1027343[1] group decision making

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PowerPoint Presentation by Charlie CookPowerPoint Presentation by Charlie Cook

The University of West AlabamaThe University of West Alabama

ManagerialManagerialDecision MakingDecision Making

Adapted byAdapted by

Dr. Ajay Kr. SinghDr. Ajay Kr. Singh

ChapterChapter

66

Part 2 Planning Challenges in the 21st CenturyPart 2 Planning Challenges in the 21st Century 2007 Thomson/South-Western. All rights reserved. 2007 Thomson/South-Western. All rights reserved.


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Sources of Organizational andSources of Org

anizational and

Entrepreneurial DecisionsEntrep

reneurial Decisions

Decision makingDecision making The process through which managers and leadersThe process through which managers and leaders

identify and resolve problems and capitalize onidentify and resolve problems and capitalize on

opportunities.opportunities. ProblemProblemA condition that occurs when some aspect ofA condition that occurs when some aspect of

organizational performance is less than desirable.organizational performance is less than desirable.

OpportunityOpportunityAny situation that has the potential to provideAny situation that has the potential to provide

additional beneficial outcomes.additional beneficial outcomes.


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Figure 6.Figure 6.33 Two Contrasting Decision ModelsTwo Contrasting Decision Models


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Ethics and Decision MakingEthics and Decision Making

Ethical DilemmaEthical Dilemma A situation in which a person must decide whether or not to doA situation in which a person must decide whether or not to do

something that, although benefiting oneself or the organization,something that, although benefiting oneself or the organization,

may be considered unethical and perhaps illegal.may be considered unethical and perhaps illegal. Have you accurately assessed the problem?Have you accurately assessed the problem?

Do you have all the necessary information?Do you have all the necessary information? Where are your loyalties?Where are your loyalties?

Have you generated a list of possible alternatives and consideredHave you generated a list of possible alternatives and considered

how each will affect the other parties involved?how each will affect the other parties involved?

Have you tested each alternative by asking whether it is legal, fair,Have you tested each alternative by asking whether it is legal, fair,

and just to all parties involved?and just to all parties involved? Would your decision change if you were to disclose it to your family,Would your decision change if you were to disclose it to your family,

your boss, or society as a whole?your boss, or society as a whole?

Does your decision have any symbolic potential?Does your decision have any symbolic potential?

Could it be misunderstood?Could it be misunderstood?


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Behavioral Decision ModelBehavioral Decision Model

Acknowledges the human limitations that makeAcknowledges the human limitations that makerational decisions difficult to achieve.rational decisions difficult to achieve.A managers cognitive ability to process information isA managers cognitive ability to process information is

limited.limited.

Managers usually attempt to behave rationally withinManagers usually attempt to behave rationally withintheir limited perception of a situation.their limited perception of a situation.

The complexity of most organizational situations forcesThe complexity of most organizational situations forces

managers to view problems within sharply restrictedmanagers to view problems within sharply restricted

bounds.bounds. The behavior of managers can be considered rational,The behavior of managers can be considered rational,

but only in terms of their simplified view of the problem.but only in terms of their simplified view of the problem.


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Concepts Important to the BehavioralConcepts Important to the Behavioral

Decision ModelDecision Model

Bounded RationalityBounded Rationality Recognizes that people are limited by organizationalRecognizes that people are limited by organizational

constraints such as time, information, resources, andconstraints such as time, information, resources, and

their own mental capabilities.their own mental capabilities. IntuitionIntuitionAn unconscious analysis based on past experience.An unconscious analysis based on past experience.

SatisficingSatisficing The search and acceptance of something that isThe search and acceptance of something that is

satisfactory rather than perfect or optimal.satisfactory rather than perfect or optimal.


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Concepts Important to the Decision ModelConcepts Important to the Decision Model

(contd)(contd)

Escalation of CommitmentEscalation of Commitment The tendency to increase commitment to a previouslyThe tendency to increase commitment to a previously

selected course of action beyond the level that wouldselected course of action beyond the level that would

be expected if the manager followed an effectivebe expected if the manager followed an effectivedecision-making process.decision-making process.


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Fostering Quality in the Decision-MakingFostering Quality in the Decision-Making

ProcessProcess

VigilanceVigilance Being concerned for and attentive toBeing concerned for and attentive to

the correct decision-makingthe correct decision-making

procedures can make a goodprocedures can make a gooddecision more likely.decision more likely.


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Group Considerations in Decision MakingGroup Considerations in Decision Making

Group decision making is becoming moreGroup decision making is becoming morecommon as organizations focus on improvingcommon as organizations focus on improving

customer service and push decision making tocustomer service and push decision making to

lower levels.lower levels.


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Participative ModelsParticipative Models

Vroom and Yetton ModelVroom and Yetton Model Helps managers determine when group decisionHelps managers determine when group decision

making is appropriate.making is appropriate.

