1 Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.McShane 5th Canadian...

1 Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. McShane 5th Canadian Edition

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Decision Making Decision Making and Creativityand CreativityDecision Making Decision Making and Creativityand Creativity

C H A P T E R

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Decision Making & Creativity at G.A.P Decision Making & Creativity at G.A.P Decision Making & Creativity at G.A.P Decision Making & Creativity at G.A.P

Creativity and astute

decision making have

helped Bruce Poon Tip

(shown) and his company,

G.A.P Adventures, to

become an innovator in the

travel industry

Courtesy of G.A.P Adventures


Decision Making Defined Decision Making Defined Decision Making Defined Decision Making Defined

Conscious process of

making choices among

one or more alternatives

with the intention of

moving toward some

desired state of affairs

Courtesy of G.A.P Adventures


3. Develop3. Developalternativesalternatives

1. Identify1. Identifyproblemproblem

2. Choose2. Choosedecisiondecision

stylestyle

Rational Decision Making Model Rational Decision Making Model Rational Decision Making Model Rational Decision Making Model

4. Choose4. Choosebest solutionbest solution

5. Implement5. Implementsolutionsolution

6. Evaluate6. Evaluatedecisiondecision


Problem Identification ProcessProblem Identification ProcessProblem Identification ProcessProblem Identification Process

• Problems and opportunities are not announced or pre-defined – need to interpret ambiguous information

• Involves both rational and emotional brain centres – probably need to pay attention to both in

problem identification


Famous Missed OpportunitiesFamous Missed OpportunitiesFamous Missed OpportunitiesFamous Missed Opportunities

A Knight’s Tale was a box office

success, yet most Hollywood

studios rejected Brian Helgeland’s

proposal. They failed to see the

appeal of a film about a lowly

squire 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 ChallengesProblem Identification ChallengesProblem Identification ChallengesProblem Identification Challenges

• Perceptual bias:– Imperfect perceptions– Selective attention

mechanisms– Influence from others– Mental models

• Diagnostic skills:– Defining problems in

terms of solutions© Photofest


Identifying Problems EffectivelyIdentifying Problems EffectivelyIdentifying Problems EffectivelyIdentifying Problems Effectively

• Be aware of perceptual and diagnostic limitations

• Understand mental models

• Consider other perspectives

• Discuss the situation with colleagues © Photofest


Making Choices: Rational vs OB ViewsMaking Choices: Rational vs OB ViewsMaking Choices: Rational vs OB ViewsMaking Choices: Rational vs OB Views

ProcessingProcessingInformationInformation

Evaluation Evaluation TimingTiming

Rational: People can process all information

Rational: All choices evaluated simultaneously

GoalsGoals Rational: Clear, compatible, agreed upon

OB: Ambiguous, conflicting, lack agreement

OB: People process only limited information

OB: Choices evaluated sequentially

more


Making Choices: Rational vs OB Making Choices: Rational vs OB (con’t)(con’t)Making Choices: Rational vs OB Making Choices: Rational vs OB (con’t)(con’t)

Info QualityInfo Quality

Decision Decision ObjectiveObjective

Rational: People rely on factual information

Rational: Maximization -- the optimal choice

StandardsStandards Rational: Evaluate against absolute standards

OB: Evaluate against implicit favourite

OB: Rely on perceptually distorted information

OB: Satisficing -- a “good enough” choice


Intuitive Decision MakingIntuitive Decision MakingIntuitive Decision MakingIntuitive Decision Making

• Ability to know when a problem or opportunity exists and select the best course of action without conscious reasoning

• Conduit for tacit knowledge

• Use intuition to complete rational process


Choosing Solutions EffectivelyChoosing Solutions EffectivelyChoosing Solutions EffectivelyChoosing Solutions Effectively

• Systematically evaluate alternatives

• Balance emotions and rational influences

• Scenario planning

© Corel Corp. With permission


Escalation of CommitmentEscalation of CommitmentEscalation of CommitmentEscalation of Commitment

Escalation of commitment

occurred when the British

government continued funding

the Concorde supersonic jet

long after it’s lack of

commercial viability was

apparent. Some scholars refer

to escalation of commitment as

the “Concorde fallacy.” © Corel Corp. With permission


Escalation of Commitment CausesEscalation of Commitment CausesEscalation of Commitment CausesEscalation of Commitment Causes

• Self-justification

• Gambler’s fallacy

• Perceptual blinders

• Closing costs© Corel Corp. With permission


Employee Involvement DefinedEmployee Involvement DefinedEmployee Involvement DefinedEmployee Involvement Defined

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

– active in decisions

– employees influence how their work is organized and carried out


HighHigh

MediumMedium

LowLow

Levels of Employee InvolvementLevels of Employee InvolvementLevels of Employee InvolvementLevels of Employee Involvement

High involvement– Employees have complete decision

making power (e.g.. SDWTs)

Full consultation– Employees offer recommendations

(e.g.. gain sharing)

Selective consultation– Employees give information, but

don’t know the problem


Employee Involvement ModelEmployee Involvement ModelEmployee Involvement ModelEmployee Involvement Model

Potential Involvement Potential Involvement OutcomesOutcomes

ContingenciesContingenciesof Involvementof Involvement

Employee Employee InvolvementInvolvement

• Better problem identification

• More/better solutions generated

• Best choice more likely

• Higher decision commitment


Contingencies of InvolvementContingencies of InvolvementContingencies of InvolvementContingencies of Involvement

Knowledge Knowledge SourceSource

Decision Decision CommitmentCommitment

• Employees have relevant knowledge beyond leader

• Employees would lack commitment unless involved

Risk ofRisk ofConflictConflict

• Norms support firm’s goals• Employee agreement likely

Decision Decision StructureStructure

• Problem is new & complex(i.e nonprogrammed decision)

