Chapter 15
Organizational Behavior: An Experiential Approach 7/E
Joyce S. Osland, David A. Kolb, and Irwin M. Rubin
1
©2001 by Prentice-Hall, Inc.
Objectives
• Describe and explain models of decision
making
• Apply the models of decision making.
2
Organizational Behavior: An Experiential Approach 7/E
Joyce S. Osland, David A. Kolb, and Irwin M. Rubin
©2001 by Prentice Hall, Inc.
Rational Decision-Making
Process
1.
2.
3.
4.
5.
6.
7.
8.
Recognize and define the problem
Identify the objective of the decision and
decision criteria
Allocate weights to the criteria
List and develop the alternatives
Evaluate the alternatives
Select the best alternative
Implement the decision
Evaluate the decision
3
Organizational Behavior: An Experiential Approach 7/E
Joyce S. Osland, David A. Kolb, and Irwin M. Rubin
©2001 by Prentice Hall, Inc.
Diagnostic Questions
Yes
CP
GC
Yes
No
SI
AI
Yes GII
CII
Yes
SI Yes GII
CP
GC
LI No ST
CII
AII
CO
GC
CR
CP
LI No ST
QR
GC Yes CO
CI
CII
AI
No
Yes
CR
CP
No
GII
4
Organizational Behavior: An Experiential Approach 7/E
Joyce S. Osland, David A. Kolb, and Irwin M. Rubin
©2001 by Prentice Hall, Inc.
Decision Criteria
•
•
•
•
Quality or rationality of the decision
Employee commitment to the decision
Length of time to make the decision
Amount of employee development
Quality
Efficiency
Acceptance
Development
5
Organizational Behavior: An Experiential Approach 7/E
Joyce S. Osland, David A. Kolb, and Irwin M. Rubin
©2001 by Prentice Hall, Inc.
Diagnostic Questions
QR
CR
LI
ST
CP
GC
SC
SI
Quality Requirement: How important is the technical quality of
this decision?
Commitment Requirement: How important is subordinate
commitment to the decision?
Leader’s Information: Do you have sufficient information to
make a high-quality decision?
Problem Structure: Is the problem well structured?
Commitment Probability: If you were to make the decision by
yourself, is it reasonably certain that your subordinates would be
committed to the decision?
Goal Congruence: Do subordinates share the organizational
goals to be attained in solving the problem?
Subordinate Conflict: Is conflict among subordinates over
preferred solutions likely?
Subordinate Information: Do subordinates have sufficient
information to make a high-quality decision?
Organizational Behavior: An Experiential Approach 7/E
Joyce S. Osland, David A. Kolb, and Irwin M. Rubin
6
©2001 by Prentice Hall, Inc.
Bounded Rationality
• Satisficing—selecting the first
satisfactory alternative
• Available information and situation
definition are incomplete
• Decisions made without considering all
alternatives
• Use of heuristics, judgment shortcuts
7
Organizational Behavior: An Experiential Approach 7/E
Joyce S. Osland, David A. Kolb, and Irwin M. Rubin
©2001 by Prentice Hall, Inc.
Garbage Can Model
Participants
Problems
Solutions
Choice
opportunities
8
Organizational Behavior: An Experiential Approach 7/E
Joyce S. Osland, David A. Kolb, and Irwin M. Rubin
©2001 by Prentice Hall, Inc.
The Garbage Can Model
• Characteristics of the decision
1. The problem, alternatives, and solutions
can be ill defined
2. The relationship among the key variables
is hard to define
3. There is turnover of participants
9
Organizational Behavior: An Experiential Approach 7/E
Joyce S. Osland, David A. Kolb, and Irwin M. Rubin
©2001 by Prentice Hall, Inc.
Garbage Can Model
• Consequences
– Problems may lead to a proposed solution or not.
Problems may not be solved through the solution
– Potential Solutions may be proposed. People may
be attracted to solutions whether or not they solve
the problem. Solutions can be independent of the
problem
– Participation can determine what and when
problems and solutions are proposed
– Choice opportunities or decision opportunities will
determine which problems are proposed, what
solutions are suggested, and which decision is
made (a matter of timing)
Organizational Behavior: An Experiential Approach 7/E
Joyce S. Osland, David A. Kolb, and Irwin M. Rubin
10
©2001 by Prentice Hall, Inc.
Garbage Can Model
• Consequences
– solutions may be proposed even when problems
don’t exist
– Choices are made without solving problems
– Problems may persist without being solved
– A few problems are solved
11
Organizational Behavior: An Experiential Approach 7/E
Joyce S. Osland, David A. Kolb, and Irwin M. Rubin
©2001 by Prentice Hall, Inc.
Symptoms of Groupthink
Illusion of invulnerability
Illusion of morality
Stereotyping
Self-censorship
Illusion of unanimity
Direct pressure on dissidents
12
Organizational Behavior: An Experiential Approach 7/E
Joyce S. Osland, David A. Kolb, and Irwin M. Rubin
©2001 by Prentice Hall, Inc.
How to Avoid Groupthink
• Leaders listen to others’ opinions first
• Demonstrate willingness to be criticized
• Encourage all members to express
doubts
• Assign a devil’s advocate
• Adopt perspectives of other
stakeholders
• Bring in outsiders to discuss decision
• Sleep on a tentative decision
Organizational Behavior: An Experiential Approach 7/E
Joyce S. Osland, David A. Kolb, and Irwin M. Rubin
13
©2001 by Prentice Hall, Inc.
Escalating Commitment
• Continuing on a losing course of action
or throwing good resources after bad
– Reasons
1) not recognizing sunk costs
2) self-justification (image management)
3) to be consistent (image management)
4) framing
14
Organizational Behavior: An Experiential Approach 7/E
Joyce S. Osland, David A. Kolb, and Irwin M. Rubin
©2001 by Prentice Hall, Inc.
Escalating Commitment
• To help overcome
– set up specific goals
– put more emphasis on the decision making
process rather than the results
– try to see the outcomes from a different
perspective
– separate initial decision makers from those
evaluating the continuance of the program
15
Organizational Behavior: An Experiential Approach 7/E
Joyce S. Osland, David A. Kolb, and Irwin M. Rubin
©2001 by Prentice Hall, Inc.