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7/29/2019 1027343[1] Group Decision Making [Compatibility Mode]
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PowerPoint Presentation by Charlie CookPowerPoint Presentation by Charlie Cook
The University o f West AlabamaThe University o f West Alabama
ManagerialManagerialDecision MakingDecision MakingAdapted byAdapted byDr. Ajay Kr. SinghDr. Ajay Kr. Singh
ChapterChapter
66
Part 2 Planning Challenges in the 21st CenturyPart 2 Planning Challenges in the 21st Century 2007 Thoms on/South 2007 Thoms on/South--Western. All rights r eserved.Western. All rights reserved.
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Sources of Organizational andSources of Organizational andEntrepreneurial DecisionsEntrepreneurial Decisions
Decision makingDecision making
The process through which managers and leadersThe process through which managers and leaders
identify and resolve problems and capitalize onidentify and resolve problems and capitalize on
opportunities.opportunities.
ProblemProblem
A condition that occurs when some aspect ofA condition that occurs when some aspect of
organizational performance is less than desirable.organizational performance is less than desirable.
OpportunityOpportunity
Any situation that has the potential to provideAny situation that has the potential to provide
additional beneficial outcomes.additional beneficial outcomes.
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Figure 6.1Figure 6.1 Seven Steps in the DecisionSeven Steps in the Decision--Making ProcessMaking Process
Identifying opportunities
and diagnosing problems
Identifying objectives
Generating alternatives
Evaluating alternatives
Choosing implementation strategies
Monitoring and evaluating
Reaching decisions
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Figure 6.Figure 6.33 Two Contrasting Decision ModelsTwo Contrasting Decision Models
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Ethics and Decision MakingEthics and Decision Making
Ethical DilemmaEthical Dilemma A situation in which a person must decide whether or not to doA situation in which a person must decide whether or not to do
something that, although benefiting oneself or the organization,something that, although benefiting oneself or the organization,
may be considered unethical and perhaps illegal.may be considered unethical and perhaps illegal.
Have you accurately assessed the problem?Have you accurately assessed the problem?
Do you have all the necessary information?Do you have all the necessary information?
Where are your loyalties?Where are your loyalties?
Have you generated a list of possible alternatives and consideredHave you generated a list of possible alternatives and consideredhow each will affect the other parties involved?how each will affect the other parties involved?
Have you tested each alternative by asking whether it is legal, fair,Have you tested each alternative by asking whether it is legal, fair,and just to all parties involved?and just to all parties involved?
Would your decision change if you were to disclose it to your family,Would your decision change if you were to disclose it to your family,
your boss, or society as a whole?your boss, or society as a whole? Does your decision have any symbolic potential?Does your decision have any symbolic potential?
Could it be misunderstood?Could it be misunderstood?
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Behavioral Decision ModelBehavioral Decision Model
Acknowledges the human limitations that makeAcknowledges the human limitations that makerational decisions difficult to achieve.rational decisions difficult to achieve.
A managers cognitive ability to process information isA managers cognitive ability to process information is
limited.limited.
Managers usually attempt to behave rationally withinManagers usually attempt to behave rationally within
their limited perception of a situation.their limited perception of a situation.
The complexity of most organizational situationsThe complexity of most organizational situations
forces managers to view problems within sharplyforces managers to view problems within sharply
restricted bounds.restricted bounds.
The behavior of managers can be consideredThe behavior of managers can be consideredrational, but only in terms of their simplified view ofrational, but only in terms of their simplified view of
the problem.the problem.
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Concepts Important to the BehavioralConcepts Important to the BehavioralDecision ModelDecision Model
Bounded RationalityBounded Rationality
Recognizes that people are limited by organizationalRecognizes that people are limited by organizational
constraints such as time, information, resources, andconstraints such as time, information, resources, and
their own mental capabilities.their own mental capabilities.
IntuitionIntuition
An unconscious analysis based on past experience.An unconscious analysis based on past experience.
SatisficingSatisficing
The search and acceptance of something that isThe search and acceptance of something that is
satisfactory rather than perfect or optimal.satisfactory rather than perfect or optimal.
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Concepts Important to the Decision ModelConcepts Important to the Decision Model(contd)(contd)
Escalation of CommitmentEscalation of Commitment
The tendency to increase commitment to a previouslyThe tendency to increase commitment to a previously
selected course of action beyond the level that wouldselected course of action beyond the level that would
be expected if the manager followed an effectivebe expected if the manager followed an effective
decisiondecision--making process.making process.
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Fostering Quality in the DecisionFostering Quality in the Decision--MakingMakingProcessProcess
VigilanceVigilance
Being concerned for and attentiveBeing concerned for and attentive
to the correct decisionto the correct decision--makingmaking
procedures can make a goodprocedures can make a good
decision more likely.decision more likely.
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Group Considerations in Decision MakingGroup Considerations in Decision Making
Group decision making is becoming moreGroup decision making is becoming morecommon as organizations focus on improvingcommon as organizations focus on improvingcustomer service and push decision making tocustomer service and push decision making tolower levels.lower levels.
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Participative ModelsParticipative Models
Vroom and Yetton ModelVroom and Yetton ModelHelps managers determine when group decisionHelps managers determine when group decision
making is appropriate.making is appropriate.
