Organizational Behaviour 2nd European Edition. Chapter 14 Individual and Group Decision-Making. Models of Decision Making.
Organizational Behaviour2nd European Edition Chapter 14 Individual and Group Decision-Making
Models of Decision Making • The Rational Model- Consists of a structured four-step sequence * identifying the problem * generating alternative solutions * selecting a solution * implementing and evaluating the solution • Simon’s Normative Model- Based on premise that decision making is not rational- Decision making is characterized by * limited information processing * use of rules-of-thumb or shortcuts * choosing a solution that is good enough
Models of Decision Making(continued) • The Garbage Can Model- Based on belief that decision making is a sloppy and haphazard process- Decisions result from an interaction between four independent streams of events * problems * solutions * participants * choice opportunities • For class discussion: Which model of decision making is most practical? Explain.
A Contingency Model for Selecting a Solution Characteristics of Decision Task:The decision problem* Unfamiliarity* Complexity*InstabilityThe decision environment*Irreversibility* Significance *Accountability* Time and/or money constraints Strategies toselect a solution * Aided analytic* Unaided-analytic* Non-analytic Generating alternatives Characteristics of Decision Maker* Knowledge * Ability * Motivation
Escalation of Commitment Psychological and Social Determinants* Ego defence* Individual motivators* Peer pressure* Saving face Psychological and Social Determinants* Ego defence* Individual motivators* Peer pressure* Saving face Organizational Determinants* Breakdown in communication* Politics* Organizational inertia Escalation of commitment Poor results or outcomes Project Characteristics* A delayed return on the investment* Setbacks attributed to temporary causes Contextual Determinants* External political pressure
Advantages and Disadvantages of Group-Aided Decision Making Advantages Disadvantages 1. Greater pool of knowledge 1. Social pressure 2. Different perspectives 2. Minority domination 3. Greater comprehension 3. Logrolling 4. Increased acceptance 4. Goal displacement 5. Training ground 5. ‘Groupthink’ Contingency Based Recommendations- Use groups when consistency is important.- Let the most competent individual make the decision given time constraints.- Groups make poorer decisions when faced with environmental threats and potential serious impacts of a decision.
A Model of Participative Management Acceptance and Commitment Acceptance and Commitment Participation in Goal Setting Participation in Decision Making Participation in Goal Setting Participation in Decision Making Autonomy Increased control over work behaviour Security Security Contingency Factors * Design of work * Trust * Readiness to Participate Performance and Innovation Challenge Participation in Problem Solving Participation in Change Completion of Meaningful Tasks Satisfaction
Vroom and Jago’s Decision-Making Model QR Quality Requirement Commitment Requirement Leader’s Information Problem Structure Commitment Probability Goal Congruence Subordinate Conflict SubordinateInformation CR LI Yes AI ST CP No Yes Yes GII CP GC SI SI No No Yes GC Yes CII CP No No CO No No Yes SI No No GII SI GC LI ST Yes Yes CO CII High GC No AII CP No CR No GC CI Low CO CO Yes Yes Yes No CII High ST No LI State the Problem Yes AI QR Low Low Yes CR GII High No CP
Group Problem-Solving Techniques • Brainstorming: Process to generate a quantity of ideas- Freewheeling is encouraged- Criticism is discouraged- Quantity of ideas is pursued- Combining and piggybacking on ideas is encouraged • Nominal Group Technique: Process to generate ideas and evaluate solutions- This technique reduces roadblocks to group decision making by * separating brainstorming from evaluation * promoting balanced participation * incorporating mathematical voting techniques • The Delphi Technique: Process to generate ideas from physically dispersed experts • Computer-Aided Decision Making: Computers are used to reduce consensus roadblocks while collecting more information faster
A Model of Organizational Creativity and Innovation Individual Characteristics Intellectual abilitiesTacit (implied) and explicit knowledge Styles of thinking Personality traits Intrinsic task motivation Individual Characteristics Intellectual abilitiesTacit (implied) and explicit knowledge Styles of thinking Personality traits Intrinsic task motivation Individual creative behaviour/performance Group Characteristics - Norms - Diversity - Cohesiveness - Roles - Size - Problem-solving approaches Group Characteristics - Norms - Diversity - Cohesiveness - Roles - Size - Problem-solving approaches Group creative behaviour/performance Organizational Characteristics - Culture - Strategy - Resources - Structure - Rewards - Technology Organizational Characteristics - Culture - Strategy - Resources - Structure - Rewards - Technology Organizational creativity and innovation