10
DECISION MAKING BY INDIVIDUALS AND
GROUPS
CHAPTER SCAN
Decision making can be strengthened individually and in group situations. Groups can use
techniques such as brainstorming, nominal group technique, Delphi technique, devil's advocacy,
and dialectical inquiry. Groups must be aware of difficulties that negatively impact decision
making, such as groupthink and group polarization. Individual decision making can be analyzed
by examining cognitive styles that are used for gathering information and evaluating alternatives.
Models of decision-making range from very rational (e.g., the rational model) to nonrational
(e.g., the garbage can model). Intuition and creativity can be developed and improved to assist
decision makers. Finally, technology can aid individuals or groups through expert systems and
group decision support systems.
LEARNING OBJECTIVES
After reading this chapter, you should be able to do the following:
1. Explain the assumptions of bounded rationality.
2. Describe Jung's cognitive styles and how they affect managerial decision making.
3. Understand the role of creativity in decision making, and practice ways to increase your
own creativity.
4. Identify the advantages and disadvantages of group decision making.
5. Discuss the symptoms of groupthink and ways to prevent it.
6. Evaluate the strengths and weaknesses of several group decision-making techniques.
7. Describe the effects that expert systems and group decision support systems have on
decision making in organizations.
8. Utilize an ‘ethics check’ for examining managerial decisions.
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KEY TERMS
Chapter 10 introduces the following key terms:
programmed decision
nonprogrammed decision
effective decision
rationality
bounded rationality
satisfice
heuristics
garbage can model
risk aversion
escalation of commitment
cognitive style
intuition
creativity
participative decision making
synergy
social decision schemes
groupthink
group polarization
brainstorming
nominal group technique (NGT)
Delphi technique
devil's advocacy
dialectical inquiry
THE CHAPTER SUMMARIZED
I.
LOOKING AHEAD: Running in the Restaurant Industry’s Horse Race Requires Good
Decision Making at All Levels
II.
THE DECISION-MAKING PROCESS
Decisions that managers make are either programmed decisions (which are routine, and have
established decision rules) or nonprogrammed decisions (new, complex decisions that require
creative solutions). The decision making process is a step-by-step approach that can be utilized
for a variety of types of problems.
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III.
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MODELS OF DECISION MAKING
Effective decisions are timely, acceptable to those affected by them, and meet desired objectives.
A.
Rational Model
The rational model comes from classic economic theory, and assumes that there is a
completely rational solution to all problems. In this model, decision makers have
consistent systems of preferences, are aware of all alternatives, and can accurately
calculate the probability of success for each alternative.
B.
Bounded Rationality Model
Bounded rationality is a theory that suggests that there are limits to how rational a
decision maker can actually be. If the decision factors do not deal with humans, the
probability of rationality increases. Since managers cannot make perfect decisions, they
satisfice, selecting instead the first alternative that is ‘good enough’. This is similar to
students selecting a college that is within their decision frame, as opposed to viewing all
3,000 available colleges and universities. Satisficing involves a shortcut, intuitive
approach to decision making, which is referred to as heuristics.
Heuristics are shortcuts in decision making that save mental activity. The development
of heuristics became the backbone of expert systems, which capture the intuitive shortcuts
of experts, and create a program to mimic this behavior.
C.
Garbage Can Model
In another model, problems, solutions, participants, and choice opportunities exist
randomly within the organization. This haphazard approach is referred to as the garbage
can model.
IV.
DECISION MAKING AND RISK
A.
Risk and the Manager
One of the difficulties with decisions that are innovative is that they also tend to be risky.
Unfortunately, many managers tend to be risk averse. Risk aversion is the tendency to
choose options that entail fewer risks and less uncertainty. Unfortunately, this tendency
can cause managers to avoid risky decisions that may produce novel ideas and potentially
high payoffs.
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B.
Escalation of Commitment
Once individuals make decisions, they tend to become committed to those decisions.
Escalation of commitment is the tendency to continue to commit resources to a failing
course of action. Students may draw the analogy between stubbornness and escalation of
commitment.
V.
JUNG'S COGNITIVE STYLES
An individual's preferred method of gathering information and making judgments is called a
cognitive style. The Z problem solving method outlines 4 steps for good decisions, (1)
examine the facts and details, (2) generate alternatives, (3) analyze the alternatives
objectively, and (4) weigh the impact of the decision. These four steps are analogues to using
the following preferences: (1) sensing, (2) intuiting, (3) thinking, and (4) feeling.
VI.
OTHER INDIVIDUAL INFLUENCES ON DECISION MAKING
A.
The Role of Intuition
In many cases, managers do not appear to use a systematic approach to decision making.
Instead, they rely on ‘hunches’, or intuition, to make quick decisions based on recognition
of situational possibilities. Intuition is a fast, positive force in decision making utilized at
a level below consciousness that involves learned patterns of information.
B.
Creativity at Work
Creativity is a process influenced by individual and organizational factors that results in
the production of novel and useful ideas, products, or both. The ability to promote
creativity is an important competency that managers need to develop in order to succeed.
1.
Individual Influences
Personality factors appear to be related to creativity. These characteristics include
intellectual and artistic values, breadth of interests, high energy, concern with
achievement, independence of judgment, intuition, self-confidence, and a creative
self-image.
2.
Organizational Influences
The organizational environment can significantly impact creativity in the work
place. Focusing on how work will be evaluated, being monitored too closely, and
competing with others in win–lose situations hinder creativity. Feelings of
autonomy, membership in a diverse team, and high-quality relationships with
creative supervisors foster creativity.
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3.
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Individual/Organization Fit
Research indicates that creative performance is greatest when there is a match
between the individual and organizational influences on creativity. Furthermore,
it suggests that individuals can be trained to be more creative.
VII.
PARTICIPATION IN DECISION MAKING
A.
The Effects of Participation
Participative decision making is a situation in which individuals affected by decisions
influence the making of those decisions.
Participation increases employee satisfaction and creativity. Some studies have shown
that participation is related to increases in productivity.
B.
Foundations for Participation and Empowerment
The organizational foundations for empowerment include a participative, supportive
organizational culture and a team-oriented work design. One of the difficulties of
implementing participative groups is that middle managers may experience fear and
anxiety as a result of perceptions that they are losing power, which can disrupt
participative decision making efforts.
