DECISION MAKING by Groups and Individuals

8/13/2019 DECISION MAKING by Groups and Individuals

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10 DECISION MAKING BY INDIVIDUALS AND

GROUPS

CHAPTER SCAN

Decision making can be strengthened individually and in group situations. Groups can usetechniques such as brainstorming, nominal group technique, Delphi technique, devil's advocacy,and dialectical inquiry. Groups must be aware of difficulties that negatively impact decisionmaking, such as groupthink and group polarization. Individual decision making can be analyzed by eamining cognitive styles that are used for gathering information and evaluating alternatives.!odels of decision"making range from very rational #e.g., the rational model$ to nonrational #e.g.,the garbage can model$. Intuition and creativity can be developed and improved to assist decisionmakers. %inally, technology can aid individuals or groups through epert systems and groupdecision support systems.

LEARNING OBJECTIVES

&fter reading this chapter, you should be able to do the following

(. )plain the assumptions of bounded rationality.*. Describe +ung's cognitive styles and how they affect managerial decision making.. -nderstand the role of creativity in decision making, and practice ways to increase your

own creativity.. Identify the advantages and disadvantages of group decision making.

/. Discuss the symptoms of groupthink and ways to prevent it.0. )valuate the strengths and weaknesses of several group decision"making techniques.1. Describe the effects that epert systems and group decision support systems have on

decision making in organizations.2. -tilize an 3ethics check4 for eamining managerial decisions.

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5hapter (6 Decision !aking by Individuals and Groups

KEY TERMS

5hapter (6 introduces the following key terms

programmed decision

nonprogrammed decisioneffective decisionrationality bounded rationalitysatisficeheuristicsgarbage can modelrisk aversionescalation of commitmentcognitive styleintuition

creativity participative decision makingsynergysocial decision schemesgroupthinkgroup polarization brainstormingnominal group technique #7G8$Delphi techniquedevil's advocacydialectical inquiry

THE CHAPTER SUMMARIZED

I. 9::;I7G &<)&D =unning in the =estaurant Industry4s <orse =ace =equires GoodDecision !aking at &ll 9evels

II. 8<) D)5I>I:7"!&;I7G ?=:5)>>

Decisions that managers make are either programmed deciio! #which are routine, and haveestablished decision rules$ or !o!programmed deciio! #new, comple decisions that requirecreative solutions$. 8he decision making process is a step"by"step approach that can be utilizedfor a variety of types of problems.

III. !:D)9> :% D)5I>I:7 !&;I7G

E""ec#i$e deciio! are timely, acceptable to those affected by them, and meet desired ob@ectives.

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&. =ational !odel

8he ra#io!a% mode% comes from classic economic theory, and assumes that there is acompletely rational solution to all problems. In this model, decision makers haveconsistent systems of preferences, are aware of all alternatives, and can accuratelycalculate the probability of success for each alternative.

A. Aounded =ationality !odel

Bo&!ded ra#io!a%i#' is a theory that suggests that there are limits to how rational adecision maker can actually be. If the decision factors do not deal with humans, the probability of rationality increases. >ince managers cannot make perfect decisions, theya#i"ice, selecting instead the first alternative that is 3good enough4. 8his is similar tostudents selecting a college that is within their decision frame, as opposed to viewing all,666 available colleges and universities. >atisficing involves a shortcut, intuitiveapproach to decision making, which is referred to as heuristics.

(e&ri#ic are shortcuts in decision making that save mental activity. 8he development ofheuristics became the backbone of epert systems, which capture the intuitive shortcuts ofeperts, and create a program to mimic this behavior.

5. Garbage 5an !odel

In another model, problems, solutions, participants, and choice opportunities eistrandomly within the organization. 8his haphazard approach is referred to as the gar)ageca! mode%*

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&. =isk and the !anager

:ne of the difficulties with decisions that are innovative is that they also tend to be risky.-nfortunately, many managers tend to be risk averse. Ri+ a$erio! is the tendency tochoose options that entail fewer risks and less uncertainty. -nfortunately, this tendencycan cause managers to avoid risky decisions that may produce novel ideas and potentiallyhigh payoffs.

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A. )scalation of 5ommitment

:nce individuals make decisions, they tend to become committed to those decisions.Eca%a#io! o" commi#me!# is the tendency to continue to commit resources to a failingcourse of action. >tudents may draw the analogy between stubbornness and escalation ofcommitment.

B. +-7G'> 5:G7I8IB) >8C9)>

&n individual's preferred method of gathering information and making @udgments is called acog!i#i$e #'%e* 8he problem solving method outlines steps for good decisions, #($eamine the facts and details, #*$ generate alternatives, #$ analyze the alternatives ob@ectively,and #$ weigh the impact of the decision. 8hese four steps are analogues to using thefollowing preferences #($ sensing, #*$ intuiting, #$ thinking, and #$ feeling.

BI. :8<)= I7DIBID-&9 I7%9-)75)> :7 D)5I>I:7 !&;I7G

&. 8he =ole of Intuition

In many cases, managers do not appear to use a systematic approach to decision making.Instead, they rely on 3hunches4, or intuition, to make quick decisions based on recognitionof situational possibilities. I!#&i#io! is a fast, positive force in decision making utilized at alevel below consciousness that involves learned patterns of information.

A. 5reativity at Eork

Crea#i$i#' is a process influenced by individual and organizational factors that results inthe production of novel and useful ideas, products, or both. 8he ability to promote

creativity is an important competency that managers need to develop in order to succeed.

(. Individual Influences

?ersonality factors appear to be related to creativity. 8hese characteristics includeintellectual and artistic values, breadth of interests, high energy, concern withachievement, independence of @udgment, intuition, self"confidence, and a creativeself"image.

*. :rganizational Influences

8he organizational environment can significantly impact creativity in the work place. %ocusing on how work will be evaluated, being monitored too closely, andcompeting with others in winFlose situations hinder creativity. %eelings ofautonomy, membership in a diverse team, and high"quality relationships withcreative supervisors foster creativity.

. Individual:rganization %it

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=esearch indicates that creative performance is greatest when there is a match between the individual and organizational influences on creativity. %urthermore, itsuggests that individuals can be trained to be more creative.

