Organisational Behaviour Ch7

CHAPTER 7 DECISION MAKING AND creative mentation key the six stages in the rational superior finding process Decision making the intended process of making utility(a)s among ersatzs with the intention of moving toward some desired nation of affairs. Rational choice paradigm of decision making the view in decision making that mess should and typic eithery do, use logic and either available selective datarmationrmation to choose the substitute with the highest value. Decision making involves appointing, selecting and applying the ruff possible re reservoir.The crush decision use pure logic and all available information to choose the alternative with the highest value Such as highest expected profit, customer satisfaction, employee wellbeing or some combination of these let outcomes. inseparable expected utility the probability (expectation) of satisfaction (utility) resulting from choosing a specific alternative in a decision. Decision making process systematic appl ication program of stages of decision making. 1. Identify puzzle or opportunity 2. Choose the crush decision process 3. Develop alternative responses 4. Choose the best alternative . Implement the selected option 6. Evaluate decision outcomes Problem with Rational choice paradigm 1. Impossible to apply in reality 2. Difficulty recognising line of persists 3. pee for the huge volume of information 4. Difficulty recognising when choices gestate failed 5. Focusing on logical thinking, ignores emotion bewitch making decision IDENTIFYING PROBLEMS AND OPPORTUNITIES rationalise wherefore concourse build difficulty with it Problem identification is non yet the first step in decision making it is the most burning(prenominal) There argon five most widely recognised concerns.Stakeholder flesh attention-based theory of the firm states that, organisational decisions and actions atomic number 18 influenced mainly by what attracts managements attention, rather than by objective r eality. Mental mode if an cerebration does non fit the existing mental mode of how things should work, the idea is dismissed as unworkable or undesirable. Decisive leadership being decisive includes right away forming an opinion of whether an event signals problem or opportunity.Many decisions happens too right away forward having a chance to logically assess the situation, to a greater extent oftentimes it is a poorer decision than would result if more(prenominal) time had been devoted to identify the problem and evaluating the alternatives. Solution-focused problems decision makers engage in etymon-focused problem identification because it provides hearty closure to the otherwise perplexing and uncertain nature of problems. perceptual self-renunciation people sometimes block out bad news as a coping mechanism. Some people inherently avoid prohibit information.People are more worryly to disregard danger signals when they have limited control over the situation. Identi fying problems and opportunities more utilely * Be witting of the 5 problem identification biases * Increase consciousness of problem identification, ingest willpower to resist the temptation of looking decisive * Create a norm of divine discontent * Discussing the situation with others to ease difficulty EVALUATING AND CHOOSING ALTERNATIVES Explain wherefore people do not fol pitiable the rational choice model when evaluating alternative choicesBounded rationality the view that people are process limited and imperfect information and rarely select the best choice. Problem with goals assumes that organisational goals are clear and agreed on. Goals are often ambiguous or in conflict with each other. Problem with information process assumes that decision makers throw out process info about all alternatives and in their consequences, but it is not possible in reality. Implicit favourite like alternative that the decision maker uses repetitionedly as a similitude with other cho ices. iased decision heuristics key element of rational choice paradigm, as people can estimate the probabilities of outcomes. 1. Anchoring and adjustment heuristic people to be influenced by an initial anchor point such that they do not sufficiently move away from that point as new info is provided. Initial info influences paygrade of subsequent info 2. Availability heuristic we estimate probabilities by how easily we can recall the event, even though other factors influence it. 3.Representativeness heuristic we estimate probabilities by how much they are similar to something else, even when better information available. Problem with maximisation people engage in satisficing, selecting an alternative that is good enough rather than the alternative with the highest value. To choose the best alternative is also demand more info processing capacity than what they willing to apply. Making the best choice among many, can be cognitively and emotionally draining. Evaluating opportunitie s opportunity is different from the process of problem solving.Decision makers not quantify alternatives, after all, the opportunity is the solution, so why look further, they tend to have an emotional attachment to the opportunity. EMOTIONS AND MAKING CHOICES Describe 3 ways in which emotions influences the selection of alternatives 