Download Decision Making - Organizational Behavior-HC | MGMT 2500 and more Study notes Organization Behaviour in PDF only on Docsity! MGMT 2500 Chapter 7: Decision Making Some Key Management Decision o Choosing candidates to interview o Hiring new employees o Evaluating employees’ job performance o Raises/Bonuses o Promotions o Disciplinary actions / Firing o Layoffs Decision Making o Rational Economic No Emotion and No Error. Logical Information is available, meaning best solutions o Rational Choice Process Identify Problems Decide on the process to take List of possible solutions Choose best solution Implement Evaluate o The Rational Model is not possible to use in real business cases It can be hard to identify the problem We do not have perfect information The human brain can’t process that much information. Emotions can influence us. o Identifying Problems Stakeholder Framing We tend to see things through our own view. o Customers want lower prices, Employees want higher wages Perceptual Defense o “Don’t tell me the bad news” Mental Models o Out-side of the box thinking o Bounded Rationality The real way that humans decide Goals Problems and goals aren’t always clear o We don’t always agree Information Limited amount We are slow processors. Implicit Favorites Biased opinions that affect other decisions. Satisfying “Good enough” solution. o Emotions Influence our Decisions Form an early preference Change our evaluations Become part of the information o Intuition Subconscious decisions Prior Expertise Should be paired with logic o Post Decisional Justification Tending to support your decision by increasing the positives and decreasing the negatives. Maintains positive self-concept and protect ego. o Escalation of Commitment Tend to repeat a bad decision or we tend to put more resources into a bad idea in order to make it good. The self-identity that’s at stake causes this. Perceptual Blinders o We don’t like to get bad news. Closing Costs o Involving Employees in Decisions “Participative Management” Employees have better information Faster problem solving since they see things faster o Creative Process Model The more creative you are, the better decisions will be made 4-steps Preparation (Research) Incubate Insight Verify Characteristics of Creative People What to look for when hiring o Open to new experience o Low need for affiliation o High self direction o Confident o Above average IQ o Persistent o Experience in their field How to encourage Creativity
