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Point-earning instructions please follow correctly.
· All point earning discussion questions are worth 20 points in
total - 14 for the Initial Post and 6 for the Reply Post
· Initial Post - 10 points for answering the question in its
entirety including all aspects of the question
and defining all terms
· Initial Post - 2 points for using the text plus at least two
additional scholarly sources (not a dictionary or encyclopedia)
· Initial Post - 2 points for appropriate length of the post
· Initial Post - Points will be deducted for "technical skills"
such as APA errors, spelling, etc. - not writing at a junior-
collegiate level
· Extra Credit – Extra points will be awarded for the use of
additional sources (enhanced research consisting of
at least the text and three additional scholarly sources)
and then
using those sources to compare (find similarities) and
contrast (find direct disagreements)
· Reply Post - 4 points for comparing and contrasting the Initial
Post with other sources
· Reply Post - 2 points for using at least the text and one
additional scholarly source
· Each discussion should not be more than a page to a page and
half
· Use APA Reference List, Times New Roman, 12 for each
discussions
· Reply Post - Points will be deducted for "technical skills" such
as APA errors, spelling, etc. - not writing at a junior-collegiate
level
Week 8, Chapter 7 DQ
Must post first.
Upper management needs to make a tough decision on whether
to close 3 of the 200 stores that are unprofitable. Closing the
stores will mean laying off 45 employees right before the
holiday season. Leaving the communities also means that local
people will have no place to purchase reasonably priced shoes
and sneakers. The financial bottom line would be improved by
closing the stores. Use the decision tree in the text to
recommend what management should do. Be sure to consider
each of the steps.
Compare and contrast the benefits of using a decision tree
between Kinicki and Soignet and that of other scholarly
sources. As always, write in the third person.
You must start a thread before you can read and reply to other
threads
Week 9, Chapters 8 & 9 DQ
Must post first.
After John's father died, John inherited his successful tire
business, Thrifty Tire. John wants to make sure the company's
culture, which his father had built for over 40 years, does not
get lost but instead remains embedded in the organization. First,
summarize 4 of the 12 ways that a particular culture can become
embedded in an organization. Then explain how John might use
each technique to keep Thrifty Tire's corporate culture strong,
with an emphasis on employee development, a family-like
atmosphere, and a dedication to offering the best service and the
lowest prices.
Be sure to compare and contrast at least one of the ways to
embed culture between Kinicki and Soignet (2022) with that of
other scholarly sources. As always, write in the third person.
Week 10, Chapter 10 DQ
Must post first.
Describe the four "Core Self-Evaluations."
Compare and contrast between what various sources claim
regarding at least one of the "Core Self-Evaluations." As
always, write in the third person.
Week 11, Chapters 11 & 12 DQ
Name and describe at least four ways managers can reduce
stressors that lead to employee burnout. Differing sources have
various recommendations for managers in their efforts to reduce
stress. Be sure to compare and contrast between these sources.
As always, write in the third person.
Week 13, Chapter 14 DQ
Based on your research using Kinicki and Soignet (2022) as
well as at least one additional scholarly source, discuss the
following…
What are task-oriented leadership, relationship oriented
leadership and passive leadership styles? Explain how they
differ. Give an example of each.
Remember to apply critical thought – compare and contrast
between the text and other sources in your research regarding
these leadership styles.
As always, write in the third person.
Week 14, Chapter 15 DQ
Provide three suggestions to help a person become a good
listener. Compare and contrast the recommendations of various
sources. As always, write in the third person.
Week 15, Chapter 16 DQ
Consider the manager of a high-volume electronics store,
Electricity, Inc. Each of the salespeople has a very ambitious
monthly sales goal; for the store to meet its overall goal, all of
the salespeople need to meet their individual goals. Apply each
of the four keys to a successful control system to Electricity,
Inc., explaining how the manager should implement an effective
control system.
Remember to compare and contrast between sources and as
always, write in the third person.
Page 266
7
Individual and Group Decision Making
How Managers Make Things Happen
Kapook2981/iStock/Getty Images
After reading this chapter, you should be able to:
1.
LO 7-1Compare rational and nonrational decision
making.
2.
