Decision Making

What is a Decision?

a choice from among available alternatives

The Process of Decision Making

Much of a supervisor’s job is making decisions that

cover all of the functions of management.

In many cases, supervisors make decisions without

giving any thought to the process of deciding.

Even though making many decisions seems to be

automatic, supervisors can improve the way they

make them by understanding how the decision-

making process works in theory and in practice.

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The Rational Model of Decision Making

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Guidelines for Decision Making

Consider the consequences

Respond quickly in a crisis

Inform the manager

Be decisive yet flexible

Avoid decision-making traps

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Decision-Making Traps

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Human Compromises

Simplicity

Bounded rationality

Subjective rationality

Rationalization

Personal perspective

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Human Compromises

Bounded rationality

Choosing an alternative that meets minimum standards

of acceptability

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Figure 9.3 The Process of Bounded Rationality

Human Compromises

Recency syndrome

tendency to remember more easily those events that

have occurred recently

Stereotyping

rigid opinions about categories of people

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Group Decision Making

Advantages

Group members can contribute more ideas for alternatives

than an individual could think of alone.

People who are involved in coming up with a solution are

more likely to support the implementation of that solution.

Disadvantages

An individual can usually settle on a decision faster than a

group.

There is a cost to the organization when employees spend

their time in meetings instead of producing or selling.

Groups sometimes fall victim to groupthink.

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Group Decision Making

Groupthink

the failure to think independently and realistically that

results when group members prefer to enjoy

consensus and closeness

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Symptoms of Groupthink

An illusion of being invulnerable

Defending the group’s position against any objections

A view that the group is clearly moral-”the good guys”

Stereotyped views of opponents

Pressure against group members who disagree

Self-censorship-not speaking up

An illusion that everyone agrees-because no one

speaks up

Self-appointed “mindguards”-pressure others to “just go

along.”

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Using Group Decision Making

Encouraging participation

A main benefit of group decision making is the variety

of opinions and expertise available.

Supervisors should:

Avoid monopolizing the conversation.

Focus on hearing participant’s opinions.

Notice when participants are quiet and ask their opinion.

React positively when people contribute ideas.

Brainstorming-generating ideas.

Hearing other people’s ideas often stimulates the

thinking of group members.

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The Brainstorming Process

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Creativity

Creative thinking can lead to

excellent solutions.

When a problem seems unsolvable,

the supervisor needs creativity to

find a fresh approach.

Thinking more creatively

A fundamental way to become more

creative is to be open to your own

ideas.

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Creativity

The ability to

bring about

something

imaginative or

new.

Five Steps for

Generating Creative Ideas

1. Gather the raw materials by learning about

the problem and developing your general

knowledge.

2. Work over those materials in your mind.

3. Incubate; let your unconscious mind do the

work.

4. Identify an idea-don’t ignore something

when it pops into your head.

5. Shape and develop the idea to make it

practical. Ask for constructive criticism. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 9-15

Creativity-Enhancing Suggestions

See beyond the obvious.

Don’t take “No” for an answer.

Persist despite failure.

Make your own opportunities.

Find new uses for people and things and new ways

of doing things.

Stretch your creative skills.

Read biographies of creative people.

Start a file of “crazy” ideas.

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Establishing and Maintaining a

Creative Work Climate

A supervisor should show that he or she values creativity.

When employees offer suggestions, a supervisor should listen attentively and look for the positive aspects of the suggestions.

A supervisor should attempt to implement employees’ ideas and should give them credit.

When ideas fail, a supervisor should acknowledge that failure is a sign that people are trying.

A supervisor should help employees see what can be learned from the failure.

The Pixar example: Creativity Brings Cash McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 9-17

Overcoming Barriers to Creativity

Accept that failures by employees will occur.

If an idea fails, a supervisor should

acknowledge the problem and not try to pass

blame on to someone else.

Allow time for creative thinking.

Avoid isolation.

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