BII. ?&=8I5I?&8I:7 I7 D)5I>I:7 !&;I7G

&. 8he )ffects of ?articipation

Par#icipa#i$e deciio! ma+i!g is a situation in which individuals affected by decisionsinfluence the making of those decisions.

?articipation increases employee satisfaction and creativity. >ome studies have shownthat participation is related to increases in productivity.

A. %oundations for ?articipation and )mpowerment

8he organizational foundations for empowerment include a participative, supportive

organizational culture and a team"oriented work design. :ne of the difficulties ofimplementing participative groups is that middle managers may eperience fear andaniety as a result of perceptions that they are losing power, which can disrupt participative decision making efforts.

8he three individual prerequisites for empowerment include #($ the capability to become psychologically involved in participative activities, #*$ the motivation to act autonomously,and #$ the capacity to see the relevance of participation for one's own well"being.

BIII. 8<) G=:-? D)5I>I:7"!&;I7G ?=:5)>>

&. &dvantages and Disadvantages of Group Decision !aking

&dvantages of group decision making include the synergy of pooled group memberresources, increased approval for the solution, and greater understanding of the decision.Disadvantages include pressure to conform, potential for domination of the group by amember or clique, and the increased time required to make decisions.

A. Groupthink

:ne of the ma@or disadvantages of group decision making is the tendency for groupthink.Gro&p#,i!+ is a deterioration of mental efficiency, reality testing, and moral @udgmentresulting from in"group pressures. 8his happens because the cohesiveness and thesolidarity of the group tend to stifle disagreement and questions about the group's chosencourse of action.5. Group ?olarization

Gro&p po%ari-a#io! is the tendency for group discussion to produce shifts toward moreetreme attitudes among members. Group polarization can be seen with @uries that become locked in disagreement.

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G. >elf"!anaged 8eams

>elf"managed teams focus on broader decision"making activities than do quality circlesand quality teams, such as work scheduling, @ob assignments, and staffing.

H. 5-98-=&9 I>>-)> I7 D)5I>I:7 !&;I7G

<ofstede4s dimensions of culture influence the decision"making process. -ncertainty avoidanceinfluences whether or not decisions are seen as opportunities for change. ?ower distance affectsthe level at which decisions are typically made in organizations, and the individualistcollectivistdimensions has implications for comfort with group decisions. 8he masculinefeminine dimensionindicates the value placed on quick, assertive decisions versus those that show more concern forothers.

HI. 8)5<7:9:GI5&9 &ID> 8: D)5I>I:7 !&;I7G

&. )pert >ystems

)pert systems are programmed decision tools, set up using decision rules thatincorporate the knowledge and eperience of veteran decision makers in the organization.Aecause epert systems can significantly affect managerial decisions, managers musteercise caution and @udgment in adopting system recommendations.

A. Group Decision >upport >ystems #GD>>$

GD>> improve conflict management in groups by depersonalizing issues and forcinggroups to discuss conflict management processes. !embers tend to share informationmore fully when they use a GD>>.

5. Decision !aking in the Birtual Eorkplace

In many of today4s fleible organizations, the workplace is unconstrained by geography,time, or organizational boundaries. Birtual teams work together throughtelecommunications and information technologies to accomplish tasks. 8hese technologiesinclude desktop videoconferencing systems #DB5>$, group decision support systems#GD>>$, and Internetintranet systems.

HII. )8<I5&9 I>>-)> I7 D)5I>I:7 !&;I7G

!anagers should consider three questions. Is it legalJ Is it balancedJ <ow will it make me feelabout myselfJ

HIII. !&7&G)=I&9 I!?9I5&8I:7> D)5I>I:7 !&;I7G I> & 5=I8I5&9 &58IBI8C

HIB. 9::;I7G A&5; & 9esson in Decentralized Decision !aking

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CHAPTER SUMMARY

• Aounded rationality assumes that there are limits to how rational managers can be.• 8he garbage can model shows that under high uncertainty, decision making in organizations

can be an unsystematic process.•

+ung's cognitive styles can be used to help eplain individual differences in gatheringinformation and evaluating alternatives.• Intuition and creativity are positive influences on decision making and should be encouraged

in organizations.• )mpowerment and teamwork require specific organizational design elements and individual

characteristics and skills.• 8echniques such as brainstorming, nominal group technique, Delphi technique, devil's

advocacy, dialectical inquiry, quality circles and teams, and self"managed teams can helpmanagers reap the benefits of group methods while limiting the possibilities of groupthink andgroup polarization.

• 8echnology is providing assistance to managerial decision making, especially through epertsystems and group decision support systems. !ore research is needed to determine the

effects of these technologies.• !anagers should carefully weigh the ethical issues surrounding decisions and encourage

ethical decision making throughout the organization.

REVIEW QUESTIONS: SUGGESTED ANSWERS

1. Compare the garbage can model with the bounded rationality model. Compare the usefulnessof these models in today's organizations.

Decisions in the garbage can model are nonrational and unsystematic. It is typically used in

situations of high uncertainty. 8he bounded rationality model assumes that managers satisfice byselecting the first alternative that is good enough. 8he pressures of time and competition intoday4s global environment require that managers make decisions quickly. Aoth models reflectdecision making in this fast"paced environment.

2. List and describe Jung's four cognitive styles. How does the problem!solving modelcapitalize on the strengths of the four preferences"

+ung combines the concepts of thinking and feeling, and sensing and intuiting into four cognitivestyles >8, >%, 78, and 7%. 8he model recommends using the following preferences, in order#($ >K #*$ 7K #$ 8K #$ %.

#. $hat are the individual and organizational influences on creativity"

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DISCUSSION AND COMMUNICATION QUESTIONS: SUGGESTED ANSWERS

1. $hy is identification of the real problem the first and most important step in the decisionma&ing process" How does attribution theory eplain mista&es that can be made as managersand employees wor& together to eplain why the problem occurred"

Identification of the real problem is critical because it ensures that the group will be Mtreating the problem instead of the symptom.M &ttribution theory suggests that individuals will tend to look toeternal causes to eplain their own failure. 8his could bias the problem"solving process.

