compare and contrast the rational model of decision making and simon’s normative model. discuss...

Compare and contrast the rational model of decision making and Simon’s normative model.

Discuss knowledge management techniques used by companies to increase knowledge sharing.

Explain the model of decision-making styles and the stages of the creative process.

Summarize the pros and cons of involving groups in the decision-making process.

Explain how participative management affects performance.

Contrast brainstorming, the nominal group technique, the Delphi technique, and computer-aided decision making.

Making Decisions

Learning Objectives

Chapter Nine

1. You have strayed from your party in trackless timber. You have no special signaling equipment. The best way to attempt to contact your friends is to:

a. Call for help loudly but in a low register

b. Yell or scream as loud as you can

c. Whistle loudly and shrilly

a. Call help loudly but in a low register. Low tones carry further, especially in dense woodland. There is a much better chance of being heard if you call loudly but in a low key. “help” is a good word to use, because it alerts your companions to your plight. Yelling or screaming would not only be less effective, but might be passed off as a bird call by your friends far away.

2. You are in “snake country.” Your best action to avoid snakes is to:

a. Make a lot of noise with your feet

b. Walk softly and quietly

c. Travel at night

a. Make a lot of noise with your feet. Snakes do not like people and will usually do everything they can to get out of your way. Unless you surprise or corner a snake, there is a good chance that you will not even see one, let alone come into contact with it. Some snake do feed at night, and walking softly may bring you right on top of a snake.

3. You are hungry and lost in wild country. The best rule for determining which plants are safe to eat (those you do not recognize) is to:

a. Try anything you see the birds eat

b. Eat anything except plants with bright red berries

c. Put a bit of the plant on your lower lip for five minutes; if it seems all right, try a little more

c. Put a bit of the plant on your lower lip for five minutes; if it seems all right, try a little more The best approach, of course, is to eat only those plants that you recognize as safe. But when you are in doubt and very hungry you may use the lip test. If the plant is poisonous, you will get a very unpleasant sensation on your lip. Red berries alone do not tell you much about the plant’s edibility (unless, of course, you recognize the plant by the berries), and birds just do not have the same digestive systems as we do.

4. The day becomes dry and hot. You have a full canteen of water (about one liter) with you. You should:

a. Ration it—about a capful a day

b. Not drink until you stop for the night, then drink what you think you need

c. Drink as much as you think you need when you need it

c. Drink as much as you think you need when you need it The danger here is dehydration, and once the process starts, your liter of water will not do much to reverse it. Saving or rationing will not help, especially if you are lying unconscious somewhere from sunstroke or dehydration. So use the water as you need it, and be aware of your need to find a water source as soon as possible.

5. Your water is gone; you become very thirsty. You finally come to a dried-up watercourse. Your best chance of finding water is to:

a. Dig anywhere in the stream bed

b. Dig up plant and tree roots near the bank

c. Dig in the stream bed at the outside of a bend

c. Dig in the stream bed at the outside of a bend This the part of the river or stream that flows the fastest, is less stilted, deepest, and the last part to go dry

6. You decide to walk out of the wild country by following a series of ravines where a water supply is available. Night is coming on. The best place to make camp is:

a. Next to the water supply in the ravine

b. High on a ridge

c. Midway up the slope

c. Midway up the slope A sudden rainstorm might turn the ravine into a raging torrent. This has happened to many campers and hikers before they had a chance to escape. The ridge line, on the other hand, increases your exposure to rain, wind, and lightning should a storm break. The best location is on the slope.

7. Your flashlight glows dimly as you are about to make your way back to your campsite after a brief foraging trip. Darkness comes quickly in the woods and the surroundings seem unfamiliar. You should:

a. Head back at once, keeping the light on, hoping the light will glow enough for you to make out landmarks

b. Put the batteries under your armpits to warm them, and then replace them in the flashlight

c. Shine your light for a few seconds, try to get the scene in your mind, move out in the darkness, and repeat the process

b. Put the batteries under your armpits to warm them, and then replace them in the flashlight Flashlight batteries lose much of their power, and weak batteries run down faster in the cold. Warming the batteries, especially if they are already weak, will restore them for awhile. You would normally avoid night travel, of course, unless you were in open country where you could use the stars for navigation. There are just too many obstacles (logs, branches, uneven ground, and so on) that might injure you—and a broken let, injured eye, or twisted ankle would not help your plight right now. Once the sun sets, darkness falls quickly in wooded areas; it would usually be best to stay at your campsite.

8. An early snow confines you to your small tent. You doze with your small stove going. There is danger if the flame is:

a. Yellow b. Blue c. Red

a. Yellow A yellow flame indicates incomplete combustion and a strong possibility of carbon monoxide build-up. Each year many campers are killed by carbon monoxide poisoning as they sleep or doze in tents, cabins, or other enclosed spaces.