The three individual prerequisites for empowerment include (1) the capability to become
psychologically involved in participative activities, (2) the motivation to act
autonomously, and (3) the capacity to see the relevance of participation for one's own
well-being.
VIII.
THE GROUP DECISION-MAKING PROCESS
A.
Advantages and Disadvantages of Group Decision Making
Advantages of group decision making include the synergy of pooled group member
resources, increased approval for the solution, and greater understanding of the decision.
Disadvantages include pressure to conform, potential for domination of the group by a
member or clique, and the increased time required to make decisions.
B.
Groupthink
One of the major disadvantages of group decision making is the tendency for groupthink.
Groupthink is a deterioration of mental efficiency, reality testing, and moral judgment
resulting from in-group pressures. This happens because the cohesiveness and the
solidarity of the group tend to stifle disagreement and questions about the group's chosen
course of action.
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C.
Group Polarization
Group polarization is the tendency for group discussion to produce shifts toward more
extreme attitudes among members. Group polarization can be seen with juries that
become locked in disagreement.
IX.
TECHNIQUES FOR GROUP DECISION MAKING
A.
Brainstorming
Brainstorming is a technique for generating as many ideas as possible on a given
subject, while suspending evaluation until all the ideas have been suggested. Electronic
brainstorming reduces production blocking and evaluation apprehension.
B.
Nominal Group Techniques
Nominal group technique is a structured approach to group decision making that
focuses on generating alternatives and choosing one. Nominal group technique is a
refinement of brainstorming.
C.
Delphi Technique
The Delphi technique gathers judgments of experts for use in decision making. A
coordinator summarizes the judgments and reports them back to the experts, who then
rate the alternatives.
D.
Devil's Advocacy
A devil's advocate is an approach for preventing groupthink. An individual plays the
role of a critic to arouse discussion and thought, bringing out the opposite viewpoint and
pointing potential problems.
E.
Dialectical Inquiry
A debate between two opposing sets of recommendations is referred to as dialectical
inquiry.
F.
Quality Circles and Quality Teams
Quality circles and teams combine the best of collaborative group efforts with a specific
improvement in mind.
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G.
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Self-Managed Teams
Self-managed teams focus on broader decision-making activities than do quality circles
and quality teams, such as work scheduling, job assignments, and staffing.
X.
CULTURAL ISSUES IN DECISION MAKING
Hofstede’s dimensions of culture influence the decision-making process. Uncertainty avoidance
influences whether or not decisions are seen as opportunities for change. Power distance affects
the level at which decisions are typically made in organizations, and the individualist/collectivist
dimensions has implications for comfort with group decisions. The masculine/feminine
dimension indicates the value placed on quick, assertive decisions versus those that show more
concern for others.
XI.
TECHNOLOGICAL AIDS TO DECISION MAKING
A.
Expert Systems
Expert systems are programmed decision tools, set up using decision rules that
incorporate the knowledge and experience of veteran decision makers in the organization.
Because expert systems can significantly affect managerial decisions, managers must
exercise caution and judgment in adopting system recommendations.
B.
Group Decision Support Systems (GDSS)
GDSS improve conflict management in groups by depersonalizing issues and forcing
groups to discuss conflict management processes. Members tend to share information
more fully when they use a GDSS.
C.
Decision Making in the Virtual Workplace
In many of today’s flexible organizations, the workplace is unconstrained by geography,
time, or organizational boundaries. Virtual teams work together through
telecommunications and information technologies to accomplish tasks. These
technologies include desktop videoconferencing systems (DVCS), group decision support
systems (GDSS), and Internet/intranet systems.
XII.
ETHICAL ISSUES IN DECISION MAKING
Managers should consider three questions. Is it legal? Is it balanced? How will it make me feel
about myself?
XIII.
MANAGERIAL IMPLICATIONS: DECISION MAKING IS A CRITICAL ACTIVITY
XIV. LOOKING BACK: A Lesson in Decentralized Decision Making
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CHAPTER SUMMARY
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Bounded rationality assumes that there are limits to how rational managers can be.
The garbage can model shows that under high uncertainty, decision making in organizations
can be an unsystematic process.
Jung's cognitive styles can be used to help explain individual differences in gathering
information and evaluating alternatives.
Intuition and creativity are positive influences on decision making and should be encouraged
in organizations.
Empowerment and teamwork require specific organizational design elements and individual
characteristics and skills.
Techniques such as brainstorming, nominal group technique, Delphi technique, devil's
advocacy, dialectical inquiry, quality circles and teams, and self-managed teams can help
managers reap the benefits of group methods while limiting the possibilities of groupthink
and group polarization.
Technology is providing assistance to managerial decision making, especially through expert
systems and group decision support systems. More research is needed to determine the
effects of these technologies.
Managers should carefully weigh the ethical issues surrounding decisions and encourage
ethical decision making throughout the organization.
REVIEW QUESTIONS: SUGGESTED ANSWERS
1. Compare the garbage can model with the bounded rationality model. Compare the usefulness
of these models in today's organizations.
Decisions in the garbage can model are nonrational and unsystematic. It is typically used in
situations of high uncertainty. The bounded rationality model assumes that managers satisfice by
selecting the first alternative that is good enough. The pressures of time and competition in
today’s global environment require that managers make decisions quickly. Both models reflect
decision making in this fast-paced environment.
2. List and describe Jung's four cognitive styles. How does the Z problem-solving model
capitalize on the strengths of the four preferences?
Jung combines the concepts of thinking and feeling, and sensing and intuiting into four cognitive
styles: ST, SF, NT, and NF. The Z model recommends using the following preferences, in order:
(1) S; (2) N; (3) T; (4) F.
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3. What are the individual and organizational influences on creativity?
Cognitive factors of the individual affect creativity. Personality factors also influence one's
ability to be creative. Interestingly, being in a good mood provides better creativity than does a
bad or even neutral mood. Organizational influences include support and a flexible organization
structure. Participative decision making is also related to creativity.
4. What are the organizational foundations of empowerment and teamwork? The individual
foundations?
