Organizational Development and Analysis of Yellow Auto Company

This report presents an organizational analysis of Yellow Auto Company, a car dealership founded in 1989. It examines the company's organizational development from an employee psychological perspective, focusing on decisions made during an economic crisis. The report explores implemented strategies, implementation processes, and resulting outcomes, including increased employee loyalty and profitability. It provides justifications for the company's approach, incorporating psychological theories, and conducts a SWOT analysis of the decisions made. Furthermore, it offers recommendations for future improvements, addressing potential biases and emphasizing the importance of employee morale and psychological factors in organizational development. The report highlights the significance of understanding employee psychology and adapting to market dynamics for sustained success.

Running head: ORGANIZATIONAL DEVELOPMENT
Organizational Development
Name of the Student:
Name of the University:
Author Note:

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Executive Summary:
The report here discusses about analyzing organizational development of Yellow Auto
Company. The company was initially built by Deniz Sale in Bergama in the year 1989 mainly
dealt with car of popular global brand Renault. The report identifies the opportunities for the
organizational development of Yellow Auto Company from the psychological perspective of
the employees. The report also presents a SWOT analysis and provides recommendations,
assumptions and justifications of the case.

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Table of Content
s
Introduction................................................................................................................................3
Issues Related to the Company..................................................................................................4
Decisions Implemented By the Company..................................................................................4
Implementation..........................................................................................................................5
Results........................................................................................................................................5
Justifications...............................................................................................................................5
SWOT analysis of Decisions Made...........................................................................................7
Recommendations......................................................................................................................8
Conclusion..................................................................................................................................9
References................................................................................................................................10

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Introduction
The report here discusses about an organizational analysis of Yellow Auto Company.
The company was initially built by Deniz Sale in Bergama in the year 1989 whose
management was later took over by his sons, Can and Caner Sale. The company is a car
dealer of popular global brand Renault. The owners of the company are its shareholders and
financial support comes from the assets of the two brothers. However, the company has two
stores located in Cambidi and Gaziemir and focuses on selling cars in different locations. The
company provides two kinds of car markets, one that deals with models that have higher
market demand and the second deals with customized models of cars. The manager of the
company looks after three most important departments that includes sales, finance and after
sales service. The company believes in the initiation of face-to-face communication for
attracting clients and takes care of customer satisfaction. However, the lack of an
organizational chart or documentation related to responsibilities and authority allocation is
the main reason for intervention in the problems and decisions of the company. The report
identifies the opportunities for the organizational development of Yellow Auto Company.
The report also presents a SWOT analysis of the chosen company. There are also
recommendations, assumptions and justifications provided in the report.
Issues Related to the Company
In the year 2001, the top managers of Yellow Auto Company made a risky decision
under serious economic crisis conditions of Turkey (Chor & Manova, 2012). The entire
process of change involved top managers making a lot of analysis on the psychological
factors of the employees. The managers even asked for external assistance from university in
turkey to provide assistance for successful running of the process of policy change. Thus, the

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report will analyze the case study of the Yellow Auto Company and ensure organizational
developmen from the psychological perspective.
Decisions Implemented By the Company
Yellow Auto Company made several assumptions in implementing the whole process
of change. The top managers of the company made some important decisions that would help
the company achieve a market share of 50%. The decision became quite a risky one due to
the prevailing economic crisis in turkey (Kotler, 2012). Thus to ensure smooth going of the
decision the company decided to seek help from the academic people of the Turkish
University. Therefore, under the guidance received from the external consultant efforts for
change implemented on enhancing the physical working conditions and proper task division
among the managers and employees. The external consultants also helped in designing the
career plans for the younger generations and at the same time implementation of principle
involving right job for right person (Stahl et al., 2013).
Implementation
However, the implementation of the decisions made by the managers of the company
analyzed from the point of view of the theory of psychology. As per transactional analysis put
forward by (Clarkson, 2013) there are three states of ego of human psyche namely parent,
adult and child. The mentioned company however makes use of the adult state. This is
because this analysis has strong objectives and involves easy evaluation and criticism.
However, while implementing decisions, evaluation of results done by the top managers who
also face the real effect of the change process and thereby make necessary adjustment for
ensuring that correct direction of the change implemented.

