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MGT101

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1. What is the underlying problem in this case from NYCTA President Andy Byfords perspective? (2marks)
2. What barriers to decision making were prevalent before Byfords arrival? Explain. (1.5 marks)
3. Which Nonrational decision making model does Byford employ? How? (1.5 marks)

Answer 1:

The underlying issue from AB's perspective was the following:

1) MTA was being managed by political leaders who did not have any knowledge of mass transit. The larger issue was the leaders were reluctant to follow crucial recommendations from the experts that they themselves appointed.

2) Investments were being driven by politically vested interests rather than addressing the core problems being faced by the subway system and its commuters.

3) AB and his political bosses were not aligned on the modernization of the subway system. This is evident when political leaders overlooked his recommendations through TRC.

4) Inherent issue of who really controls MTA and who would be finally accountable for MTA's success and failure - AB or his political bosses like the Governor and Mayor.

Answer 2:

The political leaders were aware of the 100-year-old crumbling infrastructure of the NY subway. But, they lacked genuine intent to fix it. Instead, they set up a TRC with very eminent experts like AB and asked them to assess the problem and come up with future recommendations.

TRC came up with relevant recommendations on the core fixes of expanded capacity, improved signaling systems, and congestion pricing. However, the political bosses were not interested in any long-term resolution. Instead, they acted out of their vested interests and opted for short-term cosmetic fixes that did nothing to fix the real problem of quality and reliability.

Despite MTA going through a severe financial crunch, they were forced by the political bosses to pay USD 5 Mn to bail out the ski-resorts in Albany.

So, before AB, the political bosses used MTA and MTA funds to address their politically vested interests rather than making a positive impact in terms of the MTA operations or commuter experience.

Answer 3:

AB decided to opt for the cognitive model of non-rational decision making by involving the city board members in the overall vision development process. He wanted to ensure that the political leaders can participate so that they remain accountable for the outcome.

Given his experience as a TRC member, AB should have known that political leaders neither have the technical knowledge nor do they have the intent. Secondly, there is always a lingering issue of who is in control and who calls the final shot - AB or the political leaders. By involving them in the process, AB ended up slowing down the entire transformation process. Finally, if the proposed modernization plan becomes a success, then there would be issues concerning who takes the credit for the same.