System-imposed time constraints: Almost all important decisions come withexplicit deadlines.
A report on new-product development may have to be ready for executive committee review by the first of the month. Such conditions often make it difficult, if not impossible, for managers to gather all the information they might like before making a final choice.Historical precedents: Choices made today are largely a result of choices made over the years. -Three ethical decision criteriaUtilitarianism Decisions are made solely on the basis of their outcomes, ideally to provide the greatest good for the greatest number. This view dominatesbusiness decision making. It is consistent with goals such as efficiency,productivity and high profitsRightsProtecting the basic rights of individuals, such as the right to privacy, free speech or due process. This criterion protects whistle-blowers when they reveal an organisation’s unethical practices to the press or government agencies, using their right to free speech. JusticeAn equitable distribution of benefits and costs.Union members typically favour this view. It justifies paying people the same wage for a given job regardless of performance differences, and using seniority as the primary determination in staff redundancy decisions. Each criterion has advantages and liabilities. A focus on utilitarianism promotes efficiency and productivity, but it can sideline the rights of some individuals, particularly those with minority representationThe use of rights protects individuals from injury and is consistent with freedom and privacy, but it can create a legalistic environment that hinders productivity and efficiencyA focus on justice protects the interests of the underrepresented and less powerful, but it can encourage a sense of entitlement that reduces risk taking, innovation and productivity. A focus on justice protects the interests of the underrepresented and less powerful, but it can encourage a sense of entitlement that reduces risk taking, innovation and productivity. -Improving creativity in decision makingAlthough the rational decision-making model will often improve decisions, a rational decision maker also needs creativity, the ability to produce novel and useful ideas; in other words, ideas that are different from what has been done before but that are appropriate to the problem presented. This allows the decision maker to:Appraise and understand the problemSee problems that others can’t see-Three-stage model of creativity in organisationsCreative behaviour occurs in four steps1. Problem formulation: The stage of creative behaviour in which we identify a problem or opportunity that requires a solution as yet unknown.
2. Information gathering: The stage of creative behaviour when possible solutions to a problem incubate in an individual’s mind3. Idea generation: The process of creative behaviour in which we
Want to read all 172 pages?
You've reached the end of your free preview.
Want to read all 172 pages?
- Three '17
- Decision Making