Ch13

Presentation Slidesto Accompany

Organizational Behavior 10th EditionDon Hellriegel and John W. Slocum, Jr.

Chapter 13—Making Decisions in Organizations

Chapter 13: Making Decisions in Organzations

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Slide 13.1Learning Objectives for

Making Decisions in Organizations

Explain the basic concepts for making ethical decisions

Describe the attributes of three models of managerial decision making

Explain two methods for stimulating organizational creativity


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Slide 13.2Components of the Foundation for

Making Ethical Decisions

Ethical intensity

Decision-making principles and

decision rules

Affected individuals

Benefits and costs

Determination of rights


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Slide 13.3Components of Ethical Intensity

Magnitude of consequences

Probability of effect

Social consensus

Temporal immediacy

Proximity

Concentration of effect


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Slide 13.4Ethical Principles That Justify

Self-Serving Behaviors and Decisions

Hedonist principle Do whatever you find to be in your own self-

interest but do nothing that is clearly illegal

Might-equals-right principle Do whatever you are powerful enough to

impose without respect to socially acceptable

behaviors but do nothing that is clearly illegal


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Slide 13.4 (continued)Ethical Principles That Justify

Self-Serving Behaviors and Decisions

Organization interests principle Act on the basis of what is good for the

organization but do nothing that is clearly

illegal


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Slide 13.5Ethical Principles That Focus on

Balancing Multiple Interests Means–end principle

Act on the basis of whether some overall good

justifies any moral transgression but do

nothing that is clearly illegal

Utilitarian principle Act on the basis of whether the harm from a

decision is outweighed by the good in it but do

nothing that is clearly illegal


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Slide 13.5 (continued)Ethical Principles That Focus on

Balancing Multiple Interests

Professional standards principle Act on the basis of whether the decision can

be explained before a group of your peers but

do nothing that is clearly illegal


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Slide 13.6Ethical Principles That ConsiderAffected Parties and the Public

Disclosure principle Act on the basis of how the general public

would likely respond to disclosure of the rationale and facts related to the decision but do nothing that is clearly illegal

Distributive justice principle Act on the basis of treating an individual or

group equitably rather than on arbitrarily defined characteristics but do nothing that is clearly illegal


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Slide 13.6(continued)Ethical Principles That ConsiderAffected Parties and the Public

Golden rule principle Act on the basis of placing yourself in the

position of someone affected by the decision and try to determine how that person would feel but do nothing that is clearly illegal


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Slide 13.7Guidelines for Integrating Ethical Decision Making into the Organization’s Daily Life

Top management should commit to and model ethical

behavior

Develop a code of ethics and follow it

Have procedures for organization members to report

unethical behavior

Involve managers and employees in identifying and solving

ethical problems

Include ethics in performance appraisal

Publicize the organization’s ethical orientation


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Slide 13.8Explicit Assumptions of

the Rational Model

All available information on alternatives has

been obtained

Alternatives can be ranked according to

explicit criteria

The alternative selected will provide the

maximum gain


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Slide 13.9Implicit Assumptions of

the Rational Model

Ethical dilemmas do not exist in the decision-

making process

The means–end principle and the utilitarian

principles will dominate the consideration of

ethical issues


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Slide 13.10Portion of Xerox’s Rational Decision

Process

1. Identify and select problem What do we want to change? Identification of the gap;describe “desired state”

Key cause(s) documentedand ranked

Solution list

Make change plan; establishmeasurement criteria

Solution in place

Solution verification; dealwith continuing problems

STEPQUESTION TO BE ANSWERED

WHAT’S NEEDED TO GO TO NEXT STEP

What’s preventing us fromreaching the “desired state”?

How could change be made?

What’s the best way to do it?

Are we following the plan?

Source: Adapted from Garvin, D. A. Building a learning organization. Harvard Business Review, July-August 1993, 78-91; Brown, J. S., and Walton, E. Reenacting the corporation: Organizational change and restructuring of Xerox Planning Review, September/October 1993, 5-8.

How well did it work?

2. Analyze problem

3. Generate potential solutions

4. Select and plan the solution

5. Implement the solution

6. Evaluate the solution


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Slide 13.11Bounded Rationality Model

Bounded Rationality

LimitedSearch

InadequateInformationand Control

DecisionsSatisficing


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Slide 13.12Political Model of Decision Making

Describes decision making by individuals to satisfy their own interests

All aspects of the decision-making process are merely methods to tilt decision outcomes in the decision maker’s favor

Decision outcomes are affected by the distribution of power and the effectiveness of the tactics used by participants

Doesn’t explicitly consider ethical dilemmas but often draws on the hedonistic principle and the might-equals-right principle


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Slide 13.13Influence Strategies Rational persuasion Inspirational appeal Consultation Ingratiation Exchange Personal appeal Coalition Legitimating Pressure

Source: Adapted from Yukl, G., Guinan, P. J., and Sottolano, D. Influence tactics used for differentobjectives with subordinates, peers, and superiors. Group & Organization Management, 1995, 20, 275;Buchanan, D., and Badham, R. Power, Politics and Organizational Change. London: Sage, 1999, 64.


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Slide 13.14Barriers to Creativity and Innovation

Perceptual blocks Failure to use all the senses in observing Failure to investigate the obvious Difficulty in seeing remote relationships Failure to distinguish between cause and effect

Cultural blocks Desire to conform to established norms Overemphasis on competition or conflict

avoidance Drive to be practical and to economize Disbelief in the value of open-ended exploration


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Slide 13.14 (continued)Barriers to Creativity and Innovation

Emotional blocks Fear of making a mistake

Fear and distrust of others

Latching on to the first idea


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Slide 13.15Characteristics of Lateral Versus

Vertical Thinking

Finds new ways to view things; concerned with change and movement.

Looks for what is different rather than “right” or “wrong.”

Analyzes ideas to generate new ideas.

Uses free association thinking. Welcomes chance intrusions of

information; considers the irrelevant.

Progresses by avoiding the obvious.

Tries to find absolutes; concerned with stability.

Seeks justification for each step; tries to find what is “right.”

Analyzes ideas for faults. Seeks continuity. Selectively chooses information

to consider; rejects irrelevant information.

Progresses using established patterns; considers the obvious.

LATERAL THINKING VERTICAL THINKING

Source: Based on de Bono, E. Lateral Thinking: Creativity Step by Step. New York:Harper & Row, 1970; de Bono, E. Six Thinking Hats. Boston: Little, Brown, 1985.


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Slide 13.16Useful Lateral Thinking Techniques

Reversal technique Examining a problem and turning it completely around,

inside out, or upside down

Analogy technique Developing a statement about similarities between

objects, persons, and situations

Cross-fertilization technique Asking experts from other fields to examine the problem

and suggest solutions from their own areas of expertise


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Slide 13.17Decision Making with a Devil’s Advocate

A proposed course of action

is generated.

A devil’s advocate is assigned to criticize the

proposal.

A critique is presented to key decision makers.

The decision is monitored.

The decision to adopt, modify, or discontinue the

proposed course of action is taken.

Any additional information relevant to

the issues is generated.

Source: Adapted from Cosier, R. A., and Schrivenk, C. R. Agreement and thinking alike:Ingredients for poor decisions. Academy of Management, February 1991, 71.

Repeat process, if needed.

Ch13

Business

Transcript of Ch13