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Denise Rousseau's Generic EBMgt Class 5


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Denise Rousseau's Generic EBMgt Class 5: Decision Awareness: Types of Managerial Decisions and Evidence-Based Processes

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Denise Rousseau's Generic EBMgt Class 5

  1. 1. Evidence-Based ManagementEvidence-based Decision ProcessDenise M. RousseauH.J. Heinz II University Professor of Organizational BehaviorCarnegie Mellon Universitydenise@cmu.edu1
  2. 2. #4 Become “Decision Aware” Identify different kinds of decisions you face.What kinds of different approaches are used tomake them? Why? How can you determine whether you made a“good decision” when you cannot know theoutcome?Five Good EBMgt Habits2
  3. 3. What Is “Decision Quality”? Discuss a management decision you madewithin last year you are particularly proudof…. Why are you proud of it?3
  4. 4. “Decision Awareness” Promotes Decision QualityTo manage decisions, know what decisions must bemade.A TASK FOR TODAY:Map those decisions in your areathat affect key outcomes. Who is responsible? (Are they prepared?) What information is required? (Will it be available whenneeded?)Periodically, revisit decision mgt and revise as needed.Five Good EBMgt Habits4
  5. 5. Five Good EBMgt HabitsAwareness Calls Attention to Decision Process.Proper Processes Improve Decision Quality What is the process for making the decision? Different processes may work better depending on… Whether information is readily available for decision Whether basically same decision re-occurs Extent of uncertainty and unknown risk factors5
  6. 6. Five Good EBMgt HabitsAwareness Calls Attention to Decision Process.Proper Processes Improve Decision QualityROUTINE DECISIONSDevelop an evidence-based procedure or process for making aquality decision that can be used repeatedly. Validated checklists—for running an effective meeting Protocols--structured interview questions in hiring or promotionWHAT REPEAT ORGANIZATIONAL DECISIONSCOULD BENEFIT FROM ROUTINIZATION?6
  7. 7. Five Good EBMgt HabitsAwareness Calls Attention to Decision Process.Proper Processes Improve Decision QualityDECISIONS WITH KNOWN UNKNOWNSA systematic sequence of information gathering, discussion anddeliberationWHAT IMPORTANT ORGANIZATIONAL DECISIONSCOULD BENEFIT FROM A SYSTEMATIC DECISIONPROCESS?7
  8. 8. Beneficiary Interests/ValuesDecisionOtherContributorsPreliminaries1—Need2—Mode3—InvestmentCore4—Options5—Possibilities6—Judgment7—Value8—TradeoffsAftermath9—Acceptability10—ImplementationDecision Processes: Cardinal Issue Resolution8
  9. 9. Five Good EBMgt HabitsAwareness Calls Attention to Decision Process.Proper Processes Improve Decision QualityFOR DECISIONS WITH UNKNOWN UNKNOWNS“YOU CANNOT FORECAST BUT YOU MAY ANTICIPATE”- Pilot-test- Run competing experiments and evaluate outcomes- Learning by doing with after action reviewsWHAT ORGANIZATIONAL DECISIONS WARRANTEXPERIMENTS OR MINDFUL LEARNING BYDOING?9
  10. 10. #5 Reflect on Decision’s EthicalImplications Who are stakeholders for this decision? Possible effects? How might the decision be altered to optimize positivestakeholder effects and reduce negative? ETHICAL ISSUES EXIST AT ALL STAGE OF DECISIONFive Good EBMgt Habits10
  11. 11. M. Blastland & A. Dilnot (2007) The Tiger that Wasn’t: Seeing through a World of Numbers. London, Profile Books.J. Ehrlinger, K. Johnson, M. Banner, D. Dunning, J. Kruger. (2008) Why the unskilled are unaware: Further explorations of(absent) self-insight among the incompetent. Organizational Behavior and Human Decision Processes, 105,(1) pg.98D. Kahneman (2011) Thinking, Fast and Slow. New York: Farrar, Straus & Giroux.E.A. Locke (ed.), Handbook of Principles of Organizational Behavior, 2nd edition, 2009. Malden, MA: Blackwell.D. M. Rousseau (2012) Oxford Handbook of Evidence-Based Management, New York.D.M. Rousseau, D.M. & E. Barends (2011) Becoming an evidence-based manager. Human Resource ManagementJournal, 21, 221-235.D.M. Rousseau, J. Manning & D. Denyer (2008) Evidence in Management and Organizational Science: Assembling thefield’s full weight of scientific knowledge through reflective reviews. Annals of the Academy of Management, 2,475-515.N.Silver (2012) The Signal and the Noise: Why So Many Predictions Fail but Some Don’t. New York: Penguin.J.F. Yates. (2003). Decision management. San Francisco: Jossey-Bass.J.F. Yates & M.D. Tschirhart (2006). Decision making expertise. In K. A. Ericsson, N. Charness, P. J. Feltovich, & R. R.Hoffman. (Eds.). Cambridge handbook of expertise and expert performance (pp. 421-438). New York: CambridgeUniversity Press.J.F. Yates, E.S. Veinott & A.L. Patalano (2003). Hard decisions, bad decisions: On decision quality and decision aiding.In S. L. Schneider & J. C. Shanteau (Eds.), Emerging perspectives on judgment and decision research (pp. 13-63).New York: Cambridge University Press.Got Evidence? References11