Greenberg & Baron:
Behavior In Organizations
Chapter Ten
Decision-Making in Organizations
Chapter Summary
According to the analytical model of decision making, the making of decisions is a multistep
process through which (1) a problem is identified, (2) solution objectives are defined, (3) a predecision is
made (i.e., a decision about how to make a decision), (4) alternatives are generated, (5) these alternatives
are evaluated, (6) an alternative is chosen, (7) that alternative is implemented, and then (8) a follow-up
evaluation occurs to determine if the problem still exists. Decisions made in organizations can be
characterized as being either programmed, routine decisions made according to preexisting guidelines or
nonprogrammed decisions requiring novel and creative solutions. Decisions also differ with respect to the
amount of risk involved, ranging from those in which the decision outcomes are relatively certain to those
in which the outcomes are highly uncertain. Uncertain situations are expressed as statements of
probability based on either objective or subjective information. Decisions also differ with respect to
whether they are made by high-level organizational officials (top-down decisions) or by employees
themselves (empowered decisions).
There are individual differences in the way people make decisions. Generally, people demonstrate
one of four dominant decision styles: directive (preference for simple, clear solutions), analytical
(willingness to consider complex situations based on ambiguous information), conceptual (a humanistic
and artistic orientation), or behavioral (a concern for the organization). Within organizations, decision
quality may be adversely affected by severe time constraints and by political face-saving pressures.
Decisions made in organizations also are affected by the national culture in which the organization exists.
For example, Americans are more likely to confront problems as decisions that need to be made, whereas
people from Thailand are more likely to accept these problems as they are. Also, whereas Americans
make decisions in a highly individualistic way (by looking out for themselves), Asians are more likely to
make decisions in a collective manner (by taking into account the group or organization).
The rational-economic model characterizes decision makers as thoroughly searching through
perfect information to make an optimal decision. This is a normative approach, in that it describes how
decision makers ideally ought to behave to make the best possible decisions. In contrast, the
administrative model is a descriptive approach, which describes how decision makers actually behave. It
recognizes that limitations imposed by people’s ability to process the information needed to make complex
decisions (bounded rationality and bounded discretion) restrict decision makers to making satisficing
decisions—solutions that are not optimal but are good enough. An alternative approach, image theory,
recognizes that decisions are made in an automatic, intuitive fashion. It claims that people will adopt a
course of action that best fits their individual principles, current goals, and plans for the future.
People make imperfect decisions due to cognitive biases. One such bias, framing, refers to the
tendency for people to make different decisions based on how a problem is presented. For example, when
a problem is presented in a way that emphasizes positive gains to be received, people tend to make
conservative, risk-averse decisions, whereas when the same problem is presented in a way that
emphasizes potential losses to be suffered, people tend to make riskier decisions. Simple rules of thumb,
known as heuristics, also may bias decisions. For example, according to the availability heuristic, people
base their judgments on information readily available to them, and according to the representativeness
heuristic, people are perceived in stereotypical ways if they appear to be representatives of the categories
to which they belong. People also are biased toward implicit favorites, alternatives they prefer in advance
of considering all the options. Other alternatives, confirmation candidates, are considered for purposes of
convincing oneself that one’s implicit favorite is the best alternative. Decisions also are biased because of
the tendency to believe that we were far better at judging past events than we actually were (known as the
hindsight bias) and the tendency for people to give too little credit to others when things are going poorly
and too much credit when things are going well (known as the person sensitivity bias). Finally, decisions
are biased insofar as people tend to escalate commitment to unsuccessful courses of action because they
have sunk costs invested in them. This occurs in large part because people need to justify their previous
actions and wish to avoid having to admit that their initial decision was a mistake.
Groups make more superior decisions than individuals when these are composed of a
heterogeneous mix of experts who possess complementary skills. However, groups may not be any better
than the best member of the group when performing a task that has a simple, verifiable answer.
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Chapter Ten
Individuals make more superior decisions than face-to-face brainstorming groups on creative
problems. However, when brainstorming is done electronically—that is, by using computer terminals to
send messages—the quality of decisions tends to improve.
Decision quality may be enhanced in several different ways. First, the quality of individual
decisions has been shown to improve following individual training in problem solving skills. Training in
ethics also can help people make more ethical decisions. Group decisions may be improved in three
ways. First, in the Delphi technique, the judgments of experts are systematically gathered and used to
form a single joint decision. Second, in the nominal group technique, group meetings are structured so as
to elicit and evaluate systematically the opinions of all members. Third, in the stepladder technique, new
individuals are added to decision-making groups one at a time, requiring the presentation and discussion
of new ideas. Contemporary techniques also employ the use of computers as aids in decision making.
One of these is known as electronic meetings. These are computer networks that bring individuals from
different locations together for a meeting via telephone or satellite transmissions, either on television
monitors or via shared space on a computer screen. Another computer-based approach is computerassisted communication—the sharing of information, such as text messages and data relevant to the
decision, over computer networks. Finally, computers have been used to facilitate decision making by way
of group decision support systems. These are interactive computer-based systems that combine
communication, computer, and decision technologies to improve the effectiveness of group problem
solving meetings.
Learning Objectives
1. Identify the steps in the analytical model of decision making and distinguish between the various types
of decisions that people make.
2. Describe different individual decision styles and the various organizational and cultural factors that
influence the decision-making process.
3. Distinguish among three approaches to how decisions are made: the rational-economic model, the
administrative model, and image theory.
4. Identify the various factors that lead people to make imperfect decisions.
5. Compare the conditions under which groups make more superior decisions than individuals and when
individuals make more superior decisions than groups.
6. Describe various traditional techniques and high-tech techniques that can be used to enhance the
quality of individual decisions and group decisions.
Lesson Planning
At the end of every chapter are a variety of questions pertaining to the learning objectives which can be
used any number of ways to reinforce your presentation of the material. Ideas include using the
questions to lead a class discussion, breaking students into small groups and giving them a question to
respond to (“buzz groups”), assigning them for homework, or using at the end of class in an evaluative
manner by choosing one for students to respond to in a timed writing for just a minute or two (one-minute
essay). If you choose to use the one minute essay format—don’t use it for a grade for the student—but
as a feedback mechanism for yourself to evaluate what the students learned.