2. How can organizations effectively manage both ris& ta&ing and escalation of commitment inthe decision!ma&ing behavior of employees"

>tudents may suggest solutions including policies such as requiring that someone outside thedecision making team review a decision to try to guard against ecessive risk taking.:rganizations may manage the escalation of commitment by having different individuals make

initial and later decisions.

#. How will you most li&ely ma&e decisions based on your cognitive style" $hat might youoverloo& using your preferred approach"

8he key to this question is to identify what one4s predominant style is, and to recognize that itmay not be appropriate in all situations. 8he model incorporates the strengths of all four preferences.

%. How can organizations encourage creative decision ma&ing"

:rganizations can reward risk taking, provide a supportive environment, and permit failure.

(. $hat are some organizations that use epert systems" /roup decision support systems" Howwill these two technologies affect managerial decision ma&ing"

5ampbell >oup 5ompany and Du?ont use epert systems while Aoeing utilizes a GD>>.>tudents could also look to the si focus companies to respond to this question or eamineorganizations with which they have had personal eperience. 8hese tools may help simplify thedecision process and can affect conflict management within a group.

*. How do the potential ris&s associated with participating in -uality circles differ from thoseassociated with participating in -uality teams" 0f you were a member of a -uality circle+ how

would management's decisions to reect your recommendations affect your motivation to participate"

uality circles are generated from the bottom upK therefore, they operate from fewer formal basesof power in the organization.

,. orm a team of four persons. ind two eamples of recent decisions made in organizations3one that you consider a good decision+ and one that you consider a bad decision. wo members

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should wor& on the good decision+ and two on the bad decision. 4ach pair should write a briefdescription of the decision. hen write a summary of what went right+ what went wrong+ andwhat could be done to improve the decision process. Compare and contrast your two eamplesin a presentation to the class.

)ncourage students to apply the material from the tet to their analysis of the decisions that weremade.

5. 6eflect on your own eperience in groups with groupthin&. )escribe the situation in which you encountered groupthin&+ the symptoms that were present+ and the outcome. $hat remedies for groupthin& would you prescribe" 7ummarize your answers in a memo to your instructor.

Ae sure that the students have provided good eamples from a personal eperience rather than @ust reiterating what the tetbook says about groupthink.

ETHICS QUESTIONS: SUGGESTED ANSWERS

1. hin& of a decision made by a group that you feel was an unethical one. $hat factors led tothe unethical decision" 4valuate whether groupthin& may have been a factor by eamining theantecedents+ symptoms+ and conse-uences of groupthin&.

%or students not able to think of an unethical decision, suggest Eatergate, the Aay of ?igs,Bietnam, or gang member violence.

2. How can organizations encourage ethical decision ma&ing"

=ewarding and acknowledging tough decisions that are made properly, and clearlycommunicating ethical standards, are two ways organizations can encourage ethical decision

making.

#. How do cultural differences affect ethical decision ma&ing"

Balue systems differ sharply from one culture to another, and people base decisions on their beliefsystems. !any people want to impose their own values upon others, and this can lead to conflict.

%. )escribe groupthin& as an ethical problem.

Groupthink becomes an ethical problem when group members begin to view themselves as abovereproach, and assume that because they are moral individuals, any decision they make will be a

morally correct one. :ne way to avoid the problem would be to have groups continuouslyevaluate whether their decisions are ethical, or to submit their decisions to outside parties forreview.(. $hose responsibility is it to ensure that employees ma&e ethical decisions"

It is a @oint responsibility of the organization and the employee#s$ involved. 8he organizationshould set the tone and an ethical environment, but ultimately the individual will probably be heldaccountable for the decision.

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*. 8sing the 9ethics chec&+9 evaluate the decision to launch the 5hallenger . How could a&nowledge of ethical decision ma&ing have aided the individuals who made this decision"

8he first question is whether the actions of 7&>&'s decision makers were illegal. &n accurateanswer here requires knowledge of law, but students may still wish to speculate.

8he second question is whether the decision was balanced or fair to all concerned. :bviously, theChallenger decision was not fair. )ngineers were not given an opportunity to provide input before the launch. %ull disclosure of potential problems with the launch was not made to all whowould potentially be affected by the decision.

8he third question is how the decision will make the decision makers feel about themselves.-ndoubtedly, many of those responsible regret the launch decision. Its tragic consequences mayhave been the product of groupthink.

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CHALLENGES

10.1 Whih Si!" #$ Y#%& B&'i( D# Y#% )'*#&+

8his self"assessment eercise encourages students to eplore which hemisphere #if either$ of their brain is dominant. Cou may wish to conduct a discussion of a$ the importance of being able tosee the big picture and plan strategically "" which requires right"brain skills and b$ the importanceof being able to understand the details of day"to"day operations "" which requires left"brain skills.

10., CREATIVE PROBLEM SOLVING

(. !aine N !assachusetts N 7ew <ampshire N Bermont N 5onnecticut N =hode Island O 7ew)ngland

*. P& bird in the hand is worth two in the bushQ. 2 days minus * hours O ( week . pair O 0

/. <our hand N minute hand at (* O 7oon or midnight0. +acks N ueens N ;ings O &ll the face cards1. >unday R !onday R 8uesday R Eednesday R 8hursday R %riday R >aturday are Days of

Eeek 2. &rmy N 7avy N &ir %orce N !arine 5orps N 5oast Guard O &rmed %orcesL. 8eas O 9one >tar >tate(6. * years " years O * decades((. )ight " 2 O ero(*. Cesterday N * Days O 8omorrow(. 5hristmas N 0 Days O 7ew Cear4s )ve(. Cear " >ummer " >pring " &utumn O Einter

(/. &dam R )ve were in the Garden of )den(0. !y %air 9ady and >outh ?acific are both !usical 5omedies(1. 7o news is Good news(2. 7ina N ?inta N >anta !aria O >hips of 5olumbus(L. ( N 0 zeros O ( million*6. P& rose is a rose is a rose.Q*(. &braham 9incoln R +ames Garfield R Eilliam !c;inley R +ohn ;ennedy were all

&ssassinated**. 7oun N Berb N ?ronoun N &dverb N &d@ective N 5on@unction N ?reposition N Inter@ection O

?arts of >peech*. >enate N <ouse of =epresentatives O -nited >tates 5ongress

>olutions to logical problem"solving eercise PEho :wns the %ishJQ

(. 8he 7orwegian owns the cats, lives in the yellow house, plays chess, and drinks water.*. 8he Dane owns the horses, lives in the blue house, plays poker, and drinks tea.

