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Organizational Behaviour MANA202 > Decision-Making by Individuals and Groups: Chapter 7 > Flashcards

Decision-Making by Individuals and Groups: Chapter 7 Flashcards

1
Q

programmed decision

A

simple decision for which a manager has an established rule

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2
Q

unprogrammed decision

A

a new, complex decision that requires a new solution

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3
Q

making an idealized decision

A
  1. recognize the problem
  2. identify the objective of the decision
  3. gathering information relevant to the decision
  4. listing and evaluating other courses of action
  5. selecting the best course of action
  6. implementing the solution
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4
Q

managers and decision-making

A
  • risky and stressful
  • trust and rely on others
  • ultimately responsible for the decision
  • decisions can be painful
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5
Q

effective decision

A
  • timely decision that meets desired objective
  • is acceptable to individuals affected by it
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6
Q

models of decision making

A
  • rational model
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7
Q

rationality

A
  • logical, step-by-step
  • with a thorough analysis of alternatives and their consequences
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8
Q

rational model elements

A
  • the outcome will be completely rational
  • decision maker has a consistent system of preferences, which is used to choose the best alternative
  • decision maker is aware of all the possible alternatives
  • emotionless & unbiased
  • probabilities of success are known
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9
Q

bounded rational model

A
  • managers choose the first satisfactory option
  • recognize conceptual limitations (world is simple)
  • choose from alternatives (which are not all known)
  • use heuristics
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10
Q

blue ocean approach

A

companies = better off entering new spaces rather than competing with existing companies in the market.

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11
Q

limitations of the rational model

A
  • unrealistic
  • time and knowledge constraints
  • managers’ needs and preferences change
    it is an ideal managers strive for
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12
Q

limitations of the bounded rational model

A
  • risk and time pressure
  • the situation is highly uncertain
  • the probability of success is not known
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13
Q

vroom-yetton-jago normative model

A
  • helps leaders and managers determine the appropriate level of employee participation in decision making
  • decide
  • consult individually
  • consult group
  • facilitate
  • delegate
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14
Q

limitations vroom-yetton-jago normative model

A
  • utility is limited by decision-making tasks
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15
Q

Z model benefits

A
  • capitalizes on the strengths of separate preferences (sensing, intuiting, thinking, and feeling)
  • can help individual develop their nonpreferences
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16
Q

Z model

A
  1. examine facts and details
    - use sensing to gather information about problem.
  2. generate alternatives
    - use intuiting to develop possibilities
  3. analyze the alternatives objectively
    - use logical thinking to determine effects of each alternative
  4. weigh impact
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17
Q

garbage can model

A
  • decision-making is a process of organizational anarchy
  • “can” has problems, solutions, participants with different preferences, choice opportunities
  • used to understand UN peacekeeping
  • refer to figure 7.1 in textbook
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18
Q

garbage can model benefits

A
  • helps understand why sometimes solutions drive problems
  • why individuals with power can control the outcomes of decisions
  • insight into the nonrational processes in decision-making
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19
Q

escalation of commitment

A
  • tendency to continue to support a failing course of action
  • closer a project is to completion, more likely escalation will occur
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20
Q

escalation of commitment: examples

A
  • price war: airline example
  • bumping up the costs: NASA space station
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21
Q

why does escalation of commitment occur?

A
  • cognitive dissonance theory
  • optimism
  • control
  • already put so much effort, that it feels wrong to simply quit
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22
Q

how to deal with escalation of commitment

A
  1. split responsibility for project decisions
    - allows different people to make decisions at different stages
  2. closely monitor decision-makers
  3. provide individuals with graceful exit from poor decisions so that their self-images are not threatened
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23
Q

cognitive limits to decision making

A
  • halo/horns effect
  • recency effect
  • primacy effect
  • confirmation bias
  • central tendency
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24
Q

cognitive biases

A

arise from relying on heuristics

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25
Q

implicit bias

A

unconscious, subtle feelings toward others that influence our judgments about them

