chapter 12: decision making, creativity, and ethics · chapter outline •how should decisions be...

12-1

Chapter 12:

Decision

Making,

Creativity, and

Ethics

Organizational

Behaviour

5th

Canadian Edition

Langton / Robbins / Judge

Copyright © 2010 Pearson Education

Canada

12-2 Langton, Robbins and Judge, Organizational Behaviour, Fifth Cdn. Ed.

Copyright © 2010 Pearson Education Canada

Chapter Outline

• How Should Decisions Be Made?

• How Do Individuals Actually Make Decisions?

• Improving Decision Making Through Knowledge

Management

• Group Decision Making

• Creativity in Organizational Decision Making

• What About Ethics in Decision Making?

• Corporate Social Responsibility



Decision Making, Creativity, and

Ethics

1. Is there a right way to make decisions?

2. How do people actually make decisions?

3. How can knowledge management improve

decision making?

4. What factors affect group decision making?

5. How can we get more creative decisions?

6. What is ethics, and how can it be used for better

decision making?

7. What is corporate social responsibility?



Exhibit 12-1 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.



Exhibit 12-3 Nominal Group

Technique



Exhibit 12-4

Evaluating Group Effectiveness



Exhibit 12-5 The Three Components

of Creativity



Exhibit 12-6 Factors Affecting Ethical

Decision-Making Behaviour

Stage of moral

development

Organization

environment

Locus of

control

Ethical

decision-making

behaviour



Exhibit 12-7

Stages of Moral Development

6. Following self-chosen ethical

principles even if they violate

the law.

5. Valuing rights of others and

upholding absolute values

and rights regardless of the

majority’ s opinion. 4. Maintaining conventional

order by fulfilling

obligations to which you have agreed.

3. Living up to what is

expected by people close to you.

2. Following rules only

when doing so is in your

immediate interest.

1. Sticking to rules to avoid

physical punishment.

Conventional

Principled

Preconventional

Source: Based on L. Kohlberg, “Moral Stages and Moralization: The Cognitive-Developmental Approach,”

in Moral Development and Behaviour: Theory, Research, and Social Issues, ed. T. Lickona (New York:

Holt, Rinehart and Winston, 1976), pp. 34-35.



Exhibit 12-8

Is a Decision Ethical?

Unethical

Unethical

Unethical

Ethical

o N

o N

o N

s e

Y

s e

Y

s e

Y

Does the

decision

respect the

rights of the

individuals

affected?

Is the decision

motivated by

self-serving

interests?

Is the decision

fair and

equitable?

Question 1

Question 2

Question 3



Summary and Implications

1. Is there a right way to make decisions? – The rational decision making model describes six steps: define

the problem, identify the criteria, allocate weights to the criteria, develop alternatives, evaluate alternatives, select the best alternative.

2. How do people actually make decisions? – Decision makers may rely on bounded rationality, satisficing, and

intuition. There are also shortcuts that are used.

3. How can knowledge management improve decision making? – By electronically storing information that employees have,

organizations make it possible to share collective wisdom.

4. What factors affect group decision making? – Group decisions are time-consuming, lead to conformity

pressures, can be dominated by one or few members, and suffer from ambiguous responsibility.

chapter 12: decision making, creativity, and ethics · chapter outline •how should decisions be...

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