The organizational foundations of empowerment and teamwork are a participative, supportive
organizational culture and a team-oriented work design. Individual foundations include the
capability to become psychologically involved in participative activities, motivation to act
autonomously, and the capacity to see the relevance of participation for one's own well-being.
5. Describe the advantages and disadvantages of group decision making.
Group decision making is slow because of the process of getting everyone involved, and is
susceptible to groupthink and group polarization. However, group decisions are often better
decisions, and the group decision making process has a far greater acceptance level for the final
outcome than singular decision making.
6. Describe the symptoms of groupthink, and identify actions that can be taken to prevent it.
The symptoms of groupthink include illusions of invulnerability, group morality, and unanimity;
rationalization, stereotyping the enemy, members’ self-censorship, peer pressure to agree, and
mind guards who protect the group from negative feedback.
Methods of preventing groupthink include appointing a devil's advocate, asking each member to
be a critical evaluator, creating several teams that work on the decision simultaneously, having
outside experts evaluate the group's progress, evaluating the competition carefully, and
encouraging the group to rethink its chosen course of action.
7. What techniques can be used to improve group decisions?
There are several structured techniques for improving decisions, including brainstorming,
nominal group technique, Delphi technique, dialectical inquiry, and devil's advocacy.
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DISCUSSION AND COMMUNICATION QUESTIONS: SUGGESTED ANSWERS
1. Why is identification of the real problem the first and most important step in the decision
making process? How does attribution theory explain mistakes that can be made as managers
and employees work together to explain why the problem occurred?
Identification of the real problem is critical because it ensures that the group will be "treating the
problem instead of the symptom." Attribution theory suggests that individuals will tend to look
to external causes to explain their own failure. This could bias the problem-solving process.
2. How can organizations effectively manage both risk taking and escalation of commitment in
the decision-making behavior of employees?
Students may suggest solutions including policies such as requiring that someone outside the
decision making team review a decision to try to guard against excessive risk taking.
Organizations may manage the escalation of commitment by having different individuals make
initial and later decisions.
3. How will you most likely make decisions based on your cognitive style? What might you
overlook using your preferred approach?
The key to this question is to identify what one’s predominant style is, and to recognize that it
may not be appropriate in all situations. The Z model incorporates the strengths of all four
preferences.
4. How can organizations encourage creative decision making?
Organizations can reward risk taking, provide a supportive environment, and permit failure.
5. What are some organizations that use expert systems? Group decision support systems? How
will these two technologies affect managerial decision making?
Campbell Soup Company and DuPont use expert systems while Boeing utilizes a GDSS.
Students could also look to the six focus companies to respond to this question or examine
organizations with which they have had personal experience. These tools may help simplify the
decision process and can affect conflict management within a group.
6. How do the potential risks associated with participating in quality circles differ from those
associated with participating in quality teams? If you were a member of a quality circle, how
would management's decisions to reject your recommendations affect your motivation to
participate?
Quality circles are generated from the bottom up; therefore, they operate from fewer formal bases
of power in the organization.
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7. Form a team of four persons. Find two examples of recent decisions made in organizations:
one that you consider a good decision, and one that you consider a bad decision. Two members
should work on the good decision, and two on the bad decision. Each pair should write a brief
description of the decision. Then write a summary of what went right, what went wrong, and
what could be done to improve the decision process. Compare and contrast your two examples in
a presentation to the class.
Encourage students to apply the material from the text to their analysis of the decisions that were
made.
8. Reflect on your own experience in groups with groupthink. Describe the situation in which you
encountered groupthink, the symptoms that were present, and the outcome. What remedies for
groupthink would you prescribe? Summarize your answers in a memo to your instructor.
Be sure that the students have provided good examples from a personal experience rather than
just reiterating what the textbook says about groupthink.
ETHICS QUESTIONS: SUGGESTED ANSWERS
1. Think of a decision made by a group that you feel was an unethical one. What factors led to
the unethical decision? Evaluate whether groupthink may have been a factor by examining the
antecedents, symptoms, and consequences of groupthink.
For students not able to think of an unethical decision, suggest Watergate, the Bay of Pigs,
Vietnam, or gang member violence.
2. How can organizations encourage ethical decision making?
Rewarding and acknowledging tough decisions that are made properly, and clearly
communicating ethical standards, are two ways organizations can encourage ethical decision
making.
3. How do cultural differences affect ethical decision making?
Value systems differ sharply from one culture to another, and people base decisions on their
belief systems. Many people want to impose their own values upon others, and this can lead to
conflict.
4. Describe groupthink as an ethical problem.
Groupthink becomes an ethical problem when group members begin to view themselves as above
reproach, and assume that because they are moral individuals, any decision they make will be a
morally correct one. One way to avoid the problem would be to have groups continuously
evaluate whether their decisions are ethical, or to submit their decisions to outside parties for
review.
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5. Whose responsibility is it to ensure that employees make ethical decisions?
It is a joint responsibility of the organization and the employee(s) involved. The organization
should set the tone and an ethical environment, but ultimately the individual will probably be
held accountable for the decision.
6. Using the "ethics check," evaluate the decision to launch the Challenger. How could a
knowledge of ethical decision making have aided the individuals who made this decision?
The first question is whether the actions of NASA's decision makers were illegal. An accurate
answer here requires knowledge of law, but students may still wish to speculate.
The second question is whether the decision was balanced or fair to all concerned. Obviously, the
Challenger decision was not fair. Engineers were not given an opportunity to provide input
before the launch. Full disclosure of potential problems with the launch was not made to all who
would potentially be affected by the decision.
The third question is how the decision will make the decision makers feel about themselves.
Undoubtedly, many of those responsible regret the launch decision. Its tragic consequences may
have been the product of groupthink.
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CHALLENGES
10.1 Which Side of Your Brain Do You Favor?
This self-assessment exercise encourages students to explore which hemisphere (if either) of
their brain is dominant. You may wish to conduct a discussion of: a) the importance of being
able to see the big picture and plan strategically -- which requires right-brain skills and b) the
importance of being able to understand the details of day-to-day operations -- which requires leftbrain skills.