LO 7-2Explain how managers can make decisions that
are both legal and ethical.
3.
LO 7-3Describe how evidence-based management and
data analytics contribute to decision making.
4.
LO 7-4Describe how artificial intelligence is used in
decision making.
5.
LO 7-5Compare the four decision-making styles.
6.
LO 7-6Identify barriers to rational decision making and
ways to overcome them.
7.
LO 7-7Outline the basics of group decision making.
8.
LO 7-8Describe how to develop the career readiness
competencies of critical thinking/problem solving and decision
making.
FORECAST
What’s Ahead in This Chapter
We begin by distinguishing between rational and nonrational
decision making and describe two nonrational models. We next
discuss ethical decision making. The focus then turns to
evidence-based decision making and the use of analytics and big
data, which is followed by a related discussion of artificial
intelligence and its impact on decision making. We then explore
four general decision-making styles, describe 10 common
decision-making biases, and review important aspects of group
decision making and group problem-solving techniques. We
conclude with a Career Corner that focuses on how you can
develop the career readiness competencies of critical
thinking/problem solving and decision making.
Page 267
How to Make Good Decisions
“Every time you take on a challenge or make a decision, there’s
a chance you may come up short, and that’s alright,” says Aaron
Meyers, President & COO of Hammer and Nails.
1 Making mistakes is always a possibility, but that can’t
stop you from making decisions. And you can learn from the
result, which will help you hone your career readiness
competencies of critical thinking/problem solving and decision
making.
2 So how do you make good decisions? This chapter
will discuss several kinds of decisions and different models for
decision making. But here are a few general guidelines that
apply to any formal or informal decision process.
Keep Your Mind Open
If you make prejudgments about a situation rather than keeping
an open mind, you risk acting on your biases rather than on the
facts. “Over the course of my career I’ve become increasingly
open-minded, rather than becoming more set in my ways,” says
Cindy Hook, chief executive officer of Deloitte Asia Pacific.
3 To make good decisions you need to be ready to take
in all valid information, even if it contradicts or questions your
own beliefs and experience. (Just because you don’t agree with
something, that doesn’t make it wrong.)
Use your communication skills to become a good and patient
listener and, with your proactive learning orientation, load up
on new facts and informati on. Don’t decide the outcome ahead
of time, either. It’s sometimes easy to assume a decision will
not turn out well, or a problem will remain unsolved. Taking a
positive approach instead can only improve your decision
making.
4 In summary, communication, proactive learning
orientation, and a positive approach are career readiness
competencies that contribute to your open-mindedness and can
assist you in making better decisions.
Prioritize Your Decisions
Sometimes you may have to make multiple decisions, and all
within a limited time. Some may be large and some small. How
do you effectively manage this task? Here are four steps to help
you prioritize decisions and get to the important ones first.
5
1. List the decisions you need to make over the relevant time
period. Perhaps over the next six months you need to decide
where and how to begin your job search, whether to buy a new
car, and what to do with the belongings you left at home when
you moved to your dorm or apartment. Make sure your list is
complete and that you’ve identified the information you need to
make each decision, such as the size of your budget for buying a
car and the average price for the model you want.
2. Characterize each decision according to its complexit y and
magnitude. Who or what is affected by each, and how much do
you need in terms of tools and information to make your
choice? The more ramifications and the more information
needed, the larger and more complex the decision.
3. Organize your decisions into three categories: Strategic
decisions, like deciding how to frame your job search, will
require the most time and attention, can affect the largest
number of people, and probably also require you to gather the
most information. Significant decisions demand less energy and
information but are still important. Whether to buy a new car
might fit into this category. Finally, quick decisions are the
least complex you face, require the least input, and can often be
resolved if you apply a simple rule. Deciding what old
belongings to keep, throw out, or give away falls into this
category.
4. Note the timing for each decision. If you’ve done the first
three steps, this one should be easy. For instance, you may need
to complete (not just start) your job search before you can buy a
car or even know whether you need one.
Move On from Your Mistakes
If a decision doesn’t turn out as well as you’d hoped, start by
forgiving yourself. Solving problems and making decisions are
skills everyone can practice and get better at. Next, review the
steps you took to arrive at your decision, and if it’s not already
clear what went wrong, try to identify the weak spot in your
process.
