Organizational Behavior

11 Chapter  



Models of Decision Making Dynamics of Decision Making Group Decision Making

Individual and Group Decision Making

11-2

Models of Decision Making 

Rational Model logical four-

step approach to decision making    

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Identifying the problem Generating alternative solutions Selecting solution Implementing and evaluating the solution

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11-4

Simon’s Normative Model of Decision Making  

Based on premise that decision making is not rational Decision making is characterized by  Limited information processing  Use of judgmental heuristic  Satisficing

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11-6

Decision Making Styles

High

Low

Analytical

Conceptual

Directive

Behavioral

Tasks and Technical Concerns

Figure 11-2

People and Social Concerns

Value Orientation McGraw-Hill

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11-7

Escalation of Commitment

Figure 11-3

Psychological and Social Determinants * Ego defense * Individual motivators * Peer pressure * Saving face Organizational Determinants * Breakdown in communication * Politics * Organizational inertia

Escalation of commitment

Poor results or outcomes

Project Characteristics * A delayed return on the investment * Setbacks attributed to temporary causes Contextual Determinants * External political pressure

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11-9

Requirements for Effective Group Decision Making 1) 2) 3) 4)

Developing a clear understanding of the decision situation Developing a clear understanding of the requirements for an affective choice Thoroughly and accurately assessing the positive qualities of alternative solutions Thoroughly and accurately assessing the negative qualities of alternative solutions

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Advantages and Disadvantages of Group-Aided Decision Making Advantages   

 

Greater pool of knowledge Different perspectives Greater comprehension Increased acceptance Training ground

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11-11 Table 11-2

Disadvantages   

 

Social pressure Domination by a vocal few Logrolling Goal displacement “Groupthink”

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11-12

Participative Management 

Participative Management the process whereby employees play a direct role in: 

  

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Setting goals Making decisions Solving problems Making changes in the organization

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11-13

Group Problem Solving Techniques 

Consensus presenting

opinions and gaining agreement to support a decision 

Brainstorming process to

generate a quantity of ideas 

Nominal Group Technique

process to generate ideas and evaluate solutions 

Delphi Technique process

to generate ideas from physically dispersed experts 

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Computer-Aided Decision Making © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

11-15

Creativity 

Creativity process of developing something new or unique

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11-16 Figure 11-4

Stages of the Creativity Process

Preparation

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Concentration

Incubation

Illumination

Verification

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