Presentation Slides to Accompany Organizational Behavior   10 th  Edition Don Hellriegel and John W. Slocum, Jr. Chapter 1...
Slide 13.1 Learning Objectives for Making Decisions in Organizations <ul><li>Explain the basic concepts for making ethical...
Slide 13.2 Components of the Foundation for Making Ethical Decisions <ul><li>Ethical intensity </li></ul><ul><li>Decision-...
Slide 13.3 Components of Ethical Intensity <ul><li>Magnitude of consequences </li></ul><ul><li>Probability of effect </li>...
Slide 13.4 Ethical Principles That Justify Self-Serving Behaviors and Decisions <ul><li>Hedonist principle </li></ul><ul><...
Slide 13.4 (continued) Ethical Principles That Justify Self-Serving Behaviors and Decisions <ul><li>Organization interests...
Slide 13.5 Ethical Principles That Focus on  Balancing Multiple Interests <ul><li>Means–end principle </li></ul><ul><ul><l...
Slide 13.5 (continued) Ethical Principles That Focus on  Balancing Multiple Interests <ul><li>Professional standards princ...
Slide 13.6 Ethical Principles That Consider Affected Parties and the Public <ul><li>Disclosure principle </li></ul><ul><ul...
Slide 13.6(continued) Ethical Principles That Consider Affected Parties and the Public <ul><li>Golden rule principle </li>...
Slide 13.7 Guidelines for Integrating Ethical Decision Making into the Organization’s Daily Life <ul><li>Top management sh...
Slide 13.8 Explicit Assumptions of the Rational Model <ul><li>All available information on alternatives has been obtained ...
Slide 13.9 Implicit Assumptions of the Rational Model <ul><li>Ethical dilemmas do not exist in the decision-making process...
Slide 13.10 Portion of Xerox’s Rational Decision Process 1.  Identify and select problem What do we want to change? Identi...
Slide 13.11 Bounded Rationality Model Bounded Rationality Limited Search Inadequate Information and Control Decisions Sati...
Slide 13.12 Political Model of Decision Making <ul><li>Describes decision making by individuals to satisfy their own inter...
Slide 13.13 Influence Strategies <ul><li>Rational persuasion </li></ul><ul><li>Inspirational appeal </li></ul><ul><li>Cons...
Slide 13.14 Barriers to Creativity and Innovation <ul><li>Perceptual blocks </li></ul><ul><ul><li>Failure to use all the s...
Slide 13.14 (continued) Barriers to Creativity and Innovation <ul><li>Emotional blocks </li></ul><ul><ul><li>Fear of makin...
Slide 13.15 Characteristics of Lateral Versus Vertical Thinking <ul><li>Finds new ways to view things; concerned with chan...
Slide 13.16 Useful Lateral Thinking Techniques <ul><li>Reversal technique </li></ul><ul><ul><li>Examining a problem and tu...
Slide 13.17 Decision Making with a Devil’s Advocate A proposed course of action is generated. A devil’s advocate is assign...
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Ch13

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Ch13

  1. 1. Presentation Slides to Accompany Organizational Behavior 10 th Edition Don Hellriegel and John W. Slocum, Jr. Chapter 13 — Making Decisions in Organizations
  2. 2. Slide 13.1 Learning Objectives for Making Decisions in Organizations <ul><li>Explain the basic concepts for making ethical decisions </li></ul><ul><li>Describe the attributes of three models of managerial decision making </li></ul><ul><li>Explain two methods for stimulating organizational creativity </li></ul>
  3. 3. Slide 13.2 Components of the Foundation for Making Ethical Decisions <ul><li>Ethical intensity </li></ul><ul><li>Decision-making principles and decision rules </li></ul><ul><li>Affected individuals </li></ul><ul><li>Benefits and costs </li></ul><ul><li>Determination of rights </li></ul>
  4. 4. Slide 13.3 Components of Ethical Intensity <ul><li>Magnitude of consequences </li></ul><ul><li>Probability of effect </li></ul><ul><li>Social consensus </li></ul><ul><li>Temporal immediacy </li></ul><ul><li>Proximity </li></ul><ul><li>Concentration of effect </li></ul>
  5. 5. Slide 13.4 Ethical Principles That Justify Self-Serving Behaviors and Decisions <ul><li>Hedonist principle </li></ul><ul><ul><li>Do whatever you find to be in your own self-interest but do nothing that is clearly illegal </li></ul></ul><ul><li>Might-equals-right principle </li></ul><ul><ul><li>Do whatever you are powerful enough to impose without respect to socially acceptable behaviors but do nothing that is clearly illegal </li></ul></ul>
  6. 6. Slide 13.4 (continued) Ethical Principles That Justify Self-Serving Behaviors and Decisions <ul><li>Organization interests principle </li></ul><ul><ul><li>Act on the basis of what is good for the organization but do nothing that is clearly illegal </li></ul></ul>
