Decision Making

Processes
Chapter 8

Overview
One

of the most critical activities in an

org. is the making of decisions
How do you make a decision? Consider
a recent decision, and how did you make
that decision?
Explore the role of comm. In
organizational decision making
General models of decision-making process
Discuss small group context

Models of decision
making process

Classical approach

Limited participation (consider contributions)

Define and identify the problem
Search for relevant information
Est. decision options
Evaluate based on criteria for decision
effectiveness
Make optimal choice

Normative model (Nutt)

Formulation-

compute needs and

desires of org. and individuals
Concept development
Detailing
Evaluation
Implementation

Alternatives to rational
models

Satisfying process vs. optimizing model

Bounded Rationality
Limited cognitively
Limited by practical aspects
Got an example of each????

Intuitive process
Garbage can model
Process of elimination
we dont need it now, so we will put it away for
later
Case in Point (p. 141) Personal Finance Decisions

Realize that..

Very few organizational decision makers use

all the stages of the normative process
Most decision makers dont want to re-invent
the wheel
Decision makers often dont consider rationale
for decision (why or how)
DM often make decision and implement
before identifying other possibilities
Concept development is most overlooked
step
Performance equation
P = idea multiplied by implementation

Small group decision

making
Descriptive

models of small group

decision making
Fishers group phase model
Orientation
Conflict
Emergence
Reinforcement

Small group decision

making (cont.)
Multiple

sequence model-multiple
decision paths-similar to equifinality
from systems theory (p. 144)
Typology of small group decision paths
Unitary sequence path
Complex cyclic path
Solution oriented

Effective small group

decision
making

Groupthink: the mode of thinking that

people engage in when they are deeply
involved in a cohesive in-group, when
the members striving for unanimity
overrides their motivation to realistically
appraise alternative courses of action
Symptoms of groupthink (p. 145)
So, what do you do as a group member
or leader to deal with group think?

Effective small group decision making

How

can a group improve its chances of

making effective decisions?
Vigilant interaction
Introduce the right kind of conflict
Cognitive conflict
Affective conflict

Critical debate b/w co-groups

Dialectical inquiry
Devils advocacy

Media

example-Clips at 12 Angry Men &

12 Angry Men

Functional Theory

Effective decision making depends on groups

attending to critical functions through group
communication.
Understanding the problem
Identifying alternatives
Determining criteria for alternatives
Brainstorming-Good or bad?
Role of technology (GDSS)-helpful? (p. 147)
Symbolic Convergence Theory
role of communication in creating group identity
Relational aspects of groups
Consider backstage communication

Participation in decision
making (PDM)
Affects

of participation in decision

making
Participation in org. decisions would make
employees less resistant to change
Participation is linked to job satisfaction
and performance
Increase cognitive ability-better utilization
of information

Models of PDM

The Affective Model or Feel Good Model

(p. 148)
The Cognitive Model or Contribution Model
(p. 149)

Affective Model of PDM

PDM

SHON

WS

MO

PROD

Cognitive Model of PDM

UIF

PDM

PROD

DIF

Satisfaction

Participative
applications
in
org.s

Ranges-informal to formal
Classification of program participation
(p. 151)
Workplace democracy (p. 152)
Encourage contribution
Based on humanistic ideals
Multiple stakeholders collaboration
Not synonymous with one person, one
voice

Paradoxes of Participative
Democracy

Paradox=something absurd or contradictory: a

statement, proposition, or situation that seems
to be absurd or contradictory, but in fact is or
may be true (http://encarta.msn)
Structure-design

of org. democracy
Agency-individuals sense of resp.
Identity-issues of inclusion in decision
making
Power-issues of how control re exercised