1. Team Problem Solving and Decision Making Chapter 14

2. Introduction (1 of 2) Effective decisions are consistently related to:  Higher individual performance  Organizational productivity  Firm financial performance Behavior and human relations vary with:  Centralized decision-making authority  Decentralized (participative) decision-making authority Joint decisions or influence sharing Empowerment

3. Introduction (2 of 2) Reasons for failed decisions:  following bandwagon behavior  ignoring ethics

4. Decisions are made to solve problems and take advantage of opportunities, which can occur at the same time.

5. Problem Solving and Decision Making Problem – exists whenever there is a difference between what is actually happening and what the individual or group wants to be happening Problem solving – the process of taking corrective action in order to meet objectives Decision making – the process of selecting an alternative course of action that will solve a problem

6. Decision-Making Styles Reflexive Style Reflective Style Consistent Style

7. Decision-Making Model Step 1. Define the problem Step 2. Set objectives and criteria Step 3. Generate alternatives Step 4. Analyze alternatives and select one Step 5. Plan, implement the decision, and control Exhibit 13.1

8. Cost-Benefit Analysis Technique for comparing the cost and benefit of each alternative course of action Costs are both financial and non-financial Approach is popular in the nonprofit sector  Benefits are often difficult to determine in quantified dollars

9. Creativity Creativity – the ability to develop unique alternatives to solve problems Creative process has four stages: 1. Preparation 2. Possible solutions 3. Incubation 4. Evaluation How people respond to creative ideas affects the group’s behavior

10. Responses That Kill Creativity It isn’t in the budget. It costs too much. We’ve never done it before. Has anyone else ever tried it? It won’t work in our company. That’s not our problem. We tried that before. It can’t be done. That’s beyond our responsibility. Its too radical a change. We did all right without it. We’re doing the best we can. We don’t have the time. That will make other equipment obsolete. We’re too small / big for it. Why change it? It’s still working OK. We’re not ready for that. Let’s form a committee. Let’s get back to reality. Exhibit 13.3

11. Techniques for Generating Creative Alternatives: (1 of 2) Brainstorming Process of suggesting many alternatives, without evaluation, to solve a problem Synetics Process of generating novel alternatives through role-playing and fantasizing Nominal Grouping Process of generating and evaluating alternatives through a structured voting method

12. Techniques for Generating Creative Alternatives: (2 of 2) Consensus Mapping Process of developing a group consensus solution to a problem Delphi Technique Polls a group through a series of anonymous questionnaires

13. Why Decisions Fail Rush-to-judgment  Managers accept the first alternative to solve the problem Misuse of resources  Managers spend their time and money during decision-making on the wrong things Applying failure-prone tactics of power and persuasion to make decisions

14. Group Problem Solving and Decision Making Advantages Better decisions More alternatives Acceptance Morale Disadvantages Time Domination Conformity and groupthink Responsibility and social loafing

15. The Normative Leadership Decision Making Model Has a time-driven and developmental- driven decision-tree It enables the user to select one of five leadership styles appropriate for the situation to maximize decisions Normative model because it:  provides a sequential set of questions that are rules (norms) to follow  to determine the best leadership style for the given situation

16. Normative Model: Leadership Participation Styles (1 of 2) Decide  The leader makes the decision alone and announces it to the followers Consult Individually  The leader tells followers individually the problem, gets information and suggestions, and then makes the decision Consult Group  The leader holds a group meeting and tells followers the problem, gets information and suggestions, and then makes the decision

17. Normative Model: Leadership Participation Styles (2 of 2) Facilitate  The leader holds a group meeting and acts as a facilitator to define the problem and the limits within which a decision must be made Delegate  The leader lets the group diagnose the problem and make the decision within stated limits

18. Does Decision Making Apply Globally? (1 of 2) Decision making styles and the decision making model are based on the U.S. approach to decision making  People from different cultures do not necessarily make decisions the same way Decision making styles do vary with culture based on time orientation

19. Does Decision Making Apply Globally? (2 of 2) High Power Distance Cultures  Autocratic decisions are made  Participation is not acceptable  Normative leadership decision model would not be used Low Power Distance Cultures  Greater use of participation in decision making