Decision making, leadership and change management

Question 1

8 steps of the decision making process

Answer 1

1. Identify a problem - discrepancy between existing and desired state of affairs
2. Identify decision criteria - what is relevant in making a decision
3. Allocate weighting to criteria - prioritise criteria
4. Develop alternatives
5. Analyse alternatives
6. Select an alternative
7. Implement the alternative
8. Evaluate decision effectiveness

Question 2

Types of decisions

Answer 2

Structured - Managerial level: low level managers, Frequency: repetitive and routine, Information: Readily available, Goals: Clear and specific, Timeframe: short, Solution relies on: Procedures, rules, policies

Unstructured - Managerial level: upper level managers, Frequency: new and unusual, Information: ambiguous or incomplete, Goals: vague, Timeframe: long, Solution relies on: judgement and creativity

Question 3

Decision making conditions

Answer 3

Certainty - ideal situation - manager knows outcome of every alternative

Risk - able to estimate the likelihood of certain outcomes

Uncertainty - not certain about the outcomes and cannot make reasonable estimates

Question 4

Two views of the change process

Answer 4

Calm waters metaphor - unfreezing (Status quo), changing (to a new state), freezing (to make permanent change)

White waters rapids metaphor - pace of change in our environment is accelerating and our visibility of the future is declining

Question 5

Types of change

Answer 5

Structure - structural components and structural design

Technology - work processes, methods and equipment

People - attitudes, expectations, perceptions, and behavioural (individual and group)

Question 6

Contemporary issues in managing change

Answer 6

Changing Organisational cultures
Handling employee stress
Making change happen successfully

Question 7

Why is innovation important

Answer 7

Innovation is the key to continued success - channels creativity into useful products and services

Question 8

How can innovation be stimulating and nurtured

Answer 8

Inputs - creative individuals, groups
Transformation - creative process, creative situation
Outputs - creative products, work methods

Question 9

Innovation variables

Answer 9

Structural variables - organic structure, abundant resources, high communication, minimal time pressure,

Human resources variables - high training and development, high job security, creative people

Cultural variables - tolerance of risks and conflict, low external controls, open system focus, positive feedback