Postulates that there are five decision-making stylesPostulates that there are five decision-making styles

arranged along a continuum.arranged along a continuum.The decision methods become progressively moreThe decision methods become progressively more

participative as one moves from the highlyparticipative as one moves from the highly

autocratic style (AI) to the group style (GII), whereautocratic style (AI) to the group style (GII), where

the manager allows the group to decide.the manager allows the group to decide.


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Situational Contingencies Affecting DecisionSituational Contingencies Affecting Decision

Making ParticipationMaking Participation

Decision significanceDecision significance

Importance of commitmentImportance of commitment

Leader expertiseLeader expertise Likelihood of commitmentLikelihood of commitment

Team supportTeam support

Team expertiseTeam expertise Team competenceTeam competence


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Participative Models (contd)Participative Models (contd)

Vroom and Jago ModelVroom and Jago Model The nature of the decision itself determines theThe nature of the decision itself determines the

appropriate degree of participationappropriate degree of participationdiagnosticdiagnostic

questions help managers select the appropriate level.questions help managers select the appropriate level.

A participative decision style is desirable when:A participative decision style is desirable when: Subordinates have useful information and share theSubordinates have useful information and share the

organizations goals.organizations goals.

Subordinates commitment to the decision is essential.Subordinates commitment to the decision is essential.

Timeliness is not crucial.Timeliness is not crucial.

Conflict is unlikely.Conflict is unlikely.


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What is Groupthink?What is Groupthink?

An agreement-at-any-cost mentality that resultsAn agreement-at-any-cost mentality that resultsin ineffective group decision making.in ineffective group decision making.

Characteristics of GroupthinkCharacteristics of Groupthink

Illusions of invulnerabilityIllusions of invulnerability

Collective rationalizationCollective rationalization

Belief in the morality of group decisionsBelief in the morality of group decisions

Self-censorshipSelf-censorship Illusion of unanimity in decision makingIllusion of unanimity in decision making

Pressure on members who express argumentsPressure on members who express arguments


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Group Decision Making

StrengthsMore complete

information

Increased diversity of

viewsHigher quality of

decisions

Increased acceptance

of solutions

WeaknessesMore time consuming

Increased pressure to

conform

Domination by one or afew members

Ambiguous

responsibility


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Techniques for Quality in Group DecisionTechniques for Quality in Group Decision

MakingMaking

BrainstormingBrainstorming

Nominal Group TechniqueNominal Group Technique

Delphi TechniqueDelphi Technique

Devils Advocacy ApproachDevils Advocacy Approach

Dialectical InquiryDialectical Inquiry


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BrainstormingBrainstorming

BrainstormingBrainstormingA technique to enhance creativity by encouragingA technique to enhance creativity by encouraging

group members to generate as many novel ideas asgroup members to generate as many novel ideas as

possible on a given topic without evaluating them.possible on a given topic without evaluating them.

Rules of BrainstormingRules of Brainstorming Freewheeling is encouraged.Freewheeling is encouraged.

Ideas are not criticized as they are being generated.Ideas are not criticized as they are being generated.

Quality is encouraged.Quality is encouraged.

The wilder the ideas, the better.The wilder the ideas, the better.

Piggyback on previously stated ideas.Piggyback on previously stated ideas.

Ideas are evaluated after alternatives are generated.Ideas are evaluated after alternatives are generated.


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Other Decision-Making TechniquesOther Decision-Making Techniques

Nominal Group Technique (NGT)Nominal Group Technique (NGT)A structured process designed to stimulate creativeA structured process designed to stimulate creative

group decision making where agreement is lacking orgroup decision making where agreement is lacking or

the members have incomplete knowledge concerningthe members have incomplete knowledge concerning

the nature of the problem.the nature of the problem. Delphi TechniqueDelphi Technique Uses experts to make predictions and forecasts aboutUses experts to make predictions and forecasts about

future events without meeting face-to-face.future events without meeting face-to-face.


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Delphi Technique

The Delphi technique was developed at the RANDcorporation in 1948 to gain expert consensus without

introducing the adverse side effects of group meetings.


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Other Decision-Making TechniquesOther Decision-Making Techniques (contd)(contd)

Devils AdvocacyDevils AdvocacyAn individual or subgroup appointed to critique aAn individual or subgroup appointed to critique a

proposed course of action and identify problems toproposed course of action and identify problems to

consider before the decision is final.consider before the decision is final.

Dialectical InquiryDialectical InquiryApproaches a decision from two opposite points andApproaches a decision from two opposite points and

structures a debate between conflicting views.structures a debate between conflicting views.


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Classifying Decision SituationsClassifying Decision Situations

Programmed decisionProgrammed decisionA decision made in response to a situation that isA decision made in response to a situation that is

routine or recurring.routine or recurring.

Example: starting your automobileExample: starting your automobile

Nonprogrammed decisionNonprogrammed decisionA decision made in response to a situation that isA decision made in response to a situation that is

unique, unstructured, or poorly defined.unique, unstructured, or poorly defined.

Example: deciding to get a tattooExample: deciding to get a tattoo

1027343[1] group decision making

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