Académique Documents
Professionnel Documents
Culture Documents
CHAPTER 6
DECISION MAKING AND ETHICS
Learning Outcomes
Compare and contrast the rational model of decision-making and the bounded
rationality model.
Explain the model of decision-making styles and the stages of the creative process.
Explain how participative management affects performance.
Contrast brainstorming, the nominal group technique, the Delphi technique, and
computer-aided decision-making.
Specify at least four actions managers can take to improve an organizations ethical
climate.
I.
B.
The Rational Model proposes that managers use a rational, four step
sequence when making decisions:
1.
Identifying the problem exists when the actual situation and the desired
situation differ.
2.
3.
4.
5.
II.
Directive -- a low tolerance for ambiguity and are oriented toward task and
technical concerns when making decisions.
2.
3.
4.
B. Escalation of Commitment
1. Escalation of commitment refers to the tendency to stick to an ineffective
course of action when it is unlikely that the bad situation can be reversed.
Research shows that individuals tend to:
a. bias facts so that they support previous decisions
b. take more risks when a decision is stated in negative terms (to recover
losses)
c. get too ego-involved with the project
III.
CREATIVITY
Process of developing something new or unique
A. Stages of Creativity
1. Preparation stage reflects the notion that creativity starts from a base of
knowledge.
2. Concentration stage focuses on the problem at hand.
3. Incubation stage is done unconsciously as people engage in daily activities
while their minds simultaneously mull over information and make remote
associations.
4. Illumination occurs when the remote associations made in the incubation stage
are ultimately generated in this stage.
5. Verification stage entails going through the entire process to verify, modify, or
try out the new idea.
B. Improving Organizational Creativity and Innovation (See Table 6-1, page
122)
1. Develop an environment that supports creative behaviour
2. Encourage employees to be more open to new ideas and experiences
3. Foster their creativity
4. Allow employees to have fun and play around
IV.
Invulnerability
(ii)
Inherent morality
(iii) Rationalization
(iv)
(v)
Self-censorship
(vi)
Illusion of unanimity
(vii) Peer
pressure
(viii) Mindguards
(ii)
Top-level executives should not use policy commitment to rubberstamp decisions that have already been made
(iii) Different
questions
(iv)
(v)
(vi)
(ii)
(iii) Because
B. Participative Management
1. Involving employees in various forms of decision making by having them
play a direct role in:
a.
b.
c.
d.
setting goals
making decisions
solving problems
making changes in the organization
3.
2.
The Nominal Group Techniques (NGT) helps groups generate ideas and
evaluate and select solutions.
3.
4.
V.
Individual influence
Cultural influence
Organizational influence
Political/legal/economic influences