BUS 51 - Mosley7e ch03

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Cengage Professor, Karen Gordon-Brown, Peralta Community College District @ Merritt College, Oakland, CA
kgordon@peralta.edu

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  • BUS 51 - Mosley7e ch03

    1. 1. Part 2 Planning and Organizing Chapter 3 Decision Making, Problem Solving, and Ethics Mosley • Pietri PowerPoint Presentation by Charlie Cook The University of West Alabama © 2008 Thomson/South-Western All rights reserved.
    2. 2. Learning Objectives Learning Objectives After reading and studying this chapter, you should be able to: 1. Explain the role of decision making in the supervisor’s job. 2. Define decision making and identify at least four elements involved. 3. Discuss why supervisors need to make so many decisions. 4. Discuss how decisions are made. 5. Name some factors to keep in mind when making decisions. © 2008 Thomson/SouthWestern. All rights reserved. 3–2
    3. 3. Learning Objectives (cont’d) Learning Objectives (cont’d) After reading and studying this chapter, you should be able to: 6. Decide whether to use the individual approach or the group approach when making decisions. 7. Discuss some ways of improving decision making. 8. Explain the role of ethics in the supervisor’s decision making. © 2008 Thomson/SouthWestern. All rights reserved. 3–3
    4. 4. Role of Decision Making in Supervisory Management • Decisions and the Management Functions:  Planning—deciding which objectives to seek, which policies to establish, and what rules to institute.  Organizing—deciding who gets what authority and how duties and responsibilities are grouped.  Staffing—deciding employee selection, placement, training and development, performance appraisal, compensation, and health and safety.  Leading—deciding how best to communicate with and motivate employees.  Controlling—deciding how to match planned performance with actual performance. © 2008 Thomson/SouthWestern. All rights reserved. 3–4
    5. 5. EXHIBIT 3.1 Decision Making is the Heart of Supervisory Management © 2008 Thomson/SouthWestern. All rights reserved. 3–5
    6. 6. Why Supervisors Need to Make So Many Decisions • Decisions and Supervisors  To direct employees’ behavior toward goals of the organization and the employees’ own goals.  The organizational environment of supervisors requires more (and more frequent) decisions about a larger variety of activities of many other people.  Operative employees require more direction, guidance, and protection that higher-level employees. • Span of Management  The number of immediate employees a manager can supervise effectively. © 2008 Thomson/SouthWestern. All rights reserved. 3–6
    7. 7. What Is Decision Making? • Decision Making Defined  The conscious consideration and selection of a course of action from among two or more available alternatives in order to produce a desired result. • Elements Involved in Decision Making  A decision may not be needed.  Decisions involve the future  Decision making is a conscious process  Decision making involves more than one alternative © 2008 Thomson/SouthWestern. All rights reserved. 3–7
    8. 8. EXHIBIT 3.2 Decision-Making Process © 2008 Thomson/SouthWestern. All rights reserved. 3–8
    9. 9. Types of Decisions to Be Made • Programmed Decisions  Routine and repetitive decisions that are handled in a systematic way.  Example: Setting a production schedule. • Unprogrammed Decisions  Decisions that occur infrequently and require a different response each time.  Example: deciding on which employee to promote. © 2008 Thomson/SouthWestern. All rights reserved. 3–9
    10. 10. How Decision Making and Problem Solving Relate • Which Is It?  Opportunity—a chance for development or advancement.  Problem—an existing unsatisfactory situation causing anxiety or distress. • What Effective Supervisors Do  Identify problems and their cause(s).  Analyze complex and involved situations.  Solve problems by removing their cause(s).  Recognize that opportunities represent progress. © 2008 Thomson/SouthWestern. All rights reserved. 3–10
    11. 11. EXHIBIT 3.3 Steps in Decision Making © 2008 Thomson/SouthWestern. All rights reserved. 3–11
    12. 12. How to Make Decisions • Step 1: Define the Idea or Problem  Correctly defining the real problem (i.e., root causes) is key to correctly solving the problem. • Step 2: Develop Alternatives  Identifying possible courses of action that can satisfy a need or solve a problem. • Step 3: Collect, Interpret, and Evaluate Information about Each Alternative  Knowledge of the alternatives is necessary to objectively evaluate the applicability and feasibility of each alternative. © 2008 Thomson/SouthWestern. All rights reserved. 3–12
