2. Teams and Creative Problem Solving and Decision Making13
Teams and Creative Problem Solving and Decision Making

3. 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

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

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

6. 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

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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. Why Decisions Fail Rush-to-judgment Misuse of resources
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

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

16. 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

17. 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

18. 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

19. Normative Model: Determine Appropriate Leadership Style (1 of 3)
1. Decision Significance
How important is the decision to the success of the project or organization?
2. Importance of Commitment
How important is follower commitment to implement the decision?
3. Leader Expertise
How much knowledge and expertise does the leader have with this specific decision?

20. Normative Model: Determine Appropriate Leadership Style (2 of 3)
4. Likelihood of Commitment
If the leader were to make the decision alone, is it highly (H) certain that the followers would be committed to the decision or low (L)?
5. Group Support for Objectives
Do followers have high (H) or low (L) support for the team or organizational goals to be attained in solving the problem?

21. Normative Model: Determine Appropriate Leadership Style (3 of 3)
6. Group Expertise
How much knowledge and expertise do the individual followers have with this specific decision?
7. Team Competence
Is the ability of the individuals to work together as a team to solve the problem high (H) or low (L)?

22. Normative Model: The Time-Driven Model
Focus:
Concerned with making effective decisions with minimum cost.
Time is costly.
Value:
Value is placed on time.
No value is placed on follower development.
Orientation:
Short-term horizon

23. Normative Model: The Development-Driven Model
Focus:
Concerned with making effective decisions with maximum development of followers.
Follower development is worth the cost.
Value:
Value is placed on follower development.
No value is placed on time.
Orientation:
Long-term horizon.
Development takes time.

24. Normative Model: Computerized Model
Vroom has developed a computerized CD-ROM model
More complex, more precise, and easier to use
Combines the time- and development-driven models into one model
Includes 11 variables/questions
Has five variable measures
Guides users through the process of analyzing the situation

25. 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

26. 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