Adva Dinur

Common and un‐common sense in managerial decision making under task uncertainty

Purpose – The purpose of this paper is to explore the concept of “common sense” and to distinguish it from uncommon sense as it applies to managerial decision‐making under conditions of task uncertainty. The paper enunciates the definition of common sense decision‐making and develops the concept of “uncommon” sense making. A typology of common sense is put forth, and a case study is used to illustrate it in practice.Design/methodology/approach – This is a conceptually developmental paper, which explores and develops the concept of uncommon sense through literature review and typology development. A mechanistic, or internally driven, decision approach is compared with an organic, externally driven one, and the question of how common sense is related to these approaches in varying task uncertainty conditions is explored. A short case study is used as an illustration of the practical managerial implications under low task certainty conditions.Findings – The concepts of MCS (common sense) and MUS (uncommon se...

No Exit? Trying to Salvage D&H Management LLC: Parts A and B

In this two-part case, Richard Davis and Stephen Hodgetts, co-owners of DH (2) walk away from all of the properties, assume a loss (walk away with nothing), and avoid the negative cash flow; (3) delay paying the mortgage on some of the homes, allow these properties, if necessary, to go into foreclosure, and in the interim use the positive cash flow to shore up some of the more positive cash flow homes; (4) contact all of the lenders and try to renegotiate the mortgages so as to have lower monthly rates. In Part B Davis proposes that he and Hodgetts go their separate ways. Davis walks away with the two properties that have mortgages in his name, while Hodgetts obtains the four properties that have mortgages in his. From Hodgettsʼ perspective this is a losing proposition since (1) he would have to take over the management of four “loser” properties rather than Davisʼs two, an ʼunfairʼ split of the liabilities; (2) he had no interest in managing properties; and (3) he and Davis would be splitting up a long-standing team.

Abandoning Ship at Scandia, Inc.: Part A

Scandia, Inc., is a commercial vessel management company located in the New York Metropolitan area and is part of a family of firms including Scandia Technical; International Tankers, Ltd.; Global Tankers, Ltd.; Sun Maritime S.A.;Adger Tankers AS; Leeward Tankers, Inc.; Manhattan Tankers, Ltd.; and Liuʼs Tankers, S.A. The companyʼs current market niche is the commercial management of chemical tankers serving the transatlantic market with a focus on the east and gulf coast of the United States and Northern Europe. This three-part case describes the commercial shipping industry as well as several mishaps that the company and its President, Chris Haas, have had to deal with including withdrawal of financial support by creditors, intercorporate firm conflict, and employee retention. Part A presents an overview of the commercial vessel industry and sets the stage for Parts B and C (to be published in the Spring 2011 issue) where the firmʼs operation is discussed.