Table of Contents CHAPTER 3: FOUNDATIONS OF DECISION MAKING  ......................................................  1  

3.1 Decision-making process  ....................................................................................................  1  3.2 Three approaches managers can use to make decisions  ..............................................  3  3.3 Types of decisions and decision making conditions managers face  ............................  4  3.4 Group decision making  ........................................................................................................  5  3.5 Contemporary issues in management decision making  .................................................  5  

CHAPTER 9: GROUPS & TEAMWORK  ...............................................................................  6  9.1 Groups and the stages of group development  .................................................................  6  9.2 Major concepts of group behaviour  ...................................................................................  6  9.3 How groups are turned into effective teams  .....................................................................  7  9.4 Contemporary issues in managing teams  ........................................................................  8  

TOPIC 5 CHAPTER 3: FOUNDATIONS OF DECISION MAKING 3.1 Decision-making process  

   

1.   Identification  of  a  problem    2.   Identification  of  decision  criteria    3.   Allocation  of  weights  to  criteria    4.   Development  of  alternatives    5.   Analysis  of  alternatives    6.   Selection  of  an  alternative    7.   Implementation  of  the  alternative    8.   Evaluation  of  decision  effectiveness    

               

Weighting  Decision  Criteria      

1.   Most  important  criteria  weight=  10  

     

2.   Analyse  Alternatives    

   Selecting  the  Best  Alternative    Weight  Criteria  X  Alternatives    

                   

Common  Decision-­‐  Making  Errors      

   

3.2 Three approaches managers can use to make decisions  Types  of  managerial  decisions-­‐  Decisions  managers  may  make:    

•   Planning    •   Organising    •   Leading    •   Controlling    

 Three  approaches  to  decision  making:    1.   Rational  decision  making:  choices  are  consistent  and  value  maximising  within  specified  

constraints    2.   Bounded  rational  decision  making:  decisions  are  rational  within  the  limits  of  a  

manager’s  ability  to  process  information    3.   Intuitive  decision  making:  decisions  are  made  based  on  experience,  feelings,  and  

accumulated  judgment.  This  can  complement  both  rational  and  bounded  rational  decision  making.    

               

Intuitive  decision  making:  

     

3.3 Types of decisions and decision making conditions managers face  Types  of  Problems:  

1.   Structured-­‐  clear/  familiar    2.   Unstructured-­‐  unusual/ambiguous    

 Types  of  Decisions:  

1.   Programmed-­‐  procedures,  rules,  policies    2.   Non-­‐programed-­‐  unique  solution    

 Problems,  Decision  Types,  and  Organisational  Levels      

 

 Decision  Making  Conditions;  

•   Certainty    •   Risk    •   Uncertainty    

 

3.4 Group decision making  Decisions  are  often  made  by  groups  representing  the  people  who  will  be  most  affected  by  those  decisions.    Committees    

•   Task  forces    •   Review  panels    •   Work  teams    

     Group  decision  making    Advantages     Disadvantages    More  complete  information     Time-­‐consuming    Diversity  of  experiences/perspectives     Minority  dominated    More  alternatives  generated     Ambiguous  responsibility    Increased  acceptance  of  solution   Pressures  to  conform    Increased  legitimacy     Groupthink      Groupthink    When  a  group  exerts  extensive  pressure  on  an  individual  to  withhold  his  or  her  different  views  to  appear  to  agree    

•   What  it  does    •   How  it  occurs    •   How  to  minimise  it  

 Improving  Group  Decision  Making  Make  group  decisions  more  creative  by:  

1.   Brainstorming    2.   The  nominal  group  technique    3.   Electronic  meetings    

 

3.5 Contemporary issues in management decision making Contemporary issues

1.   National culture 2.   Creativity 3.   Design Thinking 4.   Big data

CHAPTER 9: GROUPS & TEAMWORK 9.1 Groups and the stages of group development  A  group  is  defined  as  two  or  more  interacting  and  interdependent  individuals  who  come  together  to  achieve  specific  goals      Examples  of  formal  work  groups:    Command  groups-­‐  groups  that  are  determined  by  the  organisation  chart  and  composed  of  individuals  who  report  directly  to  a  given  manager      Task  groups-­‐  groups  composed  of  individuals  brought  together  to  complete  and  specific  job  task;  their  existence  is  often  temporary  because  when  the  task  is  completed  the  group  disbands      Cross-­‐functional  teams-­‐  groups  that  bring  together  the  knowledge  and  skills  of  individual  from  various  work  areas  or  groups  whose  members  have  been  trained  to  do  each  other’s  jobs      Self-­‐managed  teams-­‐  groups  that  are  essentially  independent  and  that,  in  addition  to  their  own  tasks,  take  on  traditional  managerial  responsibilities,  such  as  hiring,  planning  and  scheduling  and  evaluating  performance      Five  stages  of  group  development:    

   

9.2 Major concepts of group behaviour  Roles:  behaviour  patterns  expected  of  someone  who  occupies  a  given  position  in  a  social  unit      Norms:  standards  or  expectations  accepted  and  shared  by  a  group’s  members      Conformity:  desire  to  gain  acceptance  in  groups  make  people  susceptible  to  conformity  pressures      

Status:  prestige,  grading,  position  or  rank  within  a  group      Size:  affects  efficiency,  effectiveness,  productivity  e.g.  social  loafing      Cohesiveness:  depends  on  how  much  members  are  motivated  to  remain  in  a  group  and  their  shared  goals      

9.3 How groups are turned into effective teams  GROUPS  VS  TEAMS    Work  groups  primarily  share  information  to  help  each  other  do  his/her  job  more  efficiently  and  effectively    Work  teams  work  intensely  on  a  specific,  common  goal  using  their  positive  synergy,  individual  and  mutual  accountability  and  complementary  skills    Different  types  of  work  teams:  

1.   Problem  solving  team    2.   Self-­‐managed  work  team    3.   Cross  functional  team    4.   Virtual  team    

 Team  effectiveness:  Context     Composition     Work  design     Process    Adequate  resources    Leadership  and  structure    Climate  of  trust    Performance  evaluation  and  reward  systems    

Abilities  of  members    Personality    Allocating  roles    Diversity    Size  of  teams  Member  flexibility    Member  preferences    

Autonomy    Skill  variety    Task  identity    Task  significance      

Common  purpose    Specific  goals    Team  efficacy    Conflict  levels    Socials  loafing    

 

   

   How  managers  shape  team  behaviour:    

1.   Selection-­‐  when  hiring  team  members,  managers  should  check  applicants  have  the  technical  and  team  skills  required  to  successfully  perform  the  job  and  team  roles    

2.   Training-­‐  performing  well  in  a  team  involves  a  set  of  behaviours  that  can  be  learned    3.   Reward  systems-­‐  needs  to  encourage  cooperative  effort  rather  that  competitive  

ones    

9.4 Contemporary issues in managing teams    Managing  Global  Teams    

  Team Composition: In addition to recognising team members’ abilities, skills, knowledge and personality, managers need to understand the cultural characteristics of the groups and the group members they manage Team structure: Conformity, status loafing, and cohesiveness vary in different cultures Team processes: Communication issues, managing conflict and virtual teams can be particularly challenging for managers When teams are not the answer- three tests:

1.   Can the work be done better by more than one peson? 2.   Does the work create a common purpose or set of goals for the people in the

group that’s more than the sum of individual goals? 3.   Is there interdependence between individuals and tasks?