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• ! ! Steps in the Decision-Making Process
• • Recognize the Need for a Decision
o is it legal?
o Is it ethical?
o it is economically feasible? - can they be accomplished given the given the
organization's performance goals; cost benefit analysis to determine which option
has the best net financial payoff
o is it practical? - will it threaten other projects? does company have resources for
Choose among Alternatives
Implement the Chosen Alternative
o managers should not only make a decision, but assign work to middle managers in
order to implement the alternative
Learn from Feedback
o what actually happened and what should have happened?
o why were expectations not met?
o derive guidelines that will help in future decision making Group Decision Making • • • Groupthink - a pattern of faulty and biased decision making that occurs in groups whose
members strive for agreement among themselves at the expense of accurately assessing
information relevant to a decision
o pressures for agreement and harmony within the group have unintended effect
Devil's advocacy - critical analysis of preferred alternative, made in responses to
challenges raised by a group member who, playing the role of a devil's advocate, defends
unpopular or opposing alternatives for the sake of argument
o purpose - identify all reasons why alternative may not be ideal
Diversity among decision makers
o another way to improve decision making Organizational Learning and Creativity
• • •
• organizational learning - the process through which managers seek to improve
employees' desire and ability to understand and manage the organization and its task
environment so employees can make decisions that continuously raise organizational
learning organization - managers do everything possible to maximize the ability of
individual and groups to think and behave creatively and thus maximize the potential for
organizational learning to take place
creativity - the ability of a decision maker to discover original and novel ideas that lead
to feasible alternative courses of action
innovation - the implementation of creative ideas in an organization Creating a Learning Organization (according to Senge)
1. allow everyone to have personal mastery
2. encourage employees to develop and use complex mental models - models that challenge them
3. team learning is more important than individual learning in increasing organizational learning
4. emphasize importance of building a shared vision
5. encourage systems thinking - how does one level of learning affect another
Promoting Individual Creativity
• allow employees to experiment
use contests/rewards Promoting Group Creativity •
• • brainstorming - no criticism allowed; all ideas are collected and then afterwards they are
ranked based on their pros/cons
production blocking - a loss of productivity in brainstorming sessions due to the
unstructured nature of brainstorming
nominal group technique - a decision making technique in which group members write
down ideas and solutions, read their suggestions to the whole group, and discuss and then
rank the alternatives
delphi technique - decision making technique in which group members do not meet
face-to-face but respond in writing to questions posed by the leader
o question is sent out, team individually generates solutions and sends them...
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This document was uploaded on 02/18/2014 for the course BCOR 2300 at Colorado.
- Fall '07