 1. Stephanie Bower
 2. Brendan Flynn
 3. Michael Giordano
 4. Kate Scarcella
 5. John Collins
 6. Sean Space
 7. Eddie Ebrahimi
 8. Beverly Peters

Essentials of Organizational Behavior, 8/e
Stephen P. Robbins

The Leader’s Responsibility in Decision Making is...
1.
manage time
2.
accurately identify problems
3. consult with appropriate people
4.
produce effective solutions
5.
appropriately implement the solutions
6.
consider impact of decisions on morale of others

High
Analytical Conceptual
Directive Behavioral
Low
Rational
Way of Thinking
Intuitive

3)
4)
5)
6)
1)
2)
Define the problem
Identify decision criteria
Weight the criteria
Generate alternatives
Rate each alternative on each criterion
Compute the optimal decision

1)
2)
3)
4)
5)
6)
Problem clarity
Known options
Clear preferences
Constant preferences
No time or cost constraints
Maximum payoff

 Overconfidence bias
 Anchoring bias
 Confirmation bias
 Availability bias

 Representative bias
 Escalation of commitment
 Randomness error
 Hindsight bias

Due to the limited capacity of the mind to be fully rational; decision makers construct simplified models to extract the essential features from complex problems

 Limited list of criteria based on most conspicuous choices
 Final solution represents a satisficing choice, not an optimum one
 Satisficing - first acceptable choice

 Unconscious process created out of distilled experience; resulting in a rapid decision with what appears to be very limited information

1)
2)
3)
4)
5)
When a high level of uncertainty exists
When there is little precedent to draw on
When variables are less scientifically predictable
When “facts” are limited
When facts don’t clearly point the way

6)
7)
8)
When analytical data are of little use
When there are several plausible alternative solutions from which to choose
When time is limited and there is pressure to come up with the right decision

 Performance Evaluation


Reward Systems
Formal Regulations
 System-Imposed Time
Constraints
 Historical Precedents

 Cultural background can significantly influence

Selection of problems



Depth of analysis
Importance placed on logic and rationality
Whether decisions should be made
 Autocratically by individual manager
 Collectively in groups

Five suggestions to improve decision making:
1)
2)
3)
4)
5)
Analyze the situation and adjust to the national culture and criteria of organization
Be aware of biases
Combine rational analysis with intuition
Do not assume your specific decision style is appropriate for every job
Use creativity-stimulation techniques




Creativity
Expertise
Task
Motivation
Creativity
Skills

3)
4)
1)
2)
5)
Expected evaluation
Surveillance
External motivators
Competition
Constrained choice

 Everyday Creativity

 Evidence indicates that women analyze decisions more than men
 Reason is not clear

 Decision Style Profile,
 Published by Discovery Learning, w ww.discoverylearning.com
 Standardized decision making assessment
 Training materials to use/ deliver training
 Also Multi-Rater version.

Decision Making Agenda

The Leader’s Responsibility...
 Quality –Acceptance–Time
 5 Decision Styles
 Compliance when... D1
 Acceptance when... D5
 7 Rules for using D1 – D5 (2 pp)
 Decision Making Task: (3 pp)

 1. Stephanie Bower
 2. Brendan Flynn
 3. Michael Giordano
 4. Kate Scarcella
 5. John Collins
 6. Sean Space
 7. Eddie Ebrahimi
 8. Beverly Peters

 Models
Principles/Concepts/Styles/Rules
 Activity
Case Study Groups
 Application to your Workplace
 Reflection
Strengths and Development Needs

Decision Making Styles:
Factors to Consider


QUALITY
(effectiveness)


ACCEPTANCE
(effectiveness)


 technically optimum solution rational and realistic solves the problem, fits the criteria
 commitment for success
 creative ownership
 support to implement
 consider impact on morale
TIME
(efficiency)

 implement effectively avoid waste

Type 1
= Leader depends on own knowledge & decides alone
* seek no extra information from staff
Type 2 = Leader seeks information, then decides alone
* seek some information from selected staff
Type 3 = Leader consults with individuals, then decides alone
* share problem, seek information and ask advice from selected staff
Type 4 = Leader consults whole team and then decides alone
* meet staff to discuss possible alternatives and use their feelings/opinions as input
Type 5
= Leader shares problem with whole team & they mutually decide
* define the problem, provide relevant information and participate in discussion
* accept group decision





Task is routine
No extra effort is required
No special creativity is needed
Supervision or systems are in place







Creativity
High energy
Enthusiasm
Initiative or
Special effort is required
Close supervision is impossible

Components D1 D2
Quality of
Information
Leader has all the information
Not all
Information
Available
Acceptance
Needed to
Implement
Not Necessary Not Necessary
D3 D4 D5
Not all
Information
Available
Not Available to
Leader
Not Available to
Leader
Some
Acceptance
Required
Some
Acceptance
Required
Consensus
Required
Time Available No Time No Time Some Time Time Available Time Available
Decision
Process
Leader decides alone
Decides alone after consulting one people
Decides alone after consulting a few
Decides alone after consulting most or all
Leader and group decide together