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. 8he Arit owns the birds, lives in the red house, plays tennis, and drinks milk.. ,e Germa! o! #,e "i,, lives in the green house, plays golf, and drinks coffee./. 8he >wede owns the dogs, lives in the white house, plays billiards, and drinks beer.

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Cellow 7orwegian

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GreenGerman

Golf 2i,

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E-PERIENTIAL E-ERCISES

10.1 MAKING A LAYO)) DECISION

Instructor's 7otes

8his eercise challenges students to make a fair, but difficult decision regarding a layoff in anorganization. >tudents will discover their biases as they eamine their reasons for selecting the person to be laid off. 8his is a good eercise to turn into a short paper, in view of the growingamount of information related to reductions in force and their effect on morale in organizations.8ypical issues that will emerge are survivor syndrome, guilt, leadership style, seism, racism,ageism, and communications.

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10., THE WILDERNESS E-PERIENCE

Instructor's 7otes

<ere are the recommended courses of action for each of the situations in the Eilderness >urvival

Eorksheet. 8hese answers come from the comprehensive course on woodland survival taught bythe Interpretive >ervice, !onroe 5ounty #7ew Cork$ ?arks Department. 8hese responses areconsidered to be the best rules of thumb for most situationsK however, specific situations mightrequire other courses of action.

(. #a.$ 5all 9help9 loudly but in a low register. 9ow tones carry farther, especially in densewoodland. 8here is a much better chance of being heard if you call loudly but in a low key.M<elpM is a good word to use, because it alerts your companions to your plight. Celling orscreaming would not only be less effective, but might be passed off as a birdcall by your friendsfar away.

*. #a.$ :a&e a lot of noise with your feet. >nakes do not like people and will usually doeverything they can to get out of your way. -nless you surprise or corner a snake, there is agood chance that you will not even see one, let alone come into contact with it. >ome snakes dofeed at night, and walking softly may bring you right on top of a snake.

. #c.$ ;ut a bit of the plant on you lower lip for five minutes< if it seems all right+ try a little. 8he best approach, of course, is to eat only those plants that you recognize as safe. Aut whenyou are in doubt and very hungry, you may use the lip test. If the plant is poisonous, you will geta very unpleasant sensation on your lip. =ed berries alone do not tell you much about the plant'sedibility #unless, of course, you recognize the plant by the berries$, and birds @ust do not have thesame digestive system as we do.

. #c.$ )rin& as much as you thin& you need when you need it. 8he danger here is dehydration,and once the process starts, your liter of water will not do much to reverse it. >aving or rationingwill not help, especially if you are lying unconscious somewhere from sunstroke or dehydration.>o use the water as you need it, and be aware of your need to find a water source as soon as possible.

/. #c.$ )ig in the streambed at the outside of a bend. 8his is the part of the river or stream thatflows the fastest, is less silted, deepest, and the last part to go dry.

0. #c.$ :idway up the slope. & sudden rainstorm might turn the ravine into a raging torrent.8his has happened to many campers and hikers before they had a chance to escape. 8he rigid

line, on the other hand, increases your eposure to rain, wind, and lightning, should a storm break. 8he best location is on the slope.

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1. #b.$ ;ut the batteries under your armpits to warm them+ and then replace them in the flashlight. %lashlight batteries lose much of their power, and weak batteries run down faster, inthe cold. Earming the batteries, especially if they are already weak, will restore them for a while.Cou would normally avoid night travel, of course, unless you were in open country where youcould use the stars for navigation. 8here are @ust too many obstacles #logs, branches, unevenground, and so on$ that might in@ure you""and a broken leg, in@ured eye, or twisted ankle wouldnot help your plight right now. :nce the sun sets, darkness falls quickly in wooded areas, itwould usually be best to stay at your campsite.

2. #a.$ =ellow. & yellow flame indicates incomplete combustion and a strong possibility ofcarbon monoide buildup. )ach year many campers are killed by carbon monoide poisoning asthey sleep or doze in tents, cabins, or other enclosed spaces.

L. #a.$ Leave your boots and pac& on. )rrors in fording rivers are a ma@or cause of fatalaccidents. >harp rocks or uneven footing demand that you keep your boots on. If your pack israther well"balanced, wearing it will provide you the most stability in the swift current. &waterproof, zippered backpack will usually float, even when loaded with normal camping gearK if

you step off into a hole or deep spot, the pack could become a lifesaver.

(6. #b.$ >cross the stream. )rrors in facing the wrong way in fording a stream are the cause ofmany drownings. %acing upstream is the worst alternativeK the current could push you back andyour pack would provide the unbalance to pull you over. Cou have the best stability facing acrossthe stream, keeping your eye on the eit point on the opposite bank.

((. #c.$ 0n stoc&ing feet. <ere you can pick your route to some degree, and you can feel whereyou are stepping. 7ormal hiking boots become slippery, and going barefooted offers your feet no protection at all.

(*. #c.$ reeze+ but be ready to bac& away slowly. >udden movement will probably startle the bear a lot more than your presence. If the bear is seeking some of your food, do not argue withhimK let him forage and be on his way. :therwise, back very slowly toward some refuge #trees,rock outcrop, etc.$.

>:-=5) +. E. ?feiffer and +. ). +ones #)ds.$ he 1?,* >nnual Handboo& for /roup acilitators+ >an Diego, 5& ?feiffer R 5ompany, (L10. -sed with permission.

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ALTERNATIVE E-PERIENTIAL E-ERCISE

WHO WORKS SATURDAY NIGHT?

+anet E. Eohlberg, >cott Eeighart, @A in >ction, Cases and 4ercises, rd edition,

c(LL*, <oughton !ifflin.