10.2 CREATIVE PROBLEM SOLVING
1. Maine + Massachusetts + New Hampshire + Vermont + Connecticut + Rhode Island = New
England
2. “A bird in the hand is worth two in the bush”
3. 8 days minus 24 hours = 1 week
4. 3 pair = 6
5. Hour hand + minute hand at 12 = Noon or midnight
6. 4 Jacks + 4 Queens + 4 Kings = All the face cards
7. Sunday & Monday & Tuesday & Wednesday & Thursday & Friday & Saturday are Days of
Week
8. Army + Navy + Air Force + Marine Corps + Coast Guard = Armed Forces
9. Texas = Lone Star State
10. 23 years - 3 years = 2 decades
11. Eight - 8 = Zero
12. Yesterday + 2 Days = Tomorrow
13. Christmas + 6 Days = New Year’s Eve
14. Year - Summer - Spring - Autumn = Winter
15. Adam & Eve were in the Garden of Eden
16. My Fair Lady and South Pacific are both Musical Comedies
17. No news is Good news
18. Nina + Pinta + Santa Maria = Ships of Columbus
19. 1 + 6 zeros = 1 million
20. “A rose is a rose is a rose.”
21. Abraham Lincoln & James Garfield & William McKinley & John Kennedy were all
Assassinated
22. Noun + Verb + Pronoun + Adverb + Adjective + Conjunction + Preposition + Interjection =
Parts of Speech
23. Senate + House of Representatives = United States Congress
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Solutions to logical problem-solving exercise: “Who Owns the Fish?”
1. The Norwegian owns the cats, lives in the yellow house, plays chess, and drinks water.
2. The Dane owns the horses, lives in the blue house, plays poker, and drinks tea.
3. The Brit owns the birds, lives in the red house, plays tennis, and drinks milk.
4. The German owns the fish, lives in the green house, plays golf, and drinks coffee.
5. The Swede owns the dogs, lives in the white house, plays billiards, and drinks beer.
Yellow
Norwegian
Chess
Cats
Water
Blue
Dane
Poker
Horses
Tea
Red
Brit
Tennis
Birds
Milk
Green
German
Golf
Fish
Coffee
White
Swede
Billiards
Dogs
Beer
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EXPERIENTIAL EXERCISES
10.1 MAKING A LAYOFF DECISION
Instructor's Notes:
This exercise challenges students to make a fair, but difficult decision regarding a layoff in an
organization. Students will discover their biases as they examine their reasons for selecting the
person to be laid off. This is a good exercise to turn into a short paper, in view of the growing
amount of information related to reductions in force and their effect on morale in organizations.
Typical issues that will emerge are survivor syndrome, guilt, leadership style, sexism, racism,
ageism, and communications.
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10.2 THE WILDERNESS EXPERIENCE
Instructor's Notes:
Here are the recommended courses of action for each of the situations in the Wilderness Survival
Worksheet. These answers come from the comprehensive course on woodland survival taught by
the Interpretive Service, Monroe County (New York) Parks Department. These responses are
considered to be the best rules of thumb for most situations; however, specific situations might
require other courses of action.
1. (a.) Call "help" loudly but in a low register. Low tones carry farther, especially in dense
woodland. There is a much better chance of being heard if you call loudly but in a low key.
"Help" is a good word to use, because it alerts your companions to your plight. Yelling or
screaming would not only be less effective, but might be passed off as a birdcall by your friends
far away.
2. (a.) Make a lot of noise with your feet. Snakes do not like people and will usually do
everything they can to get out of your way. Unless you surprise or corner a snake, there is a good
chance that you will not even see one, let alone come into contact with it. Some snakes do feed
at night, and walking softly may bring you right on top of a snake.
3. (c.) Put a bit of the plant on you lower lip for five minutes; if it seems all right, try a little.
The best approach, of course, is to eat only those plants that you recognize as safe. But when you
are in doubt and very hungry, you may use the lip test. If the plant is poisonous, you will get a
very unpleasant sensation on your lip. Red berries alone do not tell you much about the plant's
edibility (unless, of course, you recognize the plant by the berries), and birds just do not have the
same digestive system as we do.
4. (c.) Drink as much as you think you need when you need it. The danger here is dehydration,
and once the process starts, your liter of water will not do much to reverse it. Saving or rationing
will not help, especially if you are lying unconscious somewhere from sunstroke or dehydration.
So use the water as you need it, and be aware of your need to find a water source as soon as
possible.
5. (c.) Dig in the streambed at the outside of a bend. This is the part of the river or stream that
flows the fastest, is less silted, deepest, and the last part to go dry.
6. (c.) Midway up the slope. A sudden rainstorm might turn the ravine into a raging torrent.
This has happened to many campers and hikers before they had a chance to escape. The rigid
line, on the other hand, increases your exposure to rain, wind, and lightning, should a storm
break. The best location is on the slope.
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7. (b.) Put the batteries under your armpits to warm them, and then replace them in the
flashlight. Flashlight batteries lose much of their power, and weak batteries run down faster, in
the cold. Warming the batteries, especially if they are already weak, will restore them for a
while. You would normally avoid night travel, of course, unless you were in open country where
you could use the stars for navigation. There are just too many obstacles (logs, branches, uneven
ground, and so on) that might injure you--and a broken leg, injured eye, or twisted ankle would
not help your plight right now. Once the sun sets, darkness falls quickly in wooded areas, it
would usually be best to stay at your campsite.
8. (a.) Yellow. A yellow flame indicates incomplete combustion and a strong possibility of
carbon monoxide buildup. Each year many campers are killed by carbon monoxide poisoning as
they sleep or doze in tents, cabins, or other enclosed spaces.
9. (a.) Leave your boots and pack on. Errors in fording rivers are a major cause of fatal
accidents. Sharp rocks or uneven footing demand that you keep your boots on. If your pack is
rather well-balanced, wearing it will provide you the most stability in the swift current. A
waterproof, zippered backpack will usually float, even when loaded with normal camping gear; if
you step off into a hole or deep spot, the pack could become a lifesaver.
10. (b.) Across the stream. Errors in facing the wrong way in fording a stream are the cause of
many drownings. Facing upstream is the worst alternative; the current could push you back and
your pack would provide the unbalance to pull you over. You have the best stability facing
across the stream, keeping your eye on the exit point on the opposite bank.