9. In waste-deep water with a strong current, when crossing the stream, you should face:

a. upstream

b. Across the stream

c. Downstream

b. Across the stream Errors in facing the wrong way in fording a stream are the cause of many drownings. Facing upstream is the worst alternative; the current could push you back and your pack would provide the unbalance to pull you over. You have the best stability facing across the stream, keeping your eye on the exit point on the opposite bank.

10. You must ford a river that has a strong current, larger rocks and some white water. After carefully selecting your crossing spot, you should:

a. Leave your boots and pack on

b. Take your boots and pack off

c. Take off your pack, but leave your boots on

a. Leave your boots and pack on Errors in fording rivers are a major cause of fatal accidents. Sharp rocks or uneven footing demand that you keep your boots on. If your pack is fairly well balanced, wearing ti will provide you the most stability in the swift current. A waterproof, zippered backpack will usually float, even when loaded with normal camping gear; if you step off into a hole or deep spot, the pack could become a lifesaver.

11. You find yourself rim rocked; your only route is up. The way is mossy, slippery rock. You should try it:

a. Barefoot

b. With boots on

c. In stocking fee

c. In stocking fee Here you can pick your route to some degree, and you can feel where you are stepping. Normal hiking boots become slippery, and going barefooted offers your feet no protection at all.

12. Unarmed and unsuspecting, you surprise a large bear prowling around your campsite. As the bear rears up about ten meters from you, you should

a. Run

b. Climb the nearest tree

c. Freeze, but be ready

to back away

c. Freeze, but be ready to back away Sudden movement will probably startle the bear a lot more than your presence. If the bear is seeking some of your food, do not argue with him; let him forage and be on his way. Otherwise, back very slowly toward some refuge (trees, rock outcrop, etc.)

0-4 Bear Food 5-7 Weekend Camper 8-10 Camp Counselor 11-12 Expert

The Rational Model: logical four-step approach to decision making. Identifying the problem Generating alternative

solutions Selecting a solution Implementing and

evaluating the solution

9-1

McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

The Rational Model of Decision Making

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

The parable of the Sadhu

http://www.wou.edu/~eltonm/Ethics/Material/THE%20PARABLE%20OF%20THE%20SADHU.doc

1. Am I being honest—telling the truth, the whole truth?2. Does the decision parallel my personal values?3. Will I be keeping all promises, commitments, contracts,

etc.?4. Is my decision permitting me to remain faithful?5. Would I have the other person (entity, etc.) do this to me?6. Am I willing to accept responsibility for this decision?7. Is it safe—that is, safe from liability, safe from physical, or

emotional hurt, safe from danger?8. Does it promote excellence?9. Is it fair?10. Is my decision a result of genuine concern for someone

else?

9-2


Skills & Best Practices: Diagnostic Questions to Assess Whether or not Your

Decisions are Ethical


The Normative Model: based on the premise that decision making is not rational.

Decision making is characterized by: Limited information

processing Judgmental

heuristics Satisficing

9-3


Simon’s Normative Model of Decision Making


Judgmental heuristics: rules of thumb or shortcuts that people use to reduce information processing demands.

Availability heuristic: tendency to base decisions on information readily available in memory.

Representativeness heuristic: tendency to assess the likelihood of an event occurring based on impressions about similar occurrences.

Satisficing: choosing a solution that meets a minimum standard of acceptance.

9-4


Judgmental Heuristics


Knowledge management: implementing systems and practices that increase the sharing of knowledge and information throughout an organization.

9-5


Improving Decision Making through Effective Knowledge Management

Tacit knowledge: information gained through experience that is difficult to express and formalize.

Explicit knowledge: information that can be easily put into words and shared with others.


9-6 Figure 9-1

Decision-Making Styles


Analytical Conceptual

Directive Behavioral

Tasks and TechnicalConcerns

People and SocialConcerns

Value Orientation

Low

High

To

lera

nce

fo

r A

mb

igu

ity


Escalation of commitment: sticking to an ineffective course of action too long.

Four reasons for escalation of commitment: Psychological and social determinants Organizational determinants Project characteristics Contextual determinants

9-7


Escalation of Commitment


Set minimum targets for performance, and have decision makers compare their performance with these targets.

Have different individuals make the initial and subsequent decisions about a project.

Encourage decision makers to become less ego-involved with a project.

Provide more frequent feedback about project completion and costs.

Reduce the risk or penalties of failure. Make decision makers aware of the costs of

persistence.

9-8


Skills & Best Practices: RecommendationsTo Reduce Escalation of Commitment


Creativity: process of developing something new or unique.