Also at the end of the chapter are exercises for individuals and groups. Web surfing exercises are also
included to allow you to introduce e-learning applications to your lessons. They can be done outside of
class for homework/group projects, or you might try using them as a demonstration if you have internet
access in your classroom. Additionally, the class could meet in the computer lab where they can work on
them together. Other exercises include a practice exercise to give students an opportunity to apply their
new knowledge and a case study with critical thinking questions. Each of the exercises found in the text
is noted within shadowed boxes throughout the lecture outline which follows. Remind students to bring
their text to every class so that they will be able to reference the material if you choose to include an
exercise in your presentation. There is far more material included here than can be accomplished in an
average undergraduate class—but the goal was to provide you choices so that your can offer your
students a variety of learning experiences. Suggested answers for the case study’s critical thinking
questions and other review questions can be found at the end of these chapter notes.
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I.
Behavior In Organizations
Chapter Ten
THE NATURE OF DECISION MAKING
Notes
A. A GENERAL, ANALYTICAL MODEL OF THE DECISIONMAKING PROCESS
1. Traditionally, the decision-making process is
conceptualized as a series of analytical steps that groups or
individuals take to solve problems.
2. The general model of this process--the analytical model of
decision making can help us to understand the complex
nature of organizational decision making.
3. The two key aspects of making decisions are formulation-the process of understanding a problem and making a
decision about it; and implementation--the process of
carrying out that decision.
4. The model’s first step is problem identification.
a. What is it that we are trying to address?
b. People do not always perceive social situations
accurately.
c. How we see a problem determines how we try to solve
it.
5. The next step is to define the objectives to be met in solving
the problem.
a. It is important to conceive of problems in a way that
allows possible solutions to be identified.
6. The third step is to make a predecision.
a. A decision about how to make a decision.
b. By assessing the type of problem identified as well as
other aspects of the situation, managers may opt to
make a decision themselves, to delegate the decision
to another, or to have a group make the decision.
c.
Recently computer programs have been developed that
summarize much of this information and, thereby, give
managers ready access to a wealth of social science
information that may help with predecisions.
d. Such decision support systems (DSS), are only as good
as the social science information that goes into
developing them, but DSS techniques are effective in
helping people to make decisions about solving
problems.
7. The fourth step in the process is alternative generation, in
which possible solutions are identified. When coming up
with solutions, people tend to rely on previously used
approaches that might provide ready-made answers.
8. The fifth step is evaluating alternative solutions. Some
alternatives may be more effective than others, and some
may be more difficult to implement than others.
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Chapter Ten
Notes
9. In the sixth step, a choice is made. Choosing a course of
action is the step that most often comes to mind when we
think about the decision-making process.
10. The seventh step calls for implementation of the chosen
alternative. In other words, the chosen alternative is
performed.
11. The final step is follow-up. Monitoring the effectiveness of
decisions put into action is important to the success of
organizations.
12. It is important to reiterate this is a very general model of the
decision-making process. It may not be followed exactly as
specified in all circumstances.
B. THE BROAD SPECTRUM OF ORGANIZATIONAL DECISIONS
1. We now distinguish between decisions in three important
ways: how routine they are, how much risk is involved, and
who in the organization makes them.
Programmed and nonprogrammed decisions.
2. A decision that is made repeatedly and according to a preestablished set of alternatives is a programmed decisions,
routine decisions by lower-level personnel that rely on
predetermined courses of action.
Table 10.1
p.362
Table 10.2
p.363
3. In contrast, nonprogrammed decisions, ones for which no
ready-made solutions exist. In these cases, the decisionmaker confronts a unique situation, and the solutions are
equally novel.
4. Certain types of nonprogrammed decisions are known as
strategic decisions.
a. These decisions are made by coalitions of high-level
executives and have important, long-term implications
for the organization.
b. Strategic decisions reflect a consistent pattern for
directing the organization in some specified fashion,
according to an underlying organizational philosophy or
mission.
Certain and uncertain decisions.
5. Degrees of certainty and uncertainty are expressed as
statements of risk.
6. All organizational decisions involve some degree of risk,
which ranges from complete certainty (i.e., no risk) to
complete uncertainty or “a stab in the dark” (i.e., high risk).
7. What makes a decision risky is the probability of obtaining
the desired outcome.
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8. Decision-makers try to obtain information about the
probabilities (or odds) of certain events occurring given that
other events have occurred.
a. Day be considered to be reports of objective
probabilities, when they are based on concrete and
verifiable data.
b. Many decisions also are based subjective probabilities,
personal beliefs or hunches about what will happen.
9. Uncertainty is an undesirable in decision-making situations.
Decision uncertainty can be reduced by establishing
linkages with other organizations. The more an organization
knows about what another will do, the greater certainty it
has in making decisions.
10. What reduces uncertainty in decision-making is information.
Knowledge about the past and the present can help when
making projections about the future.
11. A variety of on-line information services now provide
organizational decision-makers with the latest information
relevant to the decisions they are making.
12. Many managerial decisions also are based on the decisionmaker s past experiences and intuition. When making
decisions, people often rely on what has worked for them in
the past.
13. This works because experienced decision-makers tend to
make better use of information relevant to the decisions
they are making.
14. Individuals with expertise in certain subjects know what
information is most relevant as well as how to interpret that
information to make the best decisions.
Top-down and empowered decision.
15. Traditionally, making decisions in organizations was a
manager’s job.
a. Subordinates collect information and give it to their
superiors, who then use it to make decisions.
b. Known as top-down decision making, this approach
puts the power to make decisions in the hands of
managers.
16. Today the idea of empowered decision making allows
employees to make the decisions required to do their jobs
without seeking supervisory approval.
17. The rationale is that the people who actually do the jobs
know best, so having someone else make the decision may
not make the most sense. In addition, when people are empowered to make their own decisions, they are more likely
to accept the consequences of them.
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Chapter Ten
Notes
II. FACTORS AFFECTING DECISIONS IN ORGANIZATIONS
A. DECISION STYLE: INDIVIDUAL DIFFERENCES IN DECISION
MAKING
1. There are meaningful differences between people in their
orientation toward decisions, in their decision style. The
decision-style model classifies four major decision style.
2. The directive style characterizes people who prefer simple,
clear solutions. Individuals with this style tend to make
decisions rapidly, using little information, relying on existing
rules, and they aggressively use their status to achieve
results.
3. Individuals with the analytical style are more willing to
consider complex solutions based on ambiguous
information. People with this style tend to analyze their
decisions carefully, use as much data as possible, enjoy
solving problems, and they want the best possible answers.
4. Compared to people with the directive or the analytical
style, people with the conceptual style tend to be more
socially oriented in their approach to problems. Their
approach is humanistic and artistic, they consider many
broad alternatives, solve problems creatively, and they have
a strong future orientation.