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26
Q

implicit bias characteristics

A
  • we favour the in-group, though not golden rule
  • implicit biases are malleable
  • can be gradually unlearned through debiasing techniques
  • do not necessarily abide by our beliefs/stances
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27
Q

connection between implicit and explicit biases

A
  • not mutually exclusive
  • distinct mental constructs
  • may reinforce each other
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28
Q

individual differences in decision-making

A
  • cognitive style
  • comfort with risk
  • creativity
  • intuition
  • personality
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29
Q

risk: job examples

A
  • acquisitions and mergers
  • delegation
  • hiring decisions
  • new product development
  • overseas expansions
  • promotions
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30
Q

risk aversion

A

tendency to choose options that entail fewer risks and less uncertainty

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31
Q

risk taking

A
  1. influenced by:
    - individual’s tendency
    - organizational factors
  2. managers should establish a consistent attitude toward risk-taking (not punish failure)
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32
Q

styfling risk-taking

A
  • can limit creativity and innovation
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33
Q

cognitive preferences

A
  • how we typically think, remember, and address problems
  • influence attitudes, values, social interaction
  • seen as bipolar variables
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34
Q

field independence/independence

A
  • tendency to be affected by the environment
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35
Q

field dependents characteristics

A
  • most affected by the environment
  • tend to get “the whole idea”
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36
Q

field independent characteristics

A
  • conduct an analytical procedure
  • are more likely to break a model into different sections and details
  • tend to depend on their inner knowledge
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37
Q

managers and cognitive preferences

A
  • manager’s cognitive style affects the strategies they choose
  • managers select successors with similar cognitive styles
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38
Q

personality, attitudes and values: developing creative abilities

A
  • ask “what-if” questions
  • engage in play
  • follow intuition
  • see the big picture, create a vision
  • plan strategically
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39
Q

personality, attitudes and values: developing logic abilities

A
  • set goals and work towards them
  • understand day-to-day operations
  • understand flow chart work processes
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40
Q

intuition

A
  • fast, positive force in decision-making that is utilized at the unconsciousness level
  • learned patterns of information
  • ability to know or recognize quickly and readily the possibilities of a situation.*
  • simple analyses frozen into habit
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41
Q

managers and intuition

A
  • most rely on intuition in decision-making, research shows
  • used extensively, especially as a mechanism to evaluate decisions made more rationally
  • especially relied upon in challenging and unfamiliar situations
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42
Q

is there a link between cognitive moral development and intuition?
what is the connection

A

yes, the connection is ____.

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43
Q

can intuition be taught?

A

not really, but managers can be taught on how to rely on the promptings of their intuition

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44
Q

creativity

A
  • process influenced by individual and organizational factors
  • results in the production of novel and useful ideas, products, or both
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45
Q

stages of creativity

A
  1. preparation
  2. incubation
  3. illumination
  4. verification
46
Q

stages of creativity: preparation

A
  • seeking out new experiences and opportunities to learn
  • reason: creativity grows from a base of knowledge
47
Q

stages of creativity:

A
  • process of reflective thought
  • often conducted subconsciously
  • individual engages in other pursuits while the mind considers the problem and works on it
48
Q

stages of creativity: illumination

A

occurs when the individual senses an insight for solving the problem

49
Q

stages of creativity: verification

A
  • conducted to determine if the solution or idea is valid
  • accomplished by thinking through the implications of the decision
  • accomplished by presenting the idea to another person, or trying out the decision
50
Q

momentary quieting of the brain can ____

A

increase “coherence” or ability of different parts of the brain to work together

51
Q

creativity and individual differences

A
  • cognitive processes
  • mood
  • personality
52
Q

creativity: cognitive processes

A
  • divergent thinking
  • associational abilities
  • use of imagery
  • unconscious processes
53
Q

divergent thinking

A

ability to generate several potential solutions to a problem

54
Q

creativity: personality

A
  • artistic values
  • breadth of interests
  • concern with achievement
  • creative self-image
  • desire for recognition
  • high energy
  • independence of judgment
  • intuition
  • intrinsic motivation
  • self-confidence
  • tolerance of ambiguity,
  • risk-taking
55
Q

creativity: positive mood

A
  • allows team members to explore new ways of thinking.
  • broadens cognitive patterns and resources
  • initiate thoughts and actions that are novel and unscripted
  • cyclical process: thinking positively makes us more creative, and being more creative makes us think positively
56
Q

creativity: negative mood

A
  • perform better at tasks involving considerable cognitive demands
  • leads to more attention and vigilance in cognitive activity
57
Q

