Organizational Behavior Exam #4

decision making

entails identifying and choosing from among alternate solutions that lead to a desired state of affairs

What are the two systems or two ways of thinking?

• System #1: Rely on intuition, involves mental shortcuts

• System #2: Utilize analytical and conscious thought

System #1: Rely on intuition, involves mental shortcuts

• can be quick, requires little cognitive effort

• can also be thought of as a nonrational decision making

System #2: Utilize analytical and conscious thought

• slow, logical, and requires cognitive effort

• can also be thought of as rational decision-making

rational model of decision making

explains how managers should make decisions

• assumes managers are completely objective and possess complete information

• allows for optimizing, meaning solving problems by producing the best possible solution based on a set of highly desirable conditions

• however, we are rarely rational when making decisions in complex situations

• the conditions for optimization are hard to meet, given cost, time, and resource constraints

rational model of decision making stages

• stage 1: identify the problem or opportunity

• stage 2: generate alternative solutions

• stage 3: evaluate alternatives and select a solution

• stage 4: implement and evaluate the solution chosen

What are the three benefits of trying the rational decision making approach?

• the quality of the decision is likely to be enhanced

• greater transparency surrounds the process

• greater responsibility accompanies this approach

nonrational models of decision making

explain how managers actually make decisions

• Normative vs. Intuition Models

the normative model

• guided by bounded rationality

• manageable amounts of information sought, rather than complete or optimal amounts

• results in sacrificing or choosing a solution that meets some minimum qualifications, and this is “good enough”

bounded rationality

means our ability to make decisions is restricted or bounded by a series of constraints

ex. resources and personal attributes

intuition model

• based on intuition

• useful when a quick decision is required or when resources are limited or difficult or costly to acquire

• can be suspectible to bias and it may be difficult to gain acceptance

intuition

judgements, insights, or decisions that “come to mind on their own, without explicit awareness of the evoking cues and of course without explicit evaluation of the validity of these cues”

What are the two forms of intuition?

• holistic hunch

• automated experience

holistic hunch

a judgement based on the subconscious integration of information stored in memory

automated experience

represents a choice based on a familiar situation and a partially subconscious application of learned information related to it

judgmental heuristics

cognitive shortcuts or biases that are used to simplify the process of making decisions

• can help managers make decisions but can lead to bad decisions

What are the eight types of biases?

• confirmation bias

• overconfidence bias

• availability bias

• representativeness bias

• anchoring bias

• hindsight bias

• framing bias

• escalation of commitment bias

confirmation bias

pertains to how we selectively gather information that supports our decision

overconfidence bias

results in overestimating our skills relative to those of others and overestimating the accuracy of our predictions

availability bias

a decision maker’s tendency to base decisions on information readily available in memory

representativeness bias

leads us to look for information that supports previosuly formed stereotypes

anchoring bias

occurs when decision makers are influenced by the first information they receive about a decision, even if it is irrelevant

hindsight bias

occurs when knowledge of an outcome influences our belief about the probability that we could have predicted the outcome earlier

framing bias

relates to the manner in which a question is posed or framed. It leads us to change the way we interpret alternatives.

escalation of commitment bias

the tendency to hold to an ineffective course of action even when it is unlikely the bad situation can be reversed

evidence-based decision making

the process of conscientiously using the best available data and evidence

• an approach used when making, informing, or supporting a decision

big data

reflects the vast quantity of data available for decision-making

artificial intelligence (AI)

a form of computing that allows machines to perform cognitive functions

decision-making style

the way an individual perceives and comprehends stimuli and the general manner in which he or she chooses to respond to such information

What are the two dimensions of decision-making styles?

• value orientation

• tolerance for ambiguity

value orientation

the extent to which an individual focuses on either task and technical concerns or people and social concerns when making decisions

tolerance for ambiguity

indicates the extent to which a person needs structure or control in his or her life

What are the four decision-making styles?

• analytical

• directive

• conceptual

• behavioral

directive style

action-oriented decision makers who focus on facts

analytical style

careful and slow decision makers who like lots of information

conceptual style

intuitive decision makers who involve others in long-term thinking

behavioral style

highly people-oriented decision makers

What are the advantages of group decision making?

• large knowledge pool

• diversity in approaches

• commitment to decision

• better understanding of decision rationale

• visible role modeling

What are the disadvantages of group decision-making?

• social pressures

• potential for few participants to be dominant

• goal displacement

• groupthink

groupthink

occurs when members become deeply involved in a cohesive in-group and striving for unanimity overrides motivation to realistically appraise alternative courses of action

What are the eight symptoms of groupthink?

• invulnerability

• inherent morality

• rationalization

• stereotyped views of opposition

• self-censorship

• illusion of unanimity

• peer pressure

• mind guards

invulnerability

an illusion that the group cannot make a mistake breeds excessive optimism and risk taking

inherent morality

assuming the group is highly moral encourages members to ignore ethical implications

rationalization

members protect their personal or “pet” ideas and assumptions

stereotyped views of opposition

the group may underestimate opponents

self-censorship

keeping ideas and questions to yourself stifles critical debate

illusion of unanimity

members’ silence can be interpreted to mean consent

peer pressure

be careful when the loyalty of dissenters is questioned

mindguards

self-appointed protectors can shut out adverse information

What are some techniques for preventing groupthink?

