Organizational & Group Decision-Making Flashcards
Organizational Decision-Making
this organizational decision-making model assumes that decision-makers choose the optimal alternative after identifying & evaluating all possible alternatives in an a) objective, b) deliberate, and c) orderly way
the rational model
aka the classical model and the rational-economic model
Organizational Decision-Making
this organizational decision-making model recognizes that rational decision-making is limited by organizational & individual factors (e.g., time restrictions, limited access to information, and the cognitive abilities of the decision maker) and proposes that, as a result of these factors, people often “satisfice” (rather than “optimize”) when making decisions by considering alternatives only until a minimally acceptable alternative is found
bounded rationality model
Organizational Decision-Making
this organizational decision-making model proposes that organizational decisions are often made by many individuals or groups (e.g., marketing group or manufacturing group), are constrained by the organization’s routines or standard operating procedures (SOPs), and often follow & depend on “small incremental choices made in response to short-term conditions”
organizational process model
Group Decision-Making
research indicates that the effectiveness of group & individual decisions depends on the nature of these 2 factors
1) the task
2) the situation
Group Decision-Making
research indicates that (groups/individuals) are more effective decision-makers when the task is complex
groups (esp. when group members have complementary skills)
Group Decision-Making
research indicates that (groups/individuals) are more effective decision-makers when the task is poorly structured and requires a high degree of creativity
individuals
Group Decision-Making
research on group decision-making has found that its effects can be undermined by these 3 concepts
- Groupthink
- The Risky Shift
- Group Polarization
Group Decision-Making
Irving Janus concluded that the decision-making process that led to several bad political & military decisions was due to this
Groupthink
Group Decision-Making
a phenomenon associated with group decision-making that refers to a suspension of critical thinking that can occur in groups with a high level of cohesiveness and a highly strong & directive leader that are isolated form outside opinions and must make an important decision quickly
Groupthink
Irving Janus
Group Decision-Making
according to Janus’ Groupthink, this term includes illusions of invulnerability & superior morality, use of collective rationalization, excessive stereotypiing, self-censorship, and the presence of self-appointed “mindguards,” who shield group members from contradictory information
symptoms
Group Decision-Making
list 4 strategies for group leaders to reduce the risk of groupthink according to Janus’ Groupthink
1) remaining neutral in the beginning of a discussion
2) encouraging members to express their opinions
3) appointing a member to play devil’s advocate
4) bringing in outside opinions
Group Decision-Making
this term refers to the tendency of groups to make more extreme (more risky or more cautious) decisions than individual members would make alone and occurs after group discussiong have provided opportunities for social comparison & exposure to persuasive arguments
group polarization
Group Decision-Making
early research established evidence for this phenomenon referring to the tendency of groups to make riskier decisions than individual group members would make alone
the risky shift
According to Janis (1982), an effective way to reduce the risk for groupthink is to:
A. ensure that the group leader points out areas of agreement during group discussions.
B. ensure that the group leader maximizes group cohesiveness by establishing group norms.
C. appoint a member of the group to adopt the role of “mind-guard” during group discussions.
D. appoint a member of the group to play “devil’s advocate” during group discussions.
D. appoint a member of the group to play “devil’s advocate” during group discussions.
Group Decision-Making
these organizational decisions are repetitive & routine and governed by a) rules, b) policies, and c) procedures and are often made by lower-level personnel (e.g., decisions related to hiring, ordering, & billing)
programmed decisions
Group Decision-Making
these organizational decision are non-repetitive & complex, require unique or creative solutions, and rely on the decision-maker’s judgment & problem-solving skills and are usually made by upper-level personnel (e.g., decisions related to developing new products or services or responding to legal issues)
nonprogrammed decisions
