1. Decision Making and Creativity

2. Decision Making at Rising Sun
Courtesy of Rising Sun Pictures
Rising Sun Pictures and other computer graphics firms in Australia and New Zealand emphasise creative decision making and employee involvement.

3. Decision Making Defined
Courtesy of Rising Sun Pictures
Conscious process of making choices among one or more alternatives with the intention of moving toward some desired state of affairs.

4. Rational Choice Decision Process

5. Problem Identification Process
Problems and opportunities are not announced or pre-defined
need to interpret ambiguous information
Problem identification uses both logical analysis and unconscious emotional reaction during perceptual process
need to pay attention to both logic and emotional reaction in problem identification

6. Famous Missed Opportunities
A famous missed opportunity for many Hollywood studios: Nia Vardalos’s comedy screenplay about her Greek- Canadian family was rejected by almost everyone, yet it eventually became the top- grossing independent film in history and was nominated for an Oscar.
CP/Everett Collection

7. Problem Identification Challenges
Influence from others ‘frames’ the situation.
Coping mechanisms block out negative information.
Opportunities that differ from mental models become missed opportunities.
Faulty diagnostic skills
Decisiveness short circuits problem identification
Defining problems in terms of solutions
CP/Everett Collection

8. Identifying Problems Effectively
Be aware of perceptual and diagnostic limitations.
Understand mental models.
Discuss the situation with colleagues – see different perspectives.
CP/Everett Collection

9. Making Choices: Rational vs OB Views
Goals
Rational: Clear, compatible, agreed upon
OB: Ambiguous, conflicting, lack agreement
Processing
Information
Rational: People can process all information
OB: People process only limited information
Evaluation Timing
Rational: Choices evaluated simultaneously
OB: Choices evaluated sequentially
more

10. Making Choices: Rational vs OB (con’t)
Standards
Rational: Evaluate against absolute standards
OB: Evaluate against implicit favourite
Info Quality
Rational: People rely on factual information
OB: Rely on perceptually distorted information
Decision Objective
Rational: Maximisation – the optimal choice
OB: Satisficing – a “good enough” choice

11. Emotions and Making Choices
Emotional marker process forms preferences before we consciously think about choices.
Moods and emotions influence the decision process
affects vigilance, risk aversion, etc.
We “listen in” on our emotions and use that information to make our choices.

12. Intuitive Decision Making
Ability to know when a problem or opportunity exists and select the best course of action without conscious reasoning.
Intuition as emotional experience
Gut feelings are emotional signals
Not all emotional signals are intuition – uses situation specific templates of tacit knowledge
Intuition as rapid unconscious analysis
Uses action scripts – pre-programmed decision and behaviour routines

13. Making Choices More Effectively
Systematically evaluate alternatives.
Balance emotions and rational influences.
Scenario planning.

14. Escalation of Commitment
Escalation of commitment occurred when the British government continued funding the Concorde supersonic jet long after it’s lack of commercial viability was apparent. Some scholars refer to escalation of commitment as the “Concorde fallacy”.
© Corel Corp. With permission

15. Escalation of Commitment Causes
Self-justification
Prospect theory effect
Perceptual blinders
Closing costs
© Corel Corp. With permission

16. Evaluating Decisions Better
Separate decision choosers from evaluators.
Establish a preset level to abandon the project.
Involve several people in the evaluation process.

17. Employee Involvement Defined
The degree to which employees influence how their work is organised and carried out.
Level of control over decision making
Different levels and forms of involvement

18. Employee Involvement Model
Potential Involvement Outcomes
Employee Involvement
Better problem identification
More/better solutions generated
Best choice more likely
Higher decision commitment
Contingencies
of Involvement

19. Contingencies of Involvement
Higher employee involvement is better when:
Decision Structure
Problem is new and complex (i.e non-programmed decision)
Knowledge Source
Employees have relevant knowledge beyond leader
Decision Commitment
Employees would lack commitment unless involved
Risk of Conflict
Norms support firm’s goals
Employee agreement likely

20. Creative Process Model
Verification
Insight
Incubation
Preparation

21. Persistence Cures Peptic Ulcers
Many experts doubted Barry Marshall’s (left) and Robin Warren’s (right) claims that peptic ulcers are caused by stomach bacteria. Fortunately, the Australian researchers’ persistence broke through prevailing dogmas and launched a completely different view of ulcer pathology.
AFP/Getty Images

22. Characteristics of Creative People
Above average intelligence
Persistence
Relevant knowledge and experience
Inventive thinking style
AFP/Getty Images

23. Creative Work Environments
Learning orientation
Encourage experimentation
Tolerate mistakes
Intrinsically motivating work
Task significance, autonomy, feedback
Open communication and sufficient resources
Team competition and time pressure have complex effect on creativity.

24. Creative Activities Review abandoned projects
• Explore the issue with other people
Redefine the Problem
• Storytelling
• Artistic activities
• Morphological analysis
Associative
Play
• Diverse teams
• Information sessions
Internal tradeshows
Cross- Pollination

25. Solutions to Creativity Brainbusters

26. Double Circle Problem

27. Nine Dot Problem

28. Nine Dot Problem Revisited

29. Word Search
FCIRVEEALTETITVEERS

30. Burning Ropes One hour to burn completely After first rope burned
i.e. 30 minutes
One hour to burn completely

31. Chapter 8 Extras

32. Levels of Employee Involvement
High involvement
Employees have complete decision making power (e.g. SDWTs)
Full consultation
Employees offer recommendations (e.g. gain sharing)
Selective consultation
Employees give information, but don’t know the problem
High
Medium
Low