Organizational Behavior

CHAPTER 13 – DECISION MAKING
- Decision environments: problem-solving or opportunity-seeking decisions made under 3 decisions 301
o Certain: full info on the expected results
o Risk: provide probabilities regarding expected results for decision-making alternatives
o Uncertain: provide no info to predict expected results for decision-making alternatives
- Types of decisions: routine problemsin the work force call for different types of decisions 302
o Programmed: implement solutions that have already been determined by past experience as appropriate for the problem at hand
o Nonprogrammed: created to deal uniquely with a problem at hand
- Decision Making Models 303
o Classical: views decision makers as acting in a world of complete certainty
o Behavioral: views decision makersas acting only in terms of what they perceive about a given situation
- Human limitations 304
o Cognitive limitations: restrict the info-processing capabilities; info deficiency and overload compromise the ability of decision makers to achieve complete certainty and otherwise operate according to the classical model
o Bounded Rationality: while individuals are reasoned and logical, humans havetheir limits; individuals interpret and make sense of things within the context of their personal situations; they engage in decision making “within the box” of a simplified view of a more complex reality.
- Intuition 305
o What is intuition? The ability to know or recognize quickly the possibilities of a situation
o What is its basis? Adds elements of personality and spontaneity todecision-making, as a result it offers the potential for creativity and innovation
o What is its value in today’s decision making environment? It works perfect with managers, since they work fast, do a variety of things and are frequently interrupted. Managers favor communication so when making decisions they will do it in an interactive way instead of systematic (which is not with intuition); they do nothave a lot of quiet time to think, plan and make decisions systematically; managers should be confident in using their intuitive skills.
- Judgmental heuristics: heuristics are simplifying strategies or “rules of thumb” used to make decisions 306
o Availability: bases a decision on recent events relating to the situation at hand
o Representative: bases a decision on similarities bet/ thesituation at hand and stereotypes of similar occurrences.
o Confirmation trap: the tendency to seek confirmation for what is already thought to be true and not search for disconfirming info.
o Hindsight trap: a tendency to overestimate the degree to which an event that has already taken place could have been predicted
- What is creativity? 307
o Creativity generates unique and novel responses toproblems.
- How can creativity be fostered? 308
o Diversify teams to include members of different backgrounds, training, and perspectives
o Encourage analogical reasoning (applying a concept or idea from one domain to another)
o Stress periods of silent reflection
o Record all ideas so that the same ones are not rediscovered
o Establish high expectations for creativity
o Develop a physicalspace that encourages fun, divergent ideas
- Escalating commitment 313
o It is the tendency to continue a previously chosen course of action even when feedback suggests that it is failing
o Executives make public commitment to implementation, once implementation begins, managers are often reluctant to change their minds and admit a mistake.
o Good decision makers know when to cal it quits.CHAPTER 14 – COMMUNICATION
- Formal Communication Channels 322
o Follow the official chain of command; recognized as authoritative so usually communication of policies, procedures, and other official announcements adhere to them
- Informal Communication Channels 322
o Do not follow the chain of command; “networking” takes place here; coexists with the formal channels but diverge from...