Decision
Type
Type 5
Type 4
Type 3
Type 2
Type 1
High
Limited
Time
Manager
Expertise
*
**
*** *
***
**
Incongruent High
Goals Complexity
****
**** ***
*
** *
Commitment
Needed
****
**
Conflict
Over
Solutions
****
***
*
Multiple
Solutions
****
***

 You are the supervisor of a manufacturing operation that employees 12 workers. Due to a recent crisis, another manufacturing operation in a different part of the plant is shorthanded and cannot complete their current task. You have been asked to provide replacement workers for the next three days.
All of your workers are equally skilled at the tasks required and all are motivated workers. Further, you know each of them well and are aware of no problems which would interfere with any of your workers moving to this other operation for the time required.
You also know that demand on your unit is somewhat low at the moment and you can cover for the loss of three workers without significant overload for your current workers.

 You are the manager of a unit consisting of route delivery sales people (e.g.., beer, soda, or bakery delivery). Your sales/delivery force consistently produces good but not stellar results. Your boss has just stormed into your office for the 6th time this month to complain about seeing all the company trucks clustered around a donut shop in the east end of town. He has seen this same group of trucks, all from your unit, at the donut shop repeatedly and thinks it reflects badly on the company. He wants you to do something to change it.

 You are the Safety and Loss Control Manager for an underground mine. Your mine has had a long and celebrated history of a very low lost time accident rate and has recently completed 1.5 million man hours without a lost time accident.
However, in the past little while it has come to your attention that there were three close calls with rock bolts in one section of the mine. You believe this situation needs to be corrected before someone gets injured but there are too many alternatives for the right answer to be obvious. You are the safety person so you don’t understand either the geology or the mechanics of rock bolts. However, the Superintendent has identified you as the person to finalize the plan of response.

Decision Making Task, Group
• As a group...
4. Discuss examples from your experience of recent decisions. What style was used?
5. Choose one to report that was effective. Why did it work well?
6. Choose one to report that “bombed”. Why didn’t it work?

 Decisions can be made in any style as long as expectations are clear
 Difficulty will arise if widely varying expectations


Natural practice of good leaders
Ask question, “Have I made my expectations clear.

 What is ethics?

The right way to behave

The law

A set of rules

The truth

The greatest good for the most people



Moral Reasoning Capacity
Collaboration between moral philosophy and moral psychology and has been very influential in recent literature. Kohlberg’s six identifiable stages are classified into three levels of reasoning about moral dilemmas:

Pre-Conventional - reasoning based on self-interest. The individual aims to win rewards and avoid punishment.

Conventional - reasoning based on conformity to social norms and expectations such as family or peer-group pressures.

Post-conventional - reasoning based on universal ethical principles, centered on the notion of justice.






Beneficence - decisions should maximize potential benefits and minimize potential harm or risk to others.
Egoism – decisions should maximize benefits to oneself
Justice – decisions should result in a fair and equitable distribution of benefits as well as burdens
Utilitarianism – decisions should result in the greatest good for the greatest number
From Ethical Decision Challenge, Center for Applied
Research, 1998








Cultural Relativism – do what is consistent with the laws and norms of one’s own nation
Golden Rule – do unto others as you would have others do unto you
Kant’s Categorical Imperative – do what they would want anyone else to do who was facing the same set of circumstances
Organizational relativism – do what is consistent wit the goals and norms of one’s own organization
Professional ethic – do what would be condoned or supported by one’s professional colleagues and peers
Respect for persons – do what will maintain the autonomy of others
From Ethical Decision Challenge, Center for Applied
Research, 1998

Level Stage Description
Principled 6. Following self-chosen ethical principles, even if they violate the law
Conventional
Pre-conventional
5. Valuing rights of others; upholding non-relative values and rights regardless of the majority’s opinion
4. Maintaining conventional order by fulfilling obligations to which you have agreed
3. Living up to what is expected by people close to you
2. Following rules only when it’s in your immediate interest
1. Sticking to rules to avoid physical punishment

 Performance Evaluation


Reward Systems
Formal Regulations
 System-Imposed Time
Constraints
 Historical Precedents

 Cultural background can significantly influence

Selection of problems



Depth of analysis
Importance placed on logic and rationality
Whether decisions should be made
 Autocratically by individual manager
 Collectively in groups






Beneficence - decisions should maximize potential benefits and minimize potential harm or risk to others.
Egoism – decisions should maximize benefits to oneself
Justice – decisions should result in a fair and equitable distribution of benefits as well as burdens
Utilitarianism – decisions should result in the greatest good for the greatest number
From Ethical Decision Challenge, Center for Applied
Research, 1998








Cultural Relativism – do what is consistent with the laws and norms of one’s own nation
Golden Rule – do unto others as you would have others do unto you
Kant’s Categorical Imperative – do what they would want anyone else to do who was facing the same set of circumstances
Organizational relativism – do what is consistent wit the goals and norms of one’s own organization
Professional ethic – do what would be condoned or supported by one’s professional colleagues and peers
Respect for persons – do what will maintain the autonomy of others
From Ethical Decision Challenge, Center for Applied
Research, 1998