Instructor's 7otes8his is a role play to be used with groups of five. %or groups of four, omit either employee ( oremployee *. %or larger groups, add one or more observers #see observer sheet$ or double up onone of the employees. 8he entire eercise can take more than an hour /6 minutes or more toread the background material and roles and carry out the role play, 6 minutes or more fordiscussion.

Ae sure that the groups have enough physical space so as not to interfere with oneanother's discussions.

7tep 1

!ake enough copies of each role so that each member of the class has one role description.

7tep 2

Ae sure that everyone in the class has read the brief background description. #It may help to readit aloud to the class.$

7tep # B optional$

&fter distributing the roles to the members of each group, divide the class into groups of the same

role members " that is, all of the managers together, all employees together, and so forth. 8hisgives individuals a chance to identify with and better understand their roles. Give the groupsabout *6 minutes to discuss their roles as they wish and clarify that they are not bound by thegroup's suggested strategies.

!eet with the group of managers to answer any questions concerning what they are to do.&ssign about one"third of the managers to be highly autocratic. 8his means that the managerscan listen to the employees, but that they should make clear from the outset that the decision isgoing to come from management. &utocratic managers should says things such as MI don't reallycare about your brother's wedding,M and so forth.

&ssign about one"third of the managers to be etremely laissez faire. 8his means that themanagers should constantly remind the workers that the decision is not of interest to them. In

other words, the workers should be told, MDo whatever you want,M and so forth.&ssign the last third of the managers to be democratic. 8his means that the managers

should clearly frame the problem for the workers, listen to their concerns, and actively lead themto a solution that has the widest acceptance and still meets the needs of the organization.

7tep %

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=edivide the class into work groups, each of which includes a manager and a player for eachemployee role. #Interesting results, for the purposes of comparison within the class, can comefrom arranging the groups in specific ways"that is, all male workers with a female manager, allfemale workers with a male manager, workers from one culture with a manager from another, allmembers from the same cultural background, and so forth. :r, try assigning the manager's role insome groups to students who are highly authoritarian and to others who are highly participative.$

7tep (

Instruct the groups that the manager must make a decision at the end of the 6 minutes of role play.

7tep *

&t the end of the 6 minutes, call time and ask the managers for their decisions, the methods theyused in arriving at their decisions, and the basis for the decision. In addition, ask them to describethe role that they were assigned #democratic, autocratic, laissez faire$. =ecord each group's

decision in a visible place, such as a blackboard, overhead, or flip chart.

7tep ,

&sk the observers, if any, to report on their findings. &re these consistent with the managers'descriptions of how decisions were madeJ

7tep 5

Discuss the questions below and those on the observer sheet.

3&e#io! "or Dic&io!

(. Given the problem presented, did the manager of your group use an appropriate leadershipstyleJ Ehy or why notJ #If you were the manager in your group, how did you feel about theeffectiveness of the leadership style you usedJ$

*. Ehat do you think the manager should have done differentlyJ. Did the manager listen to and consider each employee's argumentsJ. <ow was the decision madeJ Did the manager elicit input from the employeesJ/. Ehat are the implications of decision for each memberJ %or the effectiveness of the team on

>undayJ %or the ultimate success and quality of the pro@ectJ

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8he purpose of this role play is to give you an opportunity to eplore the effectiveness of differentleadership styles " in this case, autocratic, democratic, and laissez faire " in decision"makingsituations. &utocratic leaders generally impose their decisions without considering the interests oftheir subordinates. 9aissez"faire leaders, on the other hand, relinquish their decision"making powers to the group and its members. Democratic leaders clarify the goals to be met by thedecision and work with subordinates to find a decision that best meets those goals.

&s you do this eercise, consider the leadership style being used by your group's managerand the ways in which you believe that style to be appropriate or not.

BACKGROUND

Cour small company, 8urnem, Inc., a manufacturer of valves that have a wide variety of uses,including use in several aspects of the aerospace industry, is on a tight deadline to complete a

pro@ect. 8he prototype product is due to be demonstrated to the leaders of your aerospaceindustry the following !onday.8o finish on schedule, it will be necessary for one member of your team to work this

>aturday evening from about / ?.!. to midnight and for the entire team to work at its most productive and cooperative level for the full day on >unday. 8he budget allows for one memberof the team to be paid to work on >aturday night.

8he contract for this pro@ect, although not your company's only source of revenue, isimportant.

=eview and plan your role thoroughly. )o not discuss your role with any of yourclassmates until you have been told to do so.

(. Ariefly describe the manager's dilemma.

*. Eere the employees given a fair chance to eplain their concernsJ

. <ow would you rate the manager's overall listening skills and whyJ

. Ehat factors do you think the manager failed to consider in making a decisionJ

/. Ehat factors did the manager appear to use in reaching a decisionJ

0. <ow did the employees react to the manager's leadership style, and whyJ

=ate your group manager on the following scale

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&utocratic (6 9aissez faire /L 2 1 *0 Democratic (

5alculate the average rating in your group #not counting the manager's opinionS$ by adding allratings and dividing by the number of workers in the group.

=ate your satisfaction with the decision on the following scale

Bery dissatisfied (6 Indifferent /L 2 1 *0 Bery satisfied (

5alculate the average rating of satisfaction in your group by adding all of the ratings and dividing by the number of workers.

Generally, groups that perceive their leaders to be autocratic will be more dissatisfied withdecisions made about who works >aturday night. 9aissez"faire managers can also be frustratingto groups. ;eep in mind that this may vary depending on the composition of the group >ome people actually like to be told what to do. In some cultures, mangers who involve workers indecision"making processes, such as those represented by this eercise, are considered to beineffectiveK in other cultures, managers are epected to seek input from subordinates regularly.8he occurrence of and acceptance of laissez"faire styles of management, however, tend to be rarecompared to that of more autocratic styles.