6 Did you get too little information or fail to consider
opposing viewpoints? Did you spend too much time on quick
decisions and not enough on strategic or significant ones? If the
problem is one you can remedy, congratulations. You’ve just
learned something, and you’ve improved your career readiness
skills too. Now move on!
Practice Mindfulness
We described mindfulness in
Chapter 1 as awareness that comes from paying
attention on purpose, in the present moment, and
nonjudgmentally to the unfolding of experience in each
moment.
7 Mindfulness improves your decision making because
it reduces the amount of activation in your amygdala: The
amygdala is like an alarm bell that engages your “fight-or-flight
neural and hormonal systems.”
8 Bottom line, a less active amygdala reduces
emotionality and aggression while increasing self-control and
thoughtfulness.
9 You can become more mindful by practicing
meditation that focuses on your breath. Jon Kabat-Zinn, the
father of mindful mediation, recommends that you stop, sit
down, and “become aware of your breathing once in a while
throughout the day.” You can do this for seconds or minutes.
The key is to “let go into full acceptance of the present moment,
including how you are feeling and what you perceive to be
happening. . . . just breathe and let go. Breathe and let be.”
10 Research uncovered that mindfulness promotes
innovativeness, self-determination, intrinsic motivation,
positive interpersonal relationships, and the reduction of
conflict.
11 Mindfulness also assists you in making more ethical
decisions. This is evidenced by multiple studies finding a
positive link between mindfulness and ethical decision making.
12 Angelo, one of your authors, started his classes with
a 10-minute meditation to prepare his students for staying
focused during classroom lectures and activities.
Page 268
For Discussion Which of the above suggestions seem most
practical? How might you implement them?
7.1 Two Kinds of Decision Making: Rational and
NonrationalTHE BIG PICTURE
Decision making, the process of identifying and choosing
alternative courses of action, may be rational, but it is often
nonrational. Four steps in making a rational decision are (1)
identify the problem or opportunity, (2) think up alternative
solutions, (3) evaluate alternatives and select a solution, and (4)
implement and evaluate the solution chosen. Two examples of
nonrational models of decision making are (1) satisficing and
(2) intuition.LO 7-1
Compare rational and nonrational decision making.
Making good decisions is something you need to master now.
Marcia Daszko, a writer for Silicon Valley Business Journal,
believes that companies should not expect senior leaders to
make all the decisions. She concluded that companies will be
more effective if they involve employees in the decision-making
process.
13 Will you be ready to make decisions when senior
management comes to you with a problem?
This section will help you develop the career readiness
competency of decision making. We’ll first introduce the steps
to making a rational decision. The focus then turns to
nonrational decision making, which includes satisficing and
intuition. Finally, we’ll provide tips for improving your
intuition.
A
decision is a choice made from among available
alternatives.
Decision making is the process of identifying and
choosing alternative courses of action.
If your company’s product is in first place in its market and
making a lot of money, is that a sign of great decision making?
Consider the decisions that frame success at
Starbucks.EXAMPLEStarbucks Uses Decision Making to
Reclaim Its Soul
Starbucks’ chairman emeritus, Howard Schultz, provides a good
illustration of how effective strategic decision making can help
a large organization find its way again.
Schultz joined the Seattle-based company as marketing director
in 1982, when it was a small chain selling coffee equipment.
Over nearly two decades, he gained control of the firm and,
inspired by the coffee houses of Europe, transformed it into a
comfortable “third place” between home and work, a place with
a neighborhood feel selling fresh-brewed by-the-cup lattes and
cappuccinos. Starbucks, named for the first mate of the whaling
ship in Herman Melville’s Moby Dick, had become the world’s
largest specialty coffee retailer by 2000. Today, the company
continues to dominate the market with more than $26 billion in
revenue and 31,256 stores in 2019.
14A Crisis Brews
Schultz stepped down as CEO in 2000 after serving 14 years as
the coffee company’s leader. For a while the business continued
to thrive, but then two things happened that provoked a crisis.
