This document discusses decision making, creativity, and ethics in organizational contexts. It defines decision making and the rational decision making process. It notes that real decision making can differ due to bounded rationality, problem identification biases, and intuition. Group decision making is discussed, noting strengths like more information but also weaknesses like conformity. Techniques for group decision making include brainstorming and nominal groups. Creativity in organizations benefits decision making, and factors that influence individual and organizational creativity are outlined. The document also discusses ethics in decision making using criteria like utilitarianism and rights, and factors that influence ethical behavior.

2. DECISION MAKING

3. DECISION MAKING Definition:- Choice made from two or more alternatives. It occurs as a reaction to a problem or an opportunity. Problem – difference between current state of affairs and desired state, require consideration of alternative courses of action Opportunity- occurs when something unplanned happens, giving rise to thoughts about new ways of proceeding.

4. RATIONAL DECISION MAKING PROCESS Decision maker makes consistent, high quality choices within specified constraints. Six steps in rational decision making model as listed below.

5. 1. Define the problem 2. Identify the criteria 6. Select the best alternatives 3. Allocate weights to the criteria Making a decision 4. Develop alternatives 5. Evaluate the alternatives

6. Assumptions of model Problem clarity Known options Clear preferences Constant preferences No time or cost constraints Maximum payoff

7. Reality of decision making a) Problem identification - problems that are visible tend to be selected compared to important ones - easier to recognize visible problem - decision makers want to appear competent

8. b) Bounded rationality in considering alternatives - people are limited by their ability to interpret, process and act on information - individuals not able to discover and consider every alternative for a decision - settle on alternative that is good enough - choose a final solution that satisfies rather than optimizes

9. c) Intuition - form of extrasensory power or sixth sense - 60% experienced professionals in US major organization they use intuition make workplace decision - often used in hiring, performance appraisal, harassment complaints, safety issues - best applied when time is short, policies, rules and guidelines do not give advice or uncertainties

10. GROUP DECISION MAKING STRENGTH WEAKNESS More complete information and knowledge Increased diversity of views Higher quality decisions More accurate More creativity Increased acceptance of a solution Time consuming Conformity pressures Dominated by one or a few members Uncertain responsibility

11. GROUP vs THE INDIVIDUAL DECISION MAKING

12. GROUP DECISION MAKING TECHNIQUES Interacting groups Brainstorming Nominal group technique Electronic meetings

14. CREATIVITY IN ORGANIZATIONAL DECISION MAKING Creativity:- The process of creating product, ideas or procedures that are original and useful to organization Benefits of individual creativity:- High quality product Effective decision making Better group performance Innovative solution

15. CREATIVE INDIVIDUALS ALBERT EINSTEIN THOMAS EDISON MARIE CURIE WOLFGANG AMADEUS MOZART PABLO PICASSO MICHAEL JORDAN

16. Table above shows:- A study of lifetime creativity of 461 men & women

17. FACTORS AFFECT INDIVIDUAL CREATIVITY PERSONAL CHARACTERISTICS PERSONALITY & COGNITIVE SKILLS Broad interest Attraction to complexity Intuition Aesthetic sensitivity Toleration of uncertainty Self confidence Motivated by intrinsic interest Challenge Task satisfaction Self- set goals

18. ORGANIZATIONAL FACTORS AFFECT CREATIVITY Challenge Freedom Resources Work group features Supervisory encouragement Organizational support

19. FACTORS WHICH BLOCK CREATIVITY Expected evaluation Surveillance External motivators Competition Constrained choice

21. ETHICS IN DECISION MAKING Ethics :- Study of moral values or principles that guide our behavior and inform us whether our actions are right or wrong

22. FOUR ETHICAL DECISION CRITERIA Utilitarian criterion Rights Justice Care

23. FACTORS INFLUENCE ETHICAL DECISION MAKING BEHAVIOR Stages of moral development Locus of control Organizational environment

24. Is a Decision ethical? Yes Unethical Ethical Yes Question 1 Is this decision motivating by self-serving interest? Question 3 Is this decision fair and equitable? No No Unethical Yes Question 2 Does the decision respect the rights of the individuals affected? No Unethical

25. CONCLUSION Decision making, creativity and ethics are the main criteria need to be considered by all the individual in organization. The success of each organization depends heavily on this three aspects.

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