in order for them to move forward. Also, I believe that most of the researchers in the R&D unit are committed to ensuring that the company's interest is achieved.

Problems might occur if less or more involvement occurred

A problem of conflict between the employee will be occurred by adopting a high degree of involvement. There will argument on the decision to in terms of funding the project would reduce their own funding. A low level of involvement would lose some of the cooperation discussion about the issue. This cooperation brings out valuable information and potentially more creative solutions to the problem.

This decision has a medium structure. The incident says that there is a decision process for funding projects behind schedule, but there are no rules or precedents about funding projects that would be licensed but not used by the organization. Consequently, some level of involvement may be valuable.

The incident clearly says that the sugar substitute project is beyond your technical expertise and that it is difficult to determine the amount of research required. Scientists have information unavailable to the leader, but they would not have sufficient information to make the decision alone. Overall, this suggests that some involvement (probably at least a medium level) is desirable.

Decision commitment. This might be debatable, but most employees know that funding decisions are ultimately in the hands of executives who must take responsibility for those decisions. Also, it sounds like past funding decisions are made by the leader, not employees (mainly due to conflict problems described below).

Moreover, but employees don't implement anything as a result of this decision, so there is probably the minimal adverse effect of low commitment. Risk of conflict. There are two dimensions of this contingency. First, with respect to goal compatibility between employees and the company, the incident says that you believe that most researchers in the R&D unit are committed to ensuring the company's interests are achieved. Second, it is almost certainly true that conflict will occur among employees. This is a win-lose situation where funding one project reduces or eliminates funding on other projects. Overall, the conflict among employees discourages high involvement but will allow a medium level of involvement.

A medium degree of involvement would probably be difficult because of the problem of conflict among employees. Employees could not agree because a decision to fund the project would reduce their own funding.

A medium level of involvement would lose some of the synergies of discussion about the issue. This synergy brings out valuable information and potentially more creative solutions to the problem.