• each member of the group gets assigned the role of critical evaluator or dissenter role

• top-level executives should not use policy committees to rubber-stamp decisions that have already been made

• different groups with different leaders should explore the same policy questions

• managers should encourage subgroup debates and bring in outside experts to introduce fresh perspectives 

• someone should be given the role of devil’s advocate when discussing major alternatives

• once a consensus has been reached, everyone should be encouraged to rethink their position to check for flaws

brainstorming

a technique that helps groups generate multiple ideas and alternatives for solving problems

What are the rules for brainstorming?

• defer judgment

• build on the ideas of others

• encourage wild ideas

• go for quantity or quality

• be visual

• stay focused on the topic

• one conservation at a time

delphi technique

a group process that anonymously generates ideas or judgments from physically dispersed experts

decision support systems

computer-based interactive systems that help decision makers use data and models to solve unstructured problems

creativity

defined as the process of producing “new and useful ideas concerning products, services, processes, and procedures”

• accomplished by: changing your commute, listen to noise, move your lunch, etc.

What are some drivers of creative performance behaviors?

• problem formation and definition

• preparation and information gathering

• idea generation

• idea evaluation and validation

What are some drivers of creative outcome effectiveness?

• person factors: motivation, personality, self-efficacy, and national culture

• situation characteristics: high commitment work practices & organizational culture and climate

power

the discretion and the means to enforce your will over others

• highly related to influence

• 5 different types

legitimate power

used by managers who obtain compliance primarily by using their formal authority to make decisions

reward power

used when an individual obtains compliance by promising or granting rewards valued by the other party

coercive power

used when an individual makes threats of punishment and they have the authority to deliver actual punishment

expert power

when an individual has valued knowledge or information

referent power

derived from personal characteristics and social relationships that effectively gain others’ compliance

position power

derived from a particular job or position within an organization

personal power

something you possess independent of your position or job

What are the three primary responses to power?

• resistance

• compliance

• commitment

resistance

people can simply be indifferent, be passive-aggressive or actively resist. They can also purposefully undermine or even sabotage your efforts.

compliance

those who comply do only what is expected, nothing more

commitment

those who are committed believe in the cause and often go above and beyond to ensure its success

empowerment

efforts to enhance employee performance, well-being, and positive attitudes by:

• giving employees greater influence

• use of centralized management practices

structural empowerment

job redesign to transfer of power to employees

psychological empowerment

enhancing self-efficacy and intrinsic motivation

authoritarian power

manager/leader imposes decisions

influence sharing

manager/leader consults followers when making decisions

power sharing

manager/leader and followers jointly make decisions

power distribution

followers granted authority to make decisions

meaning

belief that your work values and goals align with those of your manager, team, or employer

competence

personal evaluation of your ability to do the job

self-determination

sense that you have control over your work and its outcomes

impact at work

feeling your efforts make a difference and affect the organization

influence tactics

conscious efforts to affect and change behaviors in others

What are the five soft influence tactics?

• rational persuasion

• inspirational appeals

• consultation

• ingratiation

• personal appeals

What are the four hard influence tactics?

• exchange

• coalition tactics

• pressure

• legitimating tactics

rational persuasion

trying to convince someone with reason, logic, or facts

inspirational appeals

trying to build enthusiasm by appealing to others’ emotions, ideals, or values

consultation

getting others to provide insights, experience or information you canuse in planning and making decisions

ingratiation

getting someone in a good mood prior to making a request. Being friendly and helpful and using praise, flattery, or humor. A particular form of ingratiation is brownnosing.

personal appeals

referring to friendship and loyalty when making a request

exchange

making explicit or implied promises and trading favors

coalition tactics

getting others to support your efforts to persuade someone

pressure

demanding compliance or using intimidation or threats

legitimating tactics

basing a request on authority or right, organizational rules or policies, or explicit/implied support from superiors

Involving influence, what are some examples of match tactics to desired outcomes?

• be believable and trustworthy

• consult rather than legitimate

• expect little from schmoozing

• be subtle

• learn to influence

organizational politics

intentional acts of influence to enhance or protect the self-interest of individuals or groups that are not endorsed by or aligned with those of the organization

What are some key causes of political behavior?

• organizational injustice

• lack of trust in co-workers

• negative affect

• uncertainty

What are the nine political tactics?

1. building a network of useful contacts

2. using “key players” to support initiatives 

3. making friends with power brokers

4. bending the rules to fit the situation

5. using self-promotion

6. creating a favorable image

7. praising others

8. attacking or blaming others

9. using information as a political tool

building a network of useful contacts

cultivating a support network both inside and outside of the organization

using “key players” to support initatives

getting prior support for a decision or issue; building others’ commitment via participation

making friends with power brokers

teaming up with powerful people who can get results

bending the rules to fit the situation

interpreting or enforcing rules to serve your own interests