First, the company “lost a certain soul,” says Schultz, as
management became more concerned with profits than with
store atmosphere and company values and extended existing
product lines rather than creating new ones. Second, during the
recession that began in 2007, tight-fisted consumers abandoned
specialty coffees, causing the stock price to nosedive. Schultz
returned as CEO in January 2008, after an eight-year absence.
A latte growth. A Starbucks storefront in Bangkok, Thailand.
Asia accounted for almost half of the company’s growth in
2019.
i viewfinder/ShutterstockThe Reinvention Begins
“I didn’t come back to save the company—I hate that
description,” Schultz told an interviewer. “I came back to
rekindle the emotion that built it.”
15 Among the risks he took to restore the company’s
luster was closing 800 U.S. stores, laying off 4,000 employees,
and letting go most top executives. As a morale booster, he flew
10,000 store managers to New Orleans, recently destroyed by
hurricane Katrina. Along with attending strategy sessions, they
bonded in community-service activities, contributing thousands
of volunteer hours to help restore parts of the city. “We wanted
to give back to that community post-Katrina,” says Schultz,
“and remind and rekindle the organization with the values and
guiding principles of our company before we did a stitch of
business.”
Page 269The Payoff
After a couple of years, the company turned around, the result
of better operations, modernized technology, a reinvigorated
staff, and several innovations: It offered new coffee products,
switched to a cold-brew process for iced coffee instead of
simply brewing hot coffee and then chilling it, acquired (and
then later closed) the La Boulange bakery chain, opened (and
then closed) Teavana “tea bars,” enabled customers to pay for
coffee via a mobile-payment app, and even launched alcohol
sales.
16 By early 2016, its revenues had risen 146% over the
last decade, while earnings grew more than fivefold.
17Today’s Challenges
Schultz stepped down in April 2017 and was replaced by Kevin
Johnson, the company’s president and COO. Johnson is facing
some challenges of his own. For example, the company decided
in 2020 to temporarily close over half of its 4,300 China-based
locations as the country battled the COVID-19 pandemic. This
came at the same time that Chinese rival Luckin Coffee
overtook Starbucks as the largest coffee chain in the country,
mounting the greatest challenge Starbucks has faced in China.
Johnson defended his decision to close stores saying it was done
to protect the health and well-being of Starbucks employees.
18 The company also decided to phase out plastic
straws from all of its locations by 2020. Though many
supported the environmentally conscious decision, the company
faced backlash from disability advocates who said disabled
individuals would not be able to comfortably consume their
beverages without the use of straws.
19YOUR CALL
As Starbucks faces new challenges, what can CEO Johnson
learn from the company’s past decisions in order to guide his
decision-making process?
Rational Decision Making: Managers Should Make Logical and
Optimal Decisions
The
rational model of decision making, also called the
classical model, explains how managers should make decisions.
It assumes managers will make logical decisions that are the
optimal means of furthering the organization’s best interests.
Typically there are four stages associated with rational decision
making. (See
Figure 7.1.) These also are the steps in the standard
model of problem solving. As stage 1 in the figure shows, for
example, a decision is often an opportunity to solve a problem,
which is a gap between an actual and a desired state.
FIGURE 7.1The four stages in rational decision making
Page 270
Stage 1: Identify the Problem or Opportunity—Determining the
Actual versus the Desirable
As a manager, you’ll probably find no shortage of
problems, or difficulties that inhibit the achievement of
goals: customer complaints, supplier breakdowns, staff
turnover, sales shortfalls, competitor innovations, low employee
motivation, and poor quality.
However, you also will often find
opportunities—situations that present possibilities for
exceeding existing goals. It’s the farsighted manager, however,
who can look past the steady stream of daily problems and seize
the moment to actually do better than the goals he or she is
expected to achieve. When a competitor’s top salesperson
unexpectedly quits, that creates an opportunity for your
company to hire that person away to promote your product more
vigorously in that sales territory.
Whether you’re confronted with a problem or an opportunity,
the decision you’re called on to make is how to
make improvements—how to change conditions from the
present to the desirable. This is a matter of
diagnosis—analyzing the underlying causes.
