4. SUPPORT IN
BUSINESS
FOUNDATIONS
OF MDM
Conflict and Negotiation
• Conflict Process
• Conflict and Unit
Performance
• Negotiation
• The Negotiation Process
Making Rational Decisions
in Negotiations
• Decision-Analytic Approach
to Negotiations
• Claiming Values in
Negotiation
• Creating Value in
Negotiation
• The Tools of Value Creation
Defining and Classifying Groups
• Formal and Informal Groups
• Stages in Group Development
1. Forming
2. Storming
3. Norming
4. Performing
5. Adjourning
6. B
Group: Two or more individuals, interacting and
interdependent, who have come together to
achieve particular objectives.
Formal Group: A designated work group defined by an
organization's structure.
Informal Group: A group that is neither formally structured nor
organizationally determined; such
a group appears in response to the need for social contact.
Why do people form groups? Individuals tend to identify
themselves socially as members of a
group for the following reasons:
• Similarity – group members have the same values, beliefs,
and/or demographic similarities
• Distinctiveness – group members share uncommon or rare
characteristics (e.g. demographic,
alma mater)
• Status – group members share non-economical qualities, such
as honor, prestige, and religion
• Uncertainty reduction – group membership helps some people
to understand who they are
and how they fit into the world
1-1
6
9. group that are shared by the group’s members. Norms can cover
different
aspects of group behavior, such as:
• performance norms – how to get the job done, levels of output
(per hour,
day, week), what level of delay/interruption is appropriate
• appearance norms – dress codes and other unspoken rules
• social arrangement norms – with whom to eat lunch, whether
to form or
not form friendships (on and off the job)
• resource allocation norms – assignment of difficult jobs,
distribution of
pay or equipment
The individual behavior of a group member can be demonstrated
with three
additional categories:
1. Conformity: the adjustment of one's behavior to align with
the norms of
the others
2. Reference group: important groups to which individuals
belong (or hope
to belong) and with whose norms individuals are likely to
conform
3. Deviant workplace behavior (antisocial behavior; workplace
incivility):
voluntary behavior that violates significant organizational
norms and, in
so doing, threatens the well-being of the organization or its
members
12. Roles Norms Status Size Cohesiveness Diversity
The final property of groups we consider is
diversity in the group's membership, the
degree to which members of the group are
similar to, or different from, one another.
Culturally and demographically diverse groups
may perform better over time—if they can get
over their initial conflicts.
The impact of diversity on groups is mixed:
• It is difficult to be in a diverse group in the
short term;
• If members can weather their differences,
over time diversity may help them be more
open-minded and creative and to do
better;
• Even positive effects are unlikely to be
especially strong.
The degree to which group members are loyal to each other and
are
motivated to stay in the group is called cohesiveness.
The relationship between group cohesiveness, performance
norms, and
productivity is shown on the figure, below and can be explained
as follows:
• The relationship of
cohesiveness and productivity
depends on the performance-
14. • It is time consuming.
• There is pressure towards conformity in groups.
• A few members, or only one, can dominate
group discussion.
• Group decisions suffer from ambiguous
responsibility.
Effectiveness and Efficiency:
• Whether groups are more effective than individuals depends
on
the criteria you use.
• In terms of accuracy, group decisions will tend to be more
accurate.
• On the average, groups make better-quality decisions than
individuals.
• If decision effectiveness is defined in terms of speed,
individuals
are superior.
• If creativity is important, groups tend to be more effective
than
individuals.
• If effectiveness means the degree of acceptance the final
solution
achieves, groups are better.
• In terms of efficiency, groups almost always stack up as a
poor
second to the individual decision maker. The exceptions tend to
17. action.
As a result the group is convening too rapidly on the chosen
conclusion. The symptoms of groupthink include:
• Group members rationalize any resistance to the
assumptions they have made.
• Members apply direct pressures on those who
momentarily express doubts.
• Those members who hold differing points of view seek to
avoid deviating from group consensus by keeping silent.
• There appears to be an illusion of unanimity.
Minimizing groupthink is possible if managers:
• keep the group size less than 10 members;
• encourage group leaders to play an impartial role;
• appoint one group member to play the role of devil's
advocate;
• use exercises that stimulate active discussion of diverse
alternatives without threatening the group or intensifying
identity protection.
