Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 10 Organizational Behavior: Foundations, Realities, & Challenges Nelson & Quick, 5 th edition Decision Making by Individuals and Groups

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved The Decision-Making Process Programmed Decision – Nonprogrammed Decision –

The Decision- Making Process Recognize... Gather and evaluate... Identify... List and evaluate... Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved

The Decision- Making Process Select... Gather... Implement... Follow up Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Models of Decision Making Effective Decision Definition: Garbage Can Model Bounded Rationality Model Rational Model

Rationality – Rational Model Copyright ©2006 by South-Western, a division of Thomson Learning All rights reserved

Bounded Rationality – Bounded Rationality Model Copyright ©2006 by South-Western, a division of Thomson Learning All rights reserved

Bounded Rationality – Bounded Rationality Model Heuristics – Satisfice – Copyright ©2006 by South-Western, a division of Thomson Learning All rights reserved

Garbage Can Model – Problems Participants From M.D. Cohen, J.G. March, and J.P. Olsen in Administrative Science Quarterly 17 (March 1972) Reprinted by permission of the Administrative Science Quarterly Garbage Can Model Solutions Choice opportunities Copyright ©2006 by South-Western, a division of Thomson Learning All rights reserved

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Risk and the Manager Risk Aversion – Risk takers -- Evidence:

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Escalation of Commitment Why it occurs -- How to deal with it -- The tendency to continue to commit resources to a failing course of action

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Cognitive Style Cognitive Style – Jungian theory offers a way of understanding and appreciating differences among individuals.

Jung’s Cognitive Style Style Sensing/thinking Sensing/feeling Intuiting/thinking Intuiting/feeling Ideal Organization ST SF NT NF Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved

Z Problem-Solving Model Look at the facts and details Can it be analyzed objectively? What alternatives do the facts suggest? What impact will it have on those involved? ? ? ? Figure from Type Talk at Work by Otto Kroeger and Janet M. Thuesen. Copyright © 1992 by Otto Kroeger and Janet M. Thuesen. Used by permission of Dell Publishing, a division of Random House. Inc. Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved

Two Brains, Two Cognitive Styles Left HemisphereRight Hemisphere Ideal = From Left Brain, Right Brain by Springer and Deutsch © 1989, 1985, 1981 by Sally Springer and Georg Deutsch. Used with permission by W.H. Freeman and Company Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Influences on Decision Making Intuition – Creativity –

Four Stages of Creative Process Verification Illumination Incubation Preparation Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Influences on Creativity Individual examples –Cognitive Processes –Personality Factors Organizational examples --

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Four Types of Creativity because it is expected of you in your job because you want to be creative You discover problems You respond to problems

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Participative Decision Making Organizational Foundations – Individual Prerequisites – Individuals who are affected by decisions influence the making of those decisions

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Group Decision Making Role of synergy – Role of social decision schemes – Majority Wins Truth Wins Two-thirds Majority First-shift

Group Decision Making Advantages Disadvantages Copyright ©2006 by South-Western, a division of Thomson Learning All rights reserved

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Group Phenomenon Groupthink – Group Polarization –

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Preventing Groupthink From Janis, Irving L., Groupthink: Psychological Studies of Policy Decisions and Fiascoes, Second Edition. Copyright © 1982 by Houghton Mifflin Company.

Group Decision Techniques Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Technological Aids to Decision Making Expert Systems – Decision Support Systems – Group Decision Support Systems –

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Decision Making in the Virtual Workplace

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Ethics Check Is it legal? -- Is it balanced? -- How will it make me feel about myself