11. (c.) In stocking feet. Here you can pick your route to some degree, and you can feel where
you are stepping. Normal hiking boots become slippery, and going barefooted offers your feet no
protection at all.
12. (c.) Freeze, but be ready to back away slowly. Sudden movement will probably startle the
bear a lot more than your presence. If the bear is seeking some of your food, do not argue with
him; let him forage and be on his way. Otherwise, back very slowly toward some refuge (trees,
rock outcrop, etc.).
SOURCE: J. W. Pfeiffer and J. E. Jones (Eds.) The 1976 Annual Handbook for Group
Facilitators, San Diego, CA: Pfeiffer & Company, 1976. Used with permission.
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ALTERNATIVE EXPERIENTIAL EXERCISE
WHO WORKS SATURDAY NIGHT?
Janet W. Wohlberg, Scott Weighart, OB in Action, Cases and Exercises, 3rd edition,
c1992, Houghton Mifflin.
Instructor's Notes:
This is a role play to be used with groups of five. For groups of four, omit either employee 1 or
employee 2. For larger groups, add one or more observers (see observer sheet) or double up on
one of the employees. The entire exercise can take more than an hour: 50 minutes or more to
read the background material and roles and carry out the role play, 30 minutes or more for
discussion.
Be sure that the groups have enough physical space so as not to interfere with one
another's discussions.
Step 1
Make enough copies of each role so that each member of the class has one role description.
Step 2
Be sure that everyone in the class has read the brief background description. (It may help to read
it aloud to the class.)
Step 3 (optional)
After distributing the roles to the members of each group, divide the class into groups of the
same role members - that is, all of the managers together, all employees together, and so forth.
This gives individuals a chance to identify with and better understand their roles. Give the
groups about 20 minutes to discuss their roles as they wish and clarify that they are not bound by
the group's suggested strategies.
Meet with the group of managers to answer any questions concerning what they are to do.
Assign about one-third of the managers to be highly autocratic. This means that the managers
can listen to the employees, but that they should make clear from the outset that the decision is
going to come from management. Autocratic managers should says things such as: "I don't really
care about your brother's wedding," and so forth.
Assign about one-third of the managers to be extremely laissez faire. This means that the
managers should constantly remind the workers that the decision is not of interest to them. In
other words, the workers should be told, "Do whatever you want," and so forth.
Assign the last third of the managers to be democratic. This means that the managers
should clearly frame the problem for the workers, listen to their concerns, and actively lead them
to a solution that has the widest acceptance and still meets the needs of the organization.
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Step 4
Redivide the class into work groups, each of which includes a manager and a player for each
employee role. (Interesting results, for the purposes of comparison within the class, can come
from arranging the groups in specific ways-that is, all male workers with a female manager, all
female workers with a male manager, workers from one culture with a manager from another, all
members from the same cultural background, and so forth. Or, try assigning the manager's role
in some groups to students who are highly authoritarian and to others who are highly
participative.)
Step 5
Instruct the groups that the manager must make a decision at the end of the 30 minutes of role
play.
Step 6
At the end of the 30 minutes, call time and ask the managers for their decisions, the methods they
used in arriving at their decisions, and the basis for the decision. In addition, ask them to
describe the role that they were assigned (democratic, autocratic, laissez faire). Record each
group's decision in a visible place, such as a blackboard, overhead, or flip chart.
Step 7
Ask the observers, if any, to report on their findings. Are these consistent with the managers'
descriptions of how decisions were made?
Step 8
Discuss the questions below and those on the observer sheet.
Questions for Discussion
1. Given the problem presented, did the manager of your group use an appropriate leadership
style? Why or why not? (If you were the manager in your group, how did you feel about the
effectiveness of the leadership style you used?)
2. What do you think the manager should have done differently?
3. Did the manager listen to and consider each employee's arguments?
4. How was the decision made? Did the manager elicit input from the employees?
5. What are the implications of decision for each member? For the effectiveness of the team on
Sunday? For the ultimate success and quality of the project?
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WHO WORKS SATURDAY NIGHT?
The purpose of this role play is to give you an opportunity to explore the effectiveness of
different leadership styles - in this case, autocratic, democratic, and laissez faire - in decisionmaking situations. Autocratic leaders generally impose their decisions without considering the
interests of their subordinates. Laissez-faire leaders, on the other hand, relinquish their decisionmaking powers to the group and its members. Democratic leaders clarify the goals to be met by
the decision and work with subordinates to find a decision that best meets those goals.
As you do this exercise, consider the leadership style being used by your group's manager
and the ways in which you believe that style to be appropriate or not.
BACKGROUND
Your small company, Turnem, Inc., a manufacturer of valves that have a wide variety of uses,
including use in several aspects of the aerospace industry, is on a tight deadline to complete a
project. The prototype product is due to be demonstrated to the leaders of your aerospace
industry the following Monday.
To finish on schedule, it will be necessary for one member of your team to work this
Saturday evening from about 5 P.M. to midnight and for the entire team to work at its most
productive and cooperative level for the full day on Sunday. The budget allows for one member
of the team to be paid to work on Saturday night.
The contract for this project, although not your company's only source of revenue, is
important.
Review and plan your role thoroughly. Do not discuss your role with any of your
classmates until you have been told to do so.
1.
Briefly describe the manager's dilemma.
2.
Were the employees given a fair chance to explain their concerns?
3.
How would you rate the manager's overall listening skills and why?
4.
What factors do you think the manager failed to consider in making a decision?
5.
What factors did the manager appear to use in reaching a decision?
6.
How did the employees react to the manager's leadership style, and why?
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Rate your group manager on the following scale:
Autocratic
10
9
8
7
6
Laissez faire
Democratic
5
4
3
2
1
Calculate the average rating in your group (not counting the manager's opinion!) by adding all
ratings and dividing by the number of workers in the group.
Rate your satisfaction with the decision on the following scale:
Very dissatisfied
10
9
8
7
6
Indifferent
5
4
3
2
Very satisfied 1
Calculate the average rating of satisfaction in your group by adding all of the ratings and dividing
by the number of workers.