5. Individuals with the behavioral style have a deep concern
for the organizations in which they work and for the
personal development of their coworkers. They are highly
supportive of others and concerned about others’
achievements, and they frequently help others to meet their
goals. Such individuals are open to suggestions from others
and, therefore, tend to rely on meetings for making
decisions.
6. Although most managers may have one dominant style,
they often use many different styles. Those who can shift
between styles--that is, those who are most flexible in their
approach to decision making--have highly complex,
individualistic styles of their own.
7. Conflicts often occur between individuals with different
styles. Being aware of people’s decision styles is a
potentially useful way of understanding social interactions in
organizations.
8. Scientists have developed the decision-style inventory,
which is a questionnaire designed to reveal the relative
strength of people’s decision styles.
9. Research using the decision-style inventory revealed that A
sample of corporate presidents had approximately equal
scores in each of the four categories.
10. Military leaders tend to have high scores on conceptual
style and people oriented approach.
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Figure 10.3
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OB In An E-World:
Adaptive Agents As
Decision Aids p.366
Individual Exercise:
What Is Your Personal
Decision Style? p.398
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Chapter Ten
Notes
11. People take very different approaches to the decisions they
make. Coupled with their interpersonal skills, their
personalities lead them to approach decisions in
consistently different ways.
B. GROUP INFLUENCES: A MATTER OF TRADE-OFFS
1. Potential benefits of decision-making groups.
a. First, bringing people together may increase the
amount of knowledge and information available for
making good decisions.
b. A related benefit is the specialization of labor.
c. Another benefit is that group decisions are likely to
enjoy greater acceptance than individual decisions.
2. Potential problems of decision-making groups
a. One obvious drawback is that groups are likely to waste
time.
b. Another problem is that potential disagreement over
important matters may breed ill will and group conflict.
c. Finally, groups sometimes may be ineffective because
of members’ intimidation by group leaders.
3. Groupthink: too much cohesiveness can be a dangerous
thing.
a. Sometimes group members become so concerned
about not rocking the boat that they become reluctant to
challenge the group’s decisions.
b. Space shuttle Challenger tragedy in January 1986 is an
example of the consequences of group think.
.
4. Groupthink occurs in governmental decision making, but it
also occurs in the private sector although in such cases, the
failures may be less well publicized.
C. ORGANIZATIONAL BARRIERS TO EFFECTIVE DECISIONS
1. There are several organizational factors that also interfere
with making rational decisions. One obvious factor is time
constraints.
2. Many important organizational decisions are made under
severe time pressure, and under such circumstances, it
often is impossible for exhaustive decision making to occur.
3. The quality of many organizational decisions also may be
limited by political “face-saving” pressure. People may
make decisions that help them to look good to others, even
though the resulting decisions might not be in the best
interest of their organizations.
4. One study of political face-saving found that
businesspeople working on a group decision-making
problem opted for an adequate--but less-than-optimal-decision rather than risk generating serious conflicts with
their fellow group members.
155
Figure 10.4
p.369
How To Do It: Strategies
For Avoiding Groupthink
p.370
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Behavior In Organizations
Chapter Ten
D. CULTURAL DIFFERENCES IN DECISION MAKING
1. Even if people followed the same basic steps when making
decisions, there would still be widespread differences in the
way people from various cultures might go about doing so.
2. Thailand, Indonesia, or Malaysia, however, managers often
accept nonperformance by suppliers as fate and allow the
projects to be delayed.
3. An American, Canadian, or Western European manager,
perceived such a situation as a problem in need of a
decision, whereas Thai, Indonesian, or Malaysian
managers perceive no such problem.
4. Cultures also differ regarding the nature of the decisionmaking unit they typically employ.
a. In the United States, where people tend to be highly individualist, individual decisions are common.
b. In more collectivist cultures such as Japan, however, it
is inconceivable for someone to make a decision
without first gaining the acceptance of his/her
immediate colleagues.
c. Swedes may totally ignore an organizational hierarchy
and contact whomever is needed to make a decision,
however high-ranking that individual may be.
d. In India, however, where autocratic decision making is
expected, a manager consulting a subordinate about a
decision is considered to be a sign of weakness.
5. Yet another cultural difference deals with time.
a. In the United States, one mark of a good decision
maker is decisive, willing to make an important decision
without delay.
b. In Egypt, the more important the matter, the more time
the decision-maker is expected to take.
E. TIME PRESSURE:
MAKING DECISION IN EMERGENCIES
1. The rapid pace of business, and the urgency of occupations
such as police and firefighters and emergency workers
often allows only a limited time for making decisions.
2. Highly experienced experts are able to make good
decisions because of the wealth of experience they have
gained over the years—often referred to as “gut instinct.”
3. For those who are not yet experts—try the following:
a. Recognize your prime objectives: Learn the rules of
your organization and rely on them when making
decisions.
b. Rely on experts: Look within your organization for
assistance.
c. Anticipate crises: Prepare for situations by practicing
in advance.
d. Learn from mistakes: Think of each one as training for
the next time a decision needs to be made.
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Chapter Ten
III. HOW ARE INDIVIDUAL DECISIONS MADE?
Notes
A. THE RATIONAL-ECONOMIC MODEL: IN SEARCH OF THE
IDEAL DECISION
1. Organizational scientists view rational decisions as being
ones that maximize the attainment of goals.
2. Economists interested in predicting market conditions and
prices have relied on a rational-economic model of decision
making that assumes decisions are optimal in every way.
3. Thus, an economically rational decision-maker attempts to
maximize his/her profits by systematically searching for the
optimal solution to a problem.
4. The decision-maker must have complete and perfect
information and then process it in an accurate and unbiased
fashion.
5. In many respects, rational-economic decisions follow the
same steps outlined in the analytical model of decision
making.
6. What makes the economic approach special is that it calls
for decision-makers to recognize all alternative courses of
action and to evaluate each one accurately and completely.
This approach views decision-makers as attempting to
make optimal decisions.
7. The rational-economic approach does not fully appreciate
human fallibility. This model can be considered a
normative (or prescriptive) approach, one describing how
decision-makers ideally should behave to make the best
possible decisions.
B. THE ADMINISTRATIVE MODEL: THE LIMITS OF HUMAN
RATIONALITY
1. People generally do not act in a completely rationaleconomic manner.
2. The administrative model, recognizes decision-makers may
have a limited view of the problems confronting them.
3. The number of solutions that can be recognized or
implemented is limited by the capabilities of the decisionmaker, by the available resources, and decision-makers do
not have perfect information about the consequences of
their decisions.
4. Instead of considering all possible solutions, decisionmakers consider solutions as they become available, and
they decide on the first alternative that meets their criteria.
a. Thus, the decision-maker selects a solution that may be
good enough, but not optimal.
b. Such decisions are referred to as satisficing decisions.