Another potential enemy of good group decision processes is
the so-called Groupshift (or Group Polarization).
Groupshift describes:
• a change between the group's decision and individual
decision that a member within the group would make;
• a shift that can be toward either conservatism or greater
risk—but generally is toward a more extreme version of the
19. Brainstorming
Groups
Nominal
Groups
Electronic
Meeting
Members interact with
each other face to face.
Individual members meet face to face to pool their
judgments in a systematic but independent fashion.
• Discussions or interpersonal communications
during the decision-making process are restricted.
• Group members are all physically present, but
members operate independently.
• A problem is presented to the group meeting by a
moderator (one of the group members).
• Before any discussion takes place, each member
independently writes down ideas related to the
problem.
• After this silent period, each member presents
one idea to the group. No discussion takes place
until all ideas have been presented and recorded.
• The group discusses the ideas for clarity and
evaluates them.
25. (i) your Best Alternative To a Negotiated Agreement (BATNA)
and
(ii) the other site's BATNA
• Predicting the settlement range
• Who will do the negotiating?
• Where will it take place?
• What time constrains, if any, will apply?
• To what issues will negotiation be limited?
• Will the negotiators follow a specific procedure if an impasse
is reached?
• Preparation and exchange (between the parties) of the initial
proposals
and demands.
• Based on the exchanged initial positions, both parties will
explain,
amplify, bolster, and justify their original demands.
• Both parties are informing and educating each other on the
issues, why
they are important, and how each party arrived at its initial
demands.
• Exchange of any documentation that helps each party to
support its
position.
• The actual give-and-take in trying to hash out an agreement.
• Both parties will undoubtedly need to make concessions.
• Formalizing the agreement.
• Development of procedures necessary for
34. 4. Using the components you’ve identified, sketch the flywheel.
Where
does the flywheel start—what’s the top of the loop? What
follows
next? And next after that? Each component of the flywheel
should
feed into the next stage of the flywheel. Outline the path back to
the
top of the loop and be able to explain why this loop cycles back
upon
itself to accelerate momentum in your particular context.
5. Diagram the entire loop using four to six components. If you
have
more than six components, you’re making it too complicated;
consolidate and simplify the model to capture the essence of
your
flywheel.
6. Test the flywheel against your list of successes and failures.
Does your
empirical experience validate it? Tweak the diagram until you
can
explain your biggest replicable successes as outcomes arising
directly
from the flywheel and your biggest disappointments as failures
to
execute or adhere to the flywheel.
o The big winners are those who take a flywheel from ten turns
to a
billion turns rather than crank through ten turns, start over with
a new
flywheel, push it to ten turns, only then to divert energy to yet
another
36. fulfillment centers and the servers needed to run the website.
o This greater efficiency then enabled it to lower prices further.
o Feed any part of this flywheel, they reasoned, and it should
accelerate the loop.
o And so the flywheel would turn, building momentum.
o Push the flywheel; accelerate momentum.
o Then repeat, then again, and again, and again.
Brad Stone, The Everything Store: Jeff Bezos and the Age of
Amazon,
Back Bay Books, 2014, ISBN-10: 0316219282
Describe the business model of Amazon.com
as of the end of the case (spring 2017)
Task 1.2: C
31
Task 1.3:
Amazon Core Competence-Market Matrix
Source: Rothaermel, F.T. (2018) Strategic Management, 4e,
McGraw-Hill
(based on Hamel Y Prahalad, 1994)
Building new core competences to
protect and extend current market
position
Building new core competences to
protect and extend current market
37. position
Leveraging core competences to
improve current market position
Redeveloping and recombining
core competences to compete in
markets of the future
Existing New
N
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w
E
x
is
ti
n
g
C
o
re
C
o
m
p
39. Question 1 (first team member): Task 1.2
Question 2 (second team member): Task 1.3
-Class Exercise
Preparation for A1
STEP 4: Writing the
managerial report
Task 1.2:
Describe the business model of
Amazon.com as of the end of the
case (spring 2017) slides 28 --30
Bb Forum W3: Decision making on group level D
Select and review ONE of the suggested articles
Based on examples from one of the recommended articles
selected by you, the lecture notes, the text, and other
sources, discuss one or several of the themes:
Select and review one of the following articles:
HBR, The Overcommitted Organization, Mortensen M at al,
Sep-Oct 2017