Decision Making Processes

1. Decision Making Processes Chapter 8

2. Overview • One of the most critical activities in an org. is the making of decisions • Explore the role of comm. In organizational decision making • General models of decision-making process • Discuss small group context

3. Models of decision making process • Classical approach • Limited participation (consider contributions) • Define and identify the problem • Search for relevant information • Est. decision options • Evaluate based on criteria for decision effectiveness • Make optimal choice

4. Normative model (Nutt) • Formulation- compute needs and desires of org. and individuals • Concept development • Detailing • Evaluation • Implementation

5. Alternatives to rational models • Satisfying process vs. optimizing model • Bounded Rationality Limited cognitively Limited by practical aspects Got an example of each???? • Intuitive process • Garbage can model • Process of elimination • “we don’t need it now, so we will put it away for later” Case in Point (p. 171) “Personal Finance Decisions”

6. Realize that….. • Very few organizational decision makers use all the stages of the normative process • Most decision makers don’t want to re-invent the wheel • Decision makers often don’t consider rationale for decision (why or how) • DM often make decision and implement before identifying other possibilities • Concept development is most overlooked step • Performance equation P = idea X implementation

7. Small group decision making • Descriptive models of small group decision making • Fisher’s group phase model • Orientation • Conflict • Emergence • Reinforcement

8. Small group decision making (cont.) • Multiple sequence model • Typology of small group decision paths • Unitary sequence path • Complex cyclic path • Solution oriented

9. Effective small group decision making • Groupthink: “the mode of thinking that people engage in when they are deeply involved in a cohesive in-group, when the members’ striving for unanimity overrides their motivation to realistically appraise alternative courses of action” • Symptoms of groupthink (p. 176) • Five factors that lead to low-quality group decisions (p. 180) • So, what do you do as a group member or leader?

10. Effective small group decision making (cont.) • How can a group improve its chances of making effective decisions? • Vigilant interaction • Introduce the right kind of conflict • Cognitive conflict • Affective conflict • Critical debate b/w co-groups • Dialectical inquiry • Devil’s advocacy

11. Functional Theory • Effective decision making depends on groups attending to critical functions through group communication. • Understanding the problem • Identifying alternatives • Determining criteria for alternatives Brainstorming-Good or bad? (p. 177) Symbolic Convergence Theory role of communication in creating group identity back stage communication Challenger ex…(p. 179)

12. Participation in decision making (PDM) • Affects of participation in decision making • Participation in org. decisions would make employees less resistant to change • Participation is linked to job satisfaction and performance • Increase cognitive ability-better utilization of information

13. Models of PDM The Affective Model or Feel Good Model (p. 180) The Cognitive Model or Contribution Model (p. 181)

14. Affective Model of PDM PDM SHON WS MO PROD

15. Cognitive Model of PDM UIF PDM PROD Satisfaction DIF

16. Participative applications in org.’s • Ranges-informal to formal • Classification of program participation (p. 183) • Workplace democracy (p. 184) • Encourage contribution • Based on humanistic ideals • Multiple stakeholders

17. Paradoxes • Structure • Agency • Identity • Power

18. Chapter 8 Quiz • TRUE FALSE According to research, half of decisions made in organizations fail because of the poor use of decision making tactics and problems with communication by managers. • TRUE FALSE The small group decision making model by Fisher proposes that groups don’t go through specific phases during the process of decision making. • TRUE FALSE The concept of “group think” places more emphasis on cohesive appearance than making a quality decision.

19. TRUE FALSE The activity most often skipped by organizational decision makers is “concept development.” • TRUE FALSE In regards to small group decision making paths, groups generally do not exhibit the rational sequence prescribed by most stage models. • TRUE FALSE Stereotyping is the over restraint of group members against offering opinions counter to prevailing group thought.

20. TRUE FALSE Group think is an ideal way for groups to make the best possible decisions using all members’ suggestions and inputs. • TRUE FALSE The Affective Model of decision making is based upon the principles of the Human Resource Approach. • TRUE FALSE Workplace democracy refers to a workplace were every individual in the organization has an equal say in what happens. • TRUE FALSE “Planned spontaneity” is an example of the “paradox of structure.” • XC TRUE FALSE ..Playing “devil’s advocate” is always counter productive.