1. Chapter 11, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 11-1 Copyright © 2007 Pearson Education Canada Chapter 12 Decision Making, Creativity, and Ethics

2. Chapter 11, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 11-2 Copyright © 2007 Pearson Education Canada Steps in the Rational Decision-Making Model Making a Decision Define the problem Identify the criteria Develop alternatives Allocate weights to the criteria Evaluate the alternatives Select the best alternative 1. 2. 3. 4. 5. 6.

3. Chapter 11, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 11-3 Copyright © 2007 Pearson Education Canada Knowledge Management The process of organizing and distributing an organization’s collective wisdom so the right information gets to the right people at the right time.

4. Chapter 11, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 11-4 Copyright © 2007 Pearson Education Canada Knowledge Management Why it’s important: –Organizations can use it to “outsmart” their competition. –Baby boomers are taking their knowledge with them when leaving the workforce. –A well-designed KM system reduces redundancy and makes the organization more efficient.

5. Chapter 11, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 11-5 Copyright © 2007 Pearson Education Canada Knowledge Management Recording knowledge and expertise: –Develop computer databases of pertinent information that employees can readily access. –Create a culture that promotes, values, and rewards sharing knowledge. –Develop mechanisms that allow employees who have built up valuable expertise and insights to share them with others.

6. Chapter 11, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 11-6 Copyright © 2007 Pearson Education Canada Group Decision Making Weaknesses of Group Decision Making More time consuming. Conformity pressures in groups. Discussion can be dominated by one or a few members. Decisions suffer from ambiguous responsibility. Strengths of Group Decision Making Generates more complete information and knowledge. Offers increased diversity of views. Generates higher-quality decisions. Leads to increased acceptance of a solution.

7. Chapter 11, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 11-7 Copyright © 2007 Pearson Education Canada Groupthink and Groupshift Groupthink –Phenomenon in which the norm for consensus overrides the realistic appraisal of alternative courses of action. Groupshift –Phenomenon in which the initial positions of individual members of a group are exaggerated toward a more extreme position.

8. Chapter 11, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 11-8 Copyright © 2007 Pearson Education Canada Symptoms of Groupthink Illusion of invulnerability Assumption of morality Rationalized resistance Peer pressure Minimized doubts Illusion of unanimity

9. Chapter 11, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 11-9 Copyright © 2007 Pearson Education Canada Minimizing Groupthink Encourage group leaders to play an impartial role. Appoint one group member to play the role of devil’s advocate. Stimulate active discussion of diverse alternatives.

10. Chapter 11, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 11-10 Copyright © 2007 Pearson Education Canada What Causes Groupshift? Discussion creates familiarization among group members. Group discussion motivates individuals to take risks. Group diffuses responsibility.

11. Chapter 11, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 11-11 Copyright © 2007 Pearson Education Canada Group Decision-Making Techniques Interacting Groups Brainstorming Nominal Group Technique Electronic Meetings

12. Chapter 11, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 11-12 Copyright © 2007 Pearson Education Canada Nominal Group Technique Individual Activity Individuals silently rank (or vote on) each solution presented. Team members receive description of problem. Individual Activity Individuals silently write down possible solutions. Group Activity Individuals take turns describing solutions to each other; Group then discusses and evaluates ideas.

13. Chapter 11, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 11-13 Copyright © 2007 Pearson Education Canada Evaluating Group Effectiveness Type of Group Effectiveness CriteriaInteractingBrainstormingNominalElectronic Number of ideasLowModerateHigh Quality of ideasLowModerateHigh Social pressureHighLowModerateLow Money costsLow High SpeedModerate High Task orientationLowHigh Potential for interpersonal conflictHighLowModerateLow Feelings of accomplishmentHigh to lowHigh Commitment to solutionHighNot applicableModerate Develops group cohesivenessHigh ModerateLow

14. Chapter 11, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 11-14 Copyright © 2007 Pearson Education Canada Leader Behaviours with Groups AI –You solve the problem or make a decision yourself using whatever facts you have at hand. AII –You obtain the necessary information from subordinates and then decide on the solution to the problem yourself. CI –You share the problem with relevant subordinates one-on- one, getting their ideas and suggestions. However, the final decision is yours alone.

15. Chapter 11, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 11-15 Copyright © 2007 Pearson Education Canada Leader Behaviours with Groups CII –You share the problem with your subordinates as a group, collectively obtaining their ideas and suggestions. Then you make the decision that may or may not reflect your subordinates’ influence. GII –You share the problem with your subordinates as a group. Your goal is to help the group concur on a decision. Your ideas are not given any greater weight than those of others.

16. Chapter 11, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 11-16 Copyright © 2007 Pearson Education Canada Revised Leadership-Participation Model

17. Chapter 11, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 11-17 Copyright © 2007 Pearson Education Canada Creativity in Organizational Decision Making The process of creating products, ideas, or procedures that are novel or original, and are potentially relevant or useful to an organization.

18. Chapter 11, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 11-18 Copyright © 2007 Pearson Education Canada De Bono’s Six Thinking Hats White hat –Impartial thinking, focusing strictly on the facts. Red hat –Expression of feelings, passions, intuitions, emotions. Black hat –A critical, deliberate, evaluating outlook.

19. Chapter 11, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 11-19 Copyright © 2007 Pearson Education Canada De Bono’s Six Thinking Hats Yellow hat –An optimistic, upbeat, positive outlook. Green hat –Creativity, inspiration, imagination, and the free flow of new concepts. Blue hat –Control, an overall “managerial” perspective of the process.

20. Chapter 11, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 11-20 Copyright © 2007 Pearson Education Canada Organizational Factors Affecting Creativity Challenge Freedom Resources Work-group features Supervisory encouragement Organizational support

21. Chapter 11, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 11-21 Copyright © 2007 Pearson Education Canada Creativity Blocks Expected evaluation Surveillance External motivators Competition Constrained choice