Models of the Decision Making Process
The most critical activity in the organization can take minutes or years.
Rational Models - Normative v. Exploratory Methods
Exploratory methods begin from the present, and see where events and trends might take us; normative methods begin from the future, asking what trends and events would take us there.
Alternatives to Rational Models - March and Simon's approach:
- Satisficing is a strategy that attempts to meet criteria for adequacy, rather than to identify an optimal solution. A satisficing strategy may often be (near) optimal if the costs of the decision-making process itself, such as the cost of obtaining complete information, are considered in the outcome calculus.
- Bounded Reality is a concept based on the fact that rationality of individuals is limited by the information they have, the cognitive limitations of their minds, and the finite amount of time they have to make decisions.
- Intuitive Process - Sometimes decision makers have to come to an immediate conclusion and use gut instincts, without being aware of it, to guide their choices.
- Analogical - managers make decisions based on what worked in the past.
- Garbage Can - problems, solutions, participants and choices are all dumped together in an independent fashion.
Fisher believes that groups go through a series of phases in an attempt to reach a decision:
- Orientation - members become familiar with each other and the problem (what can you bring to the table)
- Conflict - possible solutions to the problem are presented and debated.
- Emergence - the group arrives at some kind of consensus.
- Reinforcement - the decision is supported.
Ineffective Small-Group Decision Making
Janis' Group Think - A mode of thinking that people engage in when they are deeply involved in a cohesive group when members striving for unanimity overrides their motivation to realistically appraise alternate course of action.
- Illusion of Invulnerability
- Direct Pressure
- Illusion of Unanimity
- Self-Censorship
The Pepcon Disaster
Participation in Decision Making
Job Satisfaction
The Participative Process:
The Affective Model - Higher order needs are satisfied (self-esteem and actualization).
Te Cognitive Model - Improves flow of information through the org.
Overall, people like to be included in the decision making process and seeing their input valued and implemented.
