It is hard to disagree that the decision-making process is an integral part of any firm’s leadership. Various aspects depend on the effectiveness of decision-making, including the company’s image, profitability, internal communication and atmosphere, and others. While different ways to distribute decision-making may provide numerous advantages, they can also appear insufficient for a particular organization. The purpose of the paper is to review how decision-making authority is distributed in Cold Stone Creamery – an international ice cream parlor company from the U.S.
First of all, it is essential to notice that Cold Stone Creamery follows the franchise model, which affects how it manages the process under question. Overall, while the franchisees are welcome to express their ideas and opinions, as well as make local and minor decisions related to some insignificant operations in their location, all final and major decisions belong to the franchisor. What is more, involving employees in decision-making is not common for Cold Stone Creamery.
On the one hand, this whole system is effective because only experienced and skilled managers can make important choices, reducing the risk of errors. Moreover, the fact that the franchisor is responsible for all major decisions allows for keeping all stores under one brand. At the same time, this is not the most efficient approach because the company misses valuable and innovative suggestions and decisions from their employees.
As a result, it is possible to recommend Cold Stone Creamery adopt a more shared and distributed system of decisions. Surely, during the first months, pre-approval can be a vital phase, but the company will win more if it allows workers to participate in decision-making. Such a step will also positively affect retention rates as there will be more satisfied and loyal employees who feel valued and can finally apply their creativity and responsibility.