Scribd Logo
Upload

Welcome to Scribd!

  • 23 views

    140 Dec Making

    Uploaded by

    Marga Testado
    DECISION MAKING PROCESSES (SC 140)

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd

    140 Dec Making

    Uploaded by

    Marga Testado
    23 views33 pages
    DECISION MAKING PROCESSES (SC 140)

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    DECISION MAKING PROCESSES (SC 140)

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    23 views33 pages

    140 Dec Making

    Uploaded by

    Marga Testado
    DECISION MAKING PROCESSES (SC 140)

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 33

    Decision-Making Processes

    OUTLINE:
    I. MODELS OF THE DECISION-MAKING PROCESS 1) Rational models of group decision-making 2) Alternatives to rational models II. SMALL-GROUP DECISION MAKING 1) Phase model of decision making proposed by Fisher *Groupthink 2) Functional theory of group decision making by Hirokawa and Gouran III. PARTICIPATION IN DECISION MAKING 2 Models of Participative Decision Making: 1) Affective model 2) Cognitive model

    I. MODELS OF THE DECISION-MAKING PROCESS

    1) Rational Models of Decision Making


    According to Nutt (1984), rational model (also called normative model) includes five stages.

    1st stage: Define the problem


    2nd stage: Generate ideas to deal with the problem .

    3rd stage: Subgroups explore the problem in depth


    4th stage: The costs and benefits of potential solutions are judged

    5th stage: Whatever solution came out on top during the evaluation stage is launched
    Consider, for instance, a team of managers trying to make a decision about adopting a new server for the companys network of computers.

    2) Alternatives to Rational Models

    2) Alternatives to Rational Models

    Rational Models
    According to March & Simon, are "optimizing models," meaning that they search for the single best solutionbut this is not how it works in reality. They believe that it is more realistic to look at organizational decision making as a satisficing process.

    2) Alternatives to Rational Models

    Alternative Models: How do people actually make decisions?


    1. Satisficing Process (March and Simon,1958)

    A process in which the search is not for a single optimal


    solution but for a solution that will work well enough for dealing with the situation.

    Decision makers are characterized by bounded rationality. That


    is, decision makers attempt to make logical decisions, but they are limited cognitively(e.g., humans are not always perfectly logical) and by the practical aspects of organizational life (e.g., limits in time and resources).

    2) Alternatives to Rational Models

    2) Alternatives to Rational Models


    2. Intuitive Process

    Barnard argues that decision makers are often forced to make


    quick decisions without the opportunity for information search and debate.

    "Gut" decision making


    This kind of decision making is based on past experience
    in similar contexts.

    Analogical- That is, a manager faced with making a decision will


    consider what has worked in similar situations in the past. By analogy, a similar solution should work again.

    2) Alternatives to Rational Models

    2) Alternatives to Rational Models


    3. Garbage Can Model (Cohen, March & Olson, 1972).

    Problems, solutions, participants, and choices are all dumped together in


    a relatively independent fashion.

    The "decision" that arises in this situation is not one of logical search and
    solution but merely happy coincidence

    The Garbage Can model states that a given situation cannot be properly
    understood until after it happens (i.e., using hindsight to make sense of the experience), making the model retrospective in nature

    II. SMALL-GROUP DECISION MAKING

    Descriptive Models of Small-Group Decision Making

    Most models of group decision-making propose that groups go through a series of phases as they systematically attempt to reach decisions.

    A) Phase model of decision making proposed by Fisher (1970)

    GROUPTHINK, a psychological phenomenon


    Groupthink refers to a mode of thinking that people engage in when they are deeply involved in a cohesive in group, when the members striving for unanimity overrides their motivation to realistically appraise alternative courses of action (Janis, 1982). There is more concern with appearing cohesive and maintaining group relations than there is with making a high-quality decision

    GROUPTHINK, a psychological phenomenon

    Pitfalls that can result from pressure toward uniformity in an overly cohesive group.

    How, then, can a group improve its chances of making an effective decision?

    The most complete explanation of the role communication plays in Functional theory argues that effective decision making depends on groups
    attending to critical functions through group communication.

    enhancing decision quality comes from Randy Hirokawa and Dennis Gouran in their functional theory of group decision making.

    B) Functional theory of group decision making


    Critical Functions are as follows:

    o The group should have a correct understanding of the issues


    to be resolved.

    o The group should determine the minimal characteristics


    required in order for any alternative to be acceptable.

    oThe group should identify a relevant and realistic set of


    alternatives.

    oThe group should carefully examine the alternatives in relation


    to each previously agreed-upon required characteristic.

    oThe group should select the alternative that is most likely to


    have the desired characteristics.

    Beyond Rational Group Processes

    Beyond Rational Group Processes

    Symbolic convergence theory- this theory considers the role of communication such as stories and jokes in creating a feeling of group identity. Bona fide groups perspective- proposing that group research considers factors such as shifting membership, permeable group boundaries, and interdependence within an organizational context.

    III. PARTICIPATION IN DECISION MAKING

    Effects of Participation in Decision Making (PDM)

    I. ATTITUDINAL EFFECTS OF PARTICIPATION

    2. Job Involvement 3. Organizational Commitment

    Effects of Participation in Decision Making (PDM)


    II. Cognitive Effects Enhanced use of information from a wide range of organizational members and a Greater employee understanding of decisions and the organization as a whole.

    III. Behavioral Effects Improved productivity and an increase in the effectiveness of decisions.

    Models of the Participation Process


    I. Affective Model
    Productivity

    Motivation
    Work Satisfaction

    PDM

    Satisfaction of HigherOrder Needs

    Models of the Participation Process


    II. Cognitive Model

    Participative Applications in Organizations and Workplace Democracy


    Seibold and Shea (2001) considered the wide array of participation programs used by organizations: type of participation (e.g., consultative or participative), in terms of the content of decision making (including working conditions, company policy, and hiring), and in terms of the locus of participation (e.g., departmental level or organizational level).

    Workplace Democracy
    Cheney (1995) defines workplace democracy as a system of governance which truly values individuals goals and feelings as well as typically organizational objectives which actively fosters the connection between those two sets of concerns by encouraging individual contributions to important organizational choices, and which allows for the ongoing modification of the organizations activities and policies by the group.

    Workplace Democracy
    Workplace democracy involves collaboration among multiple stakeholders (Deetz, 1995), including workers, investors, consumers, suppliers, host communities, and the world economic community.

    Paradoxes of Participative Democracy

    Beyond Decisions: Knowledge Management Systems


    Knowledge management involves identifying and harnessing intellectual assets to allow organizations to build on past experiences and create new mechanisms for exchanging and creating knowledge

    Beyond Decisions: Knowledge Management Systems


    EXPLICIT KNOWLEDGE + TACIT KNOWLEDGE

    Thank you

    You might also like