rational decision making & creativity

8/8/2019 Rational Decision Making & Creativity

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RATIONAL DECISION MAKING &

CREATIVITY

PRESENTED BY-Abhishek Pandav (01)

Abhishek Somal (02)Aishwarya Parthasarathy (03)

Amardeep Bhogal (04)


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Decision making & Planning

Eleanor Roosevelt:It takes as much energy to wish as it does to plan.

Anthony Robbins:It's in your moments of decision that your destiny isshaped.

H. L. Hu nt:Decide what you want, decide what you are willing toexchange for it. Establish your priorities and go towork.


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What is Decision Making???

mental processes (cognitive process)resulting in the selection of a course of actionChoice among several alternatives.

Every decision making process

produces a final choice.


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Simple Steps in Decision Making

In order to make a right decision, carefully identifyand define the issue. Use the basic questions that youwere taught to use in school.

* Who or what is involved?* What has occurred or needs to occur?* Where does the issue happen?

* When did the issue or problem start?* Why is it a problem?* How are people currently dealing with issue?


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Rational Decision Making

Reasonablemental processresulting in theselection of a

course of actionamong severalalternatives.


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Rational Decision Making

model


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Strengt h s & Weaknesses of RationalDecision Making

Provides structure anddiscipline to thedecision makingprocessHelps to ensure

consideration of the fullrange of factors relatingto a decision, in alogical and

comprehensive manner.

Inadequateparticipation of stakeholders inthe decisionmaking process;Insufficient timespent generatinga range of possible

solutions.


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Vroom-Jago Decision Model

F irst proposed by Vroom and Yetton in 1973Later modified by Vroom and Jago in 1988.

Studies have shown that the greater precision in situational assessment of the Vroom-Jago decision model allows for better discrimination in choosing a

process.

W hat's it for?The Vroom-Jago decision model is a rationalmodel used by leaders to determine whether theyshould make a decision alone or involve a group, andto what extent the group should be involved.


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T he 5 processes

Autocratic l (A1)

Autocratic ll (A2)

Consultative l (C1)

Consultative ll (C2)

Group ll (G2)

In some business situations it'sbetter for a leader to be thedecision maker for the group. In

others, it's best for the group tohave some input or even makethe decision.


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Article 1Cognitive Process of Radical Decision Taking

Domagoj Hru ka, Faculty of Economics and Business Zagreb

Abstract

Research interests are atintersection of businessdecision making and humancognitive processes. Radicaldecision is one which leadsto morphogenetic change inenactment.

1st step = decision taker scognitive representation of

organization.2nd step = development of cognitive representation of changed object.

3rd step = implementationof new cognitiverepresentation into reality.

Cognitive process of radical decision taking

1. Introduction -understanding & analysing the 3 steps

2. Radical decision -Radical decision is one which leads tosignificant change in enactment. Although enactment isever changing , by constant actions of its participants, it isalways familiar to them.

2.1 Enactment- social construct of organization developedby its members trough their search for sense.2.2 Construction of cognitive representation-Extracting thecue

2.3 Development of cognitive representation of changedobject2.4 Implementation of new cognitive representation intoreality

3. Methodology -assessed with qualitative methodology. Themethods used should provide a deeper understanding of

social phenomena that would be obtained from a purelyquantitative methodology.


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Case Study 1S occer Betting in HongKong

H ome Affairs Bureau (2001) Gambling Review: A consultation paper .

The long-established Government policy is to restrict commercial gambling opportunities (other than social gambling) to a limited number of authorized outlets

only. The rationale is that while limited gambling outlets may be allowed to meet public demand, they should be authorized and regulated so that gambling opportunities would not become excessive as to be detrimental to the community.


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CAS E S TUDY OF S OCCER BETTING IN

HONGKONG

a c h allengeAfter the soccer W orld Cup in 1998, soccer betting becameincreasingly popu lar and wides p read, both in terms of thenumber of peo p le partici pating in it and the betting moneyinvolved . Bu t there was no any legal gambling o u tlet for soccerbetting in Hong Kong . Conseq uently, local pu nters tended top lace betting on cross-border illegal gambling o u tlets . For almostthree decades p rior to the late 1990s, legal s ports betting in HongKong seemed to serve two major pu rposes very effectively . Government reg u lation p rovided a safe and reliable way for HongKong residents to wager, p rimarily on local horse races, at thesame time p roviding for a steady stream of both tax reven ues andcharitable f unds for local social service agencies, schools andparks . In the late 1990s, however, the closed doors of Hong Konggambling were forced o pen by introd uction of new technologiessuch as cable television, inex pensive cell phone service and theadvent of the Internet .


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Contd..

Illegal gambling, es pecially on international soccer matchesboomed . As a res u lt, the Hong Kong Home AffairsDepartment was forced to consider how to control the

new wave of illegal gambling.???? , whichhad cost the government and local charities millionsof dollars in potential lost income and was threateningto p rovide a steady income for organized crime . A com parison st udy was com p iled On November 26 2002,

The Government anno unced its intention to a u thorize andreg u late soccer betting as a mean of tackling the p roblemof illegal soccer gambling in Hong Kong . The Coalitionhanded in p rotest signat u res and held a p ress conference . This was followed by a seminar on the cons u ltations paperon J u ly 7th . The cons u ltation lasted for 3 months .


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KEY BENEFIT S OF THE POLICY CHANGE

to tackle the problem of illegal gambling

to stick with a proven record of success by asking Hong Kong

Jockey Club to develop and operate an authorized soccer betting system in Hong Kong.