Generally, groups that perceive their leaders to be autocratic will be more dissatisfied
with decisions made about who works Saturday night. Laissez-faire managers can also be
frustrating to groups. Keep in mind that this may vary depending on the composition of the
group: Some people actually like to be told what to do. In some cultures, mangers who involve
workers in decision-making processes, such as those represented by this exercise, are considered
to be ineffective; in other cultures, managers are expected to seek input from subordinates
regularly. The occurrence of and acceptance of laissez-faire styles of management, however,
tend to be rare compared to that of more autocratic styles.



How did your group feel about the style of your manager, and why?
In what situation would you consider autocratic leadership to be both appropriate and
acceptable, and why?
In what situations would you consider laissez-faire leadership to be both appropriate and
acceptable, and why?
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AUTOCRATIC MANAGER
You are the autocratic manager in a division of Turnem, Inc. Currently, your team is working to
complete development of a prototype valve having a highly specialized use in the aerospace
industry and putting the finishing touches on the presentation to be made on Monday to the
highest officials of your aerospace program.
In order to get the project done on time, you and one member of your four-person team
are going to have to work this Saturday night from about 5 P.M. until at least midnight.
Everyone on the team will be expected to work all day on Sunday. You know that it's going to be
really important to have your team functioning at its highest and most cooperative level on
Sunday if the work is going to be completed on time. In addition, the work that must be
completed Saturday night takes a high degree of technical expertise.
It is your job to decide who will work on Saturday night. Your choices are employees 1
or 2, who have the technical knowledge and ability necessary for the tasks that must be
completed on Saturday night, neither of whom want to work because of other commitments;
employee 3, who has the necessary technical knowledge and skills but who is completely
unwilling to work on Saturday night; and employee 4, who has little of the necessary technical
knowledge but who needs the money and very much wants to work on Saturday night. You have
the budget and the need for one employee to work with you on Saturday night. Everyone must
work on Sunday.
As far as you are concerned, you don't really care what the conflicts and concerns of your
subordinates may be. That isn't your problem! Your problem is to get the right person to do the
job, and you intend to get the person you want, no matter what.
You should listen to the concerns of your subordinates, but make clear from the outset
that you'll decide, and they'll just have to live with your decision. Keep reinforcing that point
whenever possible.
Tell your group only that you are their manager; do not tell them that you have been
instructed to be autocratic.
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WHO WORKS SATURDAY NIGHT?
LAISSEZ-FAIRE MANAGER
You are the laissez-faire manager in a division of Turnem, Inc. Currently, your team is working
to complete development of a prototype valve having a highly specialized use in the aerospace
industry and putting the finishing touches on the presentation to be made on Monday to the
highest officials of your aerospace program.
In order to get the project done on time, you and one member of your four-person team
are going to have to have to work this Saturday night from about 5 P.M. until at least midnight.
Everyone on the team will be expected to work all day on Sunday. You know that it's going to be
really important to have your team functioning at its highest and most cooperative level on
Sunday if the work is going to be completed on time. In addition, the work that must be
completed Saturday night takes a high degree of technical expertise.
You don't much care who works on Saturday night, as long as someone does. One thing
is for sure; you don't want to be responsible for making the decision. You have decided to let
your employees make the decision, and you're going to stay out of it. Their choices are
employees 1 or 2, who have the technical knowledge and ability necessary for the tasks that must
be completed on Saturday night, neither of whom want to work because of other commitments;
employee 3, who has the necessary technical knowledge and skills but who is completely
unwilling to work on Saturday night; and employee 4, who has little of the necessary technical
knowledge but who needs the money and very much wants to work on Saturday night. You have
the budget and the need for only one employee to work with you on Saturday night. Everyone
must work on Sunday.
As far as you're concerned, you don't really care what the conflicts and concerns of your
subordinates may be. That isn't your problem-it's theirs!
You should listen to the concerns of your subordinates, but make clear from the
beginning that you're not going to interfere. Of course, you will want to let them know from time
to time that they're probably not making the right decision.
Tell your group only that you are their manager; do not tell them that you have been
instructed to be laissez faire.
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DEMOCRATIC MANAGER
You are the democratic manager in a division of Turnem, Inc. Currently, your team is working to
complete development of a prototype valve having a highly specialized use in the aerospace
industry and putting the finishing touches on the presentation to be made on Monday to the
highest officials of your aerospace program.
In order to get the project done on time, you and one member of your four-person team
are going to have to work this Saturday night from about 5 P.M. until at least midnight.
Everyone on the team will be expected to work all day on Sunday. You know that it's going to be
really important to have your team functioning at its highest and most cooperative level on
Sunday if the work is going to be completed on time. In addition, the work that must be
completed Saturday night takes a high degree of technical expertise.
It is your job to decide who will work on Saturday night. Your choices are employees 1
or 2, who have the technical knowledge and ability necessary for the tasks that must be
completed on Saturday night, neither of whom want to work because of other commitments;
employee 3, who has the necessary technical knowledge and skills but who is completely
unwilling to work on Saturday night; and employee 4, who has little of the necessary technical
knowledge but who needs the money and very much wants to work on Saturday night. You have
the budget and the need for only one employee to work with you on Saturday night. Everyone
must work on Sunday.
Since the beginning of this project, you have been working closely with the members of
your team, articulating the goals, guiding the process, serving as a clearing house, and involving
the employees in decision-making processes that directly affect them.
Begin by setting out the goals and purposes of having the best person work on Saturday
night. Put this in terms of their best interests and the best interests of the organization. You
should listen to the concerns of your subordinates and help them achieve an outcome that is
mutually beneficial and acceptable.
Tell your group only that you are their manager; do not tell them that you have been
instructed to be democratic.
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WHO WORKS SATURDAY NIGHT?
EMPLOYEE 1
You are a member of a four-person team at Turnem, Inc. The project on which you are working,
development of a prototype valve having a highly specialized use in the aerospace industry, is
due to be demonstrated to the highest officials of the aerospace program on Monday.
To be ready on time, it is necessary for you and your teammates to work all day this
Sunday, and you may possibly have to work on Saturday night from about 5 P.M. until midnight.
You are one of the key experts for this project on which you have worked seven days a week for
over a month.
You consider that you have a special reason for not wanting to work on Saturday night.
It's your brother's wedding, you are part of the wedding party, and your whole family will be
outraged if you fail to attend.
You have to convince your manager that you should not be required to work on Saturday
night.