    13. 13. EXHIBIT 3.4 Evaluating Alternatives © 2008 Thomson/SouthWestern. All rights reserved. 3–13
    14. 14. How to Make Decisions (cont’d) • Step 4: Select the Preferred Alternative  Cost/benefit analysis—estimating and comparing the costs and benefits of alternatives.  Risk—the possibility of defeat, disadvantage, injury, or loss. • Step 5: Implement the Decision  Putting the decision into operation. • Step 6: Follow Up, Evaluate, and Make Changes—If Needed  Exercising control through the provision of feedback and corrective action to attain the desired results. © 2008 Thomson/SouthWestern. All rights reserved. 3–14
    15. 15. Approaches to Decision Making and Problem Solving • The Myers-Briggs Type Indicator (MBTI)  Measures eight dimensions of personality types to identifies an individual’s personal style.  Four internal dimensions are directly related to decision making and problem solving:  Sensing—patient, practical, and realistic  Intuition—impatient, idea and theory oriented, and creative  Thinking—rational, logical, objective, and analytical  Feeling—relationship-oriented, empathetic, and socially aware © 2008 Thomson/SouthWestern. All rights reserved. 3–15
    16. 16. EXHIBIT 3.5 Characteristics of Different Personality Types SENSING AND INTUITIVE CHARACTERISTICS Sensing Types Intuitive Types Dislike new problems unless there are standard ways to solve them. Like solving new problems. Like an established way of doing things. Dislike doing the same thing repeatedly. Enjoy using skills already learned more than learning new ones. Enjoy learning a new skills more than using it. Work more steadily, with realistic idea of how long it will take. Work in bursts of energy powered by enthusiasm, with slack periods in between. Usually reach a conclusion step-by-step. Reach a conclusion quickly. Are patient with routine details. Are impatient with routine details. Are impatient when the details get complicated. Are patient with complicated situations. Are not often inspired, and rarely trust the inspiration when they are. Follow their inspirations, good or bad. Seldom make errors of fact. Frequently make errors of fact. Tend to be good at precise work. Dislike taking time for precision. © 2008 Thomson/SouthWestern. All rights reserved. Source: Reproduced by special permission of the publishers, Consulting Psychologists Press, Inc., Palo Alto, CA 94303, from Introduction to Type by Isabel Briggs Myers. Copyright 1980 by Consulting Psychologists Press, Inc. All rights reserved. Further reproduction is prohibited without the publisher’s consent. 3–16
    17. 17. EXHIBIT 3.5 Characteristics of Different Personality Types (cont’d) THINKING AND FEELING CHARACTERISTICS Thinking Types Feeling Types Do not show emotion readily and are often uncomfortable dealing with people’s feelings. Tend to be very aware of other people and their feelings. May hurt people’s feelings without knowing it. Enjoy pleasing people, even in unimportant things. Like analysis and putting things into logical order. Can get along without harmony. Like harmony. Efficiency may be badly disturbed by office feuds. Tend to decide impersonally, sometimes paying insufficient attention to people’s wishes. Often let decisions be influenced by their own or other people’s personal likes and wishes. Need to be treated fairly. Need occasional praise. Are able to reprimand people or fire them when necessary. Dislike telling people unpleasant things. Are more analytically oriented—respond more easily to people’s thoughts. Are more people oriented—respond more easily to people’s values. Tend to be firm minded. Tend to be sympathetic. © 2008 Thomson/SouthWestern. All rights reserved. Source: Reproduced by special permission of the publishers, Consulting Psychologists Press, Inc., Palo Alto, CA 94303, from Introduction to Type by Isabel Briggs Myers. Copyright 1980 by Consulting Psychologists Press, Inc. All rights reserved. Further reproduction is prohibited without the publisher’s consent. 3–17
    18. 18. Approaches to Decision Making and Problem Solving (cont’d) • The Vroom-Yetton Model  Provides guidelines for supervisors on the extent to which subordinates are involved in decision making or problem solving. • Factors Affecting Involvement in Decisions  Situational conditions of the problem  Quality of information available about the problem  Importance of subordinates’ acceptance of the decision  Timeframe for the decision © 2008 Thomson/SouthWestern. All rights reserved. 3–18
