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Individual & Group
Chapter 7
Decision Making
How Managers Make Things Happen
CHAPTER CONTENTS
Section 7.1 discusses four steps in the rational decision making process: (1) identify the
problem or opportunity, (2) think up alternative solutions, (3) evaluate alternatives and
select a solution, and (4) implement and evaluate the solution chosen. There is also a
discussion on the two nonrational models of decision making: (1) satisficing and (2)
intuition.
One way that you could begin your coverage of these topics is to have the students
read the Harvard Business Review article “SC Johnson’s CEO on Doing the Right
Thing, Even When It Hurts Business.” In this article, Fisk Johnson, SC Johnson CEO,
describes the firm’s decision to reformulate Saran Wrap over environmental concerns,
knowing that the reformulation was likely to negatively impact the product’s sales.
Article Citation:
Johnson, F. (2015). SC Johnson’s CEO on doing the right thing, even when it hurts
business. Harvard Business Review, 93(4), 33-36.
Product #: R1504A-PDF-ENG
Possible Topics for Discussion:
• Discuss why it can be so hard to be purely rational in the decision-making
process.
• Describe a time you used intuition to make a decision. Describe the advantages
and disadvantages of having used intuition to make this decision.
• Using the Harvard Business Review article “SC Johnson’s CEO on Doing the
Right Thing, Even When It Hurts Business” as your foundation, evaluate the
extent to which SC Johnson’s decision to reformulate Saran Wrap is an example
of rational decision making or nonrational decision making.
Major Idea Outline:
A. Decision Making Defined
1. A decision is a choice made from among available alternatives.
2. Decision making is the process of identifying and choosing alternative
courses of action.
Section 7.2 discusses a decision tree, which can help one make ethical decisions. One
way that you could begin your coverage of these topics is to have the students read the
Harvard Business Review article “Is It Ever OK to Break a Promise?” This article is a
HBR Case Study and includes a fictional case and case commentary by industry
experts. In this case, a student must decide whether to break his promise and leave the
company that sponsored his MBA to be able to accept a dream job. Using this case
study would a relevant way for students to apply the ethical decision tree.
Article Citation:
Bearden, N., Oelschlegel, C., & Brown, J. (2014). Is it ever OK to break a promise?
Harvard Business Review, 92(9), 119-123.
Product #: R1409L-PDF-ENG
Possible Topics for Discussion:
• Think of a time when you were not sure if a course of action you were
considering was ethical or not. How could you have applied the ethical decision
tree in Figure 7.3 to help you make a decision?
• What are the limitations of using the ethical decision tree presented in the
chapter?
• Using the Harvard Business Review article “Is It Ever OK to Break a Promise?”
as your foundation, apply the ethical decision tree from Figure 7.3 to provide
specific recommendations for how Sameer Hopskin should deal with the current
situation.
Major Idea Outline:
A. The Dismal Record of Business Ethics
1. Recent high-profile scandals have spurred interest in ethical decision
making.
3. Many companies now have an ethics officer, someone trained about
matters of ethics in the workplace, particularly about resolving ethical
dilemmas.
4. Managers now must try to make sure their decisions are not just lawful but
also ethical.
Section 7.3 discusses the seven principles for implementing evidence-based decision
making. Overall, it is sometimes difficult to bring this approach to bear on one’s
decision making. Lastly, there is a discussion on analytics and its three key attributes.
One way that you could begin your coverage of these topics is to have the students
read the Harvard Business Review article “The CEO of Williams-Sonoma on Blending
Instinct with Analysis.” The article profiles how the retailer is able to use data to
improve its strategy.
Article Citation:
Alber, L. (2014). The CEO of Williams-Sonoma on blending instinct with analysis.
Harvard Business Review, 93(9), 41-44.
Product #: R1409A-PDF-ENG
Possible Topics for Discussion:
• Describe industries or products that will undergo dramatic transformation as our
ability to capture and process data improves.
• What concerns should we have about “Big Data?”
• Using the Harvard Business Review article “The CEO of Williams-Sonoma on
Blending Instinct with Analysis” as your foundation, describe examples of
evidence-based decision making and Big Data uses profiled in the article.
Major Idea Outline:
A. Evidence-Based Decision Making
1. Evidence-based management means translating principles based on
best evidence into organizational practice.
2. Seven implementation principles help companies that are committed to
doing what it takes to profit from evidence-based management, as follows:
a. Treat your organization as an unfinished prototype – Don’t be
concerned that your organization will be ruined by dangerous new
ideas or that it is impossible to change because of employee or
management resistance.
b. Follow the slogan “No brag, just facts” – Many assertions are made
with complete disregard for facts; ignore them.
c. See yourself and your organization as others do – Most managers
have inflated views of their own talents and prospects for success.
(1) This causes them to downplay risks and continue on the same
paths despite evidence that things are not working.
d. Evidence-based management is not just for senior executives – The
best organizations are those in which everyone is guided by the
responsibility to gather and act on quantitative and qualitative data.
e. Like everything else, you still need to sell it – New and exciting ideas
grab attention even when they are vastly inferior to old ideas.
(1) You need to grab management’s attention by using vivid stories to
sell preferred practices based on solid if unexciting evidence.
f. If all else fails, slow the spread of bad practices – It may be necessary
for you to practice so-called “evidence-based misbehavior.”
g. The best diagnostic question: what happens when people fail? –
When something goes wrong, you need to:
(1) Face the hard facts.
