decision making and employee involvement-ob 9visit us @ management.umakant.info

8/8/2019 Decision Making and Employee Involvement-OB 9Visit Us @ Management.umakant.info

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Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.McShane/ Von Glinow 2/e

Decision Makingand Employee

involvement


involvement




Decision Making at JetBlueDecision Making at JetBlue

David Neeleman made

numerous decisions leading

up to the launch of JetBlue,

the New York-based

discount airline that has

taken the industry by storm.© AP Photo/Richard

Drew




3. Develop3. Developalternativesalternatives

1. Identify1. Identifyproblemproblem

2. Choose2. Choose

decisiondecision

stylestyle

Decision Making ModelDecision Making Model

4. Choose4. Choosebest solutionbest solution

5. Implement5. Implementsolutionsolution

6. Evaluate6. Evaluatedecisiondecision




Famous Missed OpportunitiesFamous Missed Opportunities

A Knight’s Tale was a box officesuccess, yet most Hollywood

studios rejected Brian Helgeland’s

proposal. They failed to see the

appeal of a film about a lowlysquire in 14th century England

who aspires to be a knight, set to

1970s rock music and reflecting

contemporary themes of youth,freedom, and equality.

© Photofest




Problem Identification ConcernsProblem Identification Concerns

Perceptual Biases Perceptual defense Political influence by others Mental models

Poor Diagnostic Skills Need to make sense Lack of time Defining solutions as

problems© Photofest




Identifying Problems EffectivelyIdentifying Problems Effectively

Be aware of perceptuallimitations

Discuss the situation with

colleagues

Create early warning signs

Use information technology© Photofest


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Problems with Choosing SolutionsProblems with Choosing Solutions

Goals problemsAmbiguous, conflictingBiased by personal goals

Information processing problemsSelective attentionLimited info processingSequential evaluation with implicit favorite

Maximizing problemsTend to satisfice



Choosing Solutions EffectivelyChoosing Solutions Effectively

Systematically evaluate alternatives

Decision support systems

Scenario planning

Intuition (with caution)



Intuitive Decision MakingIntuitive Decision Making

Ability to know when a problem or opportunityexists and select the best course of actionwithout conscious reasoning

Conduit for tacit knowledge

Logical reasoning that became habit



Escalation of Commitment at BC FerriesEscalation of Commitment at BC Ferries

The government of British

Columbia, Canada decided

to build catamaran-style

ferries for $150 million, butthis cost ballooned to $300

million, partly due to

escalation of commitment. C. Price, Vancouver Province



Escalation of Commitment CausesEscalation of Commitment Causes

Self-justification

Gambler’s fallacy

Perceptual blinders

Closing costs C. Price, Vancouver Province



Employee Involvement DefinedEmployee Involvement Defined

The degree that employees share information,knowledge, rewards, and power throughout theorganization

Active in decisions previous outside their control

Power to influence decisions

Knowledge sharing



Forms of Employee InvolvementForms of Employee Involvement

InformalInformal

Casual informationCasual informationexchangesexchanges

Example: Boss asksExample: Boss asksfor ideasfor ideas

FormalFormal

Codified practicesCodified practices

Example: self-Example: self-directed nursingdirected nursing

teamsteams

StatutoryStatutory

Required by lawRequired by law

Example: EuropeanExample: European

codeterminationcodetermination

VoluntaryVoluntary

No legalNo legalrequirementrequirement

Example: BuildingExample: Buildingdesign task force atdesign task force atGreat PlainsGreat Plains

DirectDirect

EmployeesEmployeespersonally involvedpersonally involved

Example: Staff voteExample: Staff vote

against smoking inagainst smoking inthe workplacethe workplace

RepresentativeRepresentative

Reps decide for Reps decide for other employeesother employees

Example: EmployeeExample: Employeereps as directors atreps as directors atUnited AirlinesUnited Airlines



HighHigh

MediumMedium

LowLow

Levels of Employee InvolvementLevels of Employee Involvement

High involvement -- Employeeshave complete decision makingpower (e.g.. SDWTs)

Full consultation -- Employeesoffer recommendations (e.g.. gainsharing)

Selective consultation --employees give information, butdon’t know the problem



Features of Self-Directed TeamsFeatures of Self-Directed Teams

Complete entire work process

Tasks assigned by the team, not supervisors

Highly autonomous --responsible for inputs,processes, outputs

Responsible for correcting problems

Receive team-level feedback and rewards



Sociotechnical Systems at CelesticaSociotechnical Systems at Celestica

Celestica adopted sociotechnical

systems (STS) as its template for

corporate renewal. The computer

manufacturer assigned self-directed work teams to each work

process and identified key

variances that the teams control

in those processes. STS doubled

productivity and increased job

satisfaction.

Courtesy of Celestica



Sociotechnical Systems ConditionsSociotechnical Systems Conditions

Primary work unit

Semi-autonomous groups

Control key variances

Joint optimization

Courtesy of Celestica



How Involvement Improves DecisionsHow Involvement Improves Decisions

EmployeeInvolvement

Leads to better Leads to better

definition of problemsdefinition of problems

More likely to selectMore likely to selectthe best optionthe best option

Improves number andImproves number and

quality of solutionsquality of solutions



Determining Optimal Involvement LevelDetermining Optimal Involvement Level

Decision quality

Decision commitment

Risk of conflict

Decision structure



Overcoming Involvement ChallengesOvercoming Involvement Challenges

Cultural Differences Better in collectivist and low power distance cultures

Management Resistance

Educate/train managers to become facilitators

Employee and Union Resistance Concerns about increased stress, giving up union rights,

and union power

Solution is trust and involvement




involvement


involvement

decision making and employee involvement-ob 9visit us @ management.umakant.info

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