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Steps in Decision Making Process
- 1.Identify a Problem
- 2. Identify Decision Criteria
- 3. Allocate Weights to Criteria
- 4. Develop Alternatives
- 5. Analyze Alternatives
- 6. Select an Alternative
- 7. Implement the Alternative
- 8. Evaluate Decision Effectiveness
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Definition of a Problem
Discrepancy between an existing and a desired state of affairs
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Characteristics of Well Designed Goals
- Written Down
- Outcomes rather than actions
- Measurable
- Clear time frame
- Challenging yet attainable
- Communicated to all members
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Steps in Goal Setting
- 1. Review Organization's mission
- 2. Evaluate Available Resources
- 3. Determine Goals Individually or with input from others
- 4. Write down goals and communicate
- 5. Review Results and whether goals are being met.
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Decision Making Styles
- Analytic Conceptual
- Directive Behavioural
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Structured Problems vs Unstructured
- Straightforward
- Familiar
- Easily Defined
- Unusual or New
- Info is incomplete
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Programmed Decision vs Unprogrammed
Repetitive decision that is handled by a routine approach
Unique, nonrecurring, require custom made solutions
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Traditional Goal Setting vs Management by Objectives
- TGS- goals set at top, broken into subgoals at each level.
- MBO- Jointly determined by all employees
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Rational Decision Making-Assumptions
- Clear unambiguous
- single well defined goal
- preferences are clear, constant and stable
- no time or cost constraints
- final choice will max. payoff
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Escalation of Commitment
Increased commitment of a previous decision despite evidence it might have been wrong
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Strategic Management Process
- Identify Mission and Goals
- Conduct Internal Analysis
- Conduct External Analysis
- Formulate Strategies
- Implement Strategies
- Evaluate Results
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Levels of Organizational Strategy
- Corporate
- Business
- Functional
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SWOT
- Strengths
- Weaknesses
- Opportunities
- Threats
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Mechanistic VS Organic Culture
- MechanisticHighly Specialized
- Rigid
- High Formalization
- Centralization
- Narrow Spans of Control
- OrganicCross-Functional teams
- Free Flow of Info
- Low Formalization
- Decentralization
- Wide Spans of Control
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Chain of Command
Continuous line of authority from top of organization to bottom that clarifies who reports to whom
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Centralization VS Decentalization
Centralization- Degree to which decision making is concentrated at a single point
Decentralization-Degree to which lower level employees provide input of make decisions
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Types of Departmentalization
- Functional
- Geographical
- Product
- Process
- Customer
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Different Views of Ethics
- Utilitarian-Basis of outcomes or Consequences
- Rights-Respecting and protecting individual rights
- Theory of Justice-Fair decisions via rules/regulations
- Integrative Social Contacts- fair decisions based on existing ethical norms in industry/communite
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Factors that affect employees ethical behaviour
- Stage of Moral Development
- Individual Characteristics
- Structural Variables
- Issue Intensity
- Organizational Culture
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Social Responsibility
Business's intention, beyond legal and economic obligations, to do the right things and act in ways that are good for society
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Values Based Management
Approach to managing in which managers establish and uphold an organizations shared values
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Recruitment
Process of Locating, identifying and attracting capable applicants
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Sexual Harassment
Unwelcome Behaviour of sexual nature that negatively affects the work environment or leads to adverse job related consequences for the employee
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Types of Selection Devices
- Application Forms
- Written Tests
- Performance-Simulation Tests
- Interviews
- Background Investigations
- Physical Exams
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Validity and Reliability of Selecting Employees
- Validity-Proven Relationship between selection device and some relevant job criterion
- Reliability-Ability of a selection device to measure the same thing constantly.
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Managers VS Leaders
- Managers-coordinates work activities to achieve a goal
- Leaders-Influence others and provide vision/strategy to organization
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Seven Traits of Effective Leadership
- Drive
- Desire to Lead
- Honesty/Integrity
- Self-Confidence
- Intelligence
- Job-Related Knowledge
- Extrovision
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University of Iowa studies in Leadership
- Autocratic-Leader is in charge
- Democratic-Leader and employees work together
- Laissez-Faire-FREEDOM!
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Fiedler's Contingency Theory
Effective Group Performance depends on the proper match between a leaders style and the degree to which the leader is to control and influence.
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Motivation Process
- Unsatisfied Need
- Tension
- Effort
- Satisfied Need
- Tension Reduction
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Equity Theory
Employees compares their job input/output ratio to other coworkers and responds to any inequalities
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Herzberg's Motivation-Hygiene Theory
Intrinsic Factors related to job satisfaction and motivation, whereas extrinsic factors are related to job dissatisfaction
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Advantages/Disadvantages of group-decision making
- Ad- More complete knowledge, more diverse, increased acceptance, increased legitimacy
- Dis-More time, opportunity for minority domination, pressure to conform
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Perceived incompatible differences that result in interference of competition
Conflict
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3 views of Conflict
- Traditional-All conflict avoided
- Human Relations-Natural and inevitable
- Interactionalist-Conflict necessary for the group to work effectively
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5 Types of Conflict Resolution
- Forcing
- Accommodating
- Collaborating
- Compromising
- Avoiding
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