9-9


Creativity


Lack of discretion and autonomy Fragmented work schedule in which

people are frequently interrupted Insufficient resources to get the job done A focus on short-term goals Time pressures A lack of collaboration and coordination

among employees

9-10


Skills & Best Practices: Avoid TheseCreativity Killers


9-11 Table 9-1

Advantages and Disadvantages of Group-Aided Decision Making

Advantages Disadvantages

Greater pool of knowledge Social pressure

Different perspectives Domination by a vocal few

Greater comprehension Logrolling

Increased acceptance Goal displacement

Training ground “Groupthink”

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Participative Management: involving employees in various forms of decision making. Setting goals Making decisions Solving problems Making changes in the organization

Helps employees fulfill three basic needs: Autonomy Meaningfulness of work Interpersonal contact

9-12


Participative Management


Brainstorming: process to generate a quantity of ideas.

9-13


Group Problem Solving Techniques


1. Defer judgment

2. Build on the ideas of others

3. Encourage wild ideas

4. Go for quantity over quality

5. Be visual

6. Stay focused on the topic

7. One conversation at a time

9-14


Seven Rules for Brainstorming


The Nominal Group Technique: process to generate ideas and evaluate solutions.

Delphi technique: process to generate ideas from physically dispersed experts.

Computer-aided decision making: reduces consensus roadblocks while collecting more information in a shorter period of time.

9-15


Group Problem Solving Techniques (Cont.)


Describe the five stages of Tuckman’s theory of group development.

Contrast roles and norms, and specify four reasons norms are enforced in organizations.

Explain how a workgroup becomes a team, and identify five teamwork competencies.

List at least four things managers can do to build trust.

Describe self-managed teams and virtual teams. Describe groupthink, and identify at least four of its

symptoms.

Effective Groups and Teamwork

Learning Objectives

Chapter Ten

Group: two or more freely interacting people with shared norms and goals and a common identity.

Formal group: formed by the organization. Informal group: formed by friends.

10-1


Formal and Informal Groups


10-2 Table 10-1

Formal Groups Fulfill Organizationaland Individual Functions

Socialize and train newcomers.

Implement complex decisions.

Provide a problem-solving mechanism for complex problems requiring varied information and assessments.

Coordinate interdepartmental efforts.

Generate new or creative ideas and solutions.

Accomplish complex, interdependent tasks that are beyond the capabilities of individuals.

Organizational Functions


10-3 Table 10-1

Formal Groups Fulfill Organizationaland Individual Functions (Cont.)

Provide a problem-solving mechanism for personal and interpersonal problems.

Reduce the individual’s anxieties and feelings of insecurity and powerlessness.

Give individuals an opportunity to test and share their perceptions of social reality.

Develop, enhance, and confirm the individual’s self—esteem and sense of identity.

Satisfy the individual’s need for affiliation.

Individual Functions


10-4 Figure 10-1

Tuckman’s Five-Stage Theory of GroupDevelopment


PerformingAdjourning

Norming

Storming

Forming

Return toIndependence

Dependence/interdependence

Independence


10-5 Figure 10-1

Tuckman’s Five-Stage Theory of GroupDevelopment (Cont.)


Forming Storming Norming Performing

Individual Issues

“How do I fit in?”

“What’s my role here?”

“What do the others expect me

to do?”

“How can I best

perform my role?”

“What’s next?”

Group Issues

“Why are we

here?”

“Why are we fighting over who is in charge and who

does what?”

“Can we agree on roles and work as a

team?”

“Can we do the job

properly?”

“Can we help

members transition

out?”

10-6 Table 10-2

Group Member Roles

Performs “group memory” function by documenting discussion and outcomes

Recorder

Performs routine duties Procedural technician

Tests groups accomplishments with various criteria such as logic and practicality

Evaluator

Keeps group headed toward its stated goal(s).Orienter

Task Roles

Coordinator Pulls together ideas and suggestions

Elaborator Promotes greater understanding through examples or exploration of implications

Opinion seeker/giver Clarifies pertinent values

Information seeker/giver Clarifies key issues

Intiator Suggests new goal or ideas

Description

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Prods group to move along or to accomplish more

Energizer

10-7 Table 10-2

Group Member Roles (Cont.)

Serves as a passive audienceFollower

Records and comments on group processes/dynamics

Commentator

Maintenance Roles

Standard setter Evaluates the quality of group process

Gatekeeper Encouragers all group members to participate

Compromiser Helps resolve conflict by meeting others “half way”

Harmonizer Mediates conflict through reconciling or humor

Encourager Fosters group solidarity by accepting and praising various points of view

Description


Norm: shared attitudes, opinions, feelings, or actions that guide social behavior.