(2) Learn what happened and why.
(3) Keep using those facts to make the system better.
Exploring the Variety of Random
Documents with Different Content
“Music,” she breathed, “and such music! The very music
of Heaven!”
Her wonder grew with every step that she took in the
direction of the mysterious musician. As she came
closer, and the tones became more distinct, she knew
that she could not be mistaken.
As she thought of these things, and as the rise and fall [122]
of the music still came sweeping through the trees, a
strange spell fell upon her. It was as if she were resting
upon the soft, cushioned seat of some splendid church.
With the service appealing to her sense of the artistic
and the beautiful, and to her instinct of reverence; with
the soft lights pervading all, she was again in the chapel
of her own university.
“It is enough,” she said when the sound of the last note
had died away in the tree tops. “It’s all very mysterious,
but any person who can play Handel’s Largo like that is
not going to be unkind to two girls who are far from
home. I’m going in.”
[125]
CHAPTER XV
AN OLD MAN OF THE NORTH
Acting upon this impulse, she peered through the crack [128]
in the door.
Seated with his side toward her, was the bent figure of
an old man. His long, flowing white beard, his snowy
locks, the dreamy look upon his face as his fingers
drifted back and forth across the keys, reminded her of
pictures she had seen of ancient bards playing upon
golden harps.
“Come in. I have been waiting for you. You are welcome [129]
to an old man’s lonely house; doubly welcome, coming
as you do in time for Sunday vespers.”
This strange, almost uncanny proceeding so startled the
girl that for a second she was tempted to turn and flee.
The next second she had complete control of herself.
Pushing the door open, as if entering the chamber of
the king of fairies, she made a little bow and said:
“Thank you.”
To her vast relief she found that the old man, though he
had undoubtedly been expecting them or someone else,
did not know all about them. He asked if they travelled
with dog team or reindeer. Upon being told that they
drove reindeer, he smiled and said:
“Good. It’s lucky I have feed for your deer. Reindeer [130]
people seldom come this way. Once I was caught
unprepared to entertain them, so last autumn I put in a
good stock of moss and willow leaves. Your deer shall
be safely housed and richly fed, and so shall you. Go
bring them at once. Or shall I go with you?”
“It must all come from some vessel,” she reasoned. [133]
“Even the lighting fixtures look as if they had been
taken from a ship. I wonder what ship, and why?”
If the service was perfect, the food was no less so. Four
ptarmigan, those wonderful “quail of the Arctic,” broiled
to a delicious turn, were flanked with potatoes, gravy,
peas and apple sauce. The desert was blueberries
preserved in wild honey.
He interrupted her with a wave of the hand. “It will all [135]
keep until morning. This habit young people have, of
sitting up talking all hours of the night because life
seems too exciting for sleep, is all wrong. You are in
need of rest. ‘Everything in its good time’ is my motto.
Fortunately my guest room is warm. The fire is not yet
burned out. Last night I had the honor of furnishing a
night’s lodging to the Agent of our Government.”
Upon realizing that she had missed the man she had [136]
come so far to see, Marian could have burst into tears.
“Did—did you say that one could not pass over the trail
with a sled?” she asked in the calmest tone she could
command. “Are the rapids not yet frozen over?”
“Can a boat run the rapids?” she asked, though she [137]
knew the question was foolish and that no boat could
run them.
“None has. None can. The way is too rough; the trees
too closely crowded together. Dogs, reindeer, men, yes;
but sleds, no.”
“None.”
[139]
CHAPTER XVII
AGE SERVES YOUTH
Had she known the reason she would have done little
sleeping that night. The aged host was tuning his soul
to such a key as would nerve him for a Herculean task.
Since Marian did not know, she puzzled for a time over
the trail they must travel in the morning; wondered
vaguely how her host was to keep his promise of
bringing their sleds safely past the rapids; then fell
asleep.
Here was a task fit for the youngest and the strongest;
yet there he stood, the spirit of a hero flowing in his
veins—age serving youth. The gallantry of a great and
perfect gentleman bowing to fair ladies and daring all.
How Marian would have thrilled at sight of this daring
act.
With a swift turn he tightened the rope, then with the [145]
“de—de—dum” of his symphony upon his lips, strained
every muscle until he felt the rope slack, then eased
away as he saw the raft tilt for the glide. Then he
relaxed his muscles and stood there watching.
[146]
CHAPTER XVIII
THE TRAIL OF BLOOD
Suddenly she stopped and stood still. Just before her [149]
was a large discoloration of the snow. And, though the
snow was so wind packed that she walked on it without
snowshoes, her keen eyes detected spots where it had
been broken and scratched by some hard, heavy object.
Once more she bent over. On the hard packed snow, the
sole of a skin boot makes no tracks. After a moment’s
study she again straightened up.
But what should she do, once she had reached her own
camp? She was convinced in her own mind that the
slain creature was one of their deer; yet she could not
prove it. Should she lead her armed herders to the
stranger’s tent and demand an explanation? Oh, how
she did wish that Marian was here!
[153]
CHAPTER XIX
PASSING THE RAPIDS
Ten seconds passed, twenty, thirty, then with a whirl like [154]
some wild animal yielding to its captor, the raft swung
about and shot away down stream.
Plunging forward, leaping rocks, gliding over glassy
surfaces of snow, puffing, perspiring, the old man
followed.