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Results
However, after two years of the implementation of the change process through
suggestions received from external counselors, the employee loyalty towards the company
along with job satisfaction increased greatly. This also enhanced the profitability of the
company by 25% more than the previous year. The company was also able to extend their
sale and at the same time have two stores in and around the small town of Izmir ( Kalpakcı &
Ünverdi, 2016). However, through the cooperation received by the external counselors also
extended to the newly opened stores in Izmir that forecasted not only a bright future but in
also bringing in good results.
Justifications
Analysis of Psychology for the process of decision making by the managers is an
important factor in determining the future prospects of the company. If there fault in the
decision making process of the top managers then the company might face huge crisis that
might also affect employee morale and loyalty towards the company (Skudiene &
Auruskeviciene, 2012). Various psychological theories can be adopted for the analysis of the
decision making process. These include behaviorist theory, humanist theory, psychoanalytic
theory, neurobiological theory and cognitive theory. The company under discussion however
follows the psychoanalytic approach for decision-making.
However, the changing strategy of Yellow Auto Company looked upon from the
perspective of psychology of the decision makers. According to (Ford & Richardson, 2013),
four factors are responsible for influencing individuals in the decision making process. These
four factors include perceived risk, social factors, hedonistic factors and sense of self. The
factors not only suit the consumers but also are also an important in driving decision-making
process for the decider. However, if the consumer level is considered and people are

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expressing interest in buying the products from the company then they must also have a level
of satisfaction. This can however be said that all human beings possess the potentiality of
hedonistic factors. Thus, good products and services can not only help the consumers attain
superiority but also ensures a sense of satisfaction. They have perceived risk in their mind
lowered through face-to-face communication by the employees of the company. The
employees of the company can also assure the consumers through messages and phone calls
thereby enhancing the trust in the company while ensuring a family feeling. Thus, the
managers must train the employees to get familiar with the psychology of the consumers for
better marketing future and management. Now if the matter considered from the manager’s
perspective then they are also the decision makers of the company and is responsible for the
company’s development. Thus, sense of self is a crucial factor for the shareholders and the
managers. Moreover, their experience regarding the car market will help them analyze it.
However, given the economic crisis in Turkey getting a 50% market share would be a huge
challenge. Therefore, the top manager needed to be smart enough to conduct certain action
regarding the perceived risk. Instead, they asked for help from the academicians of the local
university. Thus, social factors put to use that ensured the successful change process
(Cummings & Holmberg, 2012). The external consultants acted professionally in not only
analyzing the psychology of the employees but also at the same time ensured good
suggestions to the managers which in a way increased the commitment and satisfaction of the
employees. Thus, the company had quite a good market share that was close to 54% percent
in 2008. Therefore, it can be concluded that the understanding the manager and employee
psychology is a crucial part of Organizational development.

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SWOT analysis of Decisions Made
(Langley et al., 2013) proposed a Perpetual Process Model for assisting the analysis of
decision-making process. The proposed consisted of three parts namely emotional maker
response and selective attention, interpretation and perpetual organization and behavior and
attitude. Through the perpetual process model, the strengths and weakness of the decisions
regarding the case interpreted. First, let one consider that emotional response and selective
attention made under an environmental stimuli. However, this depends on innumerable
factors like the assumptions and anticipations of events occurring in the future and the
characteristics shown by the perceiver. In this context, Yellow Auto Company performed
quite well as the top managers were able to perceive the right trend for marketing and at the
same time anticipated a feasible and bright goal for the company(10). The next part is the
perpetual interpretation and organization that deals with mental process. While undertaking
the particular step the managers and perceivers must initiate categorical thinking along with
perpetual grouping for making sure that there is feasibility of the anticipations and
assumptions made. In this regard, the top managers of the discussed company followed the
particular step through cooperation with the academicians for guarantying smooth running of
the change process. This proves to be one of the strong points of the case. The aim of the top
managers not only enhances the job satisfaction of the employees but also their commitment
by doing a psychological analysis. In this regard, for future organizational development
though it is necessary for the employees to have loyalty and good morale but can sometimes
prove risky if top managers solely focus on the psyche analysis of its employees leaving aside
more important issues like flexible future and marketing wave. Thus if there is any change of
marketing on a sudden basis then efforts would go waste. The competitors of the Yellow
Auto Company can be quite aware of the aspect that is also a weak point on the part of the
company. Given the scenario if the companies still pay more attention on the psychological