    19. 19. EXHIBIT 3.6 Managers’ Participation Styles for Making Decisions Participation Style Description A You solve the problem or make the decision yourself, using the information available to you at the present time. B You obtain any necessary information from subordinates, then decide on a solution to the problem yourself. C You share the problem with the relevant subordinates individually, getting their ideas and suggestions without bringing them together as a group. Then you make the decision. D You share the problem with your subordinates in a group meeting, in which you obtain their ideas and suggestions. Then you make the decision. E You share the problem with your subordinates as a group. Together you generate and evaluate alternatives and attempt to reach agreement (consensus) on a solution. You can provide the group with information or ideas, but you do not try to press them to adopt “your” solution, and you are willing to accept and implement any solution that has the support of the entire group. © 2008 Thomson/SouthWestern. All rights reserved. Source: Adapted and reprinted from Leadership and Decision-Making, by Victor H. Vroom and Philip W. Yetton, by permission of the University of Pittsburgh Press. © 1973 University of Pittsburgh Press. 3–19
    20. 20. EXHIBIT 3.7 Decision Tree, Governing Group Problems © 2008 Thomson/SouthWestern. All rights reserved. 3–20
    21. 21. EXHIBIT 3.8 The Vroom-Yetton Model: Which Decision Style to Use Decision Problem As president of the Student Management Club at State University, you must make a decision concerning a date for the annual student banquet. Q1 Is there a quality requirement such that one solution is likely to be more rational than another? Ans Yes. One solution is likely to be more rational since there are various dates that will be unsatisfactory because of competing activities. Q2 Do you have sufficient information to make a high-quality decision? Ans No. You may have certain information on competing dates for some officially scheduled university activities, but there may be some other kinds of activities going on that you are unaware of. Q3 Is the problem structured? Ans Yes. Selection of a date for a banquet to be held within the next month is a well-structured decision problem. Q4 Is acceptance of the decision by your subordinates critical to implementation? Ans Yes. If the subordinates (and others) don’t show up, the banquet is a failure. Q5 Is it reasonably certain that the decision would be accepted by you subordinates if you were to make it by yourself? Ans No. You might accidentally select a date that would not be suitable to your subordinates. For example, the day you select could be one on which subordinates have a major exam or term papers due the following day. Q6 Do members share the view that the banquet date is important? Ans Yes. Members have shown good attendance at meetings and consider the banquet the highlight of the year. Awards are presented, next year’s officers announced, and so on. Optimum Decision Style As president, you should share the problem with members as a group, with the group generating and evaluating alternatives, and should attempt to arrive at a consensus decision. © 2008 Thomson/SouthWestern. All rights reserved. 3–21
    22. 22. Bases of Decision Making • Authority of position—authority vested in the decision maker’s position. • Experience—practical knowledge of what has been done in the past. • Facts—pertinent information, carefully classified, diagnosed, and interpreted. • Intuition—unconscious influence of a person’s cultural backgrounds, education, and training. • Follow-the-leader—the herd instinct, based on doing what others are doing. © 2008 Thomson/SouthWestern. All rights reserved. 3–22
    23. 23. Advantages of Group Decision Making • Provides the supervisor with a broader range of information on the problem, alternatives, and recommended solution. • Lends more creative approach to solving problems, since ideas may be “piggybacked.” • Improves communication in the department because the group becomes aware of issues facing the supervisor. • Creates higher morale in the group. • Stresses a stronger commitment to the decision once it is made, since the group helped to make it. © 2008 Thomson/SouthWestern. All rights reserved. 3–23
    24. 24. Disadvantages of Group Decision Making • Holds the supervisor accountable for the group’s decisions. • Takes the group away from other aspects of their jobs. • May force the supervisor to choose sides and thus cause morale problems. • Allows strong personalities to dominate the group, in which case the decision may not reflect the entire group’s opinion. • Requires more supervisory skill in communicating and clarifying the group’s role in a given decision. • Is difficult to use if the decision must be made quickly. © 2008 Thomson/SouthWestern. All rights reserved. 3–24