Postulates that there are five decisionPostulates that there are five decision--making stylesmaking styles
arranged along a continuum.arranged along a continuum.
The decision methods become progressively moreThe decision methods become progressively moreparticipative as one moves from the highlyparticipative as one moves from the highlyautocratic style (AI) to the group style (GII), whereautocratic style (AI) to the group style (GII), wherethe manager allows the group to decide.the manager allows the group to decide.
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Situational Contingencies Affecting DecisionSituational Contingencies Affecting DecisionMaking ParticipationMaking Participation
Decision significanceDecision significance
Importance of commitmentImportance of commitment
Leader expertiseLeader expertise
Likelihood of commitmentLikelihood of commitment
Team supportTeam support
Team expertiseTeam expertise
Team competenceTeam competence
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Participative Models (contd)Participative Models (contd)
Vroom and J ago ModelVroom and J ago Model The nature of the decision itself determines theThe nature of the decision itself determines the
appropriate degree of participationappropriate degree of participationdiagnosticdiagnostic
questions help managers select the appropriate level.questions help managers select the appropriate level.
A participative decision style is desirable when:A participative decision style is desirable when:
Subordinates have useful information and share theSubordinates have useful information and share the
organizations goals.organizations goals.
Subordinates commitment to the decision is essential.Subordinates commitment to the decision is essential.
Timeliness is not crucial.Timeliness is not crucial.
Conflict is unlikely.Conflict is unlikely.
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What is Groupthink?What is Groupthink?
An agreementAn agreement--atat--anyany--cost mentality that resultscost mentality that resultsin ineffective group decision making.in ineffective group decision making.
Characteristics of GroupthinkCharacteristics of Groupthink
Illusions of invulnerabilityIllusions of invulnerability
Collective rationalizationCollective rationalization
Belief in the morality of group decisionsBelief in the morality of group decisions
SelfSelf--censorshipcensorship
Illusion of unanimity in decision makingIllusion of unanimity in decision making Pressure on members who express argumentsPressure on members who express arguments
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Group Decision Making
StrengthsMore complete
information
Increased diversity of
views
Higher quality of
decisions
Increased acceptance
of solutions
WeaknessesMore time consuming
Increased pressure to
conform
Domination by one or a
few members
Ambiguous
responsibility
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Techniques for Quality in Group DecisionTechniques for Quality in Group DecisionMakingMaking
BrainstormingBrainstorming
Nominal Group TechniqueNominal Group Technique
Delphi TechniqueDelphi Technique
Devils Advocacy ApproachDevils Advocacy Approach
Dialectical InquiryDialectical Inquiry
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BrainstormingBrainstorming
BrainstormingBrainstormingA technique to enhance creativity by encouragingA technique to enhance creativity by encouraging
group members to generate as many novel ideas asgroup members to generate as many novel ideas as
possible on a given topic without evaluating them.possible on a given topic without evaluating them.
Rules of BrainstormingRules of Brainstorming
Freewheeling is encouraged.Freewheeling is encouraged.
Ideas are not criticized as they are being generated.Ideas are not criticized as they are being generated.
Quality is encouraged.Quality is encouraged.
The wilder the ideas, the better.The wilder the ideas, the better.
Piggyback on previously stated ideas.Piggyback on previously stated ideas.
Ideas are evaluated after alternatives are generated.Ideas are evaluated after alternatives are generated.
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Other DecisionOther Decision--Making TechniquesMaking Techniques
Nominal Group Technique (NGT)Nominal Group Technique (NGT)A structured process designed to stimulate creativeA structured process designed to stimulate creative
group decision making where agreement is lacking orgroup decision making where agreement is lacking or
the members have incomplete knowledge concerningthe members have incomplete knowledge concerning
the nature of the problem.the nature of the problem.
Delphi TechniqueDelphi TechniqueUses experts to make predictions and forecasts aboutUses experts to make predictions and forecasts about
future events without meeting facefuture events without meeting face--toto--face.face.
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Delphi Technique
The Delphi technique was developed at the RANDcorporation in 1948 to gain expert consensus withoutintroducing the adverse side effects of groupmeetings.
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Other DecisionOther Decision--Making TechniquesMaking Techniques (contd)(contd)
Devils AdvocacyDevils AdvocacyAn individual or subgroup appointed to critique aAn individual or subgroup appointed to critique a
proposed course of action and identify problems toproposed course of action and identify problems to
consider before the decision is final.consider before the decision is final.
Dialectical InquiryDialectical Inquiry
Approaches a decision from two opposite points andApproaches a decision from two opposite points and
structures a debate between conflicting views.structures a debate between conflicting views.
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Classifying Decision SituationsClassifying Decision Situations
Programmed decisionProgrammed decisionA decision made in response to a situation that isA decision made in response to a situation that is
routine or recurring.routine or recurring.
Example: starting your automobileExample: starting your automobile
Nonprogrammed decisionNonprogrammed decisionA decision made in response to a situation that isA decision made in response to a situation that is
unique, unstructured, or poorly defined.unique, unstructured, or poorly defined.
Example: deciding to get a tattooExample: deciding to get a tattoo