Steps in Decision Making

the basic steps involved in the rational decision model

The philosophical study of morality or standards regarding good character and conduct.

One that poses major ethical consequences for the decision maker or for others.

Decision maker faces two or more ethically uncomfortable alternatives.

Made as standardized responses to recurring situations and routine problems.

Specifically crafted or tailored to fit a unique situation.

unexpected problem threatens major harm and disaster if not resolved quickly and appropriately

Decisions are made in the context of three general environments.

When information is sufficient to predict the results of each alternative in advance of implementation.

When decision makers lack complete certainty regarding the outcomes of various courses of action, but they are aware of the probabilities associated with their occurrence

When managers have so little information on hand that they cannot even assign probabilities to various alternatives and their possible outcomes.

Involves anticipating risks and factoring them into decision making

Classical decision model assumes a manager:

Suggests that people act only in terms of their perceptions, which are frequently imperfect.

Decision makers choose the first alternative that appears to give an acceptable or satisfactory resolution of the problem.

Problem approach utilizing a rational, analytic thinking.

Problem approach that is flexible and spontaneous.

A key element of decision-making under risky and uncertainty conditions.

Simplifying strategies or shortcuts used to make decisions.Make it easier to deal with uncertainty and limited information common to problem situations.

Involves assessing a current event based on past occurrences that are easily available in one’s memory.

Involves assessing the likelihood that an event will occur based on its similarity to one’s stereotypes of similar occurrences

Involves assessing an event by taking an initial value from historical precedent or an outside source and then incrementally adjusting this value to make a current assessment.

only seeking cues in a situation that support a preexisting opinion.

overestimate the degree to which an event that has already taken place could have been predicted.

tendency to evaluate and resolve a problem in the context in which it is perceived – either positive or negative.

Manager or team leader uses information that he or she possesses and decides what to do without involving others.

Manager or team leader solicits input from other people and then, based on this information, the decision maker arrives at a final choice.

Group members work together to make the final choice.

Continuation and renewed effort on a previously chosen course of action, even though it is not working.

Escalating commitment Avoid by:

Involves the generation of a novel idea or unique approach to solving performance problems or exploiting performance opportunities.

Personal creativity drivers

Team creativity drivers

fundamental disagreement over ends or goals to be pursued, and the means for their accomplishment.

Interpersonal difficulties that arise over feelings of anger, mistrust, dislike, fear, resentment, and the like.

Levels of Conflict in Organizations

conflict occurs when a person must choose between two positive and equally attractive alternatives

conflict occurs when a person must choose between two negative and equally unattractive alternatives

conflict occurs when a person must decide to do something that has both positive and negative consequences.

occurs between teams, perhaps ones competing for scarce resources or rewards, and perhaps ones whose members have emotional problems with one.

most commonly thought of in terms of the competition and rivalry that characterizes firms operating

Results in constructive, positive benefits to individuals, the team, or the organization

Destructive to an individual or team

Which of the following is a benefit of functional conflict?

Potential outcomes of dysfunctional conflict

Stages of Conflict

Establish the conditions from which conflicts are likely to emerge.

Establish the conditions from which conflicts are likely to emerge.

Situation in which the underlying reasons for a given destructive conflict are eliminated.

When the antecedents become the basis for substantive or emotional differences between people or groups

Conflict experienced as tension that motivates the person to take action to reduce feelings of discomfort.

How can conflict be managed ?

Causes of conflict

Occur when the communication of task expectations is unclear or upsetting in some way.

Occur when people or units are required to cooperate to meet challenging goals.

Occur when individuals or teams lack adequate task direction or goals and misunderstand such things as customer jurisdiction or scope authority.

Occur when interdependent people or teams differ substantially from one another in status and influence or in values.

When resources are scarce, working relationships are likely to suffer.

Focusing the attention of potentially conflicting individuals and teams on one mutually desirable conclusion.

Problems are moved from the level of conflicting individual or teams and referred up the hierarchy for more senior managers to address.

Superficial management managed by scripts, or behavioral routines, that become part of the organization’s culture.

Nobody gets what he or she wants; underlying reasons for remain unresolved. Strategies include: Avoidance. Accommodation- playing down differences. Compromise- giving up something valued

One party achieves its desires at the expense and to the exclusion of the other party’s desires.

Achieved by a blend of both high cooperativeness and high assertiveness.

The process of making joint decisions when the parties involved have different preferences

Outcomes that relate to “content” issues under negotiation.

Outcomes that relate to how well people involved in the negotiation and any constituencies they may represent are able to work with one another once the process is concluded.

Effective negotiation factors

The motivation to behave ethically in negotiations is put to the test by each party’s desire to “get more” than the other from the negotiation and/or by a belief that there are insufficient resources to satisfy all parties

What is the nature of negotiation in organizations?

Focuses on positions staked out or declared by the conflicting parties.

Sometimes called principled negotiation. Focuses on the “merits” of the issues.

Range between one party’s minimum reservation point and the other party’s maximum reservation point.

Foundations of Integrative negotiation

Common negotiation pitfalls

A neutral third party acts as a “judge” and has the power to issue a decision that is binding on all parties.

A neutral third party tries to engage the parties in a negotiated solution through persuasion and rational argument

The ability to get someone to do something you want done. The ability to make things happen in the way you want.