•

<ow did your group feel about the style of your manager, and whyJ• In what situation would you consider autocratic leadership to be both appropriate and

acceptable, and whyJ• In what situations would you consider laissez"faire leadership to be both appropriate and

acceptable, and whyJ

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AUTOCRATIC MANAGER

Cou are the autocratic manager in a division of 8urnem, Inc. 5urrently, your team is working tocomplete development of a prototype valve having a highly specialized use in the aerospaceindustry and putting the finishing touches on the presentation to be made on !onday to thehighest officials of your aerospace program.

In order to get the pro@ect done on time, you and one member of your four"person teamare going to have to work this >aturday night from about / ?.!. until at least midnight.)veryone on the team will be epected to work all day on >unday. Cou know that it's going to bereally important to have your team functioning at its highest and most cooperative level on>unday if the work is going to be completed on time. In addition, the work that must becompleted >aturday night takes a high degree of technical epertise.

It is your @ob to decide who will work on >aturday night. Cour choices are employees (

or *, who have the technical knowledge and ability necessary for the tasks that must be completedon >aturday night, neither of whom want to work because of other commitmentsK employee ,who has the necessary technical knowledge and skills but who is completely unwilling to work on>aturday nightK and employee , who has little of the necessary technical knowledge but whoneeds the money and very much wants to work on >aturday night. Cou have the budget and theneed for one employee to work with you on >aturday night. 4veryone must wor& on 7unday.

&s far as you are concerned, you don't really care what the conflicts and concerns of yoursubordinates may be. 8hat isn't your problemS Cour problem is to get the right person to do the @ob, and you intend to get the person you want, no matter what.

Cou should listen to the concerns of your subordinates, but make clear from the outsetthat you'll decide, and they'll @ust have to live with your decision. ;eep reinforcing that pointwhenever possible.

ell your group only that you are their manager< do not tell them that you have beeninstructed to be autocratic.

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LAISSEZ)AIRE MANAGER

Cou are the laissez"faire manager in a division of 8urnem, Inc. 5urrently, your team is workingto complete development of a prototype valve having a highly specialized use in the aerospaceindustry and putting the finishing touches on the presentation to be made on !onday to thehighest officials of your aerospace program.

In order to get the pro@ect done on time, you and one member of your four"person teamare going to have to have to work this >aturday night from about / ?.!. until at least midnight.)veryone on the team will be epected to work all day on >unday. Cou know that it's going to bereally important to have your team functioning at its highest and most cooperative level on>unday if the work is going to be completed on time. In addition, the work that must becompleted >aturday night takes a high degree of technical epertise.

Cou don't much care who works on >aturday night, as long as someone does. :ne thing

is for sureK you don't want to be responsible for making the decision. Cou have decided to letyour employees make the decision, and you're going to stay out of it. 8heir choices areemployees ( or *, who have the technical knowledge and ability necessary for the tasks that must be completed on >aturday night, neither of whom want to work because of other commitmentsKemployee , who has the necessary technical knowledge and skills but who is completelyunwilling to work on >aturday nightK and employee , who has little of the necessary technicalknowledge but who needs the money and very much wants to work on >aturday night. Cou havethe budget and the need for only one employee to work with you on >aturday night. 4veryonemust wor& on 7unday.

&s far as you're concerned, you don't really care what the conflicts and concerns of yoursubordinates may be. 8hat isn't your problem"it's theirsS

Cou should listen to the concerns of your subordinates, but make clear from the beginning

that you're not going to interfere. :f course, you will want to let them know from time to timethat they're probably not making the right decision.

ell your group only that you are their manager< do not tell them that you have beeninstructed to be laissez faire.

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DEMOCRATIC MANAGER

Cou are the democratic manager in a division of 8urnem, Inc. 5urrently, your team is working tocomplete development of a prototype valve having a highly specialized use in the aerospaceindustry and putting the finishing touches on the presentation to be made on !onday to thehighest officials of your aerospace program.

In order to get the pro@ect done on time, you and one member of your four"person teamare going to have to work this >aturday night from about / ?.!. until at least midnight.)veryone on the team will be epected to work all day on >unday. Cou know that it's going to bereally important to have your team functioning at its highest and most cooperative level on>unday if the work is going to be completed on time. In addition, the work that must becompleted >aturday night takes a high degree of technical epertise.

It is your @ob to decide who will work on >aturday night. Cour choices are employees (

or *, who have the technical knowledge and ability necessary for the tasks that must be completedon >aturday night, neither of whom want to work because of other commitmentsK employee ,who has the necessary technical knowledge and skills but who is completely unwilling to work on>aturday nightK and employee , who has little of the necessary technical knowledge but whoneeds the money and very much wants to work on >aturday night. Cou have the budget and theneed for only one employee to work with you on >aturday night. 4veryone must wor& on7unday.

>ince the beginning of this pro@ect, you have been working closely with the members ofyour team, articulating the goals, guiding the process, serving as a clearing house, and involvingthe employees in decision"making processes that directly affect them.

Aegin by setting out the goals and purposes of having the best person work on >aturdaynight. ?ut this in terms of their best interests and the best interests of the organization. Cou

should listen to the concerns of your subordinates and help them achieve an outcome that ismutually beneficial and acceptable.

ell your group only that you are their manager< do not tell them that you have beeninstructed to be democratic.

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EMPLOYEE 1

Cou are a member of a four"person team at 8urnem, Inc. 8he pro@ect on which you are working,development of a prototype valve having a highly specialized use in the aerospace industry, is dueto be demonstrated to the highest officials of the aerospace program on !onday.

8o be ready on time, it is necessary for you and your teammates to work all day this>unday, and you may possibly have to work on >aturday night from about / ?.!. until midnight.Cou are one of the key eperts for this pro@ect on which you have worked seven days a week forover a month.

Cou consider that you have a special reason for not wanting to work on >aturday night.It's your brother's wedding, you are part of the wedding party, and your whole family will beoutraged if you fail to attend.

Cou have to convince your manager that you should not be required to work on >aturday

night.

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EMPLOYEE ,


8o be ready on time, it is necessary for you and your teammates to work all day this>unday, and you may possibly have to work >unday night from about / ?.!. until midnight.

Cou have been working on the pro@ect since its inception, including many nights andweekends. &t this point you're feeling pretty burned out. Eorse, however, is your family'sreaction. Cour spouse and children are angry at what they see as your re@ection of them in favorof your @ob.

