The decisions that the company CEOs make, seem to affect the company the most. Therefore, there is a need to have a board of executives who must be involved in any decision-making case to avoid falls that result from wrong decisions made by a single individual. Decisions made affect a company’s outcome and thus, a lot of care is needed before such decisions can be implemented. A lot of considerations of the decision outcomes should be considered before deciding on its implementation. Where possible, even the employees should be involved in making some of these decisions, for they could suggest even better ideas concerning the best choices to make within the organization. Weighing out the various options given will generate the best idea to follow in decisions that are hard to make.
Avoiding carry-over debts like that of the insurance business and things that bring the business down can be avoided, and this is possible following the given example of consumers in handling their credit card debts. Most consumers find it difficult to repay their credit card debts partially because paying large bills in small portions feels fruitless. Five studies conducted indicated that awareness increment of what is being repaid occurs when repayment-by-purchase is done. Payment towards certain purchase sets showed a 12.8% higher payment towards the balance debt compared to the control group who paid in small amounts (Donnelly et al. 2020). This increased both the perceived goal progress and awareness towards enhancing consumer motivation to get off debts. In the same case, GE company can eliminate cases such as the one that occurred to the insurance business section, where the company had to pay liabilities 12 years later, which could in one way or another have been avoided through making smaller payments. Smaller payments would not leave behind a large liability debt as it happened, and the company would possibly finalize paying for its liabilities before selling out the business, or a short period after selling it. This way, the financial crisis could probably not worsen during John Flannery’s session as a CEO.
The above case can be connected to proper decision-making. A customer can either decide to make huge payments for a given period, smaller amounts for a longer period. The customer’s decision to pay their debts may affect the amount which they finally end up paying. General electric leaders can thus follow this example to make decisions towards making the company successful, and how to carry about the company leadership, both of which affect the company outcomes.
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