chap08_decision making and creativity.ppt

8/12/2019 Chap08_Decision Making and Creativity.ppt

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McGraw-Hill/Irwin 2008 The McGraw-Hill Companies, Inc. All rights reserved.

8

Decision Making and Creativity


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McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide 8-2

Decision Making at Radical

Radical Entertainment founder Ian Wilkinson (third from

right) meets with employees every week to reinforce theelectronic games developers emphasis on creative

decision making and employee involvement.

Ron Sangha/ BC Business


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Decision Making Defined

Decision making is a conscious process of

making choices among one or more alternativeswith the intention of moving toward some desired

state of affairs.

Ron Sangha/ BC Business


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Rational Choice Decision Process


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Problem Identification Process

Problems and opportunities are notannounced or pre-defined

need to interpret ambiguous information

Problem identification uses both logical

analysis and unconscious emotional

reaction during perceptual process

need to pay attention to both logic and emotionalreaction in problem identification


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Famous Missed Opportunities

The top-rated television

commercial in history -- the Apple

Macintosh Why 1984 wont be like

1984 -- almost wasnt aired

because every outside director on

Apples board despised it. The ad

violated the mental models that

they held of what a good ad should

look like.

Apple Computer Inc. Used with permission


7/32McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved. Slide 8-7


Problem Identification Challenges

1. Stakeholder framing

2. Perceptual defense

3. Mental models

4. Decisive leadership

5. Solution-focused

problems



Identifying Problems Effectively

Be aware of perceptual and

diagnostic limitations

Understand mental models

Discussing the situation with

colleagues -- see different

perspectives




ProcessingInformation

EvaluationTiming

Rational: People can process all information

Rational: Choices evaluated simultaneously

Goals Rational: Clear, compatible, agreed upon

OB: Ambiguous, conflicting, lack agreement

OB: People process only limited information

OB: Choices evaluated sequentially

more

Making Choices: Rational vs OB Views



Info Quality

DecisionObjective

Rational: People rely on factual information

Rational: Maximization -- the optimal choice

Standards Rational: Evaluate against absolute standards

OB: Evaluate against implicit favorite

OB: Rely on perceptually distorted information

OB: Satisficing -- a good enough choice

Making Choices: Rational vs OB (cont)



Emotions and Making Choices

1. Emotional marker process forms preferences

before we consciously think about choices

2. Moods and emotions influence the decision

process affects vigilance, risk aversion, etc.

3. We listen in on our emotions and use that

information to make our choices



Intuitive Decision Making

Ability to know when a problem or opportunity

exists and select the best course of action

without conscious reasoning

Intuition as emotional experience Gut feelings are emotional signals

Not all emotional signals are intuition

Intuition as rapid unconscious analysis Uses action scripts



Making Choices more Effectively

Systematically evaluate alternatives

Balance emotions and rational influences

Scenario planning



Escalation of Commitment

Escalation of commitment

occurred when the British

government continued funding

the Concorde supersonic jetlong after its lack of

commercial viability was

apparent. Some scholars refer

to escalation of commitmentas the Concorde fallacy.

Corel Corp. With permission



Escalation of Commitment Causes

1. Self-justification

2. Prospect theory effect

3. Perceptual blinders

4. Closing costs

Corel Corp. With permission



Evaluating Decisions Better

1. Separate decision choosers from evaluators

2. Establish a preset level to abandon the project

3. Involve several people in the evaluationprocess



Employee Involvement Defined

The degree to which employees

influence how their work is organized

and carried out

Level of control over decision making

Different levels and forms of involvement



Employee Involvement Model

Potential Involvement

Outcomes

Contingencies

of Involvement

Employee

Involvement

Better problem

identification

More/better solutions

generated

Best choice more

likely

Higher decisioncommitment



Contingencies of Involvement

KnowledgeSource

Decision

Commitment

Employees have relevant knowledgebeyond leader

Employees would lack commitment

unless involved

Risk of

Conflict

Norms support firms goals

Employee agreement likely

Decision

Structure

Problem is new & complex

(i.e nonprogrammed decision)

Higher employee involvement is better when:



Preparation

Incubation

Insight

Verification

Creative Process Model



Characteristics of Creative People

Above average intelligence

Persistence

Relevant knowledge and experience

Inventive thinking style


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Creative Work Environments

Learning orientation

Encourage experimentation

Tolerate mistakes

Intrinsically motivating work Task significance, autonomy, feedback

Open communication and sufficient resources

Team competition and time pressure have

complex effect on creativity


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Creative Activities

Review

abandoned

projects

Explore issuewith otherpeople

Redefinethe Problem

Storytelling

Artistic activities

Morphologicalanalysis

AssociativePlay

Diverse teams

Informationsessions

Internaltradeshows

Cross-Pollination


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8

Decision Making and Creativity


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8

Solutions to Creativity

Brainbusters


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Double Circle Problem


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Nine Dot Problem


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Nine Dot Problem Revisited


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Word Search

FCIRVEEALTETITVEERS


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Burning Ropes

One Hour to Burn Completely

After first rope burned

i.e. 30 min.


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8

Chapter 8

Extras


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High

Medium

Low

Levels of Employee Involvement

High involvement Employees have complete decision

making power (e.g.. SDWTs)

Full consultation Employees offer recommendations

(e.g.. gain sharing)

Selective consultation Employees give information, but

dont know the problem

chap08_decision making and creativity.ppt

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