Organisational Behaviour Ch7

CHAPTER 7 DECISION MAKING AND CREATIVITY give away the six stages in the keen choice purpose swear out ending qualification the conscious process of reservation choices among alternatives with the intention of moving toward just n proterozoic desired state of affairs. Rational choice paradigm of ending making the military position in decision making that multitude should and typically do, practice logic and all available datarmation to choose the alternative with the highest foster. decision making involves identifying, selecting and applying the surpass(p) possible alternative.The best decision use virgin logic and all available informationrmation to choose the alternative with the highest value Such as highest expected profit, customer satisf swear out, employee well world or approximately combination of these outcomes. Subjective expected utility the probability (expectation) of satisfaction (utility) resulting from choosing a specific alternative in a decisio n. stopping point making process systematic application of stages of decision making. 1. Identify line of work or hazard 2. lead the best decision process 3. Develop alternative solutions 4. Choose the best alternative . Implement the selected option 6. Evaluate decision outcomes difficulty with Rational choice paradigm 1. Impossible to apply in veracity 2. Difficulty recognising problems 3. Process the huge volume of information 4. Difficulty recognising when choices gift failed 5. Focusing on sensible thinking, ignores emotion influence making decision IDENTIFYING PROBLEMS AND OPPORTUNITIES Explain why people have difficulty with it trouble acknowledgement is not just the first step in decision making it is the most important There are five most astray cleard concerns.Stakeholder framing attention-based theory of the firm states that, organisational decisions and actions are influenced main(prenominal)ly by what attracts managements attention, rather than by objectiv e reality. Mental stylus if an conception does not fit the existing mental mode of how things should work, the idea is dismissed as unworkable or undesirable. Decisive leadership being determinative includes quickly forming an opinion of whether an event signals problem or opportunity. many another(prenominal) decisions happens too quickly before having a chance to logically quantify the situation, to a greater extent often it is a poorer decision than would result if more clip had been devoted to identify the problem and evaluating the alternatives. Solution-focused problems decision makers engage in solution-focused problem identification because it provides comforting closure to the otherwise ambiguous and uncertain genius of problems. Perceptual defence people sometimes block out poisonous news as a coping mechanism. Some people inherently avoid negative information.People are more likely to swerve danger signals when they have limited control over the situation. Identi fying problems and opportunities more in effect * Be sure of the 5 problem identification biases * Incr salve cognisance of problem identification, pick out willpower to resist the temptation of looking decisive * Create a norm of divine discontent * Discussing the situation with others to ease difficulty EVALUATING AND CHOOSING ALTERNATIVES Explain why people do not attach to the rational choice model when evaluating alternative choicesBounded rationality the view that people are process limited and imperfect information and rarely select the best choice. paradox with goals assumes that organisational goals are clear and agreed on. Goals are often ambiguous or in mesh with each other. Problem with information processing assumes that decision makers can process info about all alternatives and in their consequences, but it is not possible in reality. implicit in(predicate) favourite favourite(a) alternative that the decision maker uses repeatedly as a comparison with other c hoices. iased decision heuristic rules key element of rational choice paradigm, as people can estimate the probabilities of outcomes. 1. Anchoring and adjustment heuristic people to be influenced by an initial anchor point such(prenominal) that they do not suitablely move away from that point as new info is provided. Initial info influences evaluation of subsequent info 2. Availability heuristic we estimate probabilities by how easily we can repudiate the event, even though other factors influence it. 3.Representativeness heuristic we estimate probabilities by how much they are similar to something else, even when better information available. Problem with maximisation people engage in satisficing, selecting an alternative that is good adequacy rather than the alternative with the highest value. To choose the best alternative is also requirement more info processing capacity than what they willing to apply. devising the best choice among many, can be cognitively and excitedly draining. Evaluating opportunities opportunity is antithetical from the process of problem solving.Decision makers not evaluate alternatives, after all, the opportunity is the solution, so why look further, they tend to have an emotional shackle to the opportunity. EMOTIONS AND MAKING CHOICES Describe 3 ways in which emotions influences the selection of alternatives 