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Chapter Ten
Notes
5. In most decision-making situations, satisficing decisions are
acceptable and more likely to be made than optimal ones.
The model recognizes the bounded rationality under which
most organizational decision-makers operate.
6. People lack the cognitive skills required to formulate and
solve highly complex business problems in a completely
objective, rational way.
7. Decision-makers limit their actions to those falling within the
bounds of current moral and ethical standards, they use
bounded discretion.
8. The administrative model is descriptive (or proscriptive) in
nature. It describes how decision makers actually behave
rather than specifying an ideal.
C. IMAGE THEORY: AN INTUITIVE APPROACH TO DECISION
MAKING
1. Selecting the best alternative by weighing all options is not
always a major concern when making a decision. People
also consider how various alternatives fit with their persona]
standards, goals, and plans.
2. People may make decisions in a more automatic, intuitive
fashion than traditionally is recognized. Representative of
this approach is Image Theory.
3. Image theory deals primarily with decisions about adopting
a certain course of action or changing a current course of
action. In the theory, people make adoption decisions
based on a simple, two-step process.
4. The first step is the compatibility test, which is a comparison
of the degree to which a particular course of action is
consistent with various images, particularly individual
principles, current goals, and future plans.
a. If any lack of compatibility exists regarding these considerations, a rejection decision is made.
b. The decision then is made to accept the best candidate
by comparing the various alternatives that best fit the
decision maker’s values, goals, and plans.
5. These tests are used within a certain decision frame, with
consideration of meaningful information about the context
of the decision.
6. According to image theory, the decision making process is
both rapid and simple. People do not ponder decisions but
make them using a smooth, intuitive process with minimal
cognitive processing.
7. Recent research also suggests that when making relatively
simple decisions, people do tend to behave as suggested
by image theory.
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Figure 10.6
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Chapter Ten
IV. IMPERFECTIONS IN INDIVIDUAL DECISIONS
Notes
A. FRAMING EFFECTS
1. Framing is the tendency for people to make different
decisions based on how the problem is presented to them.
2. Scientists have identified three different forms of framing
effects that occur when people make decisions:
3. Risky choice frames:
a. When problems are framed in a manner emphasizing
the positive gains to be received, people tend to shy
away from taking risks and go for the sure thing (i.e.,
decision-makers are said to be risk-averse).
b. When problems are framed in a manner emphasizing
the potential losses to be suffered, however, people are
more willing to take risk to avoid those losses (i.e.,
decision-makers are said to make risk-seeking
decisions).
4. Attribute framing:
a. Risky choice frames involve making decisions about a
course of action. The same basic idea, however,
applies to situations not involving risk but involving
evaluations.
b. Attribute framing effect occurs in many organizational
settings, people evaluate the same characteristic more
positively when it is described positively than when it is
described negatively.
5. Goal framing:
a. Goal framing--focuses on one important question.
b. When persuading someone to do something, is it more
effective to focus on the positive consequences of
doing it or on the negative consequences of not doing
it.
c.
A general note about framing: The kinds of framing
described here, though similar in several ways, also are
quite different. They focus on different types of
behavior, preferences for risk, evaluations of
characteristics, and taking behavioral action.
B. RELIANCE ON HEURISTICS
1. Heuristics are simple decision rules used to make quick
decisions about complex problems.
2. The availability heuristic refers to the tendency for people to
base their judgments on readily available information--even
though that information might not be accurate.
3. Basing judgments solely on conveniently available
information increases the possibility of inaccurate decisions,
yet the availability heuristic often is used.
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Figure 10.7
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Chapter Ten
4. The representativeness heuristic refers to the tendency to
perceive others in stereotypical ways if they appear to be
“typical” representatives of their category. Research has
found that people tend to make this type of error.
5. Heuristics do not always deteriorate the quality of decisions.
People often them to help simplify the complex decisions
they face.
6. However, the representativeness heuristic and the
availability heuristic, however, may be recognized as
impeding to superior decisions, because they discourage
people from collecting and processing as much information
as they should.
V. THE INHERENTLY BIASED NATURE OF INDIVIDUAL
DECISIONS
A. BIAS TOWARD IMPLICIT FAVORITES
1. Implicit favorite: One’s preferred decisions alternative,
selected even before all options have been considered.
2. Research suggests people that people tend to pick an
implicit favorite option (i.e., a preferred alternative) early in
the decision-making process. Subsequent options are not
given serious consideration. They are used merely to
convince oneself the implicit favorite is indeed the best
choice.
3. In one study of the job recruitment process, investigators
found they could predict 87 percent of the jobs that students
would take as early as 2 months before the students
actually acknowledged they had made a decision.
4. People’s decisions are biased by their tendency not to
consider all the available relevant information. They tend to
bias their judgments of the strengths and weaknesses of
various alternatives to make them fit their already-made
decision, their implicit favorite.
B. HINDSIGHT BIAS
1. Hindsight bias is the tendency for people to perceive
outcomes as more inevitable after they have occurred than
they did before they occurred.
2. This bias occurs because people feel good about being
able to judge things accurately. They are more willing to
say they expected positive events, but not negative events.
C. PERSON SENSITIVITY BIAS
1. Person sensitivity bias is the tendency to give others too
little credit when things are going poorly and too much
credit when things are going well.
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Chapter Ten
2. Awareness of this bias is important to the extent that
effective decisions rely on accurate information, and this
bias may predispose us to perceive others in less than
objective ways.
D. ESCALATION OF COMMITMENT BIAS
Figure 10.9
1. Ineffective decisions sometimes are followed up with still
more ineffective decisions.
2. People sometimes “throw good money after bad” because
they have “too much invested to quit.” The escalation of
commitment phenomenon, the tendency for people to
continue to support previously unsuccessful courses of
action because they have sunk costs invested in them.
3. Failure to back your own previous courses of action in an
organization sometimes can be viewed as an admission of
failure, a politically difficult act in an organizations.
4. People may be concerned about saving face, looking
good in the eyes of others and oneself.
5. This tendency is primarily responsible for people’s
inclination to protect their beliefs about themselves as being
rational, competent decision-makers by convincing themselves and others they made the right decision all along,
and are willing to back it up.
6. People refrain from escalation of commitment under
several conditions:
a. People stop making failing investments when available
funds for making further investments are limited and
the threat of failure is overwhelming.
b. People also refrain from escalating commitment when
they can diffuse their responsibility for the earlier failing
action. The more people feel they are just one of
several responsible for a failing course of action, the
less likely they are to commit to further failing actions.
c.
