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Decision Makingand Employee
involvement
Decision Makingand Employee
involvement
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Decision Making at JetBlueDecision Making at JetBlue
David Neeleman made
numerous decisions leading
up to the launch of JetBlue,
the New York-based
discount airline that has
taken the industry by storm.© AP Photo/Richard
Drew
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3. Develop3. Developalternativesalternatives
1. Identify1. Identifyproblemproblem
2. Choose2. Choose
decisiondecision
stylestyle
Decision Making ModelDecision Making Model
4. Choose4. Choosebest solutionbest solution
5. Implement5. Implementsolutionsolution
6. Evaluate6. Evaluatedecisiondecision
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Famous Missed OpportunitiesFamous Missed Opportunities
A Knight’s Tale was a box officesuccess, yet most Hollywood
studios rejected Brian Helgeland’s
proposal. They failed to see the
appeal of a film about a lowlysquire in 14th century England
who aspires to be a knight, set to
1970s rock music and reflecting
contemporary themes of youth,freedom, and equality.
© Photofest
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Problem Identification ConcernsProblem Identification Concerns
Perceptual Biases Perceptual defense Political influence by others Mental models
Poor Diagnostic Skills Need to make sense Lack of time Defining solutions as
problems© Photofest
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Identifying Problems EffectivelyIdentifying Problems Effectively
Be aware of perceptuallimitations
Discuss the situation with
colleagues
Create early warning signs
Use information technology© Photofest
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Problems with Choosing SolutionsProblems with Choosing Solutions
Goals problemsAmbiguous, conflictingBiased by personal goals
Information processing problemsSelective attentionLimited info processingSequential evaluation with implicit favorite
Maximizing problemsTend to satisfice
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Choosing Solutions EffectivelyChoosing Solutions Effectively
Systematically evaluate alternatives
Decision support systems
Scenario planning
Intuition (with caution)
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Intuitive Decision MakingIntuitive Decision Making
Ability to know when a problem or opportunityexists and select the best course of actionwithout conscious reasoning
Conduit for tacit knowledge
Logical reasoning that became habit
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Escalation of Commitment at BC FerriesEscalation of Commitment at BC Ferries
The government of British
Columbia, Canada decided
to build catamaran-style
ferries for $150 million, butthis cost ballooned to $300
million, partly due to
escalation of commitment. C. Price, Vancouver Province
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Escalation of Commitment CausesEscalation of Commitment Causes
Self-justification
Gambler’s fallacy
Perceptual blinders
Closing costs C. Price, Vancouver Province
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Employee Involvement DefinedEmployee Involvement Defined
The degree that employees share information,knowledge, rewards, and power throughout theorganization
Active in decisions previous outside their control
Power to influence decisions
Knowledge sharing
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Forms of Employee InvolvementForms of Employee Involvement
InformalInformal
Casual informationCasual informationexchangesexchanges
Example: Boss asksExample: Boss asksfor ideasfor ideas
FormalFormal
Codified practicesCodified practices
Example: self-Example: self-directed nursingdirected nursing
teamsteams
StatutoryStatutory
Required by lawRequired by law
Example: EuropeanExample: European
codeterminationcodetermination
VoluntaryVoluntary
No legalNo legalrequirementrequirement
Example: BuildingExample: Buildingdesign task force atdesign task force atGreat PlainsGreat Plains
DirectDirect
EmployeesEmployeespersonally involvedpersonally involved
Example: Staff voteExample: Staff vote
against smoking inagainst smoking inthe workplacethe workplace
RepresentativeRepresentative
Reps decide for Reps decide for other employeesother employees
Example: EmployeeExample: Employeereps as directors atreps as directors atUnited AirlinesUnited Airlines
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HighHigh
MediumMedium
LowLow
Levels of Employee InvolvementLevels of Employee Involvement
High involvement -- Employeeshave complete decision makingpower (e.g.. SDWTs)
Full consultation -- Employeesoffer recommendations (e.g.. gainsharing)
Selective consultation --employees give information, butdon’t know the problem
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Features of Self-Directed TeamsFeatures of Self-Directed Teams
Complete entire work process
Tasks assigned by the team, not supervisors
Highly autonomous --responsible for inputs,processes, outputs
Responsible for correcting problems
Receive team-level feedback and rewards
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Sociotechnical Systems at CelesticaSociotechnical Systems at Celestica
Celestica adopted sociotechnical
systems (STS) as its template for
corporate renewal. The computer
manufacturer assigned self-directed work teams to each work
process and identified key
variances that the teams control
in those processes. STS doubled
productivity and increased job
satisfaction.
Courtesy of Celestica
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Sociotechnical Systems ConditionsSociotechnical Systems Conditions
Primary work unit
Semi-autonomous groups
Control key variances
Joint optimization
Courtesy of Celestica
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How Involvement Improves DecisionsHow Involvement Improves Decisions
EmployeeInvolvement
Leads to better Leads to better
definition of problemsdefinition of problems
More likely to selectMore likely to selectthe best optionthe best option
Improves number andImproves number and
quality of solutionsquality of solutions
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Determining Optimal Involvement LevelDetermining Optimal Involvement Level
Decision quality
Decision commitment
Risk of conflict
Decision structure
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Overcoming Involvement ChallengesOvercoming Involvement Challenges
Cultural Differences Better in collectivist and low power distance cultures
Management Resistance
Educate/train managers to become facilitators
Employee and Union Resistance Concerns about increased stress, giving up union rights,
and union power
Solution is trust and involvement
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Decision Makingand Employee
involvement
Decision Makingand Employee
involvement