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WHO WORKS SATURDAY NIGHT?
EMPLOYEE 2
You are a member of a four-person team at Turnem, Inc. The project on which you are working,
development of a prototype valve having a highly specialized use in the aerospace industry, is
due to be demonstrated to the highest officials of the aerospace program on Monday.
To be ready on time, it is necessary for you and your teammates to work all day this
Sunday, and you may possibly have to work Sunday night from about 5 P.M. until midnight.
You have been working on the project since its inception, including many nights and
weekends. At this point you're feeling pretty burned out. Worse, however, is your family's
reaction. Your spouse and children are angry at what they see as your rejection of them in favor
of your job.
Sunday is your spouse's birthday and a number of friends and relatives have been invited
to help celebrate the day at your home. Unfortunately, you don't have any choice about missing
that event, but Saturday evening is your youngest child's debut as star in the third-grade play.
Your family has made it quite clear that your presence is not an option.
You have to convince your manager that you should not be required to work on Saturday
night.
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WHO WORKS SATURDAY NIGHT?
EMPLOYEE 3
You are a member of a four-person team at Turnem, Inc. The project on which you are working,
development of a prototype valve having a highly specialized use in the aerospace industry, is
due to be demonstrated to the highest officials of the aerospace program on Monday.
To be ready on time, it is necessary for you and your teammates to work all day this
Sunday, and you may possibly have to work Saturday night from about 5 P.M. until midnight.
You joined the project about two months ago, and while you're no expert, you certainly
have the abilities and skills to do the work that must be done on Saturday night. However, you
definitely do not want to work. As far as you are concerned, you're entitled to a life outside of
the workplace, you're not much of a team player, and you had originally asked not to be put on
this job anyway.
There was a time in your life when you would have been at the head of the line to
volunteer for this job—a time when your sole purpose in life was to get ahead, make more
money, and gain power, prestige, and status.
About eighteen months ago, your best friend died in a car accident. It was a shock to you
to suddenly be faced with the uncertainty and fragility of life. You have decided that you had
better live life while you have it, and that doesn't mean spending it at work.
You're angry enough that you have to work on Sunday. As far as you're concerned,
someone else can work on Saturday night, because you're not going to!
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EMPLOYEE 4
You are a member of a four-person team at Turnem, Inc. The project on which you are working,
development of a prototype valve having a highly specialized use in the aerospace industry, is
due to be demonstrated to the highest officials of the aerospace program on Monday.
To be ready on time, it is necessary for you and your teammates to work all day this
Sunday, and you may possibly have to work Saturday night from about 5 P.M. until midnight.
You joined the team about five weeks ago and have some minimal knowledge of the
project.
You have been holding off taking a moonlighting job because this project, so far, has
been keeping you busy seven days a week and evenings. While you're pretty tired, you
desperately need the money.
Your job is to convince your manager to let you work on Saturday night.
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MBTI EXERCISE:
Exercise Learning Objectives
a. Demonstrate to the students that people make decisions using different styles.
b. Students will experience a real-world situation they will face.
c. Show students that regardless of their decision-making process, they must be able to "sell"
their decision to other people.
Exercise Overview
1. Students should have taken the MBTI or the short version in Chapter 3.
2. Ask students to form groups into those that prefer thinking and those that prefer feeling as
their decision-making basis.
3. Students in like-groups will work a scenario and then sell their decision to the opposite group
type.
4. The instructor must be knowledgeable of the "T" and "F" dynamics of the MBTI. We highly
recommend that the instructor review the material listed in the MBTI reference section.
Additionally, the instructor should be on the look out for the potential of hurt feelings and
bruised egos. This exercise usually takes 65-70 minutes. This is the single most powerful and
potentially useful MBTI-based exercise in this series.
Exercise Description:
a. Form "T" and "F" groups of 4-6 students each. Form as many groups as you need so that
everyone is in a group.
b. Ask each group to select an observer. That person will observe a group of the opposite type;
(i.e., "T" will observe "F" and vice-versa.).
c. Give the following roles to students:
Role: You are a head nurse. You have been a head nurse over several other nurses for too long.
You just don't have any interest in supervising people anymore. It seems to cause you so much
anxiety that you literally lose sleep at night when you go home. You would really love to get out
of being in your current position. You have considered taking a demotion to a nurse's job until
you retire. You would leave the hospital, but it is too close to retirement and will just cost you
entirely too much to leave now. Your work is not super, but it has been satisfactory and you
really don't think you can push yourself to do anymore. Satisfactory should be enough for what
you get paid. Your boss has called you in for a talk.
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Role: You are the supervisor of a group of head nurses who manage other nurses. You are very
concerned about one of your head nurses. Over the last couple of years, he has had low
performance, failed to do many of the jobs assigned, and brings almost all decisions to committee
meetings in order to avoid making decisions. You feel you must call him in for discussion. You
are to the point of telling him that if he doesn't correct his performance you will have to terminate
his employment since there is no position to which to demote him. You have called him in to
talk over his performance.
d. Give the students the following instructions:
1. You are to decide to fire or not to fire this employee.
2. You must develop a rationale for your decision.
3. You should select a person who will represent your group and your boss to support your
decision. Your boss is of the opposite type from your T/F preference.
4. You will have 10 minutes to discuss the case and determine the facts. You have all the facts
before you--nothing else is known.
5. You will then have 5 minutes to decide whether or not to fire this employee.
6. You will then have 15 minutes to develop the rationale that you will use to defend your
position.
7. You will have 5 minutes to present your case to the other group who will collectively act as
your boss.
8. After the first group is finished, the bosses now must present their case. This is done
BEFORE reporting out happens.
e. If you have more than one group of each type, each group should present. You can run these
presentations simultaneously if you use student observers to assist you in reporting what
happened.
f. Timing must be precise. Part of the benefit of this exercise is the time pressure. Most of the
time, when we are under pressure we will subconsciously use our preferred strength to achieve
the results we seek. As with other things, this holds true for our decision-making process and its
subsequent verbalization. To show the class the real distinctions between "T" and "F", we need to
highlight the best use of the strength of each group.
g. Debriefing the exercises. Debrief the second presentation first.
1.
2.
3.
4.
5.