1. Emotions from early preferences emotions form preferences before we consciously evaluate those choices 2. Emotions change the decision evaluation process moods and emotions influence how well we fol funky the decision process. . Emotions serve as info when we evaluate alternatives we listen in on our emotions and use that info to make choices Intuitive decision making ability to know when a problem or opportunity exist and select the best action without conscious reasoning. * Gut feelings we experience are emotional signals that have complete intensity to make us aware * Not all emotional signals are intuitions * I ntuitions are involves rapidly comparing nonconscious analysis Making choices more effective Systematically evaluate alternatives a come uponst relevant factors * Be aware of effects of emotions on decision preferences and evaluating process * Scenario planning imagining possible future, choosing the best possible solution long before they occur Evaluating decision outcomes check mark bias known as post-decisional justification * Forget or understate the negative features of selected alternative and highlight the positive features * Typically nonconscious and determined by emotions * Gives people an excessively optimistic evaluation of their decisionEscalation of loyalty the magnetic dip to repeat an apparently bad decision or assign more resources to a falling course of action 4 main causes of escalation 1. Self-justification individuals motivated maintain course of action when imply to justify their action 2. Prospect theory effect a natural tendency to feel more dissatisf action from losing a particular amount than satisfaction from gaining an allude amount 3. Perceptual blinders occurs because decision makers do not see the problems in short enough, they screen out or explain away negative information, sincere problems looks like random errors 4.Closing approachs decision makers will because the cost of ending the project are high or unknown Evaluating decision outcomes more effectively * Separate decision makers from evaluators to minimise self-justification * testify a preset level to abandon or re-evaluate the project * catch out a source of systematic and clear feedback * Involve several people in the evaluation EMPLOYEE INVOLVMENT IN DECISION MAKING Describe benefits of employee appointment in decision making Employee meshing when employees influence how their work is nonionized and carried out Benefits improves quality and commitment recognising problem more quicker formation problem more accurately improve solutions generated spe cific conditions improves the evaluation of alternatives Contingencies of employee elaboration Identify four option thet affect the optimal level of employee involvement 1. Decision structure decision can be programmed and non-programmed, programmed decision need less involvement, because solution is already worked out from past incidents 2. Source of decision knowledge employee have relevant knowledge than leaders, it is improves decision quality 3.Decision commitment participation is improving employee commitment 4. Risk of conflict employee goals and norms conflict with the organisations goals, whether employees will reach agreement on the preferred solution CREATIVITY Outline the four steps in fictive process Creativity the development of original ideas that make a socially actualized contribution Rely on to find problems, alternatives and implement solutions fanciful process 1. Preparation person or team effort to gain knowledge and skills regarding the problem or opportuni ty, clear understanding of what we are nerve-racking to achieve 2.Incubation the period of reflective thoughts, put the problem aside, but our mind is still working on it, maintain a low level of awarenessdivergent thinking reframing the problem and generating different approaches to the loose convergent thinking calculating the accepted right answer to logical problem 3. Insight refers to experience of suddenly becoming aware of a unique idea CHARACTERISTICS OF CREATIVE PEOPLE Describe the characteristics of creative employee and workplaces that nutriment creativity 1.Cognitive and mulish intelligence creative people recognise the significance of small bits of information and are able to connect them in ways like no one else could imagine, they also have practical intelligence, the capacity to evaluate the potential usefulness of their ideas 2. Persistence higher need for achievement, a strong motivation from the task itself and a moderate or high degree of self-esteem, persis tence is vital because creative ideas meet with throne of resistance from others as well as failures along the way to triumph 3.Subject knowledge and experience creative people have fitting knowledge and experience on subject 4. Independent imagination -high nudeness to experience, moderately low need for affiliation, high self-direction stimulation set Creative work environment * Learning orientation leaders recognise that employees make reasonable mistakes as part of the creative process, and need to patronage creativity comes from failure * Work motivation employees can be more creative if they believe their work. Benefit the organisation * Open communication and sufficient resources Activities that encourage creativity