  7. 7. Slide 13.5 Ethical Principles That Focus on Balancing Multiple Interests <ul><li>Means–end principle </li></ul><ul><ul><li>Act on the basis of whether some overall good justifies any moral transgression but do nothing that is clearly illegal </li></ul></ul><ul><li>Utilitarian principle </li></ul><ul><ul><li>Act on the basis of whether the harm from a decision is outweighed by the good in it but do nothing that is clearly illegal </li></ul></ul>
  8. 8. Slide 13.5 (continued) Ethical Principles That Focus on Balancing Multiple Interests <ul><li>Professional standards principle </li></ul><ul><ul><li>Act on the basis of whether the decision can be explained before a group of your peers but do nothing that is clearly illegal </li></ul></ul>
  9. 9. Slide 13.6 Ethical Principles That Consider Affected Parties and the Public <ul><li>Disclosure principle </li></ul><ul><ul><li>Act on the basis of how the general public would likely respond to disclosure of the rationale and facts related to the decision but do nothing that is clearly illegal </li></ul></ul><ul><li>Distributive justice principle </li></ul><ul><ul><li>Act on the basis of treating an individual or group equitably rather than on arbitrarily defined characteristics but do nothing that is clearly illegal </li></ul></ul>
  10. 10. Slide 13.6(continued) Ethical Principles That Consider Affected Parties and the Public <ul><li>Golden rule principle </li></ul><ul><ul><li>Act on the basis of placing yourself in the position of someone affected by the decision and try to determine how that person would feel but do nothing that is clearly illegal </li></ul></ul>
  11. 11. Slide 13.7 Guidelines for Integrating Ethical Decision Making into the Organization’s Daily Life <ul><li>Top management should commit to and model ethical behavior </li></ul><ul><li>Develop a code of ethics and follow it </li></ul><ul><li>Have procedures for organization members to report unethical behavior </li></ul><ul><li>Involve managers and employees in identifying and solving ethical problems </li></ul><ul><li>Include ethics in performance appraisal </li></ul><ul><li>Publicize the organization’s ethical orientation </li></ul>
  12. 12. Slide 13.8 Explicit Assumptions of the Rational Model <ul><li>All available information on alternatives has been obtained </li></ul><ul><li>Alternatives can be ranked according to explicit criteria </li></ul><ul><li>The alternative selected will provide the maximum gain </li></ul>
  13. 13. Slide 13.9 Implicit Assumptions of the Rational Model <ul><li>Ethical dilemmas do not exist in the decision-making process </li></ul><ul><li>The means–end principle and the utilitarian principles will dominate the consideration of ethical issues </li></ul>
  14. 14. Slide 13.10 Portion of Xerox’s Rational Decision Process 1. Identify and select problem What do we want to change? Identification of the gap; describe “desired state” Key cause(s) documented and ranked Solution list Make change plan; establish measurement criteria Solution in place Solution verification; deal with continuing problems STEP QUESTION TO BE ANSWERED WHAT’S NEEDED TO GO TO NEXT STEP What’s preventing us from reaching the “desired state”? How could change be made? What’s the best way to do it? Are we following the plan? Source: Adapted from Garvin, D. A. Building a learning organization. Harvard Business Review , July-August 1993, 78-91; Brown, J. S., and Walton, E. Reenacting the corporation: Organizational change and restructuring of Xerox Planning Review , September/October 1993, 5-8. How well did it work? 2. Analyze problem 3. Generate potential solutions 4. Select and plan the solution 5. Implement the solution 6. Evaluate the solution
  15. 15. Slide 13.11 Bounded Rationality Model Bounded Rationality Limited Search Inadequate Information and Control Decisions Satisficing
  16. 16. Slide 13.12 Political Model of Decision Making <ul><li>Describes decision making by individuals to satisfy their own interests </li></ul><ul><li>All aspects of the decision-making process are merely methods to tilt decision outcomes in the decision maker’s favor </li></ul><ul><li>Decision outcomes are affected by the distribution of power and the effectiveness of the tactics used by participants </li></ul><ul><li>Doesn’t explicitly consider ethical dilemmas but often draws on the hedonistic principle and the might-equals-right principle </li></ul>
  17. 17. Slide 13.13 Influence Strategies <ul><li>Rational persuasion </li></ul><ul><li>Inspirational appeal </li></ul><ul><li>Consultation </li></ul><ul><li>Ingratiation </li></ul><ul><li>Exchange </li></ul><ul><li>Personal appeal </li></ul><ul><li>Coalition </li></ul><ul><li>Legitimating </li></ul><ul><li>Pressure </li></ul>Source: Adapted from Yukl, G., Guinan, P. J., and Sottolano, D. Influence tactics used for different objectives with subordinates, peers, and superiors. Group & Organization Management , 1995, 20, 275; Buchanan, D., and Badham, R. Power, Politics and Organizational Change . London: Sage, 1999, 64.