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aspect of the employees as well as the managers could be in a bigger trouble (Mintzberg,
2013). The last step to consider is by the attitude and behavior that is the last step of the
perpetual process model under discussion where the behavior and attitude of the employees
have turned averse due to various reasons.
Recommendations
The results of change process put forward by Yellow Auto Company showed that the
company did quite a good job. However, there are still areas that need improvement. Thus,
there are certain recommendations that will act advantageous for the company and will help
in improving the process of decision making in future. Firstly, the company should continue
with the adjustments made on the maintenance of current commitment and job satisfaction of
the employees. At the same time, there is also a need for increasing the morale of the
employees that ensure people to treat the company as a part of their own family so that they
can ensure 100% dedication while working. In addition to this, the company must continue to
ensure right person for the right job that will not only save a lot of time for the managers but
also the employees (Sageer, Rafat & Agarwal, 2012). In this context, if the psychological
perspective considered the change process will also help in enhancing the loyalty and morale
of the employees to certain extent. This is because, people realizes the sense of being valued.
However, other source of perpetual process bias exists that requires more attention.
The Yellow Auto Company must consider these perpetual processes otherwise there will be a
slow down of the developmental process of the company. For instance, the attribution error
results in bias of the perpetual process. Most human beings consider favorable point as results
in future that can be rather be dangerous as this can misguide the top managers of the
company in anticipating the real direction of marketing which will not let them implement
their very first decision of acquiring a market share of 50%. The recency effect of the

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perpetual process is another serious bias that needs consideration. In order to avoid this bias,
top managers of the company under discussion must have a future foresight that will enable
them discard such biases from taking place. Lastly, the company under discussion must focus
attention on the possible changes and the marketing wave. Although it is important for the
employees to have a good morale and loyalty in the company’s development but it could be
dangerous for the top managers to solely focus their attention on the psychological analysis of
the employees. In such cases, the competitors would capture the market share of the
discussed company.
Conclusion
The report here discusses about Yellow Auto Company from the psychological
perspective for analyzing the issues in decision-making. The report puts forward a brief
introduction of the Yellow Auto Company along with decision taken by the company for
changes in process for capturing a sizeable portion. The strength and weakness of the
company discussed in the report based on the perpetual process model. The report ends in the
light of providing recommendations for organizational development of the company.

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References
Chor, D., & Manova, K. (2012). Off the cliff and back? Credit conditions and international
trade during the global financial crisis. Journal of international economics, 87(1),
117-133.
Clarkson, P. (2013). Transactional analysis psychotherapy: An integrated approach.
Routledge.
Cummings, J. L., & Holmberg, S. R. (2012). Best-fit alliance partners: the use of critical
success factors in a comprehensive partner selection process. Long Range
Planning, 45(2), 136-159.
Ford, R. C., & Richardson, W. D. (2013). Ethical decision making: A review of the empirical
literature. In Citation classics from the Journal of Business Ethics (pp. 19-44).
Springer Netherlands.
Kalpakcı, A., & Ünverdi, N. K. (2016). Integration of paratransit systems with inner-city bus
transport: the case of Izmir. Public Transport, 8(3), 405-426.
Kotler on marketing Kotler, P. (2012). . Simon and Schuster.
Langley, A., Smallman, C., Tsoukas, H., & Van de Ven, A. H. (2013). Process studies of
change in organization and management: Unveiling temporality, activity, and
flow. Academy of Management Journal, 56(1), 1-13.
Mintzberg, H. (2013). Simply managing: What managers do—and can do better. Berrett-
Koehler Publishers.

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Sageer, A., Rafat, S., & Agarwal, P. (2012). Identification of variables affecting employee
satisfaction and their impact on the organization. IOSR Journal of business and
management, 5(1), 32-39.
Skudiene, V., & Auruskeviciene, V. (2012). The contribution of corporate social
responsibility to internal employee motivation. Baltic journal of management, 7(1),
49-67.
Stahl, G., Björkman, I., Farndale, E., Morris, S. S., Paauwe, J., Stiles, P., ... & Wright, P.
(2012). Six principles of effective global talent management. Sloan Management
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