Notes
In addition, escalation of commitment is low in
organizations where the people who made the
ineffective decisions have left and been replaced by
others who are not linked to those decisions.
d. Finally, people are unwilling to escalate commitment to
a course of action when, the total amount invested
exceeds the expected gain.
7. Escalation of commitment phenomenon represents a type
of irrational decision making. Whether it occurs, however,
depends on the various circumstances the decision-makers
confront.
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Figure 10.10
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Chapter Ten
VI. GROUP DECISIONS: DO TOO MANY COOKS SPOIL THE
BROTH?
Notes
A. WHEN ARE GROUPS SUPERIOR TO INDIVIDUALS?
Figure 10.11
1. Whether groups do better or worse than individuals
depends on the nature of the task--it depends on how
complex or how simple the task is.
2. Complex decision tasks:
a. An important decision must be made about a complex
problem. The highly complex nature of this situation
may overwhelm even an expert, thereby setting the
stage for a group to do a better job. Naturally, groups
may excel in such situations.
b. This does not happen automatically, however. For
groups to outperform individuals, several conditions
must exist.
c.
Successful groups tend to be composed of
heterogeneous group members with complementary
skills. The diversity of opinions offered by members is
one major advantage of using groups to make
decisions.
d. Members must be able to communicate their ideas in
an open, nonhostile manner. Conditions under which
one individual (or group) intimidates another from
contributing can easily negate any potential gain
associated with groups of heterogeneous experts.
e. Thus, for groups to be superior to individuals, they must
be a heterogeneous collection of experts with
complementary skills who can contribute to their
group’s product freely and openly.
3. Simple decision tasks:
a. A situation in which a decision is required on a simple
problem with a readily verifiable answer.
b. An expert working alone may do even better than a
group, because the expert performing a simple task
may not be distracted by others or need to convince
them of the correctness of his or her solution.
c.
Whether groups perform better than individuals depends on the nature of the task and the expertise of the
members.
B. WHEN ARE INDIVIDUALS SUPERIOR TO GROUPS?
1. Most of the problems faced by organizations require a great
deal of creative thinking.
a. You would expect the complexity of such creative
problems would give groups a natural advantage, but
this is not the case.
b. In fact, on poorly structured, creative tasks, individuals
perform better than groups.
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2. One approach to solving creative problems commonly used
by groups is brainstorming.
a. Members are encouraged to present their ideas in an
uncritical way and to discuss freely and openly all ideas
on the floor.
b. Four main rules:
o Avoid criticizing others’ ideas.
o Share even far-out suggestions.
o Offer as many comments as possible.
o Build on others’ ideas to create your own.
Notes
Table 10.3
p.386
3. Does brainstorming improve the quality of creative
decisions?
a. The results of one research study, individuals were
significantly more productive than groups.
b. Groups perform worse than individuals on creative
tasks.
c. Some individuals feel inhibited by the presence of
others.
d. Groups may inhibit creativity by slowing down the
process of bringing ideas to fruition.
VII. TECHNIQUES FOR IMPROVING THE EFFECTIVENESS OF
DECISIONS
A. TECHNIQUES FOR IMPROVING INDIVIDUAL DECISIONMAKING
1. Several steps can be taken to improve the quality of
decisions made by individuals. These include training
people in ways of improving group performance and guiding
people toward ethical behavior.
2. If at least one member can devise a solution, groups may
benefit from that individual’s expertise. Thus it follows that
the more qualified individual group members are to solve
problems, the better their groups as a whole perform.
3. People tend to make four types of mistakes when
attempting creative decisions:
a. Hypervigilance--frantically searching for quick solutions
to problems, or going from one idea to another, of
desperate that one idea is not working and another
must be considered before time runs out.
This problem may be avoided, however, by
remembering it is best to stick with one suggestion and
then work it out thoroughly. A little reassurance goes a
long way towards keeping individuals on the right track
and away hypervigilance.
b. Unconflicted adherence--sticking to the first idea that
comes into their heads without evaluating the
consequences. As a result, such people are unlikely to
be aware of any problems with their ideas or to
consider other possibilities.
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To avoid this, decision-makers are urged to think about
the difficulties associated with their ideas, to consider
different ideas, etc.
c.
Notes
Unconflicted change--being quick to change their minds
and adopt the first new idea to come along.
To avoid this decision-makers are encouraged to ask
themselves about the risks and problems of adopting
that solution, etc.
d. Defensive avoidance--decision-makers fail to solve
problems effectively because they go out of their way to
avoid working on the task at hand.
Three things to minimize this problem. First, avoid
procrastination. Second, avoid disowning responsibility.
Finally, do not ignore potentially corrective information.
4. The ethicality of decisions is an important consideration.
The pursuit of quality in organizations demands the highest
moral standards. The problem is that even those with high
moral values sometimes are tempted to behave unethically.
5. To avoid such temptations--and, thereby, to improve ethical
decision making--it may be useful to run your contemplated
decisions through an ethics test:
a. Does it violate the obvious ‘shall-nots’?
b. Will anyone get hurt?
c. How would you feel if the newspaper reported your
decision on the front page?
d. What if you did it 100 times?
e. How would you feel if someone did it to you?
f. What is your gut feeling?
OB In A Diverse World:
Are U.S. Businesses
Overly Concerned About
Ethical Decision? p.388
6. Admittedly, considering these questions will not transform a
devil into an angel. Still, they may be useful for judging how
ethical the decisions you may be contemplating really are.
7. National culture also may influence people’s perceptions of
the ethical appropriateness of a decision. People from
different nations may have different views about ethical and
unethical business decisions.
B. TECHNIQUES FOR ENHANCING GROUP DECISIONS
1. Organizational decision-makers sometimes consult experts
to help them make the best decisions.
2. Developed by the Rand corporation, the Delphi technique is
a systematic way of collecting and organizing the opinions
of several experts into a single decision.
Figure 10.12
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Notes
3. The Delphi process begins by enlisting the co-operation of
experts and presenting the problem to them, usually in a
letter.
a. Each expert then proposes what he/she believes is the
most appropriate solution.
b. The group leader compiles these individual responses,
reproduces them, and shares them with all the other
experts in a second mailing.
c. At this point, each expert comments on the other
experts’ ideas and proposes another solution.
d. These individual solutions are returned to the leader,
who then compiles them again and looks for a
consensus of opinions. If a consensus is reached, the
decision is made.
e. If not, the process of sharing is repeated until a
consensus eventually is obtained.
4. The Delphi technique that it allows the collection of expert
judgments without the problems of scheduling a face-toface meeting.