  18. 18. Slide 13.14 Barriers to Creativity and Innovation <ul><li>Perceptual blocks </li></ul><ul><ul><li>Failure to use all the senses in observing </li></ul></ul><ul><ul><li>Failure to investigate the obvious </li></ul></ul><ul><ul><li>Difficulty in seeing remote relationships </li></ul></ul><ul><ul><li>Failure to distinguish between cause and effect </li></ul></ul><ul><li>Cultural blocks </li></ul><ul><ul><li>Desire to conform to established norms </li></ul></ul><ul><ul><li>Overemphasis on competition or conflict avoidance </li></ul></ul><ul><ul><li>Drive to be practical and to economize </li></ul></ul><ul><ul><li>Disbelief in the value of open-ended exploration </li></ul></ul>
  19. 19. Slide 13.14 (continued) Barriers to Creativity and Innovation <ul><li>Emotional blocks </li></ul><ul><ul><li>Fear of making a mistake </li></ul></ul><ul><ul><li>Fear and distrust of others </li></ul></ul><ul><ul><li>Latching on to the first idea </li></ul></ul>
  20. 20. Slide 13.15 Characteristics of Lateral Versus Vertical Thinking <ul><li>Finds new ways to view things; concerned with change and movement. </li></ul><ul><li>Looks for what is different rather than “right” or “wrong.” </li></ul><ul><li>Analyzes ideas to generate new ideas. </li></ul><ul><li>Uses free association thinking. </li></ul><ul><li>Welcomes chance intrusions of information; considers the irrelevant. </li></ul><ul><li>Progresses by avoiding the obvious. </li></ul><ul><li>Tries to find absolutes; concerned with stability. </li></ul><ul><li>Seeks justification for each step; tries to find what is “right.” </li></ul><ul><li>Analyzes ideas for faults. </li></ul><ul><li>Seeks continuity. </li></ul><ul><li>Selectively chooses information to consider; rejects irrelevant information. </li></ul><ul><li>Progresses using established patterns; considers the obvious. </li></ul>LATERAL THINKING VERTICAL THINKING Source: Based on de Bono, E. Lateral Thinking: Creativity Step by Step . New York: Harper & Row, 1970; de Bono, E. Six Thinking Hats . Boston: Little, Brown, 1985.
  21. 21. Slide 13.16 Useful Lateral Thinking Techniques <ul><li>Reversal technique </li></ul><ul><ul><li>Examining a problem and turning it completely around, inside out, or upside down </li></ul></ul><ul><li>Analogy technique </li></ul><ul><ul><li>Developing a statement about similarities between objects, persons, and situations </li></ul></ul><ul><li>Cross-fertilization technique </li></ul><ul><ul><li>Asking experts from other fields to examine the problem and suggest solutions from their own areas of expertise </li></ul></ul>
  22. 22. Slide 13.17 Decision Making with a Devil’s Advocate A proposed course of action is generated. A devil’s advocate is assigned to criticize the proposal. A critique is presented to key decision makers. The decision is monitored. The decision to adopt, modify, or discontinue the proposed course of action is taken. Any additional information relevant to the issues is generated. Source: Adapted from Cosier, R. A., and Schrivenk, C. R. Agreement and thinking alike: Ingredients for poor decisions. Academy of Management , February 1991, 71. Repeat process, if needed.

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