1. Emotions from early preferences emotions form preferences before we consciously rate those choices 2. Emotions change the decision evaluation process moods and emotions influence how well we follow the decision process. . Emotions serve as info when we evaluate alternatives we listen in on our emotions and use that info to make choices a priori decision making ability to know when a problem or opportunity exist and select the best action without conscious reasoning. * intestine feelings we have sex are emotional signals that have enough intensity to make us aware * Not all emotional signals are intuitions * Intuitions are involves rapidly compar ing nonconscious analysis Making choices more effective Systematically evaluate alternatives against relevant factors * Be aware of effects of emotions on decision preferences and evaluating process * Scenario planning imagining possible future, choosing the best possible solution long before they occur Evaluating decision outcomes confirmation bias cognise as post-decisional justification * Forget or downplay the negative features of selected alternative and highlight the positive features * Typically nonconscious and driven by emotions * Gives people an excessively optimistic evaluation of their decisionEscalation of Commitment the tendency to repeat an apparently bad decision or allocate more resources to a falling course of action 4 main causes of escalation 1. Self-justification individuals incite maintain course of action when need to justify their action 2. survey theory effect a natural tendency to feel more dissatisfaction from losing a particular amount than satisfactio n from gaining an equal amount 3. Perceptual blinders occurs because decision makers do not see the problems soon enough, they screen out or explain away negative information, serious problems looks like stochastic errors 4.Closing costs decision makers will because the cost of ending the throw away are high or unknown Evaluating decision outcomes more in effect * Separate decision makers from evaluators to minimise self-justification * Establish a preset level to abandon or re-evaluate the project * Find a source of systematic and clear feedback * Involve several people in the evaluation EMPLOYEE INVOLVMENT IN DECISION MAKING Describe benefits of employee involvement in decision making Employee involvement when employees influence how their work is organised and carried out Benefits improves step and commitment recognising problem more quicker defining problem more accurately improve solutions generated specific conditions improves the evaluation of alternatives Contingencie s of employee involvement Identify quadruple option thet affect the optimal level of employee involvement 1. Decision coordinate decision can be programmed and non-programmed, programmed decision need less involvement, because solution is already worked out from past incidents 2. Source of decision intimacy employee have relevant knowledge than leaders, it is improves decision quality 3.Decision commitment interest is improving employee commitment 4. Risk of conflict employee goals and norms conflict with the organisations goals, whether employees will reach agreement on the preferred solution CREATIVITY Outline the four steps in creative process creativeness the development of original ideas that make a socially recognised constituent Rely on to find problems, alternatives and implement solutions Creative process 1. dressing person or team effort to gain knowledge and skills regarding the problem or opportunity, clear understanding of what we are trying to achieve 2. pensive ness the period of reflective thoughts, put the problem aside, however our mind is dumb working on it, maintain a low level of awarenessdivergent thinking reframing the problem and generating different approaches to the issue convergent thinking calculating the accepted right answer to logical problem 3. perceptivity refers to experience of suddenly becoming aware of a unique idea CHARACTERISTICS OF CREATIVE PEOPLE Describe the characteristics of creative employee and workplaces that support creative thinking 1.cognitive and practical intelligence creative people recognise the significance of piddling bits of information and are able to connect them in ways like no one else could imagine, they also have practical intelligence, the capacity to evaluate the potential usefulness of their ideas 2. Persistence higher need for achievement, a unwavering motivation from the task itself and a moderate or high item of self-esteem, persistence is vital because creative ideas meet with ple nty of resistance from others as well as failures along the way to success 3.Subject knowledge and experience creative people have sufficient knowledge and experience on subject 4. Independent imagination -high openness to experience, moderately low need for affiliation, high self-direction stimulation values Creative work environment * Learning orientation leaders recognise that employees make liable mistakes as part of the creative process, and need to tolerate creativity comes from failure * Work motivation employees can be more creative if they bank their work. Benefit the organisation * Open communication and sufficient resources Activities that encourage creativity