Professional Documents
Culture Documents
Decision Making by
Individuals & Groups
Nelson & Quick
The
DecisionMaking
Process
The
DecisionMaking
Process
Gather
feedback
Follow up
Models of Decision-Making
Effective decision
a timely decision
that meets a desired
objective and is
acceptable to those
individuals affected
by it
Rational Model
Bounded Rationality
Model
Garbage Can Model
Rational Model
Rationality - a logical,
step-by-step approach
to decision making, with a
thorough analysis of
alternatives and their
consequences
Bounded Rationality
Model
Bounded Rationality - a
theory that suggests that
there are limits upon how
rational a decision maker
can actually be
Choice
opportunities
From M.D. Cohen, J.G. March, and J.P. Olsen in Administrative Science Quarterly 17 (March 1972) 1.25.
Reprinted by permission of the Administrative Science Quarterly
Escalation of
Commitment
Why it occurs
humans dislike inconsistency
optimism
control
Cognitive Style
Cognitive Style - an individuals
preference for gathering
information and evaluating
alternatives
Jungian theory offers a way of understanding and
appreciating differences among individuals.
Ideal Organization
ST
Sensing/thinking
SF
Sensing/feeling
NT
Intuiting/thinking
NF
Intuiting/feeling
Z Problem-Solving Model
Look at
the facts
and details
Can it be
analyzed
objectively?
Sensing
Thinking
What alternatives
Intuition
do the facts
suggest?
Feeling
What impact
will it have on
those involved?
Figure from Type Talk at Work by Otto Kroeger and Janet M. Thuesen. Copyright 1992 by Otto Kroeger
and Janet M. Thuesen. Used by permission of Dell Publishing, a division of Random House. Inc.
Influences on Decision-Making
Intuition - fast,
positive force in
decision making
utilized at a level
below
consciousness,
involves learned
patterns of
information
Creativity - a process
influenced by
individual and
organizational
factors that results
in the production of
novel and useful
ideas, products, or
both
Influences on Creativity
Individual examples
Cognitive Processes
Divergent Thinking
Associational Abilities
Personality Factors
breadth of interests
high energy
self confidence
Organizational ex.
Flexible organization
structure
Participative
decision-making
Quality, supportive
relationships with
supervisors
Reward creativity
Allow employees to fail
Make work more fun
Provide creativity training
Vary work groups (internal/external)
Encourage creative stimuli (music, art,
etc.)
Participative
Decision Making
Organizational Foundations
Participative, supportive organizational culture
Team-oriented work design
Individual Prerequisites
Capability to become psychologically involved in
participative activities
Motivation to act autonomously
Capacity to see the relevance of participation for ones
own well-being
Right Hemisphere
Nonverbal, visuospatial
Simultaneous, spatial,
analogical
Gestalt, synthetic
Intuitive
Eastern thought
Group Decision-Making
Role of synergy - a positive force in groups that
occurs when group members stimulate new
solutions to problems through the process of
mutual influence and encouragement in the
group
Role of social decision schemes - simple rules
used to determine
Majority Wins
final group decisions
Truth Wins
(prediction 80% correct)
Group Decision-Making
Advantages
1) more knowledge
through pooling of
group resources
2) increased
acceptance &
commitment due
to voice in decisions
3) greater understanding due to
involvement in
decision stages
1) pressure in
groups to conform
2) domination by
one forceful member
or dominant clique
3) amount of time
required, because
group is slower
than individual
to make a
decision
Disadvantages
Group Phenomenon
Groupthink - a deterioration of mental
efficiency, reality testing, and moral
judgment resulting from in-group
pressures
Group polarization - the tendency for
group discussion to produce shifts
toward more extreme attitudes among
members
Brainstorming
Nominal Group Technique
Self-Managed Teams
Group
Decision
Techniques
Delphi Technique
Devils Advocacy
Ethics Check
Is it legal?
Does it violate law
Does it violate
company policy
Is it balanced?
Is it fair to all
Does it promote win-win