>unday is your spouse's birthday and a number of friends and relatives have been invitedto help celebrate the day at your home. -nfortunately, you don't have any choice about missing

that event, but >aturday evening is your youngest child's debut as star in the third"grade play.Cour family has made it quite clear that your presence is not an option.Cou have to convince your manager that you should not be required to work on >aturday

night.

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EMPLOYEE /


8o be ready on time, it is necessary for you and your teammates to work all day this>unday, and you may possibly have to work >aturday night from about / ?.!. until midnight.

Cou @oined the pro@ect about two months ago, and while you're no epert, you certainlyhave the abilities and skills to do the work that must be done on >aturday night. <owever, youdefinitely do not want to work. &s far as you are concerned, you're entitled to a life outside ofthe workplace, you're not much of a team player, and you had originally asked not to be put onthis @ob anyway.

8here was a time in your life when you would have been at the head of the line to

volunteer for this @obTa time when your sole purpose in life was to get ahead, make more money,and gain power, prestige, and status.&bout eighteen months ago, your best friend died in a car accident. It was a shock to you

to suddenly be faced with the uncertainty and fragility of life. Cou have decided that you had better live life while you have it, and that doesn't mean spending it at work.

Cou're angry enough that you have to work on >unday. &s far as you're concerned,someone else can work on >aturday night, because you're not going toS

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EMPLOYEE


8o be ready on time, it is necessary for you and your teammates to work all day this>unday, and you may possibly have to work >aturday night from about / ?.!. until midnight.

Cou @oined the team about five weeks ago and have some minimal knowledge of the pro@ect.

Cou have been holding off taking a moonlighting @ob because this pro@ect, so far, has beenkeeping you busy seven days a week and evenings. Ehile you're pretty tired, you desperatelyneed the money.

Cour @ob is to convince your manager to let you work on >aturday night.

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MBTI E-ERCISE:

)ercise 9earning :b@ectives

a. Demonstrate to the students that people make decisions using different styles.

b. >tudents will eperience a real"world situation they will face.c. >how students that regardless of their decision"making process, they must be able to MsellMtheir decision to other people.

)ercise :verview

(. >tudents should have taken the !A8I or the short version in 5hapter .

*. &sk students to form groups into those that prefer thinking and those that prefer feeling astheir decision"making basis.

. >tudents in like"groups will work a scenario and then sell their decision to the opposite grouptype.

. 8he instructor must be knowledgeable of the M8M and M%M dynamics of the !A8I. Ee highlyrecommend that the instructor review the material listed in the !A8I reference section.&dditionally, the instructor should be on the look out for the potential of hurt feelings and bruisedegos. 8his eercise usually takes 0/"16 minutes. 8his is the single most powerful and potentiallyuseful !A8I"based eercise in this series.

)ercise Description

a. %orm M8M and M%M groups of "0 students each. %orm as many groups as you need so that

everyone is in a group.

b. &sk each group to select an observer. 8hat person will observe a group of the opposite typeK#i.e., M8M will observe M%M and vice"versa.$.

c. Give the following roles to students

Role: Cou are a head nurse. Cou have been a head nurse over several other nurses for too long.Cou @ust don't have any interest in supervising people anymore. It seems to cause you so muchaniety that you literally lose sleep at night when you go home. Cou would really love to get outof being in your current position. Cou have considered taking a demotion to a nurse's @ob until

you retire. Cou would leave the hospital, but it is too close to retirement and will @ust cost youentirely too much to leave now. Cour work is not super, but it has been satisfactory and youreally don't think you can push yourself to do anymore. >atisfactory should be enough for whatyou get paid. Cour boss has called you in for a talk.

Role: Cou are the supervisor of a group of head nurses who manage other nurses. Cou are veryconcerned about one of your head nurses. :ver the last couple of years, he has had low performance, failed to do many of the @obs assigned, and brings almost all decisions to committee

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meetings in order to avoid making decisions. Cou feel you must call him in for discussion. Couare to the point of telling him that if he doesn't correct his performance you will have to terminatehis employment since there is no position to which to demote him. Cou have called him in to talkover his performance.

d. Give the students the following instructions

(. Cou are to decide to fire or not to fire this employee.*. Cou must develop a rationale for your decision.. Cou should select a person who will represent your group and your boss to support your

decision. Cour boss is of the opposite type from your 8% preference.. Cou will have (6 minutes to discuss the case and determine the facts. Cou have all the facts

before you""nothing else is known./. Cou will then have / minutes to decide whether or not to fire this employee.0. Cou will then have (/ minutes to develop the rationale that you will use to defend your

position.1. Cou will have / minutes to present your case to the other group who will collectively act as

your boss.2. &fter the first group is finished, the bosses now must present their case. 8his is done

A)%:=) reporting out happens.

e. If you have more than one group of each type, each group should present. Cou can run these presentations simultaneously if you use student observers to assist you in reporting whathappened.

f. 8iming must be precise. ?art of the benefit of this eercise is the time pressure. !ost of thetime, when we are under pressure we will subconsciously use our preferred strength to achievethe results we seek. &s with other things, this holds true for our decision"making process and its

subsequent verbalization. 8o show the class the real distinctions between M8M and M%M, we need tohighlight the best use of the strength of each group.

g. Debriefing the eercises. Debrief the second presentation first.

(. &sk each boss if heshe agreed with the decision.*. Ehat in the presentation led to your decision to agree or notJ. <ow did the presenter thinkfeel about the eperienceJ. Ehat did the observers notice #if you used them$J/. Ehat did the presenters learnJ

h. Debrief the first presentation, using these same steps.

i. Debrief the class. If you used observers, solicit the observers first and, then, solicit feedbackfrom the entire class.