How norms are developed: Explicit statements by supervisors or co-workers Critical events in the group’s history Primacy Carryover behaviors from past situations

Why norms are enforced: Help the group or organization survive Clarify or simplify behavioral expectations Help individuals avoid embarrassing situations Clarify the group’s or organization’s central values

and/or unique identity

10-8


Norms


Team: small group with complementary skills who hold themselves mutually accountable for common purpose, goals, and approach.

A group becomes a team when the following are met: Leadership becomes a shared activity Accountability shifts from strictly individual to both

individual and collective The group develops its own purpose or mission Problem solving becomes a way of life, not a part-time

activity Effectiveness is measured by the group’s collective

outcomes and products

10-9


Teams


Trust: reciprocal faith in other’ intentions and behavior.

Three Dimensions of Trust: Overall trust Emotional trust Reliableness

10-10


Trust


1. Communication.

2. Support.

3. Respect.

4. Fairness.

5. Predictability.

6. Competence.

10-11


How to Build Trust


Relating Scouting Persuading Empowering

10-12


Indirect Influence Tactics of Self-Managed Teams


A review of three meta-analyses covering 70 individual studies concluding that self-managed teams had:

A positive effect on productivity

A positive effect on specific attitudes relating to self-management

No significant effect on general attitudes

No significant effect on absenteeism and turnover

Virtual team: information technology allows group members in different locations to conduct business.

10-13


Virtual Teams


Research Insights

Virtual groups formed over the Internet follow a group development process similar to that for face-to-face groups.

Internet chat rooms create more work and yield poorer decisions than face-to-face meetings and telephone conferences.

Successful use of groupware (software that facilitates interaction among virtual group members) requires training and hands-on exercise.

Inspirational leadership has a positive effect on creativity in electronic brainstorming groups

Practical considerations

Managers relying on virtual teams agree: Meaningful face-to-face contact, especially during

early phases of the group development process is absolutely essential.

Virtual group members need faces in their minds to go with names and electronic messages.

Virtual teams cannot succeed without old-fashioned factors such as top-management support, hands-on training, a clear mission and specific objectives, effective leadership, and schedules and deadlines.

Groupthink: Janis’s term for cohesive in-group’s unwillingness to realistically view alternatives.

Symptoms: Invulnerability Inherent morality Rationalization Stereotyped views of opposition Self-censorship Illusion of unanimity Peer pressure Mindguards

10-14


Threats to Group and Team Effectiveness


Eight Main Symptoms of Group Think Illusion of Invulnerability: Members ignore obvious danger, take

extreme risk, and are overly optimistic. Collective Rationalization: Members discredit and explain away

warning contrary to group thinking. Illusion of Morality: Members believe their decisions are morally

correct, ignoring the ethical consequences of their decisions. Excessive Stereotyping:The group constructs negative sterotypes of

rivals outside the group. Pressure for Conformity: Members pressure any in the group who

express arguments against the group's stereotypes, illusions, or commitments, viewing such opposition as disloyalty.

Self-Censorship: Members withhold their dissenting views and counter-arguments.

Illusion of Unanimity: Members perceive falsely that everyone agrees with the group's decision; silence is seen as consent.

Mindguards: Some members appoint themselves to the role of protecting the group from adverse information that might threaten group complacency.

Avoiding Group Think The group should be made aware of the causes and consequences of group think. The leader should be neutral when assigning a decision-making task to a group,

initially witholding all preferences and expectations. This practice will be especially effective if the leaders consistently encourages an atmosphere of open inquiry.

The leader should give high priority to airing objections and doubts, and be accepting of criticism.

Groups should always consider unpopular alternatives, assigning the role of devil's advocate to several strong members of the group.

Sometimes it is useful to divide the group into two separate deliberative bodies as feasibilities are evaluated.

Spend a sizable amount of time surveying all warning signals from rival group and organizations.

After reaching a prelimiary consensus on a decision, all residual doubts should be expressed and the matter reconsidered.

Outside experts should be included in vital decision making. Tentative decisions should be discussed with trusted colleagues not in the

decision-making group. The organization should routinely follow the administrative practice of establishing

several independent decision-making groups to work on the same critical issue or policy.

Social Loafing: decrease in individual effort as group size increases.

Explanations: Equity of effort Loss of personal accountability Motivational loss due to sharing of rewards Coordination loss as more people perform the

task

10-15


Threats to Group and Team Effectiveness (Cont.)


Social loafing occurs when

The task was perceived to be unimportant, simple, or not interesting.

Group members thought their individual output was not identifiable.

Group members expected their coworkers to loaf.

compare and contrast the rational model of decision making and simon’s normative model. discuss...

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