5. Limitations.
a. The Delphi process can be very time-consuming.
b. The minimum time required for the Delphi technique is
estimated to be more than 44 days.
6. When only a few hours are available to make a decision,
group discussion sessions can be held in which members
interact with each other in an orderly, focused fashion.
7. The Nominal group technique (NGT) brings together a
small number of individuals (usually 7 to 10) who
systematically offer their individual solutions to a problem
and share their personal reactions to those solutions.
.
8. The NGT has several advantages and disadvantages.
a. It can lead to a group decision in only a few hours.
b. It also discourages any pressure to conform.
c. It requires a trained group leader.
d. It requires only one narrowly defined problem be
considered at a time.
9. Traditionally, nominal groups meet face-to-face. Technology enables such groups to meet even when the members
are far away from each other.
a. Electronic meeting systems allow individuals in different
locations to participate in group conferences via
telephone lines or direct satellite transmissions.
b. Automated decision conferences are just nominal
groups meeting in a manner that approximates face-toface contact.
10. Both nominal and Delphi groups are more productive than
face-to-face interacting groups.
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Figure 10.13
p.391
Group Exercise:
Running A Nominal
Group: Try It Yourself
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Notes
11. Groups are likely to accept their decisions and be
committed to them if the members have been actively
involved in making them. Thus, the more detached and
impersonal atmosphere of nominal and Delphi groups
sometimes makes their members less likely to accept
decisions.
12. Another way of structuring group interaction is known as
The Stepladder technique. This approach minimizes the
tendency for group members to be unwilling to present their
ideas.
Figure 10.15
p.392
13. This is accomplished by adding new members one at a
time and requiring each to present his/her ideas
independently to a group that already has discussed the
problem at hand.
a. Two people work on a problem independently. Then,
they come together to present their ideas and to
discuss solutions jointly.
b. While the two-person group is working, a third person
also considers the problem.
c. This individual then presents his or her ideas to the twoperson group and joins in a three-person discussion of
a possible solution.
d. Then a fourth person works on the problem, presents,
etc.
14. Each individual must be given enough time to work on the
problem, to present, and to discuss in order to reach a
preliminary decision before the next person is added. The
final decision is made only after all individuals have been
added to the group.
15. The rationale is that by forcing each person to present
independent ideas the new person will not be influenced by
the group and the group is required to consider a constant
infusion of new ideas.
16. Members of stepladder groups report feeling more positive
about their group experiences than their counterparts in
conventional groups.
VIII.
COMPUTER-BASED APPROACHES TO PROMOTING
EFFECTIVE DECISIONS
A. ELECTRONIC MEETINGS
1. Electronic meeting bring people together from different
locations for a meeting via telephone or satellite
transmissions either on television monitors or computer
screen.
2. They allow groups to assemble more conveniently than
face-to-face meetings and are generally just as effective.
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Notes
B. COMPUTER-ASSISTED COMMUNICATION
1. Computer assisted communication refers to sharing
information, such as text messages and data relevant to the
decision over computer networks.
Figure 10.17
p.394
2. It can be a useful tool to share information, however, better
do not necessarily follow.
3. Researchers found in one study that “openness to
experience” was an important variable for more effective
decisions. Because the technology was so new, those
who scored high performed better than those who scored
low on this variable.
4. Training may be able to compensate for this lack of
“openness” making the technology more useful in decision
making.
C. GROUP DECISION SUPPORT SYSTEMS
1. A GDSS is an interactive computer based system that
combines communication, computer, and decision
technologies to improve the effectiveness of group problem
solving meetings.
2. Sometimes groups make poor decisions because members
do not share information. A GDSS may avoid this problem
because ideas are recorded anonymous making people
less reluctant to share ideas.
3. Researchers found that not only did people share more
information using a GDSS, but better decisions resulted.
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Officers Use GDSS
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Web Surfing Exercise:
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Summary and Review of Learning Objectives
1. Identify the steps in the analytical model of decision making and distinguish between the various types
of decisions that people make.
According to the analytical model of decision making, the making of decisions is a multistep process
through which (1) a problem is identified, (2) solution objectives are defined, (3) a predecision is made
(i.e., a decision about how to make a decision), (4) alternatives are generated, (5) these alternatives
are evaluated, (6) an alternative is chosen, (7) that alternative is implemented, and then (8) a followup evaluation occurs to determine if the problem still exists. Decisions made in organizations can be
characterized as being either programmed, routine decisions made according to preexisting
guidelines or nonprogrammed decisions requiring novel and creative solutions. Decisions also differ
with respect to the amount of risk involved, ranging from those in which the decision outcomes are
relatively certain to those in which the outcomes are highly uncertain. Uncertain situations are
expressed as statements of probability based on either objective or subjective information. Decisions
also differ with respect to whether they are made by high-level organizational officials (top-down
decisions) or by employees themselves (empowered decisions).
2. Describe different individual decision styles and the various organizational and cultural factors that
influence the decision-making process.
There are individual differences in the way people make decisions. Generally, people demonstrate
one of four dominant decision styles: directive (preference for simple, clear solutions), analytical
(willingness to consider complex situations based on ambiguous information), conceptual (a
humanistic and artistic orientation), or behavioral (a concern for the organization). Within
organizations, decision quality may be adversely affected by severe time constraints and by political
face-saving pressures. Decisions made in organizations also are affected by the national culture in
which the organization exists. For example, Americans are more likely to confront problems as
decisions that need to be made, whereas people from Thailand are more likely to accept these
problems as they are. Also, whereas Americans make decisions in a highly individualistic way (by
looking out for themselves), Asians are more likely to make decisions in a collective manner (by taking
into account the group or organization).
3. Distinguish among three approaches to how decisions are made: the rational economic model, the
administrative model, and image theory.
The rational-economic model characterizes decision makers as thoroughly searching through perfect
information to make an optimal decision. This is a normative approach, in that it describes how
decision makers ideally ought to behave to make the best possible decisions. In contrast, the
administrative model is a descriptive approach, which describes how decision makers actually
behave. It recognizes that limitations imposed by people’s ability to process the information needed to
make complex decisions (bounded rationality and bounded discretion) restrict decision makers to
making satisficing decisions—solutions that are not optimal but are good enough. An alternative
approach, image theory, recognizes that decisions are made in an automatic, intuitive fashion. It
claims that people will adopt a course of action that best fits their individual principles, current goals,
and plans for the future.