creativity and organizational influences

A
  • environment
58
Q

creativity killers

A
  • thinking about how work will be evaluated
  • being closely monitored
  • competing with others in win-lose situation
59
Q

creativity facilitators

A
  • high-quality supportive relationships with supervisors
  • high-quality social networks
  • flexible organizational structure
  • participative decision making
60
Q

creativity: individual/organizational fit

A
  • higher performance when there is a company-employee match
  • creativity training can help destroy mental locks
61
Q

creativity mental locks

A
  • Avoiding ambiguity
  • Avoiding problems outside our own expertise
  • Being afraid to look foolish
  • Believing we are not really creative
  • Following the rules
  • Fearing failure
  • Not making play a part of work
  • Searching for the “right” answer
  • Striving for practicality
  • Trying to be logical
62
Q

facilitating creative decisions

A
  • allowing employees to fail
  • creativity training
  • exposure to creative ideas
  • encourage employees to be surrounded by stimuli
  • make work fun
  • new ideas through task rotation
  • rewarding creativity
63
Q

using groups to make decisions: synergy

A

when group members stimulate new solutions to problems through the process of mutual influence and encouragement within the group

64
Q

using groups to make decisions: benefits

A
  • gain commitment to a decision
  • bring more knowledge and experience to problem-solving
  • greater understanding of the decision
65
Q

social decision schemes

A

simple rules used to determine final group decisions:
- majority-wins rule
- truth-wins rule
- 2/3-majority rule
- first-shift rule

66
Q

majority-wins rule

A
  • group supports whatever position is taken by the majority of its members
  • most used in preference decisions
67
Q

truth-wins rule

A
  • correct decision will emerge as an increasing number of members realize its appropriateness
  • most used in intellectual decisions
68
Q

2/3 majority rule

A

decision favoured by two-thirds or more of the members is supported

69
Q

first-shift rule

A

members support a decision represented by the first shift in opinion shown by a member

70
Q

using groups to make decisions: disadvantages

A
  • pressure within the group to conform and fit in
  • domination of the group by one forceful member or a dominant clique
  • amount of time required because a group makes decisions more slowly than an individual
71
Q

limits to group decision-making

A
  • groupthink
  • group polarization
72
Q

groupthink

A
  • deterioration of mental efficiency, reality testing, and moral judgment
  • results from pressures within the group
73
Q

groupthink factors of influence

A
  • high cohesiveness
  • homogenous group
  • having to make a highly consequential decision
  • time constraints
74
Q

groupthink symptoms

A
  • illusions of invulnerability
  • illusions of group morality
  • illusions of unanimity
  • rationalization
  • stereotyping the enemy
  • self-censorship
  • peer pressure
  • mindguards
75
Q

preventing groupthink

A
  • Ask each member to actively voices objections or doubts.
  • Have leaders avoid stating their position on the issue prior to the group decision
  • Create several groups that work on the decision simultaneously
  • Bring in outside experts to evaluate the group process
  • Appoint a devil’s advocate
  • Evaluate different motivations and intentions
  • Once consensus is reached, encourage reexamining the alternatives
76
Q

group polarization

A

tendency for group discussion to produce shifts toward more extreme attitudes among members.

77
Q

group polarization: potential causes

A
  • social comparison approach
  • persuasive arguments view
78
Q

social comparison approach

A
  • prior to group discussion, individuals believe they hold better views than the other members
  • during group discussion, they see that their views are not so far from average
  • they shift to more extreme positions
79
Q

persuasive arguments view

A
  • group discussion reinforces the initial views of the members
  • they take a more extreme position
80
Q

approaches to decision-making

A
  • brainstorming
  • devil’s advocacy
  • dialectical inquiry,
  • nominal group technique
  • quality circles
  • quality teams
  • self-managed team
81
Q

brainstorming

A
  • good for generating alternatives + as many ideas as possible
  • participants are encouraged to build upon the suggestions of others
  • imagination is emphasized
82
Q

brainstorming disadvantages

A
  • less effective than a comparable number of individuals working alone
  • participants can lose focus by getting off topic
83
Q

