Decision Making, Creativity, and Ethics

Decision Making, Creativity, and Ethics

1. Is there a right way to make decisions?2. How do people actually make decisions?3. What kinds of shortcuts do people use in making decisions?4. What factors affect group decision making?5.  Should the leader make the decision, or encourage the

group to participate?6. How can we get more creative decisions?7.  What is ethics, and how can it be used for better decision

making?

Questions for Consideration

How Should Decisions Be Made?

• Decision making occurs as a reaction to a problem or an opportunity.

• A problem is a discrepancy between some current state of affairs and some desired state, requiring consideration of alternative courses of action.

• Opportunities occur when something unplanned happens, giving rise to thoughts about new ways of proceeding.

Steps in the Rational Decision-Making Model

Making a Decision

Define the problem

Identify thecriteria

Develop alternatives

Allocate weights to the criteria

Evaluate thealternatives

Select the best alternative

Assumptions of the Rational Decision-Making Model

• Problem Clarity– The problem is clear and unambiguous

• Known Options– The decision-maker can identify all relevant criteria and viable

alternatives

• Clear Preferences– Rationality assumes that the criteria and alternatives can be

ranked and weighted

Assumptions of the Rational Decision-Making Model

• Constant Preferences– Specific decision criteria are constant and the weights assigned

to them are stable over time

• No Time or Cost Constraints– Full information is available because there are no time or cost

constraints

• Maximum Payoff– The choice alternative will yield the highest perceived value

How Do Decision-Makers Identify & Select Problems

• Problems that are visible tend to have a higher probability of being selected than ones that are important. Why?– It is easier to recognize visible problems– Decision-makers want to appear competent and “on-

top of problems”– Decision-makers’ self-interest affects problem

selection because it is usually in the decision-maker’s best interest to address problems of high visibility and high payoff. This demonstrates an ability to perceive and attack problems

Bounded Rationality

• Bounded Rationality– Limitations on one’s ability to interpret,

process, and act on information

• Satisficing– Identifying a solution that is “good enough”

Group Decision Making

Weaknesses of Group Decision Making

• More time consuming

• Conformity pressures in groups

• Discussion can be dominated by one or a few members

• Decisions suffer from ambiguous responsibility

Strengths of Group Decision Making

• Generates more complete information and knowledge

• Offers increased diversity of views

• Generates higher-quality decisions

• Leads to increased acceptance of a solution

Effectiveness and Efficiency

• Accuracy: Group Decisions

• Speed: Individual Decisions

• Creativity: Group Decisions

• Acceptance: Group Decisions

• Efficiency: Individual Decisions

Groupthink and Group shift

• Groupthink– Phenomenon in which the norm for consensus

overrides the realistic appraisal of alternative courses of action

• Group shift– Phenomenon in which the initial positions of

individual members of a group are exaggerated toward a more extreme position

Symptoms of Groupthink

• Illusion of Invulnerability

• Assumption of Morality

• Rationalized Resistance

• Peer Pressure

• Minimized Doubts

• Illusion of Unanimity

What Causes Group shift?

• Discussion creates familiarization among group members

• Group discussion motivates individuals to take risks

• Group diffuses responsibility

Group Decision-Making Techniques

• Interacting Groups

• Brainstorming

• Nominal Group Technique

• Electronic Meeting

Leader Behaviours with Groups

• AI– You solve the problem or make a decision yourself using

whatever facts you have at hand.

• AII– You obtain the necessary information from subordinates and

then decide on the solution to the problem yourself.

• CI– You share the problem with relevant subordinates one-on-one,

getting their ideas and suggestions. However, the final decision is yours alone.

Leader Behaviours with Groups

• CII– You share the problem with your subordinates as a group,

collectively obtaining their ideas and suggestions. Then you make the decision that may or may not reflect your subordinates’ influence.

• GII– You share the problem with your subordinates as a group. Your

goal is to help the group concur on a decision. Your ideas are not given any greater weight than those of others.

Creativity

• The process of creating products, ideas, or procedures that are novel or original, and are potentially relevant or useful to an organization

De Bono’s Six Thinking Hats

• White hat– Impartial thinking, focussing strictly on the

facts.

• Red hat– Expression of feelings, passions, intuitions,

emotions.

• Black hat– A critical, deliberate, evaluating outlook.

De Bono’s Six Thinking Hats

• Yellow hat– An optimistic, upbeat, positive outlook.

• Green hat– Creativity, inspiration, imagination, and the

free flow of new concepts.

• Blue hat– Control, an overall “managerial” perspective

of the process.

Organizational Factors Affecting Creativity

• Challenge

• Freedom

• Resources

• Work-Group Features

• Supervisory Encouragement

• Organizational Support

Creativity Blocks

• Expected evaluation

• Surveillance

• External motivators

• Competition

• Constrained choice

Ethics

• The study of moral values or principles that guide our behaviors, and inform us whether actions are right or wrong

Ethics in Decision Making

• An individual can use three different criteria in framing or making ethical choices.– Utilitarian criterion

• Decisions are made solely on the basis of their outcomes or consequences.

– Rights criterion• Decisions consistent with fundamental liberties

and privileges as set forth in documents like the Canadian Charter of Rights and Freedoms.

– Justice criterion• Decisions that impose and enforce rules fairly

and impartially so there is an equitable distribution of benefits and costs.