(. &sk the class, MEhat did you seeJM*. Ehat differences and similarities did you noticeJ

Ehat the instructor should epect

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a. M8sM want the decision to be stated up front and followed by the rationale for the decision.8hey want the facts stated clearly as to what the issues are, what steps have been taken, whathave been the results of any interventions, and what will be the cost if your decision isimplemented. M8sM are concerned about getting sued if there is not a logical, rational approachthat led to the decision. M8sM will turn the employee problem into a management competencyissue if they believe the situation should have been resolved earlier.

b. M%sM want to be reassured that everything possible was done for the employee. %or eample,has the supervisor made training available, rotated @obs, counseled the employee, and so forthJ8he M%sM also want to know that the person who is presenting really cares about this person""no phony affects here. 8hey need to know the impact the decision #fire or not$ will have on the other people in the organization. 8hey are not as concerned about the effect on the organization as anentity as they are about the person and those people directly impacted. %inally, you will need toshow M%sM that the employee has violated the organization's values.

Instructor's >ummary

!aking decisions is something we all face. !ost of the time, we have to MsellM our decisions toothers. It is important to remember that some people make decisions based on ob@ective logicwhile others make decisions based on sub@ective values. 7either process is inherently betterK bothhave strengths and pitfalls. In an organization, asking people who use different decision" making processes should result in a more complete and supportable decision.

!aterials 7eeded

7one, students should have paper and pencil.

U&dapted from Dr. !argaret <artzler, 8ype =esources, Inc., used with permission.

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E-TRA E-PERIENTIAL E-ERCISES

8he following alternative eercises to supplement the material in the tetbook can be obtainedfrom

!arcic, Dorothy, >eltzer, +oseph, R Baill, ?eter. @rganizational Aehavior3 4periences andCases, 0th 4d . >outh Eestern 5ollege ?ublishing 5ompany, *66(.

Impro$i!g Orga!i-a#io!a% Deciio! Ma+i!g* p. (1("(10. 8ime 6 minutes or more.?urpose 8o eplore a structure for organizational decision making.

%andt, ?atricia !. :anagement 7&ills3 ;ractice and 4perience. Eest ?ublishing 5ompany,(LL.

I!4Ba+e# E5ercie 16 Ide!#i"'i!g Pro)%em* p. *L.

I!4Ba+e# E5ercie 76 Ge!era#i!g A%#er!a#i$e* p. (.

CASE QUESTIONS: SUGGESTED ANSWERS

GAE8AY

1. 8sing the notions of ris& and escalation of commitment+ how would you evaluate ed $aittsdecision to found /ateway"

Eaitt was a risk taker rather than being risk averseK however, he did not take an ecessiverisk. <e took a calculated chance using V(6,666 in borrowed capital to pursue a businessventure in which he strongly believed. Ehile there was uncertainty associated with the

founding of this business venture, it soon proved to be phenomenally successful. 8hus,escalation of commitment to a losing course of action never came into play.

2. How would you describe the various decisions about capitalizing on user!friendly mar&eting+establishing strong customer support+ and developing new sales channels and mar&ets interms of the rational+ bounded rationality+ and garbage can models of decision ma&ing"

=ational decision making involves a logical step"by"step approach that relies on a thoroughanalysis of alternatives and their consequences, with the ob@ective of selecting the best possible alternative. Eith bounded rationality, decision makers do not seek an optimaldecision. =ather, they use heuristics #or shortcuts$ to select a satisficing alternative # i.e., thefirst alternative that provides a Pgood enoughQ solution$. In the garbage can model of decisionmaking, problems, solutions, participants, and choice opportunities do not occur in any predictable or systematic fashion. Instead, decision making is random and unsystematic.8he evidence in the case strongly indicates that Gateway4s decision making cannot beaccurately described with the garbage can model. 8he founding, growth, and evolutionappears to be more systematic than unsystematic, and is far more than a series of randomoccurrences. 8herefore, either the rational decision"making model or the bounded rationalitymodel provides an appropriate characterization of Gateway4s decision"making process. 8heevidence more strongly supports the rationality model rather than the bounded rationality

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model. )vidence in support of rationality can be found in Gateway4s decisions to #a$ establishstrong customer support servicesK #b$ use showrooms to strengthen customer relationshipsK#c$ open the online Gateway Gear Gift >hopK and #d$ establish the Gateway &ffiliates?rogram.

#. How could /ateway have used the problem!solving model shown in igure 1D.# as an aid

to evaluating the prospect of continued use of its fol&sy promotional imagery as it epandedits mar&ets"

&ccording to the problem"solving model, effective problem solving has four steps

• -se of sensing to eamine the facts and details.

• -se of intuiting to generate alternatives.

• -se of logical thinking to ob@ectively analyze the effects of each alternative.

• -se of feeling to weigh the impact on the people involved in making the

decision.

Gateway4s epansion through the /ateway /ear /ift 7hop and the /ateway >ffiliate ;rogramrepresent logical etensions of Gateway4s ?5 brand to associated computer services andmerchandise. 8he folksy promotional imagery that worked so well with individual personalcomputer users appears to be working well with these new marketing initiatives, particularlywith the /ateway /ear /ift 7hop.

<owever, if the folksy promotional imagery became problematic, Gateway4s decision makerswould need to do the following in terms of comparatively evaluating the company4s traditionalcustomer base with the new customer bases generated through epansion

•

Determine the facts and details regarding the needs, tastes, desires, and preferences of the new customers.

• Generate alternative promotional images that would address the needs, tastes,

desires, and preferences of these new customers.

• &nalyze each alternative to evaluate the likely consequences of

implementation.

• &ssess how the decision makers react to each alternative and the etent of

support for and commitment to each alternative.

&n involving way to approach this question is to have students assume roles as variouseecutives at Gateway. 8he students could then discuss what type of promotional imagery

would appeal to customers of Gateway Gear Gifts, Gateway Ausiness &ffiliates, and Gateway<ome &ffiliates. 8hey should also eplore whether a different promotional image wouldappeal to each type of customer. 8hereafter, the students could brainstorm alternative ways ofgenerating the needed type#s$ of promotional imagery, and then eamine the probable effectsof each alternative. %inally, they should consider how they, as decision makers, react to eachof the proposed alternatives.

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R#" P'23

&dditional role plays relevant to the material in this chapter are located in &ppendi & of thisinstructor's manual.

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DECISION MAKING by Groups and Individuals

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Transcript of DECISION MAKING by Groups and Individuals