Stage 2: Think Up Alternative
Solution
s—Both the Obvious and the Creative
Employees burning with bright ideas are an employer’s greatest
competitive resource. “Creative thinking is a way of looking at
problems from a fresh perspective with nontraditional solutions,
according to Forbes writer Amanda Cotler. It’s “the most
important business strategy.”
20
After you’ve identified the problem or opportunity and
diagnosed its causes, you need to come up with alternative
solutions.
Stage 3: Evaluate Alternatives and Select a

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Point-earning instructions please follow correctly. · All point ea

  • 1. Point-earning instructions please follow correctly. · All point earning discussion questions are worth 20 points in total - 14 for the Initial Post and 6 for the Reply Post · Initial Post - 10 points for answering the question in its entirety including all aspects of the question and defining all terms · Initial Post - 2 points for using the text plus at least two additional scholarly sources (not a dictionary or encyclopedia) · Initial Post - 2 points for appropriate length of the post · Initial Post - Points will be deducted for "technical skills" such as APA errors, spelling, etc. - not writing at a junior- collegiate level · Extra Credit – Extra points will be awarded for the use of additional sources (enhanced research consisting of at least the text and three additional scholarly sources) and then using those sources to compare (find similarities) and contrast (find direct disagreements) · Reply Post - 4 points for comparing and contrasting the Initial Post with other sources · Reply Post - 2 points for using at least the text and one additional scholarly source · Each discussion should not be more than a page to a page and half · Use APA Reference List, Times New Roman, 12 for each discussions · Reply Post - Points will be deducted for "technical skills" such as APA errors, spelling, etc. - not writing at a junior-collegiate level
  • 2. Week 8, Chapter 7 DQ Must post first. Upper management needs to make a tough decision on whether to close 3 of the 200 stores that are unprofitable. Closing the stores will mean laying off 45 employees right before the holiday season. Leaving the communities also means that local people will have no place to purchase reasonably priced shoes and sneakers. The financial bottom line would be improved by closing the stores. Use the decision tree in the text to recommend what management should do. Be sure to consider each of the steps. Compare and contrast the benefits of using a decision tree between Kinicki and Soignet and that of other scholarly sources. As always, write in the third person. You must start a thread before you can read and reply to other threads Week 9, Chapters 8 & 9 DQ Must post first. After John's father died, John inherited his successful tire business, Thrifty Tire. John wants to make sure the company's
  • 3. culture, which his father had built for over 40 years, does not get lost but instead remains embedded in the organization. First, summarize 4 of the 12 ways that a particular culture can become embedded in an organization. Then explain how John might use each technique to keep Thrifty Tire's corporate culture strong, with an emphasis on employee development, a family-like atmosphere, and a dedication to offering the best service and the lowest prices. Be sure to compare and contrast at least one of the ways to embed culture between Kinicki and Soignet (2022) with that of other scholarly sources. As always, write in the third person. Week 10, Chapter 10 DQ Must post first. Describe the four "Core Self-Evaluations." Compare and contrast between what various sources claim regarding at least one of the "Core Self-Evaluations." As always, write in the third person. Week 11, Chapters 11 & 12 DQ Name and describe at least four ways managers can reduce stressors that lead to employee burnout. Differing sources have various recommendations for managers in their efforts to reduce stress. Be sure to compare and contrast between these sources. As always, write in the third person.
  • 4. Week 13, Chapter 14 DQ Based on your research using Kinicki and Soignet (2022) as well as at least one additional scholarly source, discuss the following… What are task-oriented leadership, relationship oriented leadership and passive leadership styles? Explain how they differ. Give an example of each. Remember to apply critical thought – compare and contrast between the text and other sources in your research regarding these leadership styles. As always, write in the third person. Week 14, Chapter 15 DQ Provide three suggestions to help a person become a good listener. Compare and contrast the recommendations of various sources. As always, write in the third person. Week 15, Chapter 16 DQ Consider the manager of a high-volume electronics store, Electricity, Inc. Each of the salespeople has a very ambitious monthly sales goal; for the store to meet its overall goal, all of the salespeople need to meet their individual goals. Apply each
  • 5. of the four keys to a successful control system to Electricity, Inc., explaining how the manager should implement an effective control system. Remember to compare and contrast between sources and as always, write in the third person. Page 266 7 Individual and Group Decision Making How Managers Make Things Happen Kapook2981/iStock/Getty Images After reading this chapter, you should be able to: 1. LO 7-1Compare rational and nonrational decision making. 2. LO 7-2Explain how managers can make decisions that are both legal and ethical. 3. LO 7-3Describe how evidence-based management and data analytics contribute to decision making. 4. LO 7-4Describe how artificial intelligence is used in decision making. 5. LO 7-5Compare the four decision-making styles. 6. LO 7-6Identify barriers to rational decision making and ways to overcome them.
