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The photos on the first and last pages of this slideshow were provided by a former member of the Chasseurs Alpins (French Mountain Troops) who took an MBA at ESCP Europe.

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  2. 2. DECISIONMAKING 1 Objectives <ul><li>Explore Decisionmaking Dynamics </li></ul><ul><li>Discover Decisionmaking Styles </li></ul><ul><li>Improve Decisionmaking Effectiveness </li></ul><ul><li>Acquire Key Decisionmaking Skills </li></ul>
  3. 3. DECISIONMAKING 3 Decisions in Business <ul><li>Rand Corporation Survey </li></ul><ul><ul><li>► Average Budget overrun 153% </li></ul></ul><ul><ul><li>► 74 % of costing errors were avoidable </li></ul></ul><ul><ul><li>► Managers blamed external factors </li></ul></ul><ul><li>Study of 324 Chairman’s letters </li></ul><ul><ul><li>► 83% claimed responsibility for success </li></ul></ul><ul><ul><li>► 19% accepted blame for failure </li></ul></ul>
  4. 4. DECISIONMAKING 4 Organizational life revolves around team structure <ul><li>CONTENT - what the team is talking about </li></ul><ul><li>PROCESS - how the team handles its communication </li></ul><ul><li>Who talks, for how long, how often ? </li></ul><ul><li>Who do people look at when they talk ? </li></ul><ul><li> Individuals, the group, nobody… </li></ul><ul><li>Who talks after whom, who interrupts ? </li></ul><ul><li>What communication style is used ? </li></ul><ul><ul><li>Assertions, questions, voice tone, volume, gestures, eye contact… </li></ul></ul>
  5. 5. DECISIONMAKING 5 When people get together, they assume a role or function in relation to the group <ul><li>Roles are relatively consistent </li></ul><ul><li>A person may play a variety of roles in the same group </li></ul><ul><li>Roles may vary with the dynamics of the meeting </li></ul><ul><li>An individual’s role may vary from one group to another </li></ul><ul><li>The method of dealing with an individual depends on the </li></ul><ul><li> group in which he is participating </li></ul>
  6. 6. TEAM ROLES
  7. 7. DECISIONMAKING 6 <ul><li>TASK BEHAVIOR </li></ul><ul><li>Initiating </li></ul><ul><li>Seeking/giving information or opinion </li></ul><ul><li>Clarifying, elaborating, summarizing </li></ul><ul><li>Consensus testing </li></ul><ul><li>MAINTENANCE BEHAVIOR </li></ul><ul><li>Harmonizing, gatekeeping, encouraging, compromising </li></ul><ul><li>Standard setting and testing </li></ul><ul><li>SELF-ORIENTED BEHAVIOR </li></ul><ul><li>Identity, Power, Goals, Acceptance, Intimacy </li></ul>
  8. 8. DECISIONMAKING 7 <ul><li>TOUGH BATTLER </li></ul><ul><li>Power </li></ul><ul><li>Competition </li></ul><ul><li>Hostility </li></ul><ul><li>Assertiveness </li></ul><ul><li>FRIENDLY HELPER </li></ul><ul><li>Affiliation </li></ul><ul><li>Helpfulness </li></ul><ul><li>Sympathy </li></ul><ul><li>LOGICAL THINKER </li></ul><ul><li>Logic & reason </li></ul><ul><li>Understanding </li></ul><ul><li>Knowledge & systems </li></ul>
  9. 9. DECISIONMAKING 8 Decisionmaking procedures <ul><li>Self-authorized agenda « I think we should… » </li></ul><ul><li>The duo « I think we should… » « I agree… » </li></ul><ul><li>Minority rule « No objections ? Good, then we all agree » </li></ul><ul><li>Majority vote </li></ul><ul><li>Polling « What does everyone think ? » </li></ul><ul><li>Consensus testing Exploring to test for opposition and determine if it’s strong enough to refuse to implement the decision. </li></ul><ul><li>We need to understand how a decision is being made </li></ul><ul><li>and decide if the method is appropriate. </li></ul>
  10. 10. DECISIONMAKING 9 Decisionmaking styles <ul><li>Indecisive/Go along </li></ul><ul><li>Abdicates responsibility as well as consequences. </li></ul><ul><li>Lacks knowledge or skill, prefers to follow others. </li></ul><ul><li>Least resistance, low effort, avoid conflict. </li></ul><ul><li>Status quo, influenced by environment. </li></ul><ul><li>Compromising/Controlled delay </li></ul><ul><li>Advocates compromise, reflecting needs & constraints of all stakeholders, or stalls until adequate data is available. </li></ul><ul><li>Gets results without relying on authority. </li></ul><ul><li>Flexible, adjusts to changing circumstances. </li></ul><ul><li> </li></ul><ul><li>Take charge/Extreme action </li></ul><ul><li>Clear, firm choice that may not be easy or popular. </li></ul><ul><li>Comfortable with conflict, negotiation and pressure. </li></ul><ul><li>Can damage relationships and alienate himself. </li></ul><ul><li>May be seen as inflexible and agressive. </li></ul>
  11. 11. DECISIONMAKING 10 <ul><li>COHESIVENESS </li></ul><ul><li>INSULATION </li></ul><ul><li>HIGH STRESS </li></ul><ul><li>STRONG DIRECTIVE LEADERSHIP </li></ul>Negative team behavior
  12. 12. DECISIONMAKING 11 Why group decisions often fail <ul><li>Premature agreement </li></ul><ul><li>Feedback reinforces a « right » choice </li></ul><ul><li>Members don’t see flaws in the thought process </li></ul><ul><li>Polarization inhibits rational progress </li></ul>
  13. 13. DECISIONMAKING 12 <ul><li>SELF CENSORSHIP </li></ul><ul><li>MAJORITY PRESSURE </li></ul><ul><li>INVULNERABILITY ILLUSION </li></ul><ul><li>ERRONEOUS STEREOTYPING </li></ul>Groupthink
  14. 14. DECISIONMAKING 13 <ul><li>Too few alternatives are examined </li></ul><ul><li>Too few objectives are fixed </li></ul><ul><li>Biased analysis of data </li></ul>Results of groupthink
  15. 15. A minority of just 5% can influence a crowd’s direction. The other 95% follow without realising it. Professor Jens Krause, Faculty of Biological Sciences, Leeds University. DECISIONMAKING 14
  16. 16. DECISIONMAKING 15 <ul><li>Withholds his ideas at first </li></ul><ul><li>Encourages divergence </li></ul><ul><li>Makes sure minority views are heard </li></ul><ul><li>Separates facts from judgements </li></ul><ul><li>Encourages each member to speak on all key issues </li></ul><ul><li>Recognizes the risks of negative behaviour </li></ul>A good team leader