4. Identify the various factors that lead people to make imperfect decisions.
People make imperfect decisions due to cognitive biases. One such bias, framing, refers to the
tendency for people to make different decisions based on how a problem is presented. For example,
when a problem is presented in a way that emphasizes positive gains to be received, people tend to
make conservative, risk-averse decisions, whereas when the same problem is presented in a way that
emphasizes potential losses to be suffered, people tend to make riskier decisions. Simple rules of
thumb, known as heuristics, also may bias decisions. For example, according to the availability
heuristic, people base their judgments on information readily available to them, and according to the
representativeness heuristic, people are perceived in stereotypical ways if they appear to be
representatives of the categories to which they belong. People also are biased toward implicit
favorites, alternatives they prefer in advance of considering all the options. Other alternatives,
confirmation candidates, are considered for purposes of convincing oneself that one’s implicit favorite
is the best alternative. Decisions also are biased because of the tendency to believe that we were far
better at judging past events than we actually were (known as the hindsight bias) and the tendency for
people to give too little credit to others when things are going poorly and too much credit when things
are going well (known as the person sensitivity bias). Finally, decisions are biased insofar as people
tend to escalate commitment to unsuccessful courses of action because they have
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sunk costs invested in them. This occurs in large part because people need to justify their previous
actions and wish to avoid having to admit that their initial decision was a mistake.
5. Compare the conditions under which groups make more superior decisions than individuals and when
individuals make more superior decisions than groups.
Groups make more superior decisions than individuals when these are composed of a heterogeneous
mix of experts who possess complementary skills. However, groups may not be any better than the
best member of the group when performing a task that has a simple, verifiable answer. Individuals
make more superior decisions than face-to-face brainstorming groups on creative problems.
However, when brainstorming is done electronically—that is, by using computer terminals to send
messages—the quality of decisions tends to improve.
6. Describe various traditional techniques and high-tech techniques that can be used to enhance the
quality of individual decisions and group decisions.
Decision quality may be enhanced in several different ways. First, the quality of individual decisions
has been shown to improve following individual training in problem solving skills. Training in ethics
also can help people make more ethical decisions. Group decisions may be improved in three ways.
First, in the Delphi technique, the judgments of experts are systematically gathered and used to form
a single joint decision. Second, in the nominal group technique, group meetings are structured so as
to elicit and evaluate systematically the opinions of all members. Third, in the stepladder technique,
new individuals are added to decision-making groups one at a time, requiring the presentation and
discussion of new ideas. Contemporary techniques also employ the use of computers as aids in
decision making. One of these is known as electronic meetings. These are computer networks that
bring individuals from different locations together for a meeting via telephone or satellite
transmissions, either on television monitors or via shared space on a computer screen. Another
computer-based approach is computer-assisted communication—the sharing of information, such as
text messages and data relevant to the decision, over computer networks. Finally, computers have
been used to facilitate decision making by way of group decision support systems. These are
interactive computer-based systems that combine communication, computer, and decision
technologies to improve the effectiveness of group problem solving meetings.
Questions for Review
1. What are the general steps in the decision-making process, and how can different types of
organizational decisions be characterized?
Answer: According to the analytical model of decision making, the making of decisions is a
multistep process through which (1) a problem is identified, (2) solution objectives are defined, (3) a
predecision is made (i.e., a decision about how to make a decision), (4) alternatives are generated, (5)
these alternatives are evaluated, (6) an alternative is chosen, (7) that alternative is implemented, and
then (8) a follow-up evaluation occurs to determine if the problem still exists.
Decisions made in organizations can be characterized as being either programmed, routine
decisions made according to preexisting guidelines or nonprogrammed decisions requiring novel and
creative solutions. Decisions also differ with respect to the amount of risk involved, ranging from those
in which the decision outcomes are relatively certain to those in which the outcomes are highly
uncertain. Uncertain situations are expressed as statements of probability based on either objective or
subjective information. Decisions also differ with respect to whether they are made by high-level
organizational officials (top-down decisions) or by employees themselves (empowered decisions).
2. How do individual decision style, group influences, and organizational influences affect decision
making in organizations?
Answer:There are individual differences in the way people make decisions. Generally, people
demonstrate one of four dominant decision styles: directive (preference for simple, clear solutions),
analytical (willingness to consider complex situations based on ambiguous information), conceptual (a
humanistic and artistic orientation), or behavioral (a concern for the organization). Within
organizations, decision quality may be adversely affected by severe time constraints and by political
face-saving pressures.
3. What are the major differences between the rational-economic model, the administrative model, and
the image theory approach to individual decision making?
Answer: The rational-economic model characterizes decision makers as thoroughly searching
through perfect information to make an optimal decision. This is a normative approach, in that it
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describes how decision makers ideally ought to behave to make the best possible decisions. In
contrast, the administrative model is a descriptive approach, which describes how decision makers
actually behave. It recognizes that limitations imposed by people’s ability to process the information
needed to make complex decisions (bounded rationality and bounded discretion) restrict decision
makers to making satisficing decisions—solutions that are not optimal but are good enough. An
alternative approach, image theory, recognizes that decisions are made in an automatic, intuitive
fashion. It claims that people will adopt a course of action that best fits their individual principles,
current goals, and plans for the future.
4. Explain how each of the following factors contributes to the imperfect nature of decisions: framing
effects, reliance on heuristics, decision biases, and the tendency to escalate commitment to a losing
course of action.
Answer: Framing is the tendency for people to make different decisions based on how the problem is
presented to them. Scientists have identified three different forms of framing effects that occur when
people make decisions: Risky choice frames, Attribute framing, and Goal framing. Heuristics are
simple decision rules used to make quick decisions about complex problems. People’s decisions are
biased by their tendency not to consider all the available relevant information. Finally, the escalation of
commitment phenomenon is the tendency for people to continue to support previously unsuccessful
courses of action because they have sunk costs invested in them. Each of these factors inhibit
effective decision making.
5. When it comes to making decisions, under what conditions are individuals superior to groups and
under what conditions are groups superior to individuals?
Answer: Groups make more superior decisions than individuals when they are composed of a
heterogeneous mix of experts who possess complementary skills. However, groups may not be any
better than the best member of the group when performing a task that has a simple, verifiable answer.
Individuals make more superior decisions than face-to-face brainstorming groups on creative
problems. However, when brainstorming is done electronically—that is, by using computer terminals
to send messages—the quality of decisions tends to improve.
6. What traditional techniques and computer-based techniques can be used to improve the quality of
decisions made by groups or individuals?
Answer: Decision quality may be enhanced in several different ways. First, the quality of individual
decisions has been shown to improve following individual training in problem solving skills. Training in
ethics also can help people make more ethical decisions. Group decisions may be improved in three
ways. First, in the Delphi technique, the judgments of experts are systematically gathered and used to
form a single joint decision. Second, in the nominal group technique, group meetings are structured
so as to elicit and evaluate systematically the opinions of all members. Third, in the stepladder
technique, new individuals are added to decision-making groups one at a time, requiring the
presentation and discussion of new ideas.
