Organizational behavior core concepts by kinicki chapter7

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Organizational Behavior core concepts Decision Making: How Individuals and Groups Arrive at Decisions 7-2 McGraw-Hill/Irwin Organizational Behavior, Core Concepts Copyright © 2008 by the McGraw-Hill Companies, Inc All rights reserved Learning Objectives • Compare the rational model of decision making with Simon’s normative model • Discuss knowledge management and ways that companies increase knowledge sharing • Explain the model of decision-making styles and the stages of the creative process 7-3 Learning Objectives • Summarize pros and cons of involving groups in the decision-making process • Explain how participative management affects performance • Describe techniques used to improve the quality of group decisions 7-4 Models of Decision Making • Decision making – identifying and choosing solutions that lead to a desired result 7-5 Models of Decision Making • The Rational Model – logical four-step approach to decision making 7-6 The Rational Model 7-7 Identifying the problem Generating alternative solutions Selecting a solution Implementing and evaluating the solution Rational Model • Identifying the Problem – Problem – exists when the actual situation and the desired situation differ • Generating Solutions – For routine decisions alternatives are readily available through decision rules 7-8 Rational Model • Selecting a Solution – Want to maximize the expected utility of an outcome – People vary in their preferences for safety or risk – Ethics should be considered 7-9 Rational Model • Selecting a Solution – Evaluating alternatives assume they can be judged according to some criteria – Assumes valid criteria exists – Each alternative can be compared to these criteria – Decision maker actually uses the criteria 7-10 Escalation of Commitment Project Characteristics • Tendency to attribute setbacks to temporary causes that are correctable with additional expenditures 7-27 Escalation of Commitment Contextual determinants • Culture of the decision makers • Political climate of the escalation situation 7-28 Recommendations To Reduce Escalation of Commitment • Set minimum targets for performance, and have decision makers compare their performance with these targets • Have different individuals make the initial and subsequent decisions about a project • Encourage decision makers to become less ego-involved with a project 7-29 Recommendations To Reduce Escalation of Commitment • Provide more frequent feedback about project completion and costs • Reduce the risk or penalties of failure • Make decision makers aware of the costs of persistence 7-30 Question? What is the process of using imagination to develop a new process? A Originality B Innovation C Creativity D Resourcefulness 7-31 Creativity • Creativity – process of using intelligence, imagination, and skill to develop a new or novel product, object, process, or thought 7-32 Stages of the Creative Process • • • • • 7-33 Preparation Concentration Incubation Illumination Verification Group Involvement • Minority dissent – extent to which group members feel comfortable disagreeing with other group members, and the extent to which group members participate in decision making 7-34 Advantages and Disadvantages of Group-Aided Decision Making 7-35 Participative Management • Participative Management – involving employees in various forms of decision making • Setting goals • Making decisions • Solving problems • Making changes in the organization 7-36 Group Problem Solving Techniques • Consensus – presenting opinions and gaining agreement to support a decision • Brainstorming – process to generate a quantity of ideas 7-37 Rules for Brainstorming 7-38 Defer judgment Build on the ideas of others Encourage wild ideas Go for quantity over quality Be visual Stay focused on the topic One conversation at a time Group Problem Solving Techniques • Nominal Group Technique – process to generate ideas and evaluate solutions • Delphi technique – process to generate ideas from physically dispersed experts 7-39 Group Problem Solving Techniques • Computer-aided decision making – reduces consensus roadblocks while collecting more information in a shorter period of time 7-40 Computer-aided Decision Making • Chauffeur-driven systems – ask participants to answer predetermined questions on electronic keypads • Group-driven meetings – conducted in special facilities equipped with individual workstations that are networked to each other 7-41 ...7 Organizational Behavior core concepts Decision Making: How Individuals and Groups Arrive at Decisions 7-2 McGraw-Hill/Irwin Organizational Behavior, Core Concepts Copyright © 2008 by the... ego-involved with the project 7-25 Escalation of Commitment Organizational Determinants • Breakdowns in communication • Workplace politics • Organizational inertia 7-26 Escalation of Commitment Project... choosing the best possible solution 7-11 Simon’s Normative Model Decision making is characterized by: Limited information processing Use of judgmental heuristics Satisficing 7-12 Simon’s Normative
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