  • 6. 7. LO 7-7Outline the basics of group decision making. 8. LO 7-8Describe how to develop the career readiness competencies of critical thinking/problem solving and decision making. FORECAST What’s Ahead in This Chapter We begin by distinguishing between rational and nonrational decision making and describe two nonrational models. We next discuss ethical decision making. The focus then turns to evidence-based decision making and the use of analytics and big data, which is followed by a related discussion of artificial intelligence and its impact on decision making. We then explore four general decision-making styles, describe 10 common decision-making biases, and review important aspects of group decision making and group problem-solving techniques. We conclude with a Career Corner that focuses on how you can develop the career readiness competencies of critical thinking/problem solving and decision making. Page 267 How to Make Good Decisions “Every time you take on a challenge or make a decision, there’s a chance you may come up short, and that’s alright,” says Aaron Meyers, President & COO of Hammer and Nails. 1 Making mistakes is always a possibility, but that can’t stop you from making decisions. And you can learn from the result, which will help you hone your career readiness competencies of critical thinking/problem solving and decision making. 2 So how do you make good decisions? This chapter will discuss several kinds of decisions and different models for decision making. But here are a few general guidelines that
  • 7. apply to any formal or informal decision process. Keep Your Mind Open If you make prejudgments about a situation rather than keeping an open mind, you risk acting on your biases rather than on the facts. “Over the course of my career I’ve become increasingly open-minded, rather than becoming more set in my ways,” says Cindy Hook, chief executive officer of Deloitte Asia Pacific. 3 To make good decisions you need to be ready to take in all valid information, even if it contradicts or questions your own beliefs and experience. (Just because you don’t agree with something, that doesn’t make it wrong.) Use your communication skills to become a good and patient listener and, with your proactive learning orientation, load up on new facts and informati on. Don’t decide the outcome ahead of time, either. It’s sometimes easy to assume a decision will not turn out well, or a problem will remain unsolved. Taking a positive approach instead can only improve your decision making. 4 In summary, communication, proactive learning orientation, and a positive approach are career readiness competencies that contribute to your open-mindedness and can assist you in making better decisions. Prioritize Your Decisions Sometimes you may have to make multiple decisions, and all within a limited time. Some may be large and some small. How do you effectively manage this task? Here are four steps to help you prioritize decisions and get to the important ones first. 5 1. List the decisions you need to make over the relevant time period. Perhaps over the next six months you need to decide where and how to begin your job search, whether to buy a new car, and what to do with the belongings you left at home when you moved to your dorm or apartment. Make sure your list is
  • 8. complete and that you’ve identified the information you need to make each decision, such as the size of your budget for buying a car and the average price for the model you want. 2. Characterize each decision according to its complexit y and magnitude. Who or what is affected by each, and how much do you need in terms of tools and information to make your choice? The more ramifications and the more information needed, the larger and more complex the decision. 3. Organize your decisions into three categories: Strategic decisions, like deciding how to frame your job search, will require the most time and attention, can affect the largest number of people, and probably also require you to gather the most information. Significant decisions demand less energy and information but are still important. Whether to buy a new car might fit into this category. Finally, quick decisions are the least complex you face, require the least input, and can often be resolved if you apply a simple rule. Deciding what old belongings to keep, throw out, or give away falls into this category. 4. Note the timing for each decision. If you’ve done the first three steps, this one should be easy. For instance, you may need to complete (not just start) your job search before you can buy a car or even know whether you need one. Move On from Your Mistakes If a decision doesn’t turn out as well as you’d hoped, start by forgiving yourself. Solving problems and making decisions are skills everyone can practice and get better at. Next, review the steps you took to arrive at your decision, and if it’s not already clear what went wrong, try to identify the weak spot in your process. 6 Did you get too little information or fail to consider opposing viewpoints? Did you spend too much time on quick decisions and not enough on strategic or significant ones? If the problem is one you can remedy, congratulations. You’ve just learned something, and you’ve improved your career readiness skills too. Now move on!