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Conclusion:After the com parison of the theoretical rational decision-makingmodel with the p ractical Government decision-making p rocess, it

can be understood that the legalization of soccer betting is arational policy decision taken to significantly red uce the p roblemof illegal soccer betting .

According to o u r case st udy, the Government s policymaking inthis matter has re p resented a rational policy p rocess as it follows:

THE FIVE SEQUENCES OF RATIONAL DECISION MAKING:

1. Identify the p roblems, goals and objective2. List all the alternative means to the p roblems3. Estimate all the conseq uences of the means4. Com pare all the alternatives5. Choose the most s u itable p olicy.


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Franklin Roosevelt:Happiness is not in the merepossession of money; it lies inthe joy of achievement, in thethrill of creative effort.


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CreativityThe ability to generateinnovative ideas and manifestthem from thought into reality.The process involves originalthinking and then producing .

Critical Thinking Creative Thinking

analytic generative

convergent divergent

vertical lateral

probability possibility

judgment suspended judgment

focused diffuse

objective subjective

answer an answer

left brain right brain

verbal visual

linear associative

reasoning richness, novelty

yes but yes and


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W hat is Creativity?

An Ability .

An Attit ude .A Process .

Creative Methods

Evolu tion .Synthesis .Revol u tion .

Rea pp lication .Changing Direction .


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Negative Attitudes That BlockCreativity

1. Oh no, a p roblem!

2. It can't be done .3. I can't do it .4. Bu t I'm not creative .5. That's childish .6 . W hat will peo p le think?7. I might fail .


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Mental Blocks to CreativeThinking and Problem Solving

Characteristics of theCreative Person

1. Prej udice .2. Functional fixation .3. Learned hel p lessness .

4. Psychological blocks .

curiousseeks problemsenjoys challengeoptimisticable to suspend judgmentcomfortable with imaginationsees problems as opportunitiessees problems as interesting

problems are emotionallyacceptablechallenges assumptionsdoesn't give up easily:perseveres, works hard


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Main goals of brainstorming are:(1) to break us out of our h abit-bound t h inking and

(2) to produce a set of ideas from w h ic h we can c h oose

Basic Gu idelines forBrainstorming

1. Suspend j udgment .2. Think freely .

3.Tag on

.

4. Quantity of ideas is im portant .

Useful forAttacking specific problems

Where a collection of good,fresh, new ideas are needed.


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Major motion picture studio-declared that the centralproblem was not finding good

people-it was finding goodideas.Extracting idea of creativityproducing breakthroughs-both technological and artistic

Pixar s track record is uniquein the early 1990s they wereknown as the leadingtechnological pioneer in thefield of computer animation.

Years of R&D culminated in therelease of T oy Story in 1995After Pixar s 2006 merger withthe Walt Disney Company, itsCEO, Bob Iger, asked me, chief creative officer John Lasseter,and other Pixar senior managersto help him revive DisneyAnimation Studios. The successof these efforts prompted toshare thinking on how to build asustainable creativeorganization.


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WHAT IS CREATIVITY?People tend to think of creativity as amysterious solo act, and they typically

reduce products to a single idea: infilmmaking , creativity involves a largenumber of people from differentdisciplines working effectively togetherto solve a great many problems. Theinitial idea for the movie is the highconcept is merely one step in a long,arduous process that takes four to fiveyears.A movie contains literally tens of thousands of ideas; in the design of characters, sets, and backgrounds; in thelocations of the camera; in the colors,the lighting, and the pacing. The director,other creative leaders of a productiondo not come up with all the ideas ontheir own; and every single memberproduction group makes suggestions.

Creativity must be present at every levelof every artistic and technical part of the

organization

TAKING RISKS

We are at least a little scared,.We re in a business whose customerswant to see something newThis means we have to pu t o u rselves atgreat riskWe as executives have to resist ournatural tendency to avoid or minimizerisks, which, of course, is much easiersaid than done. In the movie businessand plenty of others, this instinct leadsexecutives to choose to copy successesrather than try to create somethingbrand-new. That s why you see so manymovies that are so much alike.


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Case Study 2

GM - was ranked a top 20 innovative company in t h e worldaccording to t h e BCG - Business Week 2008 survey

G eneral motors recalls 276729 vehicles for repair.Main problem was flaw in transmission systemwhich cause car to roll down during gear.The 2009 Models affected include the ChevroletCobalt, HHR, Malibu, Traverse and the G MCAcadia, Pontiac G 5, G 6 and the Saturn Aura andOutlook.


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Positives of thedecision

C hevrolet retail cars continue to gainshare, led by Malibu's 33 percent retailsales gain compared with last year.

C hevrolet Traverse, GM C Acadia,Buick Enclave and Saturn Outlook drivemid-utility crossover retail sales up35%, share up 10% points, comparedwith a year ago.

GMA C retail penetration increaseddramatically to more than 30 percent of sales in February; C redit Union-financed sales now about 10 percent of total.

Negatives of thedecision:

Sale was reduced to52.9% in F ebruary.The main problemwas The Cash burn .G

M operating costare very high due towhich it has to sellthe cars for highprofit.


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G M turnaround plan for2010

G M has to cut every loss-making operation.Innovation should be

done.Make products thatmatter to today'sconsumer.G

M has to capture theimagination of the youngbuyer in the twenties andthirties.


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rational decision making & creativity

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