Employee involvement is better when:Employee involvement is better when:


PreparationPreparation

IncubationIncubation

Insight

VerificationVerification

Creative Process ModelCreative Process ModelCreative Process ModelCreative Process Model


Creativity at Research in MotionCreativity at Research in MotionCreativity at Research in MotionCreativity at Research in Motion

Through his persistence,

Mike Lazardis (shown) helped

Research in Motion to

become a leader in wireless

communications. “[He] keeps

grinding towards his goal until

he gets there,” says one

observer.R. Koza, CP/K-W Record


Characteristics of Creative PeopleCharacteristics of Creative PeopleCharacteristics of Creative PeopleCharacteristics of Creative People

• Above average

intelligence

• Persistence

• Relevant knowledge

and experience

• Inventive thinking

R. Koza, CP/K-W Record


Supporting CreativitySupporting CreativitySupporting CreativitySupporting Creativity

• Learning orientation– Encourage experimentation– Tolerate mistakes

• Intrinsically motivating work– Task significance, autonomy, feedback

• Open communication and sufficient resources


Creative ActivitiesCreative ActivitiesCreative ActivitiesCreative Activities

• Review Review abandoned abandoned projectsprojects

•• Ask other Ask other peoplepeople

RedefineRedefinethe Problemthe Problem

•• StorytellingStorytelling

•• Artistic Artistic activitiesactivities

•• Morphological Morphological analysisanalysis

AssociativeAssociativePlayPlay

•• Diverse teamsDiverse teams

•• Information Information sessionssessions

• Internal Internal tradeshowstradeshows

Cross-Cross-PollinationPollination


Team Decision Making ConstraintsTeam Decision Making ConstraintsTeam Decision Making ConstraintsTeam Decision Making Constraints

• Time constraints– Time to organize/coordinate– Production blocking

• Evaluation apprehension– Belief that other team members are silently

evaluating you

• Conformity to peer pressure– Suppressing opinions that oppose team

norms


Team Constraints: GroupthinkTeam Constraints: GroupthinkTeam Constraints: GroupthinkTeam Constraints: Groupthink

• Tendency in highly cohesive teams to value consensus at the price of decision quality

• More common when the team:– Is highly cohesive– Is isolated from outsiders– Team leader is opinionated– Faces external threat– Has recent failures– Team lacks clear guidance


Team Constraints: Group PolarizationTeam Constraints: Group PolarizationTeam Constraints: Group PolarizationTeam Constraints: Group Polarization

• Tendency for teams to make more extreme decisions than individuals alone

• Riskier options usually taken because of gambler’s fallacy -- believe they can beat the odds


General Guidelines for Team DecisionsGeneral Guidelines for Team DecisionsGeneral Guidelines for Team DecisionsGeneral Guidelines for Team Decisions

1. Ensure neither leader nor any member dominates

2. Maintain optimal team size

3. Team norms encourage critical thinking

4. Introduce effective team structures


Generating Constructive ConflictGenerating Constructive ConflictGenerating Constructive ConflictGenerating Constructive Conflict

• Form heterogeneous decision making team

• Ensure team meets often to face contentious issues

• Members should take on different discussion roles


Rules of BrainstormingRules of BrainstormingRules of BrainstormingRules of Brainstorming

1. Speak freely

2. No criticism

3. Provide many ideas

4. Build on others’ ideas


Evaluating Electronic BrainstormingEvaluating Electronic BrainstormingEvaluating Electronic BrainstormingEvaluating Electronic Brainstorming

• Benefits– Less production blocking– Less evaluation apprehension– More creative synergy– More satisfaction with process

• Problems– Too structured– Technology-bound– Candid feedback is threatening– Not applicable to all decisions


Nominal Group TechniqueNominal Group TechniqueNominal Group TechniqueNominal Group Technique

DescribeDescribeproblemproblem

IndividualIndividualActivityActivity

TeamTeamActivityActivity

IndividualIndividualActivityActivity

Nominal Group TechniqueNominal Group TechniqueNominal Group TechniqueNominal Group Technique

Write downWrite downpossiblepossiblesolutionssolutions

PossiblePossiblesolutionssolutionsdescribeddescribedto othersto others

Vote onVote onsolutionssolutionspresentedpresented


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Decision Making Decision Making and Creativityand CreativityDecision Making Decision Making and Creativityand Creativity

C H A P T E R

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Solutions to Creativity Solutions to Creativity BrainbustersBrainbusters

Solutions to Creativity Solutions to Creativity BrainbustersBrainbusters


Double Circle ProblemDouble Circle ProblemDouble Circle ProblemDouble Circle ProblemDouble Circle ProblemDouble Circle ProblemDouble Circle ProblemDouble Circle Problem


Nine Dot ProblemNine Dot ProblemNine Dot ProblemNine Dot ProblemNine Dot ProblemNine Dot ProblemNine Dot ProblemNine Dot Problem


Nine Dot Problem RevisitedNine Dot Problem RevisitedNine Dot Problem RevisitedNine Dot Problem RevisitedNine Dot Problem RevisitedNine Dot Problem RevisitedNine Dot Problem RevisitedNine Dot Problem Revisited


Word SearchWord SearchWord SearchWord SearchWord SearchWord SearchWord SearchWord Search

FCIRVEEALTETITVEERS


Burning RopesBurning RopesBurning RopesBurning RopesBurning RopesBurning RopesBurning RopesBurning Ropes

One Hour to Burn Completely

After first rope burnedi.e. 30 min.

1 Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.McShane 5th Canadian...

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Transcript of 1 Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.McShane 5th Canadian...