    25. 25. Approaches to Decision Making and Problem Solving (cont’d) • Creative Problem Solving  Synergy—the whole is greater than the sum of the parts.  Synergistic solutions can be defined as 1 + 1 + 1 + 1 + 1 = more than 5. • Developing Creativity  Deferred judgment—using right-hemisphere functions as thought generators and following them with leftbrained functions that result in powerfully effective “whole-brained” creativity. © 2008 Thomson/SouthWestern. All rights reserved. 3–25
    26. 26. Creative Problem Solving • Brainstorming  Occurs when a group of individuals generates ideas in response to a question without evaluating the ideas as they are produced. • Guidelines for Using Brainstorming  The group favors quantity over quality.  Members refrain from judging contributions; they can ask questions later, in the evaluation part.  Team members avoid censoring.  Pride of authority is minimized; members should feel free to offer variants and build on one another’s ideas. © 2008 Thomson/SouthWestern. All rights reserved. 3–26
    27. 27. Creative Problem Solving (cont’d) • The Crawford Slip Technique  Achieves creativity through:  Fluency—the ability to let ideas flow out of your head like water over a waterfall  Flexibility—the ability to use free association to generate or classify ideas in categories. • Nominal Grouping Technique  Is a structured group technique for generating ideas through round-robin individual responses, group sharing without criticism, and written balloting. © 2008 Thomson/SouthWestern. All rights reserved. 3–27
    28. 28. EXHIBIT 3.9 Steps in Nominal Grouping Divide into groups of six or nine persons. Without interaction, list the strengths you feel are associated with Question I, then list the problems for Question 2. (Time: 6 minutes.) Select a recorder. a. The recorder asks each member, one at a time, to read from his or her card one strength associated with Question I. Example: What are the strengths of this plant? b. The recorder writes each strength exactly as it is read. c. Those having the same strength should raise hands. The recorder checkmarks each strength once for each person raising a hand. d. When all Question I strengths are recorded, the procedure is repeated for Question 2 problems. Example: What are the problems preventing this plant from reaching its potential effectiveness? Discuss the two lists. Clarify, defend, elaborate, or add other items as needed. (Time: 5 minutes.) Without interaction, each member lists on an index card the five items he or she considers most important with reference to Question I; do the same for Question 2. The recorder collects and records the votes. © 2008 Thomson/SouthWestern. All rights reserved. 3–28
    29. 29. Factors to Keep in Mind When Making Decisions • The right person should make the decision. • Decisions should contribute to objectives. • There’s seldom only one acceptable choice. • Both feeling and thinking should be used. • Effective decision making takes considerable time and effort. • Decision making improves with practice. • A decision may not please everyone. • A decision starts a chain reaction. • Ethical considerations must play a part. © 2008 Thomson/SouthWestern. All rights reserved. 3–29
    30. 30. The Role of Ethics in the Decision Making • Ethics  The standards used to judge the “rightness” or “wrongness” of one person’s behavior toward others. • Levels of Behavior  Personal ethics is the highest and most rigid level of behavior.  Professional and organizational codes of ethics as statements of what is and isn’t acceptable behavior.  The lowest level of ethical behavior is the legal level, where all are expected to adhere to the “law of the land.” © 2008 Thomson/SouthWestern. All rights reserved. 3–30
    31. 31. Responses to Ethical Issues • Businesses have responded to increased pressures for ethical conduct by:  Adopting of codes of conduct.  Setting social goals that boost business.  Better monitoring of business practices through internal audits. © 2008 Thomson/SouthWestern. All rights reserved. 3–31
    32. 32. Ethics: How Do I Know It’s Right? Is it legal? Will my decision violate either company policy or civil law? Is it balanced? Is it fair to all concerned in the short term as well as in the long term? Does it promote win-win relationships? How will it make me Would I feel good if my decision were feel about myself? published in the newspaper? Would I feel good if my family knew about my decision? © 2008 Thomson/SouthWestern. All rights reserved. 3–32
    33. 33. Important Terms Important Terms • • • • • • • • • • • • • managerial decision making programmed decisions nonprogrammed decisions decision tree creativity Myers-Briggs Type Indicator (MBTI) Vroom-Yetton Model synergy brainstorming Crawford Slip Technique fluency flexibility nominal grouping technique (NGT) © 2008 Thomson/SouthWestern. All rights reserved. 3–33

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