Contemporary techniques also employ the use of computers as aids in decision making. One of
these is known as electronic meetings. Another computer-based approach is computer-assisted
communication—the sharing of information, such as text messages and data relevant to the decision,
over computer networks. Finally, computers have been used to facilitate decision making by way of
group decision support systems.
Experiential Questions
1. Think of any decision you recently made. Would you characterize it as programmed or
nonprogrammed? Highly certain or highly uncertain? Top-down or empowered? Explain your
answers.
Answer - Students’ examples will vary but should cover these basics.
Programmed and nonprogrammed.
 A decision that is made repeatedly and according to a pre-established set of alternatives is a
programmed decisions, routine decisions by lower-level personnel that rely on predetermined
courses of action. In contrast, nonprogrammed decisions, ones for which no ready-made
solutions exist. In these cases, the decision-maker confronts a unique situation, and the solutions
are equally novel.
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Certain and uncertain decisions.
 Degrees of certainty and uncertainty are expressed as statements of risk. All organizational
decisions involve some degree of risk, which ranges from complete certainty (i.e., no risk) to
complete uncertainty or “a stab in the dark” (i.e., high risk). What makes a decision risky is the
probability of obtaining the desired outcome.
Top-down and empowered decision.
 Traditionally, making decisions in organizations was a manager’s job. Subordinates collect
information and give it to their superiors, who then use it to make decisions. Known as top-down
decision making, this approach puts the power to make decisions in the hands of managers.
2. Identify ways in which various decisions you have made were biased by framing, heuristics, the use of
implicit favorites, and the escalation of commitment.
Answer: Students’ examples will vary but should cover these basics.
 Framing is the tendency for people to make different decisions based on how the problem is
presented to them.
 Reliance on heuristics. The use of certain rules to make decisions.
 Bias toward implicit favorites reflects individuals’ tendency to pick an implicit favorite option (i.e., a
preferred alternative) early in the decision-making process. Subsequent options are not given
serious consideration. They are used merely to convince oneself the implicit favorite is indeed the
best choice.
 Escalation of commitment. People sometimes “throw good money after bad” because they have
“too much invested to quit,” the escalation of commitment phenomenon, the tendency for people
to continue to support previously unsuccessful courses of action because they have sunk costs
invested in them.
3. Think of various decision-making groups in which you may have participated over the years. Do you
think that groupthink was involved in these situations? What signs were evident?
Answer: Students answers will vary, but they should include a discussion of the characteristics of
groupthink: complacency, over confidence, wide spread agreement, lack of conflict, and lack of
reflection on the decision.
Questions to Analyze
1. Imagine that you are a manager facing the problem of not attracting enough high quality personnel to
your organization. Would you attempt to solve this problem alone or by committee? Explain your
reasoning.
Answer: It depends on how you frame the problem, simple--we don’t pay enough, or complex--our
corporate culture, our competition, our business environment are affecting our recruiting. Students’
responses should reflect certain basics depending on how they frame the problem.
Whether groups do better or worse than individuals depends on the nature of the task--it depends on
how complex or how simple the task is. An important decision must be made about a complex
problem. The highly complex nature of this situation may overwhelm even an expert, thereby setting
the stage for a group to do a better job. Naturally, groups may excel in such situations.
A situation in which a decision is required on a simple problem with a readily verifiable answer. An
expert working alone may do even better than a group, because the expert performing a simple task
may not be distracted by others or need to convince them of the correctness of his or her solution. For
a summary of some key considerations. Also if the problems is seen as a poorly structured, creative
task, than an individual would perform better than a group.
2. Suppose you were on a committee charged with making an important decision and that committee
was composed of people from various nations. How do you think this might make a difference in the
way the group operates?
Answer: Yes both in terms of their focus on collectivistic versus individualistic approaches and what
they consider as ethical behavior. Even if people followed the same basic steps when making
decisions, there would still be widespread differences in the way people from various cultures might
go about doing so.
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Thailand, Indonesia, or Malaysia, however, managers often accept nonperformance by suppliers
as fate and allow the projects to be delayed. An American, Canadian, or Western European manager,
perceived such a situation as a problem in need of a decision, whereas Thai, Indonesian, or
Malaysian managers perceive no such problem.
Cultures also differ regarding the nature of the decision-making unit they typically employ. In the
United States, where people tend to be highly individualist, individual decisions are common. In more
collectivist cultures such as Japan, however, it is inconceivable for someone to make a decision
without first gaining the acceptance of his/her immediate colleagues. Swedes may totally ignore an
organizational hierarchy and contact whomever is needed to make a decision, however high-ranking
that individual may be. In India, however, where autocratic decision making is expected, a manager
consulting a subordinate about a decision is considered to be a sign of weakness.
Yet another cultural difference deals with time. In the United States, one mark of a good decision
maker is decisive, willing to make an important decision without delay. In Egypt, the more important
the matter, the more time the decision-maker is expected to take.
There tend not to be equally similar norms regarding ethical and unethical behavior. Rather, ethical
standards vary widely among capitalist nations, and Americans appear to be more concerned than
their foreign counterparts about ethics--too much so, according to some.
3. Argue pro or con: “All people make decisions in the same manner.”
Answer: There are meaningful differences between people in their orientation toward decisions, in
their decision style. Although most managers may have one dominant style, they often use many
different styles. Being aware of people’s decision styles is a potentially useful way of understanding
social interactions in organizations. People take very different approaches to the decisions they make.
Coupled with their interpersonal skills, their personalities lead them to approach decisions in
consistently different ways. The decision-style model classifies four major decision style.
Critical Thinking Questions
1. As an individual who is potentially overwhelmed by statistics and observations about individual
players, how do you think Lemmerman’s own decision processes may be biased?
Answer: He is a highly experience recruiter—he may make decisions quickly because of his
experience or using a heuristic.
2. In what way do you think that the quality of the decisions made by officials from the New Orleans
Saints is helped or harmed by the practice of making draft decision as a group?
Answer: Groupthink could be a potential problem. On the plus side, officials are more likely to
support decisions that they have had a say in.
3. In what ways do you think that escalation of commitment may be involved in the decisions
Lemmerman makes for the teams?
Answer: It is possible that the time he has spent recruiting a potential team member may bias him to
favor that individual over others. However, his use of a database does help to make the process
more objective because the availability of statistics on each player.
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