Decision-Making in Organizations: Approaches To More Effective Analysis

Decision-making in
Organizations: Approaches to
More Effective Analysis
Kathleen M. Golden, Ph.D.

Patricia P. Pineo, Ph.D.
Edinboro University
Introduction
Smith and Fingar define Business

Process Management (BPM) as “a
synthesis of process representation
and collaboration technologies that
removes the obstacles blocking the
execution of management intentions.
Therefore BPM is the convergence of
management theory…with modern
technologies” [18].
The key is decision-making
The portion of this definition that is

often overlooked in the rush toward
technology is the discernment of
‘management intentions,’ or decision-
making.
Our two-fold approach
Functional theory to evaluate the

quality of group decision-making
(Gouran and Hirokawa, 1983, 1996)
Bona fide group studies, in natural
settings; preferably longitudinal
(Putnam and Stohl, 1990; Stohl and
Holmes, 1993)
How is this achieved?
Through the use of various decision-

making tools and techniques
throughout all forms of planning:
investigation, analysis,
implementation, and assessment
According to functional Theory: Groups must
meet five functions during interaction:
Problem Analysis: Given the information available to it, a
group needs to arrive at an accurate (i.e. reasonable)
understanding of (a) the nature of the problem, (b) the extent
and seriousness of the problem, (c) the likely cause(s) of the
problem, and (d) the possible consequences of not dealing
effectively with the problem.
Establishment of evaluation criteria: A group must recognize
the specific standards that the choice must satisfy to be judged
acceptable by evaluators of that decision.
Generation of alternative solutions: A group must generate,
or be aware of, a number of appropriate and feasible alternative
choices among which an acceptable choice is assumed to exist.
Evaluation of positive consequences of solutions: Given the
information available to it, a group needs to be fully cognizant of
the relative merits of all available alternatives.
Evaluation of negative consequences of solutions: Given
the information available to it, a group needs to be fully
cognizant of the relative disadvantages associated with each
alternative choice [11].
Bona fide group perspective
Two characteristics that underlie a

bona fide group are permeable and
fluid boundaries and
interdependence with context. The
idea of “groupness” itself and the
social processes that form and
sustain a group rest on a continual
negotiation of borders, boundaries,
and arenas [17].
Stohl and Holmes (1993) discussed the
misconceptions of functional theorists:
Decision quality is an objective
characteristic or attribute that is
apparent at the time of the
production of a decision.
Relevant task communication takes
place within meetings and not
outside of the small group context.
Group action is nonsimultaneous
and meaningfully sequenced [19].
Stohl and Holmes proposed
Two additional classes of functions to
add to those developed by functional
theorists:
Embeds the decision in “ongoing
group life (historical functions)
Accomplishes the embedding of a
decision in a permeable context
(institutional functions)” [19].
What is the bridge between the two
perspectives?
Group Decision Support Systems
(GDSS)—can be used to assist in
more reasoned decision-making
GDSS can be used to better
understand the groups and their
needs and concerns
Conclusion
For BPM to be successful

stakeholders must be involved in
entire process from development to
implementation
Through effective decision-making,
designers and implementers will know
what are the key concerns and issues
with BPM.
A final plea to vendors
It is academics who will conduct many
of these studies of organizations
making major changes through
Business Process Management.
It is suggested that low-cost programs
and hardware need to be supplied to
universities so that they can assist in
understanding through research
studies and grants.

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Decision-making in

Kathleen M. Golden, Ph.D.

Smith and Fingar define Business

The portion of this definition that is

Functional theory to evaluate the

Through the use of various decision-

Two characteristics that underlie a

For BPM to be successful

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