Ask each boss if he/she agreed with the decision.
What in the presentation led to your decision to agree or not?
How did the presenter think/feel about the experience?
What did the observers notice (if you used them)?
What did the presenters learn?
h. Debrief the first presentation, using these same steps.
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i. Debrief the class. If you used observers, solicit the observers first and, then, solicit feedback
from the entire class.
1. Ask the class, "What did you see?"
2. What differences and similarities did you notice?
What the instructor should expect:
a. "Ts" want the decision to be stated up front and followed by the rationale for the decision.
They want the facts stated clearly as to what the issues are, what steps have been taken, what
have been the results of any interventions, and what will be the cost if your decision is
implemented. "Ts" are concerned about getting sued if there is not a logical, rational approach
that led to the decision. "Ts" will turn the employee problem into a management competency
issue if they believe the situation should have been resolved earlier.
b. "Fs" want to be reassured that everything possible was done for the employee. For example,
has the supervisor made training available, rotated jobs, counseled the employee, and so forth?
The "Fs" also want to know that the person who is presenting really cares about this person--no
phony affects here. They need to know the impact the decision (fire or not) will have on the
other people in the organization. They are not as concerned about the effect on the organization
as an entity as they are about the person and those people directly impacted. Finally, you will
need to show "Fs" that the employee has violated the organization's values.
Instructor's Summary
Making decisions is something we all face. Most of the time, we have to "sell" our decisions to
others. It is important to remember that some people make decisions based on objective logic
while others make decisions based on subjective values. Neither process is inherently better;
both have strengths and pitfalls. In an organization, asking people who use different decisionmaking processes should result in a more complete and supportable decision.
Materials Needed:
None, students should have paper and pencil.
*Adapted from Dr. Margaret Hartzler, Type Resources, Inc., used with permission.
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EXTRA EXPERIENTIAL EXERCISES
The following alternative exercises to supplement the material in the textbook can be obtained
from:
Marcic, Dorothy, Seltzer, Joseph, & Vaill, Peter. Organizational Behavior: Experiences and
Cases, 6th Ed. South Western College Publishing Company, 2001.
Improving Organizational Decision Making. p. 171-176. Time: 30 minutes or more.
Purpose: To explore a structure for organizational decision making.
Fandt, Patricia M. Management Skills: Practice and Experience. West Publishing Company,
1994.
In-Basket Exercise 1: Identifying Problems. p. 329.
In-Basket Exercise 2: Generating Alternatives. p. 331.
CASE QUESTIONS: SUGGESTED ANSWERS
GATEWAY
1. Using the notions of risk and escalation of commitment, how would you evaluate Ted Waitt’s
decision to found Gateway?
Waitt was a risk taker rather than being risk averse; however, he did not take an excessive
risk. He took a calculated chance using $10,000 in borrowed capital to pursue a business
venture in which he strongly believed. While there was uncertainty associated with the
founding of this business venture, it soon proved to be phenomenally successful. Thus,
escalation of commitment to a losing course of action never came into play.
2. How would you describe the various decisions about capitalizing on user-friendly marketing,
establishing strong customer support, and developing new sales channels and markets in
terms of the rational, bounded rationality, and garbage can models of decision making?
Rational decision making involves a logical step-by-step approach that relies on a thorough
analysis of alternatives and their consequences, with the objective of selecting the best
possible alternative. With bounded rationality, decision makers do not seek an optimal
decision. Rather, they use heuristics (or shortcuts) to select a satisficing alternative (i.e., the
first alternative that provides a “good enough” solution). In the garbage can model of
decision making, problems, solutions, participants, and choice opportunities do not occur in
any predictable or systematic fashion. Instead, decision making is random and unsystematic.
The evidence in the case strongly indicates that Gateway’s decision making cannot be
accurately described with the garbage can model. The founding, growth, and evolution
appears to be more systematic than unsystematic, and is far more than a series of random
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occurrences. Therefore, either the rational decision-making model or the bounded rationality
model provides an appropriate characterization of Gateway’s decision-making process. The
evidence more strongly supports the rationality model rather than the bounded rationality
model. Evidence in support of rationality can be found in Gateway’s decisions to (a) establish
strong customer support services; (b) use showrooms to strengthen customer relationships;
(c) open the online Gateway Gear Gift Shop; and (d) establish the Gateway Affiliates
Program.
3. How could Gateway have used the Z problem-solving model shown in Figure 10.3 as an aid
to evaluating the prospect of continued use of its folksy promotional imagery as it expanded
its markets?
According to the Z problem-solving model, effective problem solving has four steps:




Use of sensing to examine the facts and details.
Use of intuiting to generate alternatives.
Use of logical thinking to objectively analyze the effects of each alternative.
Use of feeling to weigh the impact on the people involved in making the
decision.
Gateway’s expansion through the Gateway Gear Gift Shop and the Gateway Affiliate Program
represent logical extensions of Gateway’s PC brand to associated computer services and
merchandise. The folksy promotional imagery that worked so well with individual personal
computer users appears to be working well with these new marketing initiatives, particularly
with the Gateway Gear Gift Shop.
However, if the folksy promotional imagery became problematic, Gateway’s decision makers
would need to do the following in terms of comparatively evaluating the company’s
traditional customer base with the new customer bases generated through expansion:




Determine the facts and details regarding the needs, tastes, desires, and
preferences of the new customers.
Generate alternative promotional images that would address the needs, tastes,
desires, and preferences of these new customers.
Analyze each alternative to evaluate the likely consequences of
implementation.
Assess how the decision makers react to each alternative and the extent of
support for and commitment to each alternative.
An involving way to approach this question is to have students assume roles as various
executives at Gateway. The students could then discuss what type of promotional imagery
would appeal to customers of Gateway Gear Gifts, Gateway Business Affiliates, and Gateway
Home Affiliates. They should also explore whether a different promotional image would
appeal to each type of customer. Thereafter, the students could brainstorm alternative ways of
generating the needed type(s) of promotional imagery, and then examine the probable effects
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of each alternative. Finally, they should consider how they, as decision makers, react to each
of the proposed alternatives.
Role Plays
Additional role plays relevant to the material in this chapter are located in Appendix A of this
instructor's manual.