  • 9. Practice Mindfulness We described mindfulness in Chapter 1 as awareness that comes from paying attention on purpose, in the present moment, and nonjudgmentally to the unfolding of experience in each moment. 7 Mindfulness improves your decision making because it reduces the amount of activation in your amygdala: The amygdala is like an alarm bell that engages your “fight-or-flight neural and hormonal systems.” 8 Bottom line, a less active amygdala reduces emotionality and aggression while increasing self-control and thoughtfulness. 9 You can become more mindful by practicing meditation that focuses on your breath. Jon Kabat-Zinn, the father of mindful mediation, recommends that you stop, sit down, and “become aware of your breathing once in a while throughout the day.” You can do this for seconds or minutes. The key is to “let go into full acceptance of the present moment, including how you are feeling and what you perceive to be happening. . . . just breathe and let go. Breathe and let be.” 10 Research uncovered that mindfulness promotes innovativeness, self-determination, intrinsic motivation, positive interpersonal relationships, and the reduction of conflict. 11 Mindfulness also assists you in making more ethical decisions. This is evidenced by multiple studies finding a positive link between mindfulness and ethical decision making. 12 Angelo, one of your authors, started his classes with a 10-minute meditation to prepare his students for staying focused during classroom lectures and activities. Page 268 For Discussion Which of the above suggestions seem most practical? How might you implement them?
  • 10. 7.1 Two Kinds of Decision Making: Rational and NonrationalTHE BIG PICTURE Decision making, the process of identifying and choosing alternative courses of action, may be rational, but it is often nonrational. Four steps in making a rational decision are (1) identify the problem or opportunity, (2) think up alternative solutions, (3) evaluate alternatives and select a solution, and (4) implement and evaluate the solution chosen. Two examples of nonrational models of decision making are (1) satisficing and (2) intuition.LO 7-1 Compare rational and nonrational decision making. Making good decisions is something you need to master now. Marcia Daszko, a writer for Silicon Valley Business Journal, believes that companies should not expect senior leaders to make all the decisions. She concluded that companies will be more effective if they involve employees in the decision-making process. 13 Will you be ready to make decisions when senior management comes to you with a problem? This section will help you develop the career readiness competency of decision making. We’ll first introduce the steps to making a rational decision. The focus then turns to nonrational decision making, which includes satisficing and intuition. Finally, we’ll provide tips for improving your intuition. A decision is a choice made from among available alternatives. Decision making is the process of identifying and choosing alternative courses of action. If your company’s product is in first place in its market and making a lot of money, is that a sign of great decision making? Consider the decisions that frame success at
  • 11. Starbucks.EXAMPLEStarbucks Uses Decision Making to Reclaim Its Soul Starbucks’ chairman emeritus, Howard Schultz, provides a good illustration of how effective strategic decision making can help a large organization find its way again. Schultz joined the Seattle-based company as marketing director in 1982, when it was a small chain selling coffee equipment. Over nearly two decades, he gained control of the firm and, inspired by the coffee houses of Europe, transformed it into a comfortable “third place” between home and work, a place with a neighborhood feel selling fresh-brewed by-the-cup lattes and cappuccinos. Starbucks, named for the first mate of the whaling ship in Herman Melville’s Moby Dick, had become the world’s largest specialty coffee retailer by 2000. Today, the company continues to dominate the market with more than $26 billion in revenue and 31,256 stores in 2019. 14A Crisis Brews Schultz stepped down as CEO in 2000 after serving 14 years as the coffee company’s leader. For a while the business continued to thrive, but then two things happened that provoked a crisis. First, the company “lost a certain soul,” says Schultz, as management became more concerned with profits than with store atmosphere and company values and extended existing product lines rather than creating new ones. Second, during the recession that began in 2007, tight-fisted consumers abandoned specialty coffees, causing the stock price to nosedive. Schultz returned as CEO in January 2008, after an eight-year absence. A latte growth. A Starbucks storefront in Bangkok, Thailand. Asia accounted for almost half of the company’s growth in 2019. i viewfinder/ShutterstockThe Reinvention Begins “I didn’t come back to save the company—I hate that description,” Schultz told an interviewer. “I came back to rekindle the emotion that built it.” 15 Among the risks he took to restore the company’s