nominal group technique

A
  • generating alternatives and choosing one
  • good for when members fear criticism from others
  • steps:
    1. individuals silently list their ideas
    2. ideas are written on a chart one at a time until all ideas are listed
    3. discussion is permitted but only to clarify the ideas No criticism is allowed
    4. written vote is taken
84
Q

devil’s advocacy

A
  • group or individual is given the role of critic
  • task = coming up with the potential problems of a proposed decision
  • avoid costly mistakes by identifying potential issues in advance
85
Q

dialectical inquiry

A
  • debate between two opposing sets of recommendations
  • sets up a conflict
  • brings out the benefits and limitations of both sets of ideas
86
Q

quality circles

A
  • small groups meet to provide input for solving quality or production problems
  • managers often listen to recommendations from quality circles and implement the suggestions
  • involvement in decision-making process is = primary reward.
  • not empowered to implement their own recommendations
  • operate in parallel fashion to the organization’s structure
87
Q

quality teams

A
  • included in total quality management and other quality improvement efforts as part of a change in the organization’s structure
  • generated from the top down
  • empowered to act on their own recommendations
  • make data-based decisions about improving product and service quality
  • various decision-making techniques are employed in quality teams.
88
Q

self-managed teams

A
  • more broadly-focused
  • make decisions that were once reserved for managers
    example: work scheduling, job assignments, staffing
89
Q

selecting the right decision-making technique

A
90
Q

quality-oriented groups and self-managed teams have ___ levels of involvement and authority in group decision-making.

A

higher

91
Q

evidence supporting self-managed teams

A
  • increased productivity
  • lower employee turnover rate
  • flatter organization structure
92
Q

hot trend: electronic brainstorming

A
  • overcomes production blocking and evaluation apprehension
93
Q

overcoming production blocking occurs when …

A
  • occurs when you forget what you wanted to contribute because you were concentrating on listening to others
  • ideas are recorded electronically
  • participants can focus on the ideas they want to share free from interruption
94
Q

overcoming evaluation apprehension

A
  • occurs when individuals fear that others might respond negatively to their ideas
  • input is anonymous, so evaluation apprehension is reduced
  • electronic brainstorming groups outperform face-to-face brainstorming groups in the number of ideas generated
95
Q

dissent

A
  • going against the grain
  • breaks down complacency
  • leads to process that results in better decisions
96
Q

collectivistic cultures (Japan,) prefer ____

A
  • collective decisions
  • group decisions
97
Q

individualistic cultures (Canada, United States) prefer ____

A
  • individualistic decisions
98
Q

time orientation will determine ___

A
  • the frame of reference of the decision
  • China: longterm oriented, decisions are made with the future in mind
  • Canada: short-term oriented, decisions are made with the short-term in mind
99
Q

masculine cultures’ impact on decisions

A
  • value quick, assertive decisions
  • example: Latin American countries
100
Q

feminine cultures’ impact on decisions

A
  • value decisions that reflect concern for others
  • example: Scandinavian countries
101
Q

racially different groups vs racially similar groups

A

racially different = engage in more open information sharing, encourage dissenting perspectives, arrive at better decisions than racially similar groups

102
Q

how does diversity impact decision-making

A
  • better financial performance
103
Q

participative decision making

A
  • decision-making in which individuals who are affected by decisions influence the making of those decisions
104
Q

organizational foundations for empowerment

A
  • participative, supportive organizational culture and a team-oriented work
  • design of work
105
Q

participative and supportive organizational culture

A
  • lower-level organizational members be able to make decisions and take action on those decisions
  • fear, anxiety, or even terror can be created among middle managers in the organization as people gain power
106
Q

work design

A
  • old factory design does not work anymore = inconsistent with participation
  • teamwork designs work better, especially today
107
Q

3 individual prerequisites for participation and empowerment

A
  • capability to become psychologically involved in participative activities
  • motivation to act autonomously
  • capacity to see the relevance of participation for personal well-being
108
Q

German authoritarian culture vs participative work design

A

___ p 142

109
Q

dependent personalities

A
  • naturally predisposed to expect to be told what to do
  • rely on external motivation rather than internal, intrinsic motivation
  • not effective contributors to decision making
110
Q

employees involved of all stages of decision-making have …

A
  • higher satisfaction
  • higher performance

Organizational Behaviour MANA202 (11 decks)

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