A term used to recognize that power comes from then ability to influence another in a social relation.

Power made operative against another’s will.

One Person or group relies on another person or group to get what they want or need.

Authority or ability to exercise restraining or dominating influence over someone or something.

is defined as a lack of autonomy and participation.

involves sharing power, information, and rewards with employees to make decisions and solve problems in their work.

one person’s gain in equal to another person’s loss (“I win, you lose”).

Two primary sources of power:

TYPES OF POSITION POWER

The extent to which a manager can use subordinates’ internalized values or beliefs that the “boss” has a “right of command” to control their behavior.

The problem of deferring responsibility and accountability upward in organizations.

Comes from one’s ability to administer positive rewards and remove or decrease negative rewards.

The extent to which a manager can deny desired rewards and administer punishments to control other people.

The power a person has because of special skills and abilities that others need but do not possess themselves.

The ability to alter another’s behavior because of the individual’s desire to identify with the power source.

Personal power

The ability to call on connections and networks both inside and outside the organization for support in getting things done and in meeting one’s goals.

Arises from influence with a powerful person on whom other depend.

Represents the power arising from alliances with others developed through reciprocity (the trade of power or favors for mutual gain in organizational transactions).

occurs when individual accept another’s influence because of the positive or negative outcomes tied to it.

Occurs when individuals accept an influence attempt because they want to maintain a positive relationship with the person or group making the influence request.

Occurs when an individual accepts influence because the induced behavior is congruent with their value system.

Characterized by thoughtful dissent aimed at constructively challenging the influencing agent to rethink the issue.

Involves a more passive form of non-compliance in which individuals ignore or dismiss the request of the influencing agent.

When men and women of otherwise strong personal integrity and intelligence engage in unethical and selfish behavior in the pinnacle of power because they mistakenly believe they are above the law.

Dictate what is to be done in organizations and how work processes are to be coordinated and structured.

Patterns of activity and relationships that arise in everyday activities as individuals and groups work to get things done.

Occur when individuals or groups work to shift otherwise ambiguous outcomes to their personal advantage without consideration of the organization or coworkers.

The skill and adroitness at reading political environments and understanding how to influence effectively in these environments.

The current or potential resources gained through one’s network.

The knowledge, skills and intellectual assets employees bring to the workplace.

Serve as links between structural holes in a network, providing greater access to resources, information and opportunities.

The absence of a link between two contacts who are both linked to an actor.

An influence process generated in and from combined acts of leading (influencing) and following (deferring).

Exerted by persons appointed (or elected) to positions of formal authority in organizations.

Exerted by persons who become influential because they have special skills that meet the resource needs of others.

Occurs when leaders within the organization influence those at higher levels in ways that create change.

Leadership is constructed and produced in social and relational interactions among people acting in context.

Process involves individuals negotiating identities as leaders and followers.

Refers to actions people take to assert their identity as a leader or follower.

Refers to actions people take to bestow an identity of a leader or follower onto another person.

The extent to which individuals choose to assume leadership training, roles and responsibilities.

Our beliefs or understanding about the attributes associated with leaders and leadership.

The capacity or willingness to follow a leader.

Refers to the tendency to attribute organizational outcomes (both good and bad) to the acts and doing of leaders.

Defined as the beliefs followers hold about the way they should engage and interact with leaders to meet the needs of the work unit.

The extent to which one accepts that power in institutions and organizations is distributed unequally.

Reflects the belief that followers should act in ways that are helpful, useful and productive to leadership outcomes.

Preconceived notions about the attributes (e.g., traits and behaviors) associated with leaders.

They reflect the structure and content of 'cognitive categories' used to distinguish leaders from non-leaders.

Are mental images of the characteristics that make a 'good' leader, that a 'real' leader would possess.

The study of manager-subordinate relationship quality.

Describes how relationships initiate and develop through processes of exchange and reciprocity.

Says that when one party does something for another, that party is not indebted to the other until the obligation is repaid.

Whether the amount given back is roughly the same as what was received.

How quickly the repayment is made.

The motive behind the exchange.

Refer to our ability to violate norms with others based on whether we have enough 'credits' to cover the violation.

Represents view of leadership not as a property of individuals and their behaviors but as a social phenomenon constructed in interaction.

Sees leadership as a group phenomenon that is distributed among individuals.

Occurs when leadership is divided so that one person has unilateral power to lead.

Dynamic, interactive influence process among team members working to achieve goals.

Which of the following is Leadership study assumes that leaders are endowed with certain traits or qualities that explain their leadership status and success?

Leadership study focuses on identifying categories of relevant leadership behavior and examining their effects on performance and other outcomes.

Also known as consideration, involves concern for relationship and socio-emotional support.

Also known as initiating structure, involves providing direction and enforcing performance standards needed to drive production.

Relations-oriented, employee-centered behavior that promotes a friendly work climate by focusing on subordinate needs and well-being.

Task-oriented, production-centered behavior that provides clarity and direction for subordinates.

Motivation-focused behavior that builds subordinates’ confidence in achieving high standards through a focus on excellence and goal setting.

Democratic form of leadership that focuses on consulting with subordinates and taking their suggestions into account before making decisions.