  • 12. luster was closing 800 U.S. stores, laying off 4,000 employees, and letting go most top executives. As a morale booster, he flew 10,000 store managers to New Orleans, recently destroyed by hurricane Katrina. Along with attending strategy sessions, they bonded in community-service activities, contributing thousands of volunteer hours to help restore parts of the city. “We wanted to give back to that community post-Katrina,” says Schultz, “and remind and rekindle the organization with the values and guiding principles of our company before we did a stitch of business.” Page 269The Payoff After a couple of years, the company turned around, the result of better operations, modernized technology, a reinvigorated staff, and several innovations: It offered new coffee products, switched to a cold-brew process for iced coffee instead of simply brewing hot coffee and then chilling it, acquired (and then later closed) the La Boulange bakery chain, opened (and then closed) Teavana “tea bars,” enabled customers to pay for coffee via a mobile-payment app, and even launched alcohol sales. 16 By early 2016, its revenues had risen 146% over the last decade, while earnings grew more than fivefold. 17Today’s Challenges Schultz stepped down in April 2017 and was replaced by Kevin Johnson, the company’s president and COO. Johnson is facing some challenges of his own. For example, the company decided in 2020 to temporarily close over half of its 4,300 China-based locations as the country battled the COVID-19 pandemic. This came at the same time that Chinese rival Luckin Coffee overtook Starbucks as the largest coffee chain in the country, mounting the greatest challenge Starbucks has faced in China. Johnson defended his decision to close stores saying it was done to protect the health and well-being of Starbucks employees. 18 The company also decided to phase out plastic straws from all of its locations by 2020. Though many
  • 13. supported the environmentally conscious decision, the company faced backlash from disability advocates who said disabled individuals would not be able to comfortably consume their beverages without the use of straws. 19YOUR CALL As Starbucks faces new challenges, what can CEO Johnson learn from the company’s past decisions in order to guide his decision-making process? Rational Decision Making: Managers Should Make Logical and Optimal Decisions The rational model of decision making, also called the classical model, explains how managers should make decisions. It assumes managers will make logical decisions that are the optimal means of furthering the organization’s best interests. Typically there are four stages associated with rational decision making. (See Figure 7.1.) These also are the steps in the standard model of problem solving. As stage 1 in the figure shows, for example, a decision is often an opportunity to solve a problem, which is a gap between an actual and a desired state. FIGURE 7.1The four stages in rational decision making Page 270 Stage 1: Identify the Problem or Opportunity—Determining the Actual versus the Desirable As a manager, you’ll probably find no shortage of problems, or difficulties that inhibit the achievement of goals: customer complaints, supplier breakdowns, staff turnover, sales shortfalls, competitor innovations, low employee motivation, and poor quality.
  • 14. However, you also will often find opportunities—situations that present possibilities for exceeding existing goals. It’s the farsighted manager, however, who can look past the steady stream of daily problems and seize the moment to actually do better than the goals he or she is expected to achieve. When a competitor’s top salesperson unexpectedly quits, that creates an opportunity for your company to hire that person away to promote your product more vigorously in that sales territory. Whether you’re confronted with a problem or an opportunity, the decision you’re called on to make is how to make improvements—how to change conditions from the present to the desirable. This is a matter of diagnosis—analyzing the underlying causes. Stage 2: Think Up Alternative Solution s—Both the Obvious and the Creative Employees burning with bright ideas are an employer’s greatest competitive resource. “Creative thinking is a way of looking at problems from a fresh perspective with nontraditional solutions, according to Forbes writer Amanda Cotler. It’s “the most important business strategy.” 20 After you’ve identified the problem or opportunity and
  • 15. diagnosed its causes, you need to come up